Average new car payment $554
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Originally Posted by tony1679
Originally Posted by clinebarger
At 29 years old....NO WAY, NO HOW!!
I don't have a Mortgage or a Car Payment. And even if I was single, I couldn't see 200K getting me very far!
Owning a home & land is expensive!
I have two ways to easily do this.
1. I can buy an acre of family land with an existing well and septic for $5k. I can then build a small, simple, extremely energy efficient house for well under $75k, as I've already had multiple estimates based on what I want. Then pay off both cars (rounding way up) for $20k. That's only $100k. I have no debt other than that, so that's $100k I can put in savings, invest, etc. With no real bills, $100k will last a very long time with my lifestyle.
2. I can buy my current house I'm renting for $125k. I'd instantly have $25-50k equity in it (again, family deal). Paying off the two cars would leave me $55-60k, plus $25-50k in equity. My lifestyle consists of surfing BITOG and the everlasting hunt for the motherload of clearance oil. Not to mention the things I could do for income in all that free time that I couldn't do now.
Of course, as ad244 said, assuming I don't rack up millions in medical bills.
It wouldn't be that hard around here - I bought a couple of lots at a tax sale a few years back, 1/4 acre each, adjacent, on a small lake about twenty miles south of here, all paved roads, for < $7K IIRC. City water, but no sewer, so I would have to add septic. Big mobile home dealer used the biggest double wide they sold as a sales office, when they wanted to rotate it out, I bought it for $15-20K ( don't remember) and moved it to some land over in OK where I planned on renting it out, but has just sat there unused ever since.
So that's $27K, figure another $20K for septic, moving the thing back to Arkansas, and fixing up / repairs, and a small boat to fish from, and that's < $50K to be living on 1/2 acre on a nice little lake. I would think if you were frugal, another $400 / month would cover your other expenses. Take a part time job greeting at Wal Mart.
For a while I sold pre fab buildings off one of my empty lots - I had a cabin size building with a porch, etc., that people would finish out as a hunting cabin, lake cabin, etc. for not much money.
Originally Posted by clinebarger
At 29 years old....NO WAY, NO HOW!!
I don't have a Mortgage or a Car Payment. And even if I was single, I couldn't see 200K getting me very far!
Owning a home & land is expensive!
I have two ways to easily do this.
1. I can buy an acre of family land with an existing well and septic for $5k. I can then build a small, simple, extremely energy efficient house for well under $75k, as I've already had multiple estimates based on what I want. Then pay off both cars (rounding way up) for $20k. That's only $100k. I have no debt other than that, so that's $100k I can put in savings, invest, etc. With no real bills, $100k will last a very long time with my lifestyle.
2. I can buy my current house I'm renting for $125k. I'd instantly have $25-50k equity in it (again, family deal). Paying off the two cars would leave me $55-60k, plus $25-50k in equity. My lifestyle consists of surfing BITOG and the everlasting hunt for the motherload of clearance oil. Not to mention the things I could do for income in all that free time that I couldn't do now.
Of course, as ad244 said, assuming I don't rack up millions in medical bills.
It wouldn't be that hard around here - I bought a couple of lots at a tax sale a few years back, 1/4 acre each, adjacent, on a small lake about twenty miles south of here, all paved roads, for < $7K IIRC. City water, but no sewer, so I would have to add septic. Big mobile home dealer used the biggest double wide they sold as a sales office, when they wanted to rotate it out, I bought it for $15-20K ( don't remember) and moved it to some land over in OK where I planned on renting it out, but has just sat there unused ever since.
So that's $27K, figure another $20K for septic, moving the thing back to Arkansas, and fixing up / repairs, and a small boat to fish from, and that's < $50K to be living on 1/2 acre on a nice little lake. I would think if you were frugal, another $400 / month would cover your other expenses. Take a part time job greeting at Wal Mart.
For a while I sold pre fab buildings off one of my empty lots - I had a cabin size building with a porch, etc., that people would finish out as a hunting cabin, lake cabin, etc. for not much money.
Originally Posted by grampi
With all of the $50K+ vehicles I see on the roads these days, I'd say this number is quite a bit low...
The payment number is probably in line, but the number of months the vehicle is financed for is the variable.
With all of the $50K+ vehicles I see on the roads these days, I'd say this number is quite a bit low...
