Do you make a car payment??? Details please!

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1,891
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Somewhere in time
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OK, so as part of my quest to replace my long overdue current ride, I've made my way through several models that interest me. I'm down to one or two that I'll likely choose from over the next few months. That brings us to the monthly payment. I'm in a spot where I can make a reasonable down payment but I'll still need to finance about $15,000 for the car. Based on a roughly 4% interest loan this brings me to 36, 48 and 60 month loan payments of $443, $339, or $276 per month respectively. Each of these are within my monthly budget, but the painfully frugal side of me just winces at the notion of a car payment. I try to soothe my soul by telling myself that plenty of folks out there make car payments every month, but I still sit there and wonder just how much regular people pay. So I am opening it up to the BITOG masses... For those of you that make a monthly car payment, how much do you pay? How long is your loan? How many payments do you have left??? Given the choice, would you sign yourself up for the same loan terms and conditions again? Thanks in advance!!!
 
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35,852
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ME
Originally Posted by JohnnyJohnson
Yes both my vehicles a 2004 Corolla and my 2006 Duramax I made one payment on.
Beat me to the joke.
 
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MURICA
Originally Posted by eljefino
Originally Posted by JohnnyJohnson
Yes both my vehicles a 2004 Corolla and my 2006 Duramax I made one payment on.
Beat me to the joke.
+3 thumbsup
 
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47
Location
Arizona
Save the money pay cash for the vehicle. By the time you save the money you will not want to spend it on A car. I have not had A car payment since 1986.
 
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1,891
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Somewhere in time
Thread starter
Originally Posted by BMWTurboDzl
Inflation (Official): 2 percent Inflation (Unofficial via Shadowstats): ~5 percent. Help you decide your real cost of financing.
What is Shadowstats?
 
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The Midwest
I'll bring this point up that is overlooked by most. How much money have you been tucking away in your checking or savings account? So all of the sudden, you can afford to make a three or $400 a month car payment but you weren't able to save that much money every month in the past. I'm not saying that's you, but it sure is the average person who fiances a vehicle.
 
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4,730
Location
Fort Worth, Texas
I hate making car payments!! To each their own though........Gap & Full Coverage Insurance alone is a deal breaker for me! Haven't been involved in a collision in over 20 years & a few hail dents don't bother me!
 
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2,668
Location
PA
Using other peoples money is the smart move when done correctly. 4% is a cheap car loan. If you can't get a better return with your own money, then buy the car in full. If you can do something else clever with the money then get the car loan. And fellas, beware buying in full. I bought my Cadillac outright from the dealership with a certified bank check. The government makes the dealerships have people who buy cars over a certain amount fill out extra paperwork so they can capture money launderers.
 
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2,866
Location
Chicagoland
I have a 72 month loan on both cars, one has a ~4.4% interest rate and the other is ~3.5%. Keeps the monthly payment low so if I do get in a tight spot or whatever I'm not hurting for money. Or I can throw more on top of each monthly payment, I like having the flexibility. Neither loan will see the full 72 months. I put 4K down on the 300 and 1000 on the van. "But you should have a savings in case of emergency!" I'm was young, dumb, and not finishing this saying, but I've learned that I can't be trusted with a credit card... almost 5 years after buying our house I'm finally learning proper money management. Bought the house before I could buy alcohol, just to give a little age reference wink
 
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3,065
Location
Columbus, Ohio
Originally Posted by skyactiv
I'll bring this point up that is overlooked by most. How much money have you been tucking away in your checking or savings account? So all of the sudden, you can afford to make a three or $400 a month car payment but you weren't able to save that much money every month in the past. I'm not saying that's you, but it sure is the average person who fiances a vehicle.
Or as my Dad would say, if you can't afford it how can you afford it plus interest?
 
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39,580
Location
Great Lakes
Originally Posted by Gasbuggy
The government makes the dealerships have people who buy cars over a certain amount fill out extra paperwork so they can capture money launderers.
What is that amount?
 
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4,433
Location
Los Gatos, CA
I have a lease on the RX450h. I only did it as a hedge against a technology shift. Kinda wish I hadn't, but it is what it is. Usually credit unions have decent rates. Oftentimes factory money is the best deal. Good luck.
 
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MA
It's one of the funny perverse things on BITOG. Ask a question and get the exact opposite of the response you were expecting. Ok, here goes too, made just one payment on my 2008 Mercedes E-350 and one payment on my 2011 E-350. They were both used and under 20k each. As for money laundering, I didn't care, didn't launder any money so no issues even if it were investigated. Sure you can borrow money at low rates and invest the difference, but when you have money, you can actually spend some of it instead of investing it all the time. It's called locking in your gains. Anyway, the last time I borrowed money for a car was a long time ago. Interest rates back then were 8%. It was a 3 year loan. I kept getting all these offers in the mail for 0% credit card balance transfers. So I put the balance on a credit card and paid off the whole thing after less than 2 years. At the time I believe the payment was around $400 a month. Back then, they were extra crazy, I think they had something like a $50 balance transfer fee instead of 1-3% like you do today. As for savings, it's good to have it, I used to keep it in cash sitting in a checking account, but with the stock market rising all the time, I figured I'd just buy mutual funds and if I ever really need money in a hurry, I could always sell and get the money in about a week and could always use a credit card in the meantime. Never had an issue like that. so never had to do that.
 
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4,730
Location
Fort Worth, Texas
Originally Posted by Gasbuggy
And fellas, beware buying in full. I bought my Cadillac outright from the dealership with a certified bank check. The government makes the dealerships have people who buy cars over a certain amount fill out extra paperwork so they can capture money launderers.
Filled out those forms when I bought my 2500HD & Corolla brand new with $100 dollar bills, Nothing happened......You also have similar forms when depositing more than $10,000 cash in a bank account. Never worried about it, I pay taxes on my income.
 
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8,946
Location
MA
Originally Posted by clinebarger
Originally Posted by Gasbuggy
And fellas, beware buying in full. I bought my Cadillac outright from the dealership with a certified bank check. The government makes the dealerships have people who buy cars over a certain amount fill out extra paperwork so they can capture money launderers.
Filled out those forms when I bought my 2500HD & Corolla brand new with $100 dollar bills, Nothing happened......You also have similar forms when depositing more than $10,000 cash in a bank account. Never worried about it, I pay taxes on my income.
Yeah, I think that only applies to cash. Bank checks don't really trigger anything. I see people deposit bank checks for 100's of thousand and they don't bat an eye as they're just house sale proceeds. Also handy to know your bank teller, got a free bank check and just casually mentioned I was buying a car. Got it quick and no delays.
 
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269
Location
southeast texas
Yes, I do. $538/mo. Zero down,1.75percent interest, 60 months. I have 2 years left, and put the money in the credit union at the first of the year, so I do not have to fool with it. The last year, I will just pay it off.
 

NO2

Messages
941
Location
Michigan
Last time we financed a car it was at 0.5% promotional interest. There is nothing wrong with financing, but a better financial decision is to buy a slightly used car and pay cash. Cars last 15-20 years and 200K+ miles now, and buying a 3 year old one at 50% of the new prices makes a lot more sense. The electronics will become obsolete during that time so jest get one that is easily upgradable. If you are using the vehicle for business purposes, that doesn't necessarily apply under the new rules, and you may with to look at leasing. Our current vehicles are 6 and 12 years old and work great.
 
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