wife wants to trade in her car

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Originally Posted By: OVERKILL
Originally Posted By: ram_man
She owes about 400 bucks on it.


I am confused. If she owes $400 on the PT, how the heck are we even talking about "payments" here and it being "more" with the Accord. You should be able to pay that off no problem; you should be able to own it outright tomorrow given that paltry amount.

Knowing that, I find the thought of getting yourself another 11K in debt for another used car with higher mileage making a lot less sense than it appeared to at the beginning of this thread. I assumed you still owed a fair bit on the PT and you were just trading payments for more payments, for a longer duration with a bit more on top. But that's really not the case given the amount owing on the PT.


To answer you directly we would be paying 12 more a month for 3 yrs unless I pay off early and I most likely would . So yes 3 more years of payments versus less than 6 months more with the pt . But the Honda has a warranty and she likes it and it's her money .I see why keeping the pt makes sense but if she can afford the payment likes it and would like it and it's a better car I don't see a big issue overall. And she doesn't trust the pt. And she has the kids in it a lot and when she does she worries it'll break down since the transmission started acting up a bit.
 
Originally Posted By: ram_man
I fail to see the big issue with going inot a relatively small amount of debt for peace of mind and personal want.


I think the concern stems from the potential instability of the situation and you saying that YOU would be going into a "small amount of debt" when, if she is working full time, this should be HER debt, not yours. To be direct: Would your name be the one attached to the loan? And if so, why?

You've raised the question to the forum so there are going to be questions like these. They have no ill intent but you have essentially solicited our opinions. We are giving them. They may of course not be what you want to hear but I think you knew that when you made this thread
smile.gif
 
Holy c-r-a-p people are judgmental over things that are none of their business LOL. Why are people so quick to judge? Perhaps they owe $400 on it and have $300 a month payments so it'll be paid off in a month or so.

I'd dump the PT. My step mom had one, they're ugly, have no room under the hood, and aren't that great of cars. When my step moms was burning out spark plugs and the A/C had a big leak at 65k miles, it was time to move on. She traded it in on a 2010 Pontiac G6 and hasn't looked back.

Do a spit n' shine and sell it for around $5k. Then find another car. A $6k loan is going to be dirt cheap. What, $120 a month?
 
Originally Posted By: Stewart Fan
It doesn't sound to me like you can truly afford a newer car if you're still making payments on a balance of $400


We haven't owned the car for more than 11 months and I have paid it off almost entirely the loan was for 3 years. We owe 400 I could pay it off right now but was just letting it go until holidays were over. I have paid a 3yr loan in only 1yr. Pretty sure I am capable of affording it. Lol my name won't be on the loan either only hers.
 
The judgmental people are the ones with experience (theirs or their friends/relatives).

What's the over/under on this ending up with an Accord car payment and a divorce?
 
Originally Posted By: ram_man
Originally Posted By: OVERKILL
Originally Posted By: ram_man
She owes about 400 bucks on it.


I am confused. If she owes $400 on the PT, how the heck are we even talking about "payments" here and it being "more" with the Accord. You should be able to pay that off no problem; you should be able to own it outright tomorrow given that paltry amount.

Knowing that, I find the thought of getting yourself another 11K in debt for another used car with higher mileage making a lot less sense than it appeared to at the beginning of this thread. I assumed you still owed a fair bit on the PT and you were just trading payments for more payments, for a longer duration with a bit more on top. But that's really not the case given the amount owing on the PT.


To answer you directly we would be paying 12 more a month for 3 yrs unless I pay off early and I most likely would . So yes 3 more years of payments versus less than 6 months more with the pt . But the Honda has a warranty and she likes it and it's her money .I see why keeping the pt makes sense but if she can afford the payment likes it and would like it and it's a better car I don't see a big issue overall. And she doesn't trust the pt. And she has the kids in it a lot and when she does she worries it'll break down since the transmission started acting up a bit.


But you can't really look at it that way. The PT is essentially paid off. With $400 owing on it, that's what it amounts to. So it isn't "$12 more a month" it is that entire payment more a month for another three years. That is significant. That is money that, once that 400 dollars was out of the way, would be in your wallet to dump into a savings account to cover repairs on the PT or could be saved up to buy another vehicle outright.

I understand the allure of a new(er) vehicle, don't get me wrong. I've bought a number of vehicles for cash and I've had payments on vehicles too. The thing with the cash vehicles is that you are a lot less "tied" to them than you are one you are paying on. The Focus was the one car that I should never have gotten rid of for that reason. It was a super cheap cash purchase for a car that subsequently was incredibly cheap to own. It was replaced by the 328i that, despite also being a cash buy, wasn't the same way. Once that thing was gone my wife again, wanted her own "car" which is how we ended up with the nightmare that was the Subaru, which was then replaced by the Charger, which was about twice the money. That was a whole lot of vehicle whack-a-mole that cost me a fair chunk of change. A situation I wouldn't repeat nor wish on anybody.

