Money Management

The monthly payments on a $100,000 car depend on the loan rate and term. Find out how much buying such an expensive car would end up costing you. 

A $100,000 car is undoubtedly an expensive vehicle, but there are some situations when you either want one or need one (such as if you have a large family and need a large SUV with three rows of seating and tons of towing capacity).

If you have the money in your bank account and can pay cash for such an expensive vehicle, then there’s nothing wrong with buying one as long as you aren’t compromising other important financial goals to do it. But, most people don’t just have that much sitting around in a savings account to pay cash for a car.

So, if you buy a $100,000 car, just how much would you spend on it if you took out a loan to make the purchase? Here’s what the monthly payments on a $100,000 car would look like.

This is what you’d spend on a $100,000 car

At the end of 2022, the average APR on a new financed car was 6.5%, per Edmunds. But the interest rate you would pay now might differ from this amount. Both the interest rate and the length of your auto loan repayment term determine what your monthly payments would be.

The table below shows what the monthly payments and total interest costs would be on a $100,000 vehicle, assuming you put 10% down ($10,000) and borrowed $90,000 to buy it.

As you can see, the payments are pretty high — even if you pick a loan with a long repayment timeline and even if you get a pretty low rate. Since you should typically try to keep your transportation costs to about 10% to 15% of monthly income (including loan payments and auto insurance), you’d need to make a good amount of money to be able to afford a car that comes with a $100,000 price tag.

How to keep your car loan costs down

If you do decide to borrow for a $100,000 car, you can try to reduce the monthly payments and total interest expenses you get hit with by:

Making as large of a down payment as you canImproving your credit score to help you qualify for the most affordable rateShopping around for your loan to get the best financing

What you don’t want to do, though, is stretch out your payoff time unnecessarily, as this significantly increases total costs and you could also end up owing more than the car is worth, which isn’t a great financial position to be in.

Choose the shortest loan term you can reasonably afford, get the best loan rate and terms that you can, and make sure you can still do other important things with your money before moving forward with buying such an expensive car.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Personal loans are available from a variety of lenders, including banks and online companies. Learn how to decide which type of lender is right for you. 

Personal loans are one of several borrowing options that are available to you if you need money for a large purchase or other expense.

A personal loan can be used for almost anything you want. Plus, you will generally be charged a lower rate of interest on a personal loan than you would if you charged purchases on a credit card and didn’t pay the balance in full by the time the statement comes due. You’ll also have a set payoff schedule with a personal loan.

If you decide that a personal loan is right for you, you’ll need to apply for one and get approved for it — you can even get pre-approved for personal loans. But where exactly can you apply? You have three primary options for personal loan lenders.

Banks

Both local banks and big national banks typically offer personal loans, although they sometimes limit eligibility to current customers (or offer their current customers more favorable terms).

One big benefit of working with a bank is that you can go talk to someone at your local branch if you need help with the loan application process. If you have your checking or savings account with the same bank, it can also be convenient to keep all of your financial accounts in one place. And some banks even give you a break on the interest rate if you’re already a customer and you set up autopay.

However, banks may not offer the most competitive rates or have the easiest qualifying process so if you decide to go this route, be sure you get several quotes from not just banks, but other types of lenders as well so you can be confident you’re getting a fair rate.

Credit unions

Credit unions are nonprofit organizations, unlike banks. Because of that, you can often get a better rate on a loan if you go through a credit union than a traditional bank. Many credit unions also have physical branches, so you get the same advantage of being able to deal with a person face to face that a bank would provide.

There’s a downside, though. You typically have to become a member of a credit union in order to be able to get a personal loan through them. Membership rules vary, but you may need to live in a specific area, work in a specific eligible field, or pay money in order to become a credit union member.

If you are already a member of a credit union, this downside won’t bother you, though. So you can check out what loan rates the credit union will offer you. You may get a reduced rate due to a loyalty discount if you also have your checking account and savings account with the credit union — just like when you use a traditional bank.

Online lenders

Finally, there are some dedicated lenders online that offer personal loans. Sometimes, they only provide loans, but often they offer other financial services as well, such as checking accounts or investment accounts.

There are some big benefits to online lenders. For one thing, there are a lot of them catering to different kinds of borrowers. So, people with great credit may be able to find a lender offering rock-bottom rates, while those who have imperfect credit scores may be able to find a lender willing to work with them when a traditional bank might not.

There are also downsides, though. You won’t get in-person customer support. And it can be harder to tell which lenders are legitimate and which are sketchy and offering unfavorable terms (although reading the fine print and looking for added fees can help). Be sure to review our list of the best personal loan lenders for further guidance.

Ultimately, your best option would be to get a rate quote for a personal loan from one or more of each of these types of lenders. Then, compare to see which is offering you the best rates and terms so you can find the loan that’s right for you.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Buying a two-year supply of toothpaste isn’t as ridiculous as you think. Here’s why the billionaire says it provides a great return on investment. 

Mark Cuban is the owner of the Dallas Mavericks and is well-known for his business skills and investing prowess. Over the years, he has provided some tips to others who want to get rich, and one of them was a pretty surprising one.

His advice: Buy a two-year supply of toothpaste. Here’s why the billionaire suggested making this unconventional move.

Cuban has a simple reason for buying so much toothpaste

Mark Cuban doesn’t just want your teeth to be really clean. He had a good reason for suggesting purchasing such a large stockpile. Specifically, he advised doing this if you use the same brand of toothpaste regularly and can find it at a deep discount.

“If we, hopefully we’re all using toothpaste every day, right, couple times a day, and we’re gonna go through toothpaste every month, whatever it may be, you’re better off buying two years’ worth of toothpaste when it’s on 50% discount,” he said. “That’s an immediate return on your money.”

Cuban’s point was that the prices of items go up over time, so you’re better off purchasing them at the lowest possible price as this puts guaranteed money in your pocket. You also immediately benefit from the savings since you get to spend less now and in the coming years, keeping more cash in your bank account.

Toothpaste isn’t the only item Cuban believes you should stock up on. “Any of your reusables, consumables that you have to have, when they’re on a huge sale on Amazon, buy them, because chances are, their prices are gonna go up, but that’s a real savings that you get to put in your pocket.”

Cuban said that while it can feel difficult to make a profit by investing in a brokerage account, this is a simple step that anyone can take that will have an immediate positive impact on their personal finances.

Should you follow Cuban’s advice?

Listening to Cuban just makes good sense — especially as the recent few years of rising prices and surging inflation have demonstrated that routine products and services that we use every day can and do see big price increases.

If you’re able to get many of your consumer products at discounted prices, this can make a noticeable difference in your personal finances. It’s not difficult to do either. Most stores put items on sale on a predictable schedule, such as marking down a product once every six or eight weeks. If you can stock up when there’s a good price — and especially if there’s a deep discount, then you’ll be able to slash what you spend on groceries and personal care.

Use this extra money wisely to do things like repay debt or invest for your future, and you will end up being able to build wealth without changing your lifestyle at all. But, no matter what you do with the money, you probably have better stuff to spend it on than paying full price for toothpaste.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

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