The payment number is probably in line, but the number of months the vehicle is financed for is the variable.
Originally Posted by Mad_Hatter
Originally Posted by Linctex
Way, way, way too many people are "living beyond their means" ...!!!!!!
No car/boat/toy payments and no credit card debt. Just a mortgage and I sleep pretty good at night....
Yes...That.
Originally Posted by Linctex
Way, way, way too many people are "living beyond their means" ...!!!!!!
No car/boat/toy payments and no credit card debt. Just a mortgage and I sleep pretty good at night....
Yes...That.
I sleep pretty well at night knowing my family has a safe, reliable, comfortable, car that has a fairly low payment. Its one thing if i break down in my beater when its 105 degrees, its another for a spouse with kids. But $550 bucks a month would be too rich for my sensibility.
Originally Posted by Win
Originally Posted by tony1679
Originally Posted by clinebarger
At 29 years old....NO WAY, NO HOW!!
I don't have a Mortgage or a Car Payment. And even if I was single, I couldn't see 200K getting me very far!
Owning a home & land is expensive!
I have two ways to easily do this.
1. I can buy an acre of family land with an existing well and septic for $5k. I can then build a small, simple, extremely energy efficient house for well under $75k, as I've already had multiple estimates based on what I want. Then pay off both cars (rounding way up) for $20k. That's only $100k. I have no debt other than that, so that's $100k I can put in savings, invest, etc. With no real bills, $100k will last a very long time with my lifestyle.
2. I can buy my current house I'm renting for $125k. I'd instantly have $25-50k equity in it (again, family deal). Paying off the two cars would leave me $55-60k, plus $25-50k in equity. My lifestyle consists of surfing BITOG and the everlasting hunt for the motherload of clearance oil. Not to mention the things I could do for income in all that free time that I couldn't do now.
Of course, as ad244 said, assuming I don't rack up millions in medical bills.
It wouldn't be that hard around here - I bought a couple of lots at a tax sale a few years back, 1/4 acre each, adjacent, on a small lake about twenty miles south of here, all paved roads, for < $7K IIRC. City water, but no sewer, so I would have to add septic. Big mobile home dealer used the biggest double wide they sold as a sales office, when they wanted to rotate it out, I bought it for $15-20K ( don't remember) and moved it to some land over in OK where I planned on renting it out, but has just sat there unused ever since.
So that's $27K, figure another $20K for septic, moving the thing back to Arkansas, and fixing up / repairs, and a small boat to fish from, and that's < $50K to be living on 1/2 acre on a nice little lake. I would think if you were frugal, another $400 / month would cover your other expenses. Take a part time job greeting at Wal Mart.
For a while I sold pre fab buildings off one of my empty lots - I had a cabin size building with a porch, etc., that people would finish out as a hunting cabin, lake cabin, etc. for not much money.
See? I'm not the only one who gets it.
Originally Posted by tony1679
Originally Posted by clinebarger
At 29 years old....NO WAY, NO HOW!!
I don't have a Mortgage or a Car Payment. And even if I was single, I couldn't see 200K getting me very far!
Owning a home & land is expensive!
I have two ways to easily do this.
1. I can buy an acre of family land with an existing well and septic for $5k. I can then build a small, simple, extremely energy efficient house for well under $75k, as I've already had multiple estimates based on what I want. Then pay off both cars (rounding way up) for $20k. That's only $100k. I have no debt other than that, so that's $100k I can put in savings, invest, etc. With no real bills, $100k will last a very long time with my lifestyle.
2. I can buy my current house I'm renting for $125k. I'd instantly have $25-50k equity in it (again, family deal). Paying off the two cars would leave me $55-60k, plus $25-50k in equity. My lifestyle consists of surfing BITOG and the everlasting hunt for the motherload of clearance oil. Not to mention the things I could do for income in all that free time that I couldn't do now.
Of course, as ad244 said, assuming I don't rack up millions in medical bills.
It wouldn't be that hard around here - I bought a couple of lots at a tax sale a few years back, 1/4 acre each, adjacent, on a small lake about twenty miles south of here, all paved roads, for < $7K IIRC. City water, but no sewer, so I would have to add septic. Big mobile home dealer used the biggest double wide they sold as a sales office, when they wanted to rotate it out, I bought it for $15-20K ( don't remember) and moved it to some land over in OK where I planned on renting it out, but has just sat there unused ever since.