But to get back from that tangent, through that whole ridiculous ordeal we have had two reliable vehicles that are also paid for: the M5 and the Expedition. Both of which I'd hop in and drive to Texas tomorrow. They are well maintained, have new tires, solid drivelines....etc. And they don't owe us anything, that's the big thing. We aren't on the hook for them money-wise. Remember, cars aren't investments, so once they are paid for, as long as they are relatively reliable, driving them until they don't drive anymore makes the most sense IMHO, because you aren't getting the money you've spent on them back out of them in terms of a resale. The Expedition, with its horrific gas mileage and odometer that is closing in on 300K FAST isn't worth much of anything on a trade. It isn't worth much of anything on a private sale either. But it is great in snow and will probably go another few hundred K easily. The body will rot off it long before the driveline caves if past reliability is any indication. And that's how we plan on extracting our value from it. From my perspective, once that $400.00 is out of the way, you should be intent on doing the same thing with the PT. Yes, it is an ugly clown car, but it is a paid for ugly clown car, and 11K worth of car payments buys you a lot of maintenance on it.

I'm not here to tell you what to do with your money, it is, after all, yours. But getting the most out of it often means not satisfying our material lust for the new and shiny and instead doing something a bit more boring but a lot more logical in the grand scheme of things. I probably lost well north of 5K in that whole Focus/328i/Subaru/Charger debacle. Not that it directly correlates with your situation (it doesn't) but it does give you an idea of how sideways things can go if you let them get out of hand.
 
Originally Posted By: OVERKILL
Originally Posted By: ram_man
Originally Posted By: OVERKILL
Originally Posted By: ram_man
She owes about 400 bucks on it.


I am confused. If she owes $400 on the PT, how the heck are we even talking about "payments" here and it being "more" with the Accord. You should be able to pay that off no problem; you should be able to own it outright tomorrow given that paltry amount.

Knowing that, I find the thought of getting yourself another 11K in debt for another used car with higher mileage making a lot less sense than it appeared to at the beginning of this thread. I assumed you still owed a fair bit on the PT and you were just trading payments for more payments, for a longer duration with a bit more on top. But that's really not the case given the amount owing on the PT.


To answer you directly we would be paying 12 more a month for 3 yrs unless I pay off early and I most likely would . So yes 3 more years of payments versus less than 6 months more with the pt . But the Honda has a warranty and she likes it and it's her money .I see why keeping the pt makes sense but if she can afford the payment likes it and would like it and it's a better car I don't see a big issue overall. And she doesn't trust the pt. And she has the kids in it a lot and when she does she worries it'll break down since the transmission started acting up a bit.


But you can't really look at it that way. The PT is essentially paid off. With $400 owing on it, that's what it amounts to. So it isn't "$12 more a month" it is that entire payment more a month for another three years. That is significant. That is money that, once that 400 dollars was out of the way, would be in your wallet to dump into a savings account to cover repairs on the PT or could be saved up to buy another vehicle outright.

I understand the allure of a new(er) vehicle, don't get me wrong. I've bought a number of vehicles for cash and I've had payments on vehicles too. The thing with the cash vehicles is that you are a lot less "tied" to them than you are one you are paying on. The Focus was the one car that I should never have gotten rid of for that reason. It was a super cheap cash purchase for a car that subsequently was incredibly cheap to own. It was replaced by the 328i that, despite also being a cash buy, wasn't the same way. Once that thing was gone my wife again, wanted her own "car" which is how we ended up with the nightmare that was the Subaru, which was then replaced by the Charger, which was about twice the money. That was a whole lot of vehicle whack-a-mole that cost me a fair chunk of change. A situation I wouldn't repeat nor wish on anybody.

But to get back from that tangent, through that whole ridiculous ordeal we have had two reliable vehicles that are also paid for: the M5 and the Expedition. Both of which I'd hop in and drive to Texas tomorrow. They are well maintained, have new tires, solid drivelines....etc. And they don't owe us anything, that's the big thing. We aren't on the hook for them money-wise. Remember, cars aren't investments, so once they are paid for, as long as they are relatively reliable, driving them until they don't drive anymore makes the most sense IMHO, because you aren't getting the money you've spent on them back out of them in terms of a resale. The Expedition, with its horrific gas mileage and odometer that is closing in on 300K FAST isn't worth much of anything on a trade. It isn't worth much of anything on a private sale either. But it is great in snow and will probably go another few hundred K easily. The body will rot off it long before the driveline caves if past reliability is any indication. And that's how we plan on extracting our value from it. From my perspective, once that $400.00 is out of the way, you should be intent on doing the same thing with the PT. Yes, it is an ugly clown car, but it is a paid for ugly clown car, and 11K worth of car payments buys you a lot of maintenance on it.

