All I can say is that the next recession is going to hurt a lot of people, and this time we won't have the government slashing interest rates to bring things back up again.
Average new car payment $554
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Originally Posted by Srt20
Originally Posted by supton
Originally Posted by Srt20
LMAO at all the judgemental people in here....
Why do you worry about what others do????
Remind me how well we all did during the last credit crunch.
So what is judging on an internet forum going to do?
People complaining about others is going to change anything?
Worry about yourself, and take care of your own issues so things dont happen to you.
Give good advice to people that ask.
Not sure what you mean by "judging"; I think you mean "have a negative opinion". TBH I've yet to understand this whole "judging" thing, I guess I'm behind the times on semantics. Maybe we're supposed to pat each other on the back regardless of what we think?
Regardless. During the credit crunch, because car sales tank my income went down also. My salary took a pay cut as the company I worked for attempted to avoid layoffs (no minor task as most semicondutor manufacturers did big rounds of layoffs). Myself, I did ok; I had nothing but a mortgage and all we did was eat out less & drive less. And did a refi on our home, dropping our rate from over 6% to 3% and knocking many years off the loan period.
Originally Posted by supton
Originally Posted by Srt20
LMAO at all the judgemental people in here....
Why do you worry about what others do????
Remind me how well we all did during the last credit crunch.
So what is judging on an internet forum going to do?
People complaining about others is going to change anything?
Worry about yourself, and take care of your own issues so things dont happen to you.
Give good advice to people that ask.
Not sure what you mean by "judging"; I think you mean "have a negative opinion". TBH I've yet to understand this whole "judging" thing, I guess I'm behind the times on semantics. Maybe we're supposed to pat each other on the back regardless of what we think?
Regardless. During the credit crunch, because car sales tank my income went down also. My salary took a pay cut as the company I worked for attempted to avoid layoffs (no minor task as most semicondutor manufacturers did big rounds of layoffs). Myself, I did ok; I had nothing but a mortgage and all we did was eat out less & drive less. And did a refi on our home, dropping our rate from over 6% to 3% and knocking many years off the loan period.
Originally Posted by JeffKeryk
Cars are not investments, mutual funds are.
Do not put money into a depreciating asset, do put money into an appreciating asset.
Cars are different things to different people.
From basic transportation to status symbol and everything in between.
I will say they are a good way to get into financial trouble; can be bad or good.
I bought a new fully loaded black 6 speed Corvette in 1990 that I could not afford.
Of course I convinced myself otherwise...
Every "extra" penny I had went into that beautiful car.
When I sold it to a Corvette house a year later, I had to pay a bunch to get out from under the loan.
Perhaps the best lesson I ever learned.
Imagine if you bought Microsoft with all those Corvette payments for that 1 year???
New Corvettes are for affluent folks that can afford a toy.
Cars are not investments, mutual funds are.
Do not put money into a depreciating asset, do put money into an appreciating asset.
Cars are different things to different people.
From basic transportation to status symbol and everything in between.
I will say they are a good way to get into financial trouble; can be bad or good.
I bought a new fully loaded black 6 speed Corvette in 1990 that I could not afford.
Of course I convinced myself otherwise...
Every "extra" penny I had went into that beautiful car.
When I sold it to a Corvette house a year later, I had to pay a bunch to get out from under the loan.
Perhaps the best lesson I ever learned.
Imagine if you bought Microsoft with all those Corvette payments for that 1 year???
New Corvettes are for affluent folks that can afford a toy.
Originally Posted by flinter
56 years old and NEVER had a car payment in my life....and NEVER will. I currently drive a MINT condition 2017 Hyundai Elantra Value Edition, paid cash. Remember, one NEVER gets rich with constant car payments!
Terrible decision, financially. Why not have a 2-3% 72mo loan with GAP? Too many [censored] drivers, deer, etc. Out there for me to be 100% all in on a newer vehicle.
56 years old and NEVER had a car payment in my life....and NEVER will. I currently drive a MINT condition 2017 Hyundai Elantra Value Edition, paid cash. Remember, one NEVER gets rich with constant car payments!
