Auto loan taxes

laperacfo · 06-28-2011, 03:46 PM

Can you pay taxes upfront on a auto loan so it won't get charged interest?

WWONG · 06-28-2011, 03:47 PM

Regardless, you still owe the same amount in the end, whether you pay the taxes or more of the remaining principle. So basically, paying the taxes = more down payment. Answer is yes, I guess.

wat

MadDog · 06-28-2011, 03:48 PM

Quote:

Originally Posted by laperacfo

Can you pay taxes upfront on a auto loan so it won't get charged interest?

You pay interest on the loan principal. The more you pay upfront, the less interest you'll pay over the life of the loan.

Does that answer your question?

Freakazoid · 06-28-2011, 03:57 PM

Quote:

Originally Posted by WWONG

Regardless, you still owe the same amount in the end, whether you pay the taxes or more of the remaining principle. So basically, paying the taxes = more down payment. Answer is yes, I guess.

wat

correct and pretty well worded. ('I guess')

jpsum · 06-28-2011, 03:58 PM

You can pay the whole transaction upfront - not just the tax.

laperacfo · 06-28-2011, 03:58 PM

I know how it works. I was getting different numbers from bmwconfig.com. I'm using bmwconfig.com to calculate monthly payments based on financing and I'm getting different numbers. If I add the tax into the capital cost I get one number and if I add the tax as a % in the tax field I get another number.

If I pay taxes upfront I don't have to pay interest on it.

jpsum · 06-28-2011, 04:01 PM

Quote:

Originally Posted by laperacfo

I know how it works. I was getting different numbers from bmwconfig.com. I'm using bmwconfig.com to calculate monthly payments based on financing and I'm getting different numbers. If I add the tax into the capital cost I get one number and if I add the tax as a % in the tax field I get another number.

If I pay taxes upfront I don't have to pay interest on it.

If you pay the whole thing upfront, you don't have to pay ANY interest.

miiipilot · 06-28-2011, 05:06 PM

Quote:

Originally Posted by MadDog

You pay interest on the loan principal. The more you pay upfront, the less interest you'll pay over the life of the loan.

This

miiipilot

solefald · 06-28-2011, 05:16 PM

Quote:

Originally Posted by laperacfo

I know how it works.

no you don't.

E90SoFlo · 06-28-2011, 06:32 PM

Use cash, no taxes :P LOL

ideliver · 06-28-2011, 06:56 PM

OP you need to rethink your post...clearly math is not a strength

06-28-2011, 03:46 PM	#1
laperacfo First Lieutenant 50 Rep 372 Posts Drives: BMW Join Date: Jun 2006 Location: NY iTrader: (0) Garage List 2012 X5 [0.00]	Auto loan taxes Can you pay taxes upfront on a auto loan so it won't get charged interest?
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06-28-2011, 03:47 PM	#2
WWONG Banned 110 Rep 1,830 Posts Drives: 2012 BMW X5 xDrive35d Join Date: May 2010 Location: Houston, TX iTrader: (14)	Regardless, you still owe the same amount in the end, whether you pay the taxes or more of the remaining principle. So basically, paying the taxes = more down payment. Answer is yes, I guess. wat
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06-28-2011, 03:58 PM	#5
jpsum Major 286 Rep 1,088 Posts Drives: 2010 TSX Join Date: Dec 2008 Location: New Haven area iTrader: (4)	You can pay the whole transaction upfront - not just the tax.
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06-28-2011, 03:58 PM	#6
laperacfo First Lieutenant 50 Rep 372 Posts Drives: BMW Join Date: Jun 2006 Location: NY iTrader: (0) Garage List 2012 X5 [0.00]	I know how it works. I was getting different numbers from bmwconfig.com. I'm using bmwconfig.com to calculate monthly payments based on financing and I'm getting different numbers. If I add the tax into the capital cost I get one number and if I add the tax as a % in the tax field I get another number. If I pay taxes upfront I don't have to pay interest on it.
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06-28-2011, 06:32 PM	#10
E90SoFlo Banned 217 Rep 2,669 Posts Drives: E90 335i Join Date: Jun 2011 Location: Naples, FL iTrader: (9)	Use cash, no taxes :P LOL
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06-28-2011, 06:56 PM	#11
ideliver Major 246 Rep 1,247 Posts Drives: E60 M5, E71 X6M, E46 M3 Join Date: Feb 2008 Location: At the gas station iTrader: (0) Garage List 2006 BMW E46 M3 'vert [0.00] 2008 BMW M5 [0.00] 2011 BMW E92 [0.00] 2012 BMW X6M [0.00] 2003 E46 M3 [0.00]	OP you need to rethink your post...clearly math is not a strength __________________ Current: 2006 E46 M3 'vert 6-sp 2008 E60 M5, 2011 E92 328 6-sp, 2011 E70 N55, 2012 E71 X6M
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