I'm not here to tell you what to do with your money, it is, after all, yours. But getting the most out of it often means not satisfying our material lust for the new and shiny and instead doing something a bit more boring but a lot more logical in the grand scheme of things. I probably lost well north of 5K in that whole Focus/328i/Subaru/Charger debacle. Not that it directly correlates with your situation (it doesn't) but it does give you an idea of how sideways things can go if you let them get out of hand.


I do completely agree with you. But look at it like I'm trying to. It's her money her car. And if it keeps me from getting nagged maybe itll be worth it.... and yes the cost is significant but if I don't have to work on it much to me personally it'll be wOrth it. I don't care much either way I just do not want to have to work on it and I don't want to get nagged at every single time she gets bothered with it. And the Honda is certainly a better car financially a great idea no but it's not terrible just ehhh.
 
You're married, with kids. It's not her money... That money belongs to the four of you.

What's the interest rate in your PT loan?

Do you have an emergency fund

How much other debt do you have?

If you can't afford to lose your job and continue to pay for all of your monthly bills (including the car payment) for an extended period of time, then no, you can't really afford the Accord.
 
Originally Posted By: OVERKILL
Originally Posted By: ram_man
I fail to see the big issue with going inot a relatively small amount of debt for peace of mind and personal want.


I think the concern stems from the potential instability of the situation and you saying that YOU would be going into a "small amount of debt" when, if she is working full time, this should be HER debt, not yours. To be direct: Would your name be the one attached to the loan? And if so, why?

You've raised the question to the forum so there are going to be questions like these. They have no ill intent but you have essentially solicited our opinions. We are giving them. They may of course not be what you want to hear but I think you knew that when you made this thread
smile.gif



Thats exactly right. There are lots of broke people concerned about us judging ram_man, but at the end of the day, his situation is worn on his sleeve here on BITOG, and it is clear that he is in a shaky situation. I hope it is fixed and will be happily ever after, but we cant be so sure.

History has shown us that dakota_chevy_man here has a tendency to give all the info, ask a question, get mad and do what he intended to begin with. Not everyone is going to agree on a forum with thousands of viewers and a ton of active participants. he and everyone needs to recognize that. And since the writing is on the wall that he will be a two car payment family for the next two years, hopefully he will at least heed the advice that since he already has a loan, that she has to qualify on her own and its her car only. It will be much cleaner in the case of divorce (heaven forbid), and not leavehim with two car payments and alimony. If things work out, which I pray they do, then after a year or so, when she gets her own McDonalds and he is happily working at the dealer, then they can start really working better situations to get rid of the debt.

Good luck.
 
Whilst I agree it's totally up to you and the wife, if you put a question out to the masses, you're gonna get answers...some of which you may not like!

Anyway, as I understand, you're about to start a new job at a dealership? If you wait, say, 6 months, by which time you're hopefully on good terms with everyone there, particularly the sales guys, you'll be able to buy cars WAY cheaper. All the dealers I've worked at over the years would sell cars to employees at cost. I literally saved tens of thousands of dollars, especially on new cars. So if you guys can be just a little bit patient, I'm sure you'll be able to get a great deal!

Just another point of view.
 
Originally Posted By: ram_man
Most people have cars they make payments on......what's the issue there?


It's called debt slavery. An ISeeCars study pointed out that people who finance a vehicle will spend up to 140 percent more than what's ideal over the course of that vehicle's life.

A 2012 report by the Investor Education Foundation of the Financial Industry Regulatory Authority (FINRA) found that a majority of American adults (61 percent) couldn't correctly answer more than three of five fundamental financial literacy questions. From your posts you clearly fall into the 61% category.

You also failed to address the issue of the rainy day fund, retirement fund, and child expenses. Instead you deflected the issue by only answering one of the points I made rather than addressing all of them; you hoped no one would notice. Many of us did. And I'm also willing to bet that the car loans you currently have are sub-prime, meaning you're getting hit for a healthy interest rate. Money that could be building future wealth if saved wisely.

Again, the fact that you are considering financing an older used car, and the fact that you're still financing an even older used car, along with financing a new car clearly indicates that you can't afford it. I'm certainly glad I don't have your staggering debt hanging over my head-especially debt for a depreciating asset.

That's the issue there. The choice is yours.
 
6 months payments on a loan which has $400 left? So if you had 3yr loan to begin with, was it for $2400? Is your payment $67 per month on the PT? If Accord payment is extra $12, is it $79? How many years does it take to pay off $11000 loan with $79 per month as a payment? How old would be Accord at the end of the loan period?

