Wow, I would rather be cash rich and credit poor, but to each their own. I could never part with that kind of money for a depreciating asset. I would rather put $16K into something will make money for me, but again, to each their own.

Another thing I would never do is finance more than 5% at 60 months. Anyone financing more either didn't do their homework, or has poor credit (and maybe shouldn't be buying a new car in the first place). 72 months is also a rip, and a common tactic in the auto industry to get people in a lower payment at the expense of the unsuspecting consumer paying way more interest than he/she should. If you can't afford a payment at 60 months or less you can't afford the car you're buying.

I'm putting down about $5K or $6K and will finance for 48 months at about 1.9%. The payment will be a little higher, but there is something about giving a bank more money than I have to that bothers me immensely. I was even thinking about 36 months and I may still do it, even though the payment would be quite high. Less money to the bank in interest, means more money in my pocket.

Also, don't forget the economy is doing sucky and there will probably be an interest rate cut soon. So hold off until purchasing anything new on credit for a few weeks.

 

3.5% for 36 months with Navy Federal.

 

Where are you getting 1.9 %? For the vast majority of people, an interest rate of 5% is pretty good.

 

From my credit union. My credit is also stellar. That's at 48 months by the way. I financed my current car through them and my payment record is spotless. No credit card debt, no student loan debt, no nothing. My debt to equity ratio is also very, very good.

5% isn't bad but it's higher than I would want to pay.