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Anonymous
Anonymous asked in Business & FinancePersonal Finance · 2 months ago

Help me understand how dealerships work?

I’m interested in buying a 2019 Mazda cx 3 that costs $18,800 (out the door price). I was told my payments would be $275 a month for 72 months (10% down payment). If you multiply $275 by 72, that means I’ll end up paying around $21,000 in full by the end of the 72 months term. How the heck will I end up paying $21,000 at the end of my term when the out the door price was $18,800? I later realized that a new 2020 Mazda cx 3 is $20,000 (out the door price) with a $309 monthly payment for 72 months. Both cars will have a 10% down payment. Makes more sense to just get a 2020 since both monthly payments are practically the same. 

7 Answers

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  • 2 months ago

    The "out the door price" is what you have to put down when you get the car to be done paying and not have to make any more payments. Because you are making payments for 72 months, you have to pay more.

    • john2 months agoReport

      Dear %0%
      CASH-NET LOAN INVESTMENT INT USA ,They offer all kinds of loans to pay your Bills within the range of a minimum amount of 3,000.00 ,$250.000.00 USD to a Maximum of 10.Million at 3% interest rate.Contact us with the email below via .lawwisebestserviceloan@gmail.com

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  • You're not factoring in interest on a loan.

    • john2 months agoReport

      Dear %0%
      CASH-NET LOAN INVESTMENT INT USA ,They offer all kinds of loans to pay your Bills within the range of a minimum amount of 3,000.00 ,$250.000.00 USD to a Maximum of 10.Million at 3% interest rate.Contact us with the email below via .lawwisebestserviceloan@gmail.com

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  • Eva
    Lv 5
    2 months ago

    You have to pay interest on the loan.

    • john2 months agoReport

      Dear %0%
      CASH-NET LOAN INVESTMENT INT USA ,They offer all kinds of loans to pay your Bills within the range of a minimum amount of 3,000.00 ,$250.000.00 USD to a Maximum of 10.Million at 3% interest rate.Contact us with the email below via .lawwisebestserviceloan@gmail.com

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  • 2 months ago

    No math skills, no car. The term you are looking for is INTEREST. You pay to borrow money !!

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  • 2 months ago

    Are you sure the $18800 / $20000 is really "out the door"?  I don't see it...

    - sales tax

    - licensing

    - other fees.

    I believe it is the final price you are paying for the car.  Not the out the door price.

    It makes the most sense to not get a 72 month loan. 

    • john2 months agoReport

      Dear %0%
      CASH-NET LOAN INVESTMENT INT USA ,They offer all kinds of loans to pay your Bills within the range of a minimum amount of 3,000.00 ,$250.000.00 USD to a Maximum of 10.Million at 3% interest rate.Contact us with the email below via .lawwisebestserviceloan@gmail.com

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  • NA
    Lv 7
    2 months ago

    The difference is the interest you will pay to borrow money to buy the car. Dealers often get incentives for the current year model only, which can make them as cheap as a prior year car.

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  • DEBS
    Lv 7
    2 months ago

    The cost of the vehicle, registration, fees, etc is what you reference as the 'out the door price'. You can get that if you pay cash. If you're paying monthly, then you are getting a loan. Loans are not with the dealer even if they do the paperwork for you.

    Loans aren't free. They come with interest which is the difference you're seeing.

    • Mia2 months agoReport

      Thanks for the simple explanation! 

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