Who likes car payments?

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There have been threads that have already discussed Dame Ramsey. His advice regarding leases, credit cards, going in to debt, buying cars, and for those who can't seem to have the discipline for managing money or risk.

Credit card rebates pay for a majority of my entertainment through rebates. If I would have listened to Dave Ramsey I wouldn't have been able to retire at 55 years old. I was up to my neck in rental mortgages at one time in my life. Now, all those properties are paid off (paid off by rental income) and provide cash flow with resulted in early retirement. When I'm old enough for social security (which I plan on taking at 62) then I will really have some walking around money.

My next car will be leased because spending the monthly amount (with select cheap leases) makes more sense to me than taking $35,000.00 out of the bank and paying for it.

Dave Ramsey is great if you don't have budget or risk discipline.
 
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Originally Posted By: BRZED
If I don't have the money, I don't buy it, whatever it may be.


That. I can't pay cash, I don't need it.
 
Originally Posted By: Jarlaxle
Originally Posted By: BRZED
If I don't have the money, I don't buy it, whatever it may be.


That. I can't pay cash, I don't need it.


Contrary to popular belief on BITOG; debt when taken in an intelligent and well thought out manner, can be a great tool and even grow an individual's wealth long-term.
 
Incurring debt,paying interest rates,having to buy full coverage insurance,paying high dollar registration,suffering unbelieveable depreciation,expensive complex repairs once out of warranty.....that "grows an individuals wealth long term"? I cant see how 5 years in you would have more money buying a new car and financing it vs keeping the current 10-15 year old beater that's paid for and only requires semi monthly repairs.
 
Originally Posted By: RamFan
Originally Posted By: Jarlaxle
Originally Posted By: BRZED
If I don't have the money, I don't buy it, whatever it may be.


That. I can't pay cash, I don't need it.


Contrary to popular belief on BITOG; debt when taken in an intelligent and well thought out manner, can be a great tool and even grow an individual's wealth long-term.


^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
THIS!!!!!!
 
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88 K car...budget $500 per year for repairs,x 5 years = $2500 max. New Dodge Dart,$17+K dollars,plus full coverage insurance,$500 a year registration,trade in value in 5 years....$6K? Net expense $12K+2500+ full insurance=$15K+
Net loss,$12,500+
Nope,not doing it.
 
12% return on investment every year?

The S&P is where it was 2 years ago.

No growth.
 
Originally Posted By: NHGUY
Incurring debt,paying interest rates,having to buy full coverage insurance,paying high dollar registration,suffering unbelieveable depreciation,expensive complex repairs once out of warranty.....that "grows an individuals wealth long term"? I cant see how 5 years in you would have more money buying a new car and financing it vs keeping the current 10-15 year old beater that's paid for and only requires semi monthly repairs.


This depends. If you're handy like most of us on BITOG and can make the repairs yourself, the beater probably makes sense. If you have to go to a shop for repairs, it's going to get expensive real quick. In that case, you're probably better off putting that money toward a newer vehicle that doesn't need repairs.
 
That was entertaining. My real world example: Bought '14 accord sport MT for the wife, $22,000 (not including taxes, ect) at 0.90 percent. Paid it off in 2 years, spent about 200 in interest. Honda offered $500 to finance through them. So i gained money financing it, and the car would probably still sell for 19k private party. Two years and 23k miles later it has lost about 15% since people pay crazy money for used hondas. The video says i would have lost 25% that night! 70% value lost at 4 years? Yeah right. 2011 Accords are still about 13k or over 50% of new. A 2012 model year jumps to about 65% value. 2016 models are about to come out so you have to decide if a 4 year comp is fair to say 2011 or 2012.


We bought a new car to drive it for its entire lifespan. Why pay 6k for a car that has most of its lifespan consumed? In the Honda Accord space $6k gets you some old beater with 150k+ miles on it already and no modern tech.

The cars i drive are all old and worth about 3-5k each because i like old cars, german cars, stuff like that. My 540 sport wagon cost me $3250.00 yet stickered for 50-60k in 2000. Would i buy a new BMW? no way.

Normal people just Buy, Consume, Repeat. Buying new is smart if you have the money and will really use the vehicle for at least 10 years.
 