To be fair, you did say "less than 6 months payment left", and did conveniently ignored the "less than" part of your statement to come up with the previous paragraph.

Bottom line:- If she is a manager at McDonalds and makes at least as much if not more than you, there is no reason why you want to come between her and the Accord. You also don't need to ask permission from BITOG either.
 
I am now totally lost on who is paying for the car...
Quote:
her job would be paying for hers

Quote:
we would be paying 12 more a month for 3 yrs

Quote:
unless I pay off early and I most likely would


Originally Posted By: Nick1994
Holy c-r-a-p people are judgmental over things that are none of their business LOL.

Well, when you air your dirty laundry on a public forum and ask for advice...just saying.

I think he/she/they should sell the PT and she should drive his Ram to work. Sounds like minimal driving, and though it's not ideal commuting for the vehicle, it's better than cranking it so it can idle in the driveway to "keep it up." No harm or foul from my opinion anyway, I'm on ignore, or should be.
grin.gif


Or maybe a several year old Audi or something with payments would be a good option.
 
Originally Posted By: Vikas
6 months payments on a loan which has $400 left? So if you had 3yr loan to begin with, was it for $2400? Is your payment $67 per month on the PT? If Accord payment is extra $12, is it $79? How many years does it take to pay off $11000 loan with $79 per month as a payment? How old would be Accord at the end of the loan period?


Stop thinking about things!!!
 
Originally Posted By: Pop_Rivit
It's called debt slavery. An ISeeCars study pointed out that people who finance a vehicle will spend up to 140 percent more than what's ideal over the course of that vehicle's life.


Is this that study?:
http://blog.iseecars.com/2014/10/30/worst-cities-for-ideal-car-payments/

Quote:

Methodology of the Study:

iSeeCars.com analyzed about 25 million cars for sale from September 1, 2013 to September 1, 2014. 50 of the largest U.S. city metros were studied. For each city, the “Reality” total car payment for a household was calculated based on the average price of the cars for sale in the city and using the latest data for average used car loan rates of 8.8%, loan term of 61 months, and down payment from Experian Automotive’s State of the Automotive Finance Market reflecting Q2 of 2014. To calculate the “ideal” scenario, Mint.com’s “20-4-10 rule” (20 percent down payment, finance for four years, spend no more than 10 percent of household income) was applied. Median household income was calculated using the latest data from the Census Bureau (2012) and adjusted for inflation. The number of vehicles per household was also calculated using 2012 U.S. Census Bureau data. State insurance premium data came from the National Association of Insurance Commissioners.

8.8% used car loan rate? Longer term than 4 years makes a loan "less than ideal"? Wonder why average price of the car for sale rather than the average price vechicles sold for during the time period.
 
I obviously cannot answer all points I mean I could bug maybe I missed a few but to sum up my financial situation is excellent really and yes my car payment on the accord would about 79 dollars and some Change. I have a savingstrong that could sustain us for quite some time . She would be paying for her car. And I laugh at a lot of you because i am pretty confident at least some of you aren't as financially secure as you demand others to be. I said multiple times I have a savings I have college retirement funds I have the means to easily afford and pay off the accord in short order. I could almost buy it out right if I wanted at this very moment and keep the pt. But that's irrelevant. You all judge a situation based on what little info you have. I never asked for financial advice. I don't mind some perspective and opinions but taking it personal is a little much imo. And saying stupid stuff like why doesn't she just walk to work. Really? Do any of you expect your wives to walk to work? I mean be realistic here. And further more you all expect me to get angry I'm not angry but I do realize how quick some of you yap at the mouth making blind assumptions about my financial situation which is really not up for a discussion in the manor in which some of you made it to be. I have told you all I have the money and it's not an issue yet some of you argue about it as if you know my bills better than me? I dont mean to come off coarse but really? Let's not pretend to know my situation better than I do.
 
Fair enough. I think people were just looking out for you though. But I'm confused, in a recent thread you started about giving notice from your current job, you stated you couldn't afford to miss two weeks pay... Now you have enough savings to sustain you for quite some time and could pay for the Honda outright if you wanted. Not being argumentative, it just doesn't add up.

Anyway, good luck with whatever you decide on.
 
Originally Posted By: hpb
Fair enough. I think people were just looking out for you though. But I'm confused, in a recent thread you started about giving notice from your current job, you stated you couldn't afford to miss two weeks pay... Now you have enough savings to sustain you for quite some time and could pay for the Honda outright if you wanted. Not being argumentative, it just doesn't add up.

Anyway, good luck with whatever you decide on.


I can't afford to miss because then I'd have to sip into savings I pretty well refuse to do that. I all but forget I have a savings because I do not touch under almost any circumstance.
 
You are young and folks are giving you extremely sound advice for a great financial future. It is so simple to become rich but difficult in practice.
 
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