Quote:
Originally Posted by UNKNOWN_370
Where one goes, the other follows. Why not the two of you get married.  |
Or you could just answer my (completely legitimate) question, rather than risking a ban with insults.
Based on the number when I got my Subaru, there's usually at least a percentage point difference between a 3 yr and a 6 yr loan. Let's go with 2% and 3% to keep the math easy.
A $30,000 loan at 2% for 3 years will results in monthly payments of $859.28, and total interest paid of $933.99.
The same amount, at 3% over six years results in payments of $455.81, and total interest of $2818.34. Double up on payments, and you have monthly payments of 911.62, and total interest paid of $1345.61.
In sum, unless you pay more than $411.62 extra in finance charges (find a new bank), this six year loan scheme doesn't seem to work.
To add insult to injury, there's usually more than 1PP gain going from 3 to 6 years...furthering the spread.