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

CKN

Messages
5,466
Location
Utah
I'm not disclosing my loan-it isn't outrageous or anything-and I can well afford it. I just don't think it's anybody business. And yes-you ask this on a site where OLD CARS COME TO DIE and guys brag about buying close out oil at Walmart. Let me just say this-life's too short. If you want a new-or "new to you" vehicle ( and can afford it) buy it. OR-you can leave your money to your ungrateful children...... I spent 40 large (after discounts) on my new 2018 Silverado LTZ (4WD) Crew Cab and my son said "You didn't need a new truck". I said so....... I spent 30ish on my wife's 2017 Hyundai Santa Fe XL 18 months ago.
 
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Messages
1,064
Location
GA
mine was paid by cash in 2010 wifeys is on 60 months with .9% interest; our monthly payment was calculated at $410; however, we pay $500 each month; currently our balance sits at $10K, so about 2 more years to go
 
Messages
684
Location
Arkansas
I took 0 down 0% interest for 63 months on a Mazda3. So same as cash but I don't have to take it all at once even though I could have afforded buying it straight out cash? I thought it was a good deal. I am only about 7 months in. I got the car for 22129 and am making payments of $351 per month. I could have gone with a base sedan and gotten it for around 16, putting my payments around $250 a month I believe, but I really wanted the 2.5 motor and I am a sucker for a moonroof.
 
Messages
12,573
Location
Phoenix, AZ
Bought my 15' Sonata in February 2017 for $10k, or about $11,600 after taxes and fees. I put $4k down and my payment is $179 a month for 48 months. I have it set to auto-pay at $200 a month. I'd pay it off earlier but I'm young and still building credit (have good credit) so I don't really care.
 
Messages
1,289
Location
Scottsdale, AZ
No one can tell what your particular comfort zone is and it seems you probably want to pay as little interest as possible. Choose whichever amount you can swing (while still putting savings away) and if there comes a time where you can pay off the loan without your savings going below a "do not touch" amount, do it.
 
Messages
3,168
Location
Outer Banks, NC
Two pointers. Run away from any dealer arranged financing. Make your best deal without it. Second, if not already a credit union member, seek one out that you're eligible to join. Best rates around, most of the time.
 

CKN

Messages
5,466
Location
Utah
Originally Posted by NormanBuntz
Two pointers. Run away from any dealer arranged financing. Make your best deal without it. Second, if not already a credit union member, seek one out that you're eligible to join. Best rates around, most of the time.
Sometimes you have to finance through the dealer to get some of the (manufacturer) rebates. Then you just refinance 30 to 60 days afterwards.....
 
Messages
8,957
Location
MA
Originally Posted by CKN
Originally Posted by NormanBuntz
Two pointers. Run away from any dealer arranged financing. Make your best deal without it. Second, if not already a credit union member, seek one out that you're eligible to join. Best rates around, most of the time.
Sometimes you have to finance through the dealer to get some of the (manufacturer) rebates. Then you just refinance 30 to 60 days afterwards.....
If you want to be nice, you ask what the clawback provisions are wait the 2-3 months that is the typical period. If you pay it off before that time period, they don't get their kickbacks from the lender, after that period, they get their money.
 
Messages
6,201
Location
New England
Shortest term possible if loan required. Otherwise you buy a more expensive model then if you had cash in hand. Financing tends to have people spend more then if they saved the cash. My dad is perfect example who never financed car in life and drives the really basic models. You lose reality of what things cost like expensive options or even brand new cars vs used. Wife borrows for Tiguan and we have 36 Payments , hate it.
 
Originally Posted by NormanBuntz
Two pointers. Run away from any dealer arranged financing. Make your best deal without it.... .
Not necessarily. When we bought the used 16 Silverado we had good financing lined up for the $8K needed with the large down payment. The dealer had better financing with a credit union and if you financed $15K you got $1000 rebate from the CU. I checked carefully for any hidden fees or early payoff penalties, there were none so we used their financing got the rebate made 2 payments then paid it off. Didn't answer the OP's questions but point is dealer financing isn't automatically bad.
 
Messages
3,899
Location
Canada
Lexus in sig - Bought for 14k in 2017. Yes, it was old but had great maint. records and with only 50k miles. New tires, brakes etc. too. In the little over 1 year we've had it, only had to change the oil and add gas....literally that's it! (oh and wash it) Spouse paid her half cash from....I dunno where. She has rental farm land so there's that I guess. I paid my half from a line of credit which I was paying off with extra cash as I had it. Finally paid off banana BMW in sig - Bought that when I was young and dumb. I was a university student 16 years ago and wanted to impress females. Paid cash for it as I worked for the gov't during my summers away from school (also was still living with my parents). Swore it would be my only "sporty" car, as depreciation is a nasty thing. Luckily it's finally appreciating in value mostly because I restrained myself from the tacky, cheesy "Fast and Furious" mods of the early and mid 00's. Just stuck with repairs and maintenance (which when done correctly, will still drain your wallet!) Aside from that it's just been a steady stream of cheap, low mileage rental cars ranging from Mustang convertibles, to MB sedans, SUV's and wagons. Far cheaper than maintaining and paying the depreciation on newer cars. My cars still turn heads and make me do a double take when walking away from them in a parking lot. They also put a smile on my face with little persuasion. drive
 