Terrible decision, financially. Why not have a 2-3% 72mo loan with GAP? Too many [censored] drivers, deer, etc. Out there for me to be 100% all in on a newer vehicle.
Originally Posted by Mr Nice
Originally Posted by JeffKeryk
Cars are not investments, mutual funds are.
Do not put money into a depreciating asset, do put money into an appreciating asset.
Cars are different things to different people.
From basic transportation to status symbol and everything in between.
I will say they are a good way to get into financial trouble; can be bad or good.
I bought a new fully loaded black 6 speed Corvette in 1990 that I could not afford.
Of course I convinced myself otherwise...
Every "extra" penny I had went into that beautiful car.
When I sold it to a Corvette house a year later, I had to pay a bunch to get out from under the loan.
Perhaps the best lesson I ever learned.
Imagine if you bought Microsoft with all those Corvette payments for that 1 year???
New Corvettes are for affluent folks that can afford a toy.
I bought a new z06 Corvette when I was 25. I wasnt rich. I just wanted a toy. I sold it a year later, and am all the richer for the experience.
Originally Posted by JeffKeryk
Cars are not investments, mutual funds are.
Do not put money into a depreciating asset, do put money into an appreciating asset.
Cars are different things to different people.
From basic transportation to status symbol and everything in between.
I will say they are a good way to get into financial trouble; can be bad or good.
I bought a new fully loaded black 6 speed Corvette in 1990 that I could not afford.
Of course I convinced myself otherwise...
Every "extra" penny I had went into that beautiful car.
When I sold it to a Corvette house a year later, I had to pay a bunch to get out from under the loan.
Perhaps the best lesson I ever learned.
Imagine if you bought Microsoft with all those Corvette payments for that 1 year???
New Corvettes are for affluent folks that can afford a toy.
I bought a new z06 Corvette when I was 25. I wasnt rich. I just wanted a toy. I sold it a year later, and am all the richer for the experience.
Originally Posted by Mr Nice
Originally Posted by JeffKeryk
Cars are not investments, mutual funds are.
Do not put money into a depreciating asset, do put money into an appreciating asset.
Cars are different things to different people.
From basic transportation to status symbol and everything in between.
I will say they are a good way to get into financial trouble; can be bad or good.
I bought a new fully loaded black 6 speed Corvette in 1990 that I could not afford.
Of course I convinced myself otherwise...
Every "extra" penny I had went into that beautiful car.
When I sold it to a Corvette house a year later, I had to pay a bunch to get out from under the loan.
Perhaps the best lesson I ever learned.
Imagine if you bought Microsoft with all those Corvette payments for that 1 year???
New Corvettes are for affluent folks that can afford a toy.
Your point is well taken.
After I got rid of the Vette, I did save/invest like crazy.
And yes, it has paid off beyond my wildest expectations.
Of course the opportunity of Silicon Valley was a big part of the equation...
Now I pay a ton in taxes, which is a great problem to have.
And I get to help others, which is the best feeling in the world.
Originally Posted by JeffKeryk
Cars are not investments, mutual funds are.
Do not put money into a depreciating asset, do put money into an appreciating asset.
Cars are different things to different people.
From basic transportation to status symbol and everything in between.
I will say they are a good way to get into financial trouble; can be bad or good.
I bought a new fully loaded black 6 speed Corvette in 1990 that I could not afford.
Of course I convinced myself otherwise...
Every "extra" penny I had went into that beautiful car.
When I sold it to a Corvette house a year later, I had to pay a bunch to get out from under the loan.
Perhaps the best lesson I ever learned.
Imagine if you bought Microsoft with all those Corvette payments for that 1 year???
New Corvettes are for affluent folks that can afford a toy.
Your point is well taken.
After I got rid of the Vette, I did save/invest like crazy.
And yes, it has paid off beyond my wildest expectations.
Of course the opportunity of Silicon Valley was a big part of the equation...
