Isar

I really didn’t want to repost this guy because he didn’t even “buy” from Carrio… but he came on here chest-puffing about how “smart” his deal was.
 Meanwhile he never once looked at his amortization schedule, prob didn’t know what that was until I mentioned it. He thought a “10% rate” meant 10% of his payment was interest.
 So with a $5,300 /mo payment, he assumed only ~$530 was interest. Reality check: Over $2,500 of that payment is interest.
Every. Single. Month. He thought he was paying down 4.7k equity and paying $530 in interest.
 Nope. It’s basically 50/50 $2,600+ interest, $2,600+ principal. And that’s before the parts he conveniently didn’t mention: 1. There’s a balloon payment at the end.
He won’t keep the car that long, but the payment still exists. 2. “First and last payment.”
That “last payment” is literally $5,300 set on fire if you don’t run the full term. 3. To exit the lease early?
Another $5,300 torched. Those two $5,300 payments alone push his effective rate way above the “10%” he thinks he’s paying. Moral of the story:
 Don’t flex financing terms if you’ve never opened the amortization table. Twitter will do the math for you. PS: Yes he saved $300k cash and that $300k cash can be used to make more than the interest he is paying. I’m not saying this is an awful deal. I’m saying he didn’t fully understand the deal and went into it with the wrong numbers.