So that's $27K, figure another $20K for septic, moving the thing back to Arkansas, and fixing up / repairs, and a small boat to fish from, and that's < $50K to be living on 1/2 acre on a nice little lake. I would think if you were frugal, another $400 / month would cover your other expenses. Take a part time job greeting at Wal Mart.
For a while I sold pre fab buildings off one of my empty lots - I had a cabin size building with a porch, etc., that people would finish out as a hunting cabin, lake cabin, etc. for not much money.
See? I'm not the only one who gets it.
With advent of Uber/Lylt I never think much of breaking down driving my paid for cash 200k 11 year old rusty Acura MDX that costs at most 2-3 payments $550 in repairs/ maintenance a year. Those people doing $550/month still have maintenance and potentially repairs if elongated 72 or 84 month term.
Originally Posted by izualangel
I sleep pretty well at night knowing my family has a safe, reliable, comfortable, car that has a fairly low payment. Its one thing if i break down in my beater when its 105 degrees, its another for a spouse with kids. But $550 bucks a month would be too rich for my sensibility.
Your city/state is funny!...
I sleep pretty well at night knowing my family has a safe, reliable, comfortable, car that has a fairly low payment. Its one thing if i break down in my beater when its 105 degrees, its another for a spouse with kids. But $550 bucks a month would be too rich for my sensibility.
Your city/state is funny!...
Originally Posted by SeaJay
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.
Reading your comment I was saying to myself, that is exactly what led to the housing collapse of '08.
And they're doing it with cars now, like you mentioned. In this thread I posted a link to a study done by the NY Federal Reserve and they found a record number (7+mill) of vehicle loans are 90+ days behind.
A lot of people are buying cars they simply can't afford. At some point the Piper has to be paid...but on the upside, that's potentially 7mill repos to potentially get a good deal on! (I hope that didn't sound too callous)
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.
Reading your comment I was saying to myself, that is exactly what led to the housing collapse of '08.
And they're doing it with cars now, like you mentioned. In this thread I posted a link to a study done by the NY Federal Reserve and they found a record number (7+mill) of vehicle loans are 90+ days behind.
A lot of people are buying cars they simply can't afford. At some point the Piper has to be paid...but on the upside, that's potentially 7mill repos to potentially get a good deal on! (I hope that didn't sound too callous)
Last edited:
Originally Posted by tony1679
Originally Posted by Win
Originally Posted by tony1679
Originally Posted by clinebarger
At 29 years old....NO WAY, NO HOW!!
I don't have a Mortgage or a Car Payment. And even if I was single, I couldn't see 200K getting me very far!
Owning a home & land is expensive!
I have two ways to easily do this.
1. I can buy an acre of family land with an existing well and septic for $5k. I can then build a small, simple, extremely energy efficient house for well under $75k, as I've already had multiple estimates based on what I want. Then pay off both cars (rounding way up) for $20k. That's only $100k. I have no debt other than that, so that's $100k I can put in savings, invest, etc. With no real bills, $100k will last a very long time with my lifestyle.
2. I can buy my current house I'm renting for $125k. I'd instantly have $25-50k equity in it (again, family deal). Paying off the two cars would leave me $55-60k, plus $25-50k in equity. My lifestyle consists of surfing BITOG and the everlasting hunt for the motherload of clearance oil. Not to mention the things I could do for income in all that free time that I couldn't do now.
Of course, as ad244 said, assuming I don't rack up millions in medical bills.
It wouldn't be that hard around here - I bought a couple of lots at a tax sale a few years back, 1/4 acre each, adjacent, on a small lake about twenty miles south of here, all paved roads, for < $7K IIRC. City water, but no sewer, so I would have to add septic. Big mobile home dealer used the biggest double wide they sold as a sales office, when they wanted to rotate it out, I bought it for $15-20K ( don't remember) and moved it to some land over in OK where I planned on renting it out, but has just sat there unused ever since.
So that's $27K, figure another $20K for septic, moving the thing back to Arkansas, and fixing up / repairs, and a small boat to fish from, and that's < $50K to be living on 1/2 acre on a nice little lake. I would think if you were frugal, another $400 / month would cover your other expenses. Take a part time job greeting at Wal Mart.
For a while I sold pre fab buildings off one of my empty lots - I had a cabin size building with a porch, etc., that people would finish out as a hunting cabin, lake cabin, etc. for not much money.