Now I pay a ton in taxes, which is a great problem to have.
And I get to help others, which is the best feeling in the world.
Originally Posted by Ws6
Originally Posted by flinter
56 years old and NEVER had a car payment in my life....and NEVER will. I currently drive a MINT condition 2017 Hyundai Elantra Value Edition, paid cash. Remember, one NEVER gets rich with constant car payments!
Terrible decision, financially. Why not have a 2-3% 72mo loan with GAP? Too many [censored] drivers, deer, etc. Out there for me to be 100% all in on a newer vehicle.
What ever makes you feel better about your $650/month payment over 72months (I hope less) on a tiny Mazda CUV. Are you accident prone or just justifying? Also GAP insurance is not free but a good move for people so far into hole they cannot recover.
Originally Posted by flinter
56 years old and NEVER had a car payment in my life....and NEVER will. I currently drive a MINT condition 2017 Hyundai Elantra Value Edition, paid cash. Remember, one NEVER gets rich with constant car payments!
Terrible decision, financially. Why not have a 2-3% 72mo loan with GAP? Too many [censored] drivers, deer, etc. Out there for me to be 100% all in on a newer vehicle.
What ever makes you feel better about your $650/month payment over 72months (I hope less) on a tiny Mazda CUV. Are you accident prone or just justifying? Also GAP insurance is not free but a good move for people so far into hole they cannot recover.
JeffKeryk,
I was also dumb with money when I was young and wised up.
But you only live once so I can understand why you bought a car with an L-98 and ZF6 manual transmission.
I was also dumb with money when I was young and wised up.
But you only live once so I can understand why you bought a car with an L-98 and ZF6 manual transmission.
Originally Posted by HowAboutThis
Here's my math:
If you pay $30k cash and put what would have been the car payments into savings @ 2.2% for 5 years, $525/mth into savings, you end up with $33,300, a gain of $3,300.
If you take a $30k loan out @ 1.9% and leave your $30k in savings growing at 2.2% you
Pay an extra $1470 in interest and earn $3490 in interest. A net gain of $2,020.
That's how. Feel free to check my math if you'd like. I won't gurantee I didn't make an error somewhere with online calculators.
I don't know what errors you've made in your arithmetic or assumptions, but there's no way you can come out ahead in earnings, not savings, giving up 2.2% in interest to save 1.9%.
This is simple arbitrage to anyone with even a minor knowledge of finance and investment.
Here's my math:
If you pay $30k cash and put what would have been the car payments into savings @ 2.2% for 5 years, $525/mth into savings, you end up with $33,300, a gain of $3,300.
If you take a $30k loan out @ 1.9% and leave your $30k in savings growing at 2.2% you
Pay an extra $1470 in interest and earn $3490 in interest. A net gain of $2,020.
That's how. Feel free to check my math if you'd like. I won't gurantee I didn't make an error somewhere with online calculators.
I don't know what errors you've made in your arithmetic or assumptions, but there's no way you can come out ahead in earnings, not savings, giving up 2.2% in interest to save 1.9%.
This is simple arbitrage to anyone with even a minor knowledge of finance and investment.
I see a lot of usury among people who can afford it the least. If you have bad credit, chances are it's for a reason and some businesses prey on that.
Originally Posted by Silverado12
I see a lot of usury among people who can afford it the least. If you have bad credit, chances are it's for a reason and some businesses prey on that.
The finance guy at the dealership, he doesn't give two chits that he's putting you into a car that you can not afford. 72, 84 months... are you kidding me? What's next... trade in a kidney for a new F150?? ...‚
Too many people have trouble distinguishing between wants and needs.
I see a lot of usury among people who can afford it the least. If you have bad credit, chances are it's for a reason and some businesses prey on that.
The finance guy at the dealership, he doesn't give two chits that he's putting you into a car that you can not afford. 72, 84 months... are you kidding me? What's next... trade in a kidney for a new F150?? ...‚
Too many people have trouble distinguishing between wants and needs.
