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Discussion Starter #1
I posted a few days ago about a used 2009 Challenger SRT8 and wondered whether or not I should buy it... anyway, that deal felt a little sketchy so I started looking elsewhere.

I found a BRAND NEW 2010 Challenger SRT8 a few hours away that has been kept in the dealership's showroom and they are pretty motivated to get rid of it.

The MSRP is $56,000 CDN and they are selling it for $44,990 CDN. I am in the process of working out a deal and they will be knocking off a few more thousand dollars (realistically the final price will be somewhere around $43,000 CDN).

It sounds like an awesome deal to ME!

2010 SRT8, TorRed, 6-speed TREMEC, GPS Nav, Kicker System, Sunroof... pretty well fully loaded! It only has 300km on it!

My MAIN question comes down to financing... they are offering 3% variable over 84 months OPEN LOAN (can be paid off whenever I want)

-OR-

84 months @ 4.6% FIXED rate.

Which way should I go here??? Should I take the variable rate (and the risk) for the lower payment or should I be safe and lock in @ 4.6%?

I will know by Monday if the deal is going through or not because he is going to go talk to the owner to get the best deal possible.

Thoughts?
 

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Never take the variable rate, go for a fixed. Its better to know what the rate will be over the course of the loan. Interest rates will likely rise over the next few years, so that variable rate will go up as well. I'd strongly suggest keeping the loan term shorter than 84 months though. Usually you shouldn't finance a car for more than 3 years, doing it over 5 will mean your balance will not be low enough to trade it in and get your money back in 3 years, I expected to keep mine for alot longer than 3 years, so financed the balance for 72 months at 3.9%, but i put a hefty downpayment down on mine.
 

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84 months to finance a vehicle? That's kinda hard to follow...

I'd only finance a vehicle for "7" years (or even six) only if I KNEW that I'd keep the car forever.
 

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Discussion Starter #4
84 months to finance a vehicle? That's kinda hard to follow...

I'd only finance a vehicle for "7" years (or even six) only if I KNEW that I'd keep the car forever.
84 month financing is pretty common... They're open loans so if you want to put more down when you have it you can but it keeps your monthly or bi-weekly payment lower so it gives you flexibility.

I'd rather that so if I'm short one month on excess cash I can stick to the regular payment but if I have extra or work overtime I can make extra payments.

This will be my last car for a long, long time (IF I buy it...)
 

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I would not do variable unless you are prepared to refinance at a moments notice. Six months from now they could up it to 9% and you might lose affordability. If you live in Vegas you could consider it, but I wouldn't. 4.6 seems like a decent rate. My last car purchase I got a 2.9 for 5 years..... it was an easy choice.
 

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Couple months ago i got 3.0% on a used '09...so may want to look around a bit more on that rate. but vehicle sounds great!
 

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I Thought chrysler was doing 0% on all 2010 cars at this point? Is this only for the states? Ooooh and about 84 month open face loans, us Americans can't be expected to pay extra with our monthly payment during the loan cuz we will spend it on junk so we have to force ourselves to take the 60 month or lower term loans.
 

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1.9% on 84 months in Canada.

Dealer (business manager) gets a cut of the inflated rate. Proceed with caution..
 

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Hate to put this in here but if you need to take out a car loan for longer that 48 months than you may want to reconsider buying the car. I know we all love our Challengers but remember you don't want to be paying on a car for 7 years. That would mean that you are going to eventually pay well over MSRP for the vehicle. Also remember these cars use premium gas and if you don't have a spotless driving record you will also pay premium insurance. Something to think about.
 

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I trend to agree... 84 months is a LONG time to finance a car..... you will be paying a ton in interest so you should not really look at the drop in price of the car rather what you will pay over the life of the loan. I don't know of any car loans that you can take that you can't pay extra any month you want to cut down the balance... I do it all the time on our vehicles and our house.

Multiply out what the monthly payment is by 84 and you will see it is a substantial amount of $$$... granted you can pay extra.. but.. you never know in the next 7 years what curve balls life can throw at you... and you will be upside down for a very long time so it isn't like you could easily sell it.
 

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Discussion Starter #11 (Edited)
Funny thing is... My insurance actually went DOWN after selling the Speed3 for the Challenger (by several hundred per year)

Weird.

Also, if you finance short term it kicks the payment WAY up... Like $1200/month+ kind of up!

Then only the 5 richest king's of Europe could afford them!
 

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Discussion Starter #13
Why is a car in the US listed at 46K and up in Canada its 56K? Why so much difference?
Not sure since, at the moment, our dollar is worth more than yours AND the cars are BUILT IN CANADA to begin with!!!

We always get screwed on car prices though... :scratchhead:
 

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Most likely the exchange rate. but you'd think you'd save much of the delivery cost with no need to transport to the US.
 
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