How do paying off cars with a down payment work?

For example, I'm trying to buy a 2007 Honda Accord 154,000 Miles for $5495, I'm able to put down $2500. So will the $2500 come out of the full price & i just pay the remainder or will i end up paying more? I'm a 18 year old female, freshman in college just trying to purchase my own car.

You pay the remainder of the price plus interest.

$5495 154,000 miles are you insane its been round the block more times than Kim Kardashian

"will i end up paying more?"

Yes, you will. That is how financing works. You will pay the remaining cost of the vehicle plus whatever finance interest rate you agreed to.

You'll pay the remainder PLUS interest, plus sales tax on the full amount, PLUS a financing "loan initiation" fee, PLUS licensing and registration if that's included.

Oh, and before you even thing of buying that car, find out how much full coverage insurance will be because that is a requirement of financing. Get a quote from at least 2 or 3 companies, but be prepared for sticker shock. You may decide you can afford it, or you'll probably be making a much smaller down-payment on the car because insurance will probably cost between $2000 and $3000 per year on your own, and a bit less if its under your parents policy.

Finally, don't even think of buying a car with that many miles unless you pay an independent person to do a thorough pre-buy inspection where they check everything mechanical and then test drive it. NEVER trust the word of a seller. If you don't do that, you';re asking for trouble. My advice is that unless you absolutely need a car don't buy one. It will keep you poor and living hand-to-mouth throughout college, especially when it breaks down because you know nothing about maintaining cars or assessing car problems.

Yes you will have to pay financing fees for the money you borrow.

Your down payment will go towards the purchase price. You will need to get the money for the rest somehow. Usually that means you borrow it. Let s assume you get a loan from a bank or credit union.

$5495 plus sales tax, licensing fees, etc. Let s say that comes to $6000. That may be high, but you will need to find this information before you commit to buying the car. So $6000 minus the $2500 down payment means you finance $3500. That amount loaned at 6% interest for 2 years will give you a payment of about $155 per month. At the end of that time, you own the car. You will have paid the $3500 plus about $225 interest.

You will also need to carry insurance on the car. As someone else said, get at least 2-3 quotes from different places. At your age, you re probably better to be on your parent s policy if possible. Find out what it would cost, and be prepared to be a bit shocked. It may approach what your car payment is. It was something like that when my son was on our policy.

Finally, also have the car inspected. A used car with that many miles is bound to have some issues. Hondas are known for being reliable, but unless you re buying this from a parent, you don't know how it was maintained. Take it to a mechanic you trust, and ask for an inspection. Ask for a list of what must be fixed before you drive it (safety items like brakes, or badly worn tires, for example) what should be fixed soon, and what you can live with. Ask the mechanic if they would buy the car for their daughter at this price. BTW, you will be the one that pays for this inspection, not the seller. And since you paid, you don't have to share that info with the seller.

Buying a car at your age when you re going to school is an expensive proposition. Consider carefully if you need it, and if you can afford it. This is a good time to set up a budget. Don't forget to budget for other stuff, like maintenance, gas, etc. Oil changes, filters, snow tires if you need them where you live, all these add up.

Almost nobody will lend less than $5000. Almost nobody will lend to an 18 year old.

Work and bill

Just pay cash. It's like buying any item.