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Life is way too short not to enjoy it every step of the way. I have owned many cars--some great and others not so great. I plan to slide into the grave being able to say that life was one helluva ride instead of worrying and denying myself in the pointless quest for "someday".
Originally Posted by madRiver
Originally Posted by Ws6
Originally Posted by flinter
56 years old and NEVER had a car payment in my life....and NEVER will. I currently drive a MINT condition 2017 Hyundai Elantra Value Edition, paid cash. Remember, one NEVER gets rich with constant car payments!
Terrible decision, financially. Why not have a 2-3% 72mo loan with GAP? Too many [censored] drivers, deer, etc. Out there for me to be 100% all in on a newer vehicle.
What ever makes you feel better about your $650/month payment over 72months (I hope less) on a tiny Mazda CUV. Are you accident prone or just justifying? Also GAP insurance is not free but a good move for people so far into hole they cannot recover.
Its far less than I paid for my corvette, and far larger. Its decently quick (0-60 in 6.2), AWD, cooled seats, and very quiet at speed. I drive 30k miles a year and want to be comfortable. My car payment is kindof invisible to me in that its just lost in the noise, only costing a few hundred per paycheck. Worth it to me.
Originally Posted by Ws6
Originally Posted by flinter
56 years old and NEVER had a car payment in my life....and NEVER will. I currently drive a MINT condition 2017 Hyundai Elantra Value Edition, paid cash. Remember, one NEVER gets rich with constant car payments!
Terrible decision, financially. Why not have a 2-3% 72mo loan with GAP? Too many [censored] drivers, deer, etc. Out there for me to be 100% all in on a newer vehicle.
What ever makes you feel better about your $650/month payment over 72months (I hope less) on a tiny Mazda CUV. Are you accident prone or just justifying? Also GAP insurance is not free but a good move for people so far into hole they cannot recover.
Its far less than I paid for my corvette, and far larger. Its decently quick (0-60 in 6.2), AWD, cooled seats, and very quiet at speed. I drive 30k miles a year and want to be comfortable. My car payment is kindof invisible to me in that its just lost in the noise, only costing a few hundred per paycheck. Worth it to me.
Originally Posted by 2015_PSD
Life is way too short not to enjoy it every step of the way. I have owned many cars--some great and others not so great. I plan to slide into the grave being able to say that life was one helluva ride instead of worrying and denying myself in the pointless quest for "someday".
Exactly. I have several friends who pay more in taxes than anyone in this thread likely nets per year. You know what? They all agonize over $1800 rifle scopes or "did I get a good deal on this Forester?" And truly are stressed and have certainly no more joy than I. Of course, thats how they got to be deep into the 7 figure income range, but still...i work to live. Not live to work.
Life is way too short not to enjoy it every step of the way. I have owned many cars--some great and others not so great. I plan to slide into the grave being able to say that life was one helluva ride instead of worrying and denying myself in the pointless quest for "someday".
Exactly. I have several friends who pay more in taxes than anyone in this thread likely nets per year. You know what? They all agonize over $1800 rifle scopes or "did I get a good deal on this Forester?" And truly are stressed and have certainly no more joy than I. Of course, thats how they got to be deep into the 7 figure income range, but still...i work to live. Not live to work.
Originally Posted by supton
Originally Posted by Srt20
Originally Posted by supton
Originally Posted by Srt20
LMAO at all the judgemental people in here....
Why do you worry about what others do????
Remind me how well we all did during the last credit crunch.
So what is judging on an internet forum going to do?
People complaining about others is going to change anything?
Worry about yourself, and take care of your own issues so things dont happen to you.
Give good advice to people that ask.
Not sure what you mean by "judging"; I think you mean "have a negative opinion". TBH I've yet to understand this whole "judging" thing, I guess I'm behind the times on semantics. Maybe we're supposed to pat each other on the back regardless of what we think?
