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

[supton]

Originally Posted by JTK
Originally Posted by Oil_Whisperer
There are two financial issues to consider. Paying interest and owning a depreciating asset.
Buy the time a car gets >10 years old, the depreciation slows way down. If you can find an older car with low mileage, you can usually just pay cash.
I will buy a 10 - 20 year old car with < 50k miles on it. Drive it for several years. Then sell it for not much less than what I gave for it.
Owning vehicles doesn't have to be expensive.
Everyone has their own tolerance level for debt. Mine is very low.



That is very wise and the way to keep your cost per mile the lowest. That scenario is very difficult to achieve living in the rust belt. Not impossible! Just takes some doing.

Indeed. That is why I jumped on my Camry from Arizona, didn't even have to drive out of state to get it! One of my better purchases I think. Unfortunately it's been sitting all week while I wait for the weekend so I can find out what is wrong with it (suspension issues). Thankfully I went to N+1 vehicles when I got ours paid off and can do that. Has been nice, no payments for two years, and somehow few repairs, although I suspect that will change soon as the fleet gets all the older.

 

[mbacfp]

I never financed a car when I was younger, always paid cash. However, my last 2 car purchases in 2012 I was able to get 0% financing for 5 years...so I kept my cash. My latest purchase in 2018, my mid life crisis purchase, I put a lot down plus trade in ($33,000) but have a payment at 4% interest for 5 years. I am making extra payments and should be paid off in 3 years. Kind of embarrassed to have an interest rate other than 0% (which are harder to get nowadays). No shame in a car payment...just get the best deal you can on rates, etc.

 

[SeaJay]

Originally Posted by doitmyself
Originally Posted by SeaJay
This is similar to another site that I post on. Someone asks for info to help them finance a purchase more smartly. The overwhelming response is "I never finance anything, you shouldn't either"


That's a huge understatement! A few people here sway the discussions with their narcissist tendencies. When challenged, they retort with "I must have struck a nerve" or "you feel insulted" to appease their insecurity. There's nothing wrong with being proud of one's accomplishments. But, people that are comfortable in their skin tend not to have a need to preach to others about their greatness. Often times these same people tend to be hypocrites, giving out advice and criticizing, then turning around and doing exactly what they preached against. It gets tiring not being able to have discussions without the interruptions.

The bottom line is that a person can finance a vehicle and still be fiscally responsible. As shown above in several good responses, there are numerous ways to finance vehicles without going down the dark road of anti-Dave Ramsey. Off my pulpit now - continue on.


Thanks for that response. Preaching was the word I was trying to come up with, rather unsuccessfully.

 

[Oil_Whisperer]

I hope that my post didn't seem that way. I realize that I'm not normal when it comes to vehicle ownership.
If someone is inspired to do what I do, that is fine. I really expect most people to keep purchasing new or newer cars.

 

[CKN]

Originally Posted by Wolf359
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.


True-one needs to look at the whole situation. Even though I got top dollar for my trade-they sold it for a good amount over what they gave me for it. And it was sold on the FIRST WEEKEND-it was available. I kept the loan three months so they got their "kick back". This was not a "mega dealer" but a small family owned dealership.

 

[Mr Nice]

Here in Florida you can buy a used Camry for $10K and drive it another 15 years.

Most cars get boring after 10 years...

 

[Patman]

No car payments here. The Civic was bought used in 2011 for $9300 CDN, the BMW bought used in 2014 for $22,000 CDN and I bought the Corvette new (but probably would have bought it used if I could have saved significant $$$ but the used ones at the time were only about $5000 less than I paid for mine)

 

[Mr Nice]

When did you get a new Corvette ?

Unfortunately lots of used Corvettes are abused.

 

[02SE]

Originally Posted by Mr Nice
When did you get a new Corvette ?

Unfortunately lots of used Corvettes are abused.


If you want a Corvette, as you've mentioned periodically, now might be a good time to look. There is a glut of them in inventory.

Corvette inventory

 

[DriveHard]

I could have written a check for my wife's Alfa, but I got less than 4% financing (3.xx%). Between inflation, and the interest I am still earning on that money sitting in a bank, it was a no-brainer to finance the loan.

 

[GMFan]

First car in college, I paid $3,800 cash. Once that car died a few years later, I financed a new car (in my sig) for 60 months at 0%, at $261/month. I paid it off around the 50 month mark I believe. I could have paid it off sooner, but it was at 0% so I wasn't in a rush. I like not having car payments, so my next car will be paid for in cash.

Honestly, after 3-6 months the new car excitement wears off, but the payments remain. If you're gut is telling you not to do it then don't.

 

[JustN89]

I financed my Elantra- 72 months with a .99% interest rate through a local credit union. I did that because it would be a financial mistake not to. I could take $14k out of my savings account (which accrues 1.5% interest) and pay upfront, or take a loan on that amount and pay the .99% interest on it. I come out ahead keeping my money in my savings account. My payment is $205/month.

 

[Leo99]

Originally Posted by Oil_Whisperer
There are two financial issues to consider. Paying interest and owning a depreciating asset.
Buy the time a car gets >10 years old, the depreciation slows way down. If you can find an older car with low mileage, you can usually just pay cash.
I will buy a 10 - 20 year old car with < 50k miles on it. Drive it for several years. Then sell it for not much less than what I gave for it.
Owning vehicles doesn't have to be expensive.
Everyone has their own tolerance level for debt. Mine is very low.



That's cool. Other folks have very low tolerance for unreliability and hence, want newer cars they feel have a lower likelihood of needing repairs.

A car with 200k miles and one with 300k miles are worth almost the same amount. It's like free miles.

 

[Leo99]

My Camry was the same price for cash or 0% financing with 0 down. Was a no brainer. I'm much better at paying a monthly bill than saving the same amount per month.

 

[gregk24]

Originally Posted by Spector
can you actually get an interest rate at 4% on a car when mortgage rates are close to 5%. Most car loans would normally be 2-4 percentage points higher than a mortgage rate


Both cars are paid for but 3 or so years ago I got a loan for the Accord with 1.9% interest.

 

[PandaBear]

4% definitely not. My cheapest mortgage is 2.5% and most expensive one is 3.25%, my car load is 1.5% so might as well (and I use the extra money to pay off my loan early).

 

[Patman]

Originally Posted by Mr Nice
When did you get a new Corvette ?


I factory ordered it in the fall of 2017 and took delivery on Dec 20, 2017.

Quote
Unfortunately lots of used Corvettes are abused.


I have found more often than not they are well cared for up here, as they are generally not used as daily commuters.