I'm looking to buy a 2007 accord from a local dealer. It has 83k on it and the dealer wants 10k for it. I drove it and everything seems fine. Wondering if this is a good deal and if I should look for anything in particular as far as the car goes thank you.

 

Bump... My credit isnt the best. The dealer approved me for a 48 month loan and the rate came out to be about 9 percent ( 240 a month). Ive never financed a car before and this seems a bit sketchy. I feel like I could find an older generation honda with the same miles for a lot cheaper. Wondering of these rates are normal?

 

Don't know if you bought the car or not, but while 9% is high it doesn't make all that much difference over a more competitive 4% on a monthly basis. About $20/month.

But consider: in 42 months that 2007 will be 10 years old and you'll still be making payments on it for another 6 months. Will you really keep it that long? If you keep cars a long time, say 6-8 years, you should be OK. If you wind up selling it in 2 years you'll just fall farther behind and have to roll your remaining balance into the next loan. Might be better to find a used car for $5000 you can pay off in two years with the same $240/month. Then save your payments for the next two and you'll be able to afford a brand new car four years from now if you want one. You'll have over $6000 for a downpayment even if your old car is only worth a few hundred bucks by then.

-John (who paid cash for his new 2013 Accord EX-L and isn't rich)