Originally Posted By: RamFan
Originally Posted By: Jarlaxle
Originally Posted By: BRZED
If I don't have the money, I don't buy it, whatever it may be.


That. I can't pay cash, I don't need it.


Contrary to popular belief on BITOG; debt when taken in an intelligent and well thought out manner, can be a great tool and even grow an individual's wealth long-term.


The slight problem with your statement above is that 94% of Americans cannot, in any way, shape, or form, "handle debt in an intelligent and well thought out manner."

As demonstrated repeatedly, this country is way too materialistic and too focused on what it is "they got."
 
Lol, NET 12% a year in a mutual fund for 6 years?

Also, the video leaves out maintenance costs of the used vehicle...

There are good points but the video takes only the best case scenario
 
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I'm 20, almost 21. A lot of my friends have new or newer cars that they're spending most of their pay checks on. Ridiculous.

I don't have to be the coolest guy on the block, I just bought an old Camry that's in great shape for $2,100. I plan on putting another 100k miles on it, and what will it be worth at that time? Probably $1,500. $600 lost in 5-6 years over 100k miles sounds great to me, while a $300 car payment on a $16k car would be $18k-$21k and what would be the value of that car in 5-6 years? Probably $5,000.

Doesn't make sense to me.
 
Originally Posted By: Nick1994
I'm 20, almost 21. A lot of my friends have new or newer cars that they're spending most of their pay checks on. Ridiculous.



Start saving and planning for retirement now. You can enjoy doing well and retiring early if you wish. So many people have the big house and new cars and no retirement.
 
94% make poor credit choices? Do you have any sources to back that up? Cause it looks like to me 37% of the population is at a 750 to 850 fico score for the 2013 calendar year. You don't get that high by having big balances, lots of inquiries, and certainly not any derogatory events.

Using the same data 34.2 % fell below 649. To me that says one in 3 is very smart with credit, one in 3 is very bad with it, and the other guy is just ok.
 
Originally Posted By: dkryan
Originally Posted By: RamFan
Originally Posted By: Jarlaxle
Originally Posted By: BRZED
If I don't have the money, I don't buy it, whatever it may be.


That. I can't pay cash, I don't need it.


Contrary to popular belief on BITOG; debt when taken in an intelligent and well thought out manner, can be a great tool and even grow an individual's wealth long-term.


The slight problem with your statement above is that 94% of Americans cannot, in any way, shape, or form, "handle debt in an intelligent and well thought out manner."

As demonstrated repeatedly, this country is way too materialistic and too focused on what it is "they got."





I completely agree with you. Most individuals cannot take on debt responsibly. I just don't like the broad brush that "cash only" people tend to paint with.
 
Originally Posted By: Nick1994
I'm 20, almost 21. A lot of my friends have new or newer cars that they're spending most of their pay checks on. Ridiculous.

I don't have to be the coolest guy on the block, I just bought an old Camry that's in great shape for $2,100. I plan on putting another 100k miles on it, and what will it be worth at that time? Probably $1,500. $600 lost in 5-6 years over 100k miles sounds great to me, while a $300 car payment on a $16k car would be $18k-$21k and what would be the value of that car in 5-6 years? Probably $5,000.

Doesn't make sense to me.


Good for you!

My 1st car was a 1976 AMC Gremlin (ok, you can stop laughing now...). I still got more girls than guys in my high school driving bmw's and Porsches, it's not about what you drive...
 
Originally Posted By: spasm3
Originally Posted By: Nick1994
I'm 20, almost 21. A lot of my friends have new or newer cars that they're spending most of their pay checks on. Ridiculous.



Start saving and planning for retirement now. You can enjoy doing well and retiring early if you wish. So many people have the big house and new cars and no retirement.
Yup. I'm a full time college student, majoring in Business. When I graduate in a few years is when I'll be stashing a lot more money aside. A lot of my friends just throw money away going to the club, buying fancy wheels for their overpriced car, and everything else.

Meanwhile here I am buying new tires for my car that have $185 in rebates
 
My wife and I just received a special ordered 2016 Outback. We bought it for the safety and comfort only a new car offers. (Eyesight option is awesome). Saving money was not any part of the equation. My credit score is 830. I have personally never owned a new car but the wife has had two now. If I wanted to save money the $2100 Camry would be the way to go.
 
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