See? I'm not the only one who gets it.
Pretty admirable, but not for me--married with two kids, need a house larger than a minimum.
I've thought about moving south when I get close to retirement, make my money up here, move south, but I'm not sure I could convince the better half about that.
Originally Posted by Win
Originally Posted by tony1679
Originally Posted by clinebarger
At 29 years old....NO WAY, NO HOW!!
I don't have a Mortgage or a Car Payment. And even if I was single, I couldn't see 200K getting me very far!
Owning a home & land is expensive!
I have two ways to easily do this.
1. I can buy an acre of family land with an existing well and septic for $5k. I can then build a small, simple, extremely energy efficient house for well under $75k, as I've already had multiple estimates based on what I want. Then pay off both cars (rounding way up) for $20k. That's only $100k. I have no debt other than that, so that's $100k I can put in savings, invest, etc. With no real bills, $100k will last a very long time with my lifestyle.
2. I can buy my current house I'm renting for $125k. I'd instantly have $25-50k equity in it (again, family deal). Paying off the two cars would leave me $55-60k, plus $25-50k in equity. My lifestyle consists of surfing BITOG and the everlasting hunt for the motherload of clearance oil. Not to mention the things I could do for income in all that free time that I couldn't do now.
Of course, as ad244 said, assuming I don't rack up millions in medical bills.
It wouldn't be that hard around here - I bought a couple of lots at a tax sale a few years back, 1/4 acre each, adjacent, on a small lake about twenty miles south of here, all paved roads, for < $7K IIRC. City water, but no sewer, so I would have to add septic. Big mobile home dealer used the biggest double wide they sold as a sales office, when they wanted to rotate it out, I bought it for $15-20K ( don't remember) and moved it to some land over in OK where I planned on renting it out, but has just sat there unused ever since.
So that's $27K, figure another $20K for septic, moving the thing back to Arkansas, and fixing up / repairs, and a small boat to fish from, and that's < $50K to be living on 1/2 acre on a nice little lake. I would think if you were frugal, another $400 / month would cover your other expenses. Take a part time job greeting at Wal Mart.
For a while I sold pre fab buildings off one of my empty lots - I had a cabin size building with a porch, etc., that people would finish out as a hunting cabin, lake cabin, etc. for not much money.
See? I'm not the only one who gets it.
Pretty admirable, but not for me--married with two kids, need a house larger than a minimum.
I've thought about moving south when I get close to retirement, make my money up here, move south, but I'm not sure I could convince the better half about that.
You can really stretch your retirement in the south.
Originally Posted by Mad_Hatter
Originally Posted by SeaJay
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.
Reading your comment I was saying to myself, that is exactly what led to the housing collapse of '08.
And they're doing it with cars now, like you mentioned. In this thread I posted a link to a study done by the NY Federal Reserve and they found a record number (7+mill) of vehicle loans are 90+ days behind.
A lot of people are buying cars they simply can't afford. At some point the Piper has to be paid...but on the upside, that's potentially 7mill repos to potentially get a good deal on! (I hope that didn't sound too callous)
Yeah...much as I like my Vic, a Hemi Charger or Challenger is really tempting.
Originally Posted by SeaJay
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.
Reading your comment I was saying to myself, that is exactly what led to the housing collapse of '08.
And they're doing it with cars now, like you mentioned. In this thread I posted a link to a study done by the NY Federal Reserve and they found a record number (7+mill) of vehicle loans are 90+ days behind.
A lot of people are buying cars they simply can't afford. At some point the Piper has to be paid...but on the upside, that's potentially 7mill repos to potentially get a good deal on! (I hope that didn't sound too callous)
Yeah...much as I like my Vic, a Hemi Charger or Challenger is really tempting.
Originally Posted by supton
Pretty admirable, but not for me--married with two kids, need a house larger than a minimum.
I've thought about moving south when I get close to retirement, make my money up here, move south, but I'm not sure I could convince the better half about that.
A double-wide is usually 1300+ square feet, frequently with 3BR/2BA.
Pretty admirable, but not for me--married with two kids, need a house larger than a minimum.
I've thought about moving south when I get close to retirement, make my money up here, move south, but I'm not sure I could convince the better half about that.
A double-wide is usually 1300+ square feet, frequently with 3BR/2BA.