Messages
6,748
Location
Lake Havasu City, Arizona
Originally Posted by Imp4
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.
Don't do it. I can tell by the way you are talking, you'll be sorry if you do. The excitement of buying a new car wears off about as fast as the first kiss with a hot date. But the payments will continue for years to come. By your own admission you are, "painfully frugal", which is a good thing. You are also trying to talk yourself into this. Which also shows you have good sense. Because it shows you are apprehensive about borrowing money to buy a car. Most people require being talked out of such a thing. You, on the other hand, are trying to talk yourself into it. DON'T. If you're wincing at the thought of a car payment now, you're the type of person who will be moaning in pain later. You're soul will be much better "soothed" by placing that money in the bank every month, after you pay cash, than it will by writing a check to someone else so they can place it into their account. I can tell this whole thing goes against what your inner gut is telling you to do. Listen to your gut. Because if you don't you'll be wishing you did a couple of months after you buy it. Save and pay cash, rather than trying to come up with a way to justify borrowing money to purchase a depreciating asset. You'll be glad you did. And you won't be reminded of the mistake you made every month, every time you have to get your checkbook out. Instead you'll be earning interest on that money, instead of allowing someone else to charge you for it.
 
Messages
34,663
Location
NY
I financed my last two vehicles, one at 0% the other was under 1%. It made no sense at all for me to take my money out of savings when the rates were that low. In both cases I could have paid cash. Responsibly borrowing money can be beneficial. If you have any doubts, don't borrow the money. Having said that I probably wouldn't pay 4% for a car loan, I'd pay cash.
 
Messages
1,322
Location
Central Oklahoma
Originally Posted by NormanBuntz
Two pointers. Run away from any dealer arranged financing. Make your best deal without it. Second, if not already a credit union member, seek one out that you're eligible to join. Best rates around, most of the time.
This.
Originally Posted by CKN
Sometimes you have to finance through the dealer to get some of the (manufacturer) rebates. Then you just refinance 30 to 60 days afterwards.....
And this if you're buying new. What's the smartest decision? Always pay cash on something you can afford. If that's not possible, feasible, or you feel the need to buy something more than you can afford, get a loan with the lowest interest rate possible, combined with the shortest number of months financed that you can *reasonably* afford. This will ensure you pay the least amount of interest possible. The longer the term and/or the higher the interest rate, the more you'll pay in interest. Just don't make the payment so high that in a pinch you can't afford it (this is how repos happen). I went against [some of] these rules when I bought my Elantra, but I had reasons. This particular car was the nicest one within 100 miles. It gets 5 more mpg than the car I was about to buy. It had a few extra details that I valued over the other car (read: the Elantra didn't have problematic/costly tech that the other did, such as DI, turbos, lane assist, etc.). It was more than I wanted to spend, however the deal I ended up making gave me instant equity in the car, because I bought it for less than it was actually worth. The extra 5 mpg earned a lower interest rate through my CU for a "green car" rate. That made it worth it to add an extra year or two to the term (including the interest that would be charged in that timeframe), and lower the payment to what I wanted to be at with the less expensive car. The extra fuel savings was the icing on the cake. That put me in the green. Add that up over the life of the loan and I came out way ahead. Not to mention if I'm paying extra (I am) to further reduce the interest assessed. Bottom line, you always have to look at the big picture and weigh the pros and cons. I don't regret my purchase. Also, my personal advice (if buying from a dealer regardless of size) is to always make them fight to earn your money. When any of my family or friends want a car, they enlist me because they've seen the results. If you know what car you're looking for, find 3-5 very similar ones and negotiate to their bottom dollar (be a tough, yet serious negotiator. Remember, YOU hold the cards ($$$) not them). After the first one, you can say "dealer B is going to sell me theirs for X amount less. Beat their deal or I walk (and walk anyway, WITH their best offer still on the table). Continue the process with all of the dealers until they bow out of the race and you are down to 2. Once you have it down to 2 they'll usually go toe-to-toe until one gets either annoyed or exhausted. Then you have your best price. Dealers take advantage of you, it's what they live for. Turn the tables and take advantage of them by making them fight against their own kind, and they don't know how to act. It's amusing every time. popcorn
 
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Messages
24,425
Location
Central Florida
I know some wealthy people who finance new vehicles at 1.9% and make 15% with their investments. Yes, they can afford to pay cash for their new rides.
 
Messages
6,201
Location
New England
Because my father was paying cash as always he could never see buying above base model since the $2-$3k to gain alloy wheels, fog lights and heated seats not worth it. In payments $2-3k translates to $21/month which palatable by many. My wife got caught up in it with her 2018 Tiguan with the sunroof option (massive): I think the $7/month did not bother her and she does like open feel of full front back glass and warmth it makes mid winter. To me that's $800! Don't get tricked by 0% because it does cost. You pay more for vehicle that can get discounted. Happened to us and my brother in law finance manager for years says it's true .
 
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