Regardless. During the credit crunch, because car sales tank my income went down also. My salary took a pay cut as the company I worked for attempted to avoid layoffs (no minor task as most semicondutor manufacturers did big rounds of layoffs). Myself, I did ok; I had nothing but a mortgage and all we did was eat out less & drive less. And did a refi on our home, dropping our rate from over 6% to 3% and knocking many years off the loan period.
You can have any opinion you want. But what good does it do to get on an internet forum and act holier than thou because someone doesnt do what your opinion thinks they should do?
Whether you did this or not, I dont know. Im not going back to check, but some people clearly did. You replied to my comment, so you get my replies.
Hey, good on you for being financially smart and secure enough that the "credit crunch" didnt affect you much. Not that my opinion about your financial status matters much on the internet......I dont need the "pat on the back", so Im not going to proclaim how I did....
Originally Posted by Srt20
Originally Posted by supton
Originally Posted by Srt20
LMAO at all the judgemental people in here....
Why do you worry about what others do????
Remind me how well we all did during the last credit crunch.
So what is judging on an internet forum going to do?
People complaining about others is going to change anything?
Worry about yourself, and take care of your own issues so things dont happen to you.
Give good advice to people that ask.
Not sure what you mean by "judging"; I think you mean "have a negative opinion". TBH I've yet to understand this whole "judging" thing, I guess I'm behind the times on semantics. Maybe we're supposed to pat each other on the back regardless of what we think?
Regardless. During the credit crunch, because car sales tank my income went down also. My salary took a pay cut as the company I worked for attempted to avoid layoffs (no minor task as most semicondutor manufacturers did big rounds of layoffs). Myself, I did ok; I had nothing but a mortgage and all we did was eat out less & drive less. And did a refi on our home, dropping our rate from over 6% to 3% and knocking many years off the loan period.
You can have any opinion you want. But what good does it do to get on an internet forum and act holier than thou because someone doesnt do what your opinion thinks they should do?
Whether you did this or not, I dont know. Im not going back to check, but some people clearly did. You replied to my comment, so you get my replies.
Hey, good on you for being financially smart and secure enough that the "credit crunch" didnt affect you much. Not that my opinion about your financial status matters much on the internet......I dont need the "pat on the back", so Im not going to proclaim how I did....
Last edited:
Originally Posted by supton
Originally Posted by Srt20
LMAO at all the judgemental people in here....
Why do you worry about what others do????
Remind me how well we all did during the last credit crunch.
My family and I were lucky we bought are home during the last crisis. I was not buying a house around here at the inflated prices. Now the home prices are creeping up to highs before the last crash.
Originally Posted by Srt20
LMAO at all the judgemental people in here....
Why do you worry about what others do????
Remind me how well we all did during the last credit crunch.
My family and I were lucky we bought are home during the last crisis. I was not buying a house around here at the inflated prices. Now the home prices are creeping up to highs before the last crash.
I was debt free for 4 years then life struck. I had to move from my paid off home into a home that was sitting idle for over 10 years but it was free. Car broke down which financially didn't make sense to repair so I bought the Caravan. Notes are less than 500 a month and now credit cards out the yazoo. I look at like 5 years from now I will be debt free again with house redone and a vehicle with less than 40k on it so I should be able to relax. I am doing this on disability so it is all about wants and needs.
Originally Posted by Mr Nice
Nobody can blame the commissioned folks in finance that know certain people are overextended and buy houses and vehicles they can't afford.
All these folks care about is selling and selling....
The investment firms that are paying those commissions want badly to make those loans. It may very well be that they are packaging these loans into an attractive looking package designed to make a bunch of iffy loans look better than they are and to sell them as triple A rated investments at a huge profit. The people and places buying into to these pretty looking A rated "investments" are the ultimate fools who are not all that savvy and probably don't know any better and will suffer the losses when some of the underlying loans default.
This is the pre-2008 housing crisis in a nutshell, now days with a do-over involving automobile loans.
Those who fail to understand history are bound to repeat it.
Nobody can blame the commissioned folks in finance that know certain people are overextended and buy houses and vehicles they can't afford.
All these folks care about is selling and selling....