Originally Posted by Mr Nice
You can really stretch your retirement in the south.
Yeah I know. Problem is, I enjoy New England fall, and spring time can be something else also--the sudden snap from winter to warm can be very heady. But those long nights are something else.
To move south I'd probably have to turn into a night owl or something, I burn too easily, and even up here it's almost time for me to quit being outside from 10am to 5pm, too much sunlight.
Maybe if I got rich enough so I could summer someplace north.
You can really stretch your retirement in the south.
Yeah I know. Problem is, I enjoy New England fall, and spring time can be something else also--the sudden snap from winter to warm can be very heady. But those long nights are something else.
To move south I'd probably have to turn into a night owl or something, I burn too easily, and even up here it's almost time for me to quit being outside from 10am to 5pm, too much sunlight.
Maybe if I got rich enough so I could summer someplace north.
Originally Posted by Jarlaxle
Originally Posted by Mad_Hatter
Originally Posted by SeaJay
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.
Reading your comment I was saying to myself, that is exactly what led to the housing collapse of '08.
And they're doing it with cars now, like you mentioned. In this thread I posted a link to a study done by the NY Federal Reserve and they found a record number (7+mill) of vehicle loans are 90+ days behind.
A lot of people are buying cars they simply can't afford. At some point the Piper has to be paid...but on the upside, that's potentially 7mill repos to potentially get a good deal on! (I hope that didn't sound too callous)
Yeah...much as I like my Vic, a Hemi Charger or Challenger is really tempting.
Tell me about it. I just have to many other things to do with my money. Like college for two kids in a few years..a car for each as they go off to school. Maybe when they're out of the house I'll treat myself. That's the whole wants v. needs thing. I want a new rig but honestly, I don't need one right now.
Originally Posted by Mad_Hatter
Originally Posted by SeaJay
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.
Reading your comment I was saying to myself, that is exactly what led to the housing collapse of '08.
And they're doing it with cars now, like you mentioned. In this thread I posted a link to a study done by the NY Federal Reserve and they found a record number (7+mill) of vehicle loans are 90+ days behind.
A lot of people are buying cars they simply can't afford. At some point the Piper has to be paid...but on the upside, that's potentially 7mill repos to potentially get a good deal on! (I hope that didn't sound too callous)
Yeah...much as I like my Vic, a Hemi Charger or Challenger is really tempting.
Tell me about it. I just have to many other things to do with my money. Like college for two kids in a few years..a car for each as they go off to school. Maybe when they're out of the house I'll treat myself. That's the whole wants v. needs thing. I want a new rig but honestly, I don't need one right now.
If you are lucky, one day your wants will become doable without too much pain.
My wants are to put children through college, etc.
I have a few promises out there that I intend to keep.
My wants are to put children through college, etc.
I have a few promises out there that I intend to keep.
Originally Posted by fdcg27
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.
I laid my numbers out. Calculate it yourself. You're honestly going to say my numbers feel wrong but not prove it?
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.
I laid my numbers out. Calculate it yourself. You're honestly going to say my numbers feel wrong but not prove it?
Let me rephrase my buying option. Assume I have $30k in cash. Option 1: pay $30k for car with cash, put what would have been the car payment into savings at 2.2% rate. After 5 years, how much do I have?
Option 2: Keep $30k cash in savings account for 5 years at 2.2% rate. Take $30k loan out at 1.9%.
Option 1: $524.52 per month into savings for 5 years, compounded daily. After 5 years, $33,328 in hand.
Option 2: $524.52 paid monthly for car payment. $31472.29 paid for car. $33480 in savings account. So, made $3480-1470 in interest to pay for car loan. Net gain of $2410. Option 1 I had a gain of $3328. I can't simplify it any more, don't "feel like I'm wrong" prove to yourself I'm right.
Option 2: Keep $30k cash in savings account for 5 years at 2.2% rate. Take $30k loan out at 1.9%.
Option 1: $524.52 per month into savings for 5 years, compounded daily. After 5 years, $33,328 in hand.
Option 2: $524.52 paid monthly for car payment. $31472.29 paid for car. $33480 in savings account. So, made $3480-1470 in interest to pay for car loan. Net gain of $2410. Option 1 I had a gain of $3328. I can't simplify it any more, don't "feel like I'm wrong" prove to yourself I'm right.
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