The investment firms that are paying those commissions want badly to make those loans. It may very well be that they are packaging these loans into an attractive looking package designed to make a bunch of iffy loans look better than they are and to sell them as triple A rated investments at a huge profit. The people and places buying into to these pretty looking A rated "investments" are the ultimate fools who are not all that savvy and probably don't know any better and will suffer the losses when some of the underlying loans default.
This is the pre-2008 housing crisis in a nutshell, now days with a do-over involving automobile loans.
Those who fail to understand history are bound to repeat it.
Originally Posted by Linctex
That's a mortgage payment!
My last "car" payment (light truck, actually) was $184 a month.
Way, way, way too many people are "living beyond their means" ...!!!!!!
My mortgage is $281/mo. I have purposely spent a looong time searching for, inspecting, and vetting my last four car purchases, which have all been used, and paid cash for them. Instead of $391/mo plus repairs, instead, I budget about $100-150/mo between my two current used vehicles to repair and PM them ahead of schedule. Since I'm intimately familiar with the mechanics of my vehicles and they've been around long enough that any mechanical issues are well known, it is easy to stay ahead of the curve. Other than planned trips to the local indie mechanic to perform jobs that I either didn't have the tools or the want to do, I haven't had a major or "catastrophic" failure in well over 10 years and 400k miles traveled. The newest vehicle I have is creeping up on 130k, and yet I still get everywhere I intend to go without fail, come rain, sleet, snow, etc.
My stepson definitely falls into the category of your last statement, as he has had two vehicles repo'd in the past 6 years, and frequently called to borrow my third vehicle when his broke down before I got rid of it to remove my headaches. He would return my car with trash in it and an empty tank
Sorry, kid, but at some point you gotta stand on your own two feet and figure it out!
Now, I'm just trying to figure out where all of my monthly savings on vehicles has gone... oh wait. My wife has a credit card and knows how to use it!
That's a mortgage payment!
My last "car" payment (light truck, actually) was $184 a month.
Way, way, way too many people are "living beyond their means" ...!!!!!!
My mortgage is $281/mo. I have purposely spent a looong time searching for, inspecting, and vetting my last four car purchases, which have all been used, and paid cash for them. Instead of $391/mo plus repairs, instead, I budget about $100-150/mo between my two current used vehicles to repair and PM them ahead of schedule. Since I'm intimately familiar with the mechanics of my vehicles and they've been around long enough that any mechanical issues are well known, it is easy to stay ahead of the curve. Other than planned trips to the local indie mechanic to perform jobs that I either didn't have the tools or the want to do, I haven't had a major or "catastrophic" failure in well over 10 years and 400k miles traveled. The newest vehicle I have is creeping up on 130k, and yet I still get everywhere I intend to go without fail, come rain, sleet, snow, etc.
My stepson definitely falls into the category of your last statement, as he has had two vehicles repo'd in the past 6 years, and frequently called to borrow my third vehicle when his broke down before I got rid of it to remove my headaches. He would return my car with trash in it and an empty tank
Now, I'm just trying to figure out where all of my monthly savings on vehicles has gone... oh wait. My wife has a credit card and knows how to use it!
Originally Posted by SubieRubyRoo
Linctex said:That's a mortgage payment!
My stepson definitely falls into the category of your last statement, as he has had two vehicles repo'd in the past 6 years, and frequently called to borrow my third vehicle when his broke down before I got rid of it to remove my headaches. He would return my car with trash in it and an empty tankSorry, kid, but at some point you gotta stand on your own two feet and figure it out!
Man I have to admit. I had to learn a little bit. Im 30 and I feel like im finally getting the hang of it. I make six figures but when you have debt, you are not well off at all! and the last relationship I had sucked me dry. Drained 40k out of my savings in a year because she was like your stepson. Needed this and that but never worked for it. I learned my lesson. I am much better off now and paying everything off. My Fiancee was smart and bought a house and pays $900 for her mortgage. I was paying $2100 a month for rent for a 2BR apartment. Also doesn't help Denver is expensive!
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