a real problem..car payments
inmytree
Posts: 4,741
I was watching the show King of Cars on A&E this weekend...and was stunned to see people buying new cars with payments of 600 to 800 bucks a month...I was talking to my girlfriend about this. She works for a major sub-prime lender, and she told me this is common. She sees people daily who are having trouble paying there rent or mortgage, yet they are on time with their huge car payment...
this is insane to me....I know it's nice to have a "new" car, but to pay so much for something that does nothing but lose value is just plain stupid...
It seems people have their priorities mess-up....for me, I see a car/vehicle as something that gets me to point A to B...the last the vehicles I bought were 1200 and 2500. Granted, I've put some money into them due to age and worn parts (I'm doing a lot of my own work, too), but it's nothing compared to paying 800 a month for something that's going to need work and maintenance anyway....
this is insane to me....I know it's nice to have a "new" car, but to pay so much for something that does nothing but lose value is just plain stupid...
It seems people have their priorities mess-up....for me, I see a car/vehicle as something that gets me to point A to B...the last the vehicles I bought were 1200 and 2500. Granted, I've put some money into them due to age and worn parts (I'm doing a lot of my own work, too), but it's nothing compared to paying 800 a month for something that's going to need work and maintenance anyway....
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But, but, but, what about all the people who will judge me on my car because they won't be able to see any of my other worldly possessions?
You only get one first chance to impress. Or so I have been told.
A to B and the beer store. = C
Whether you can afford it or not, the gigantic hit that you take in depreciation almost immediately just makes very poor financial sense to truly consider buying a new vehicle.
(Just watch as I get bashed for these opinions.)
...are those who've helped us.
Right 'round the corner could be bigger than ourselves.
It's the keeping up with the joneses ideal.
Fake and Plastic. Live within your means and you won't have an issue.
It's funny in some cases and sad in others.
you wont get bashed as what you've said is true... cars lose thousands the minute you drive them off the forecourt!
good point...
a couple of weeks ago, we went for a walk around the neighborhood. There is a laundromat close by. Parked out front was a HUGE Ford Expedition, with the 22 inch aftermarket rims, pimped out...the owners where inside doing their laundry...I guess those rims were more important than a washer and dryer in their home...
you're right on with this...no bashing from me...
I agree fully...
but i surely wont agree with you either.....
people should buy what it is that they can afford.....period....
and PLENTY of people in this world can afford to buy a new car....
and PLENTY of people in this world are responsible enough to make their monthy car payments.......
Till there aint nothing left worth taking away from me.....
Until they make one of those fresheners that hang from your mirror with a real, new car smell. I won't buy used.
But I do agree with you.
I've tried a couple of those, and you're right, they just don't have the correct smell. Of course, that's a lot of money to throw away for a smell.
...are those who've helped us.
Right 'round the corner could be bigger than ourselves.
My vehicle is 6 years old right now and has 114,000 miles on it. I bought it 2 years ago as a 4 year old vehicle. My goal is to drive it until 200K (at least). I've been making a $250 payment to myself the last 2 years. If I drive it for 4 more years, I'll have $18,000 (plus the interest I've earned) to buy my next used one in cash.
...are those who've helped us.
Right 'round the corner could be bigger than ourselves.
and what type of vehicle do you plan on purchasing next????
Till there aint nothing left worth taking away from me.....
how are you investing that? Hi yield savings account? Money Market?
that's a great idea...
good work, know1...
it is not true..
If we can assume that a reliable car is a necessity in our society.. I'd argue a new car makes better financial sence - as repairs and down time represent significant cost.. and if you buy used - you are have more frequent replacement.
I buy new - and keep them about 10 years... I keep up the maintenance and have no troubles at all - a far better financial move than going through three or 4 used cars with repairs and mystery when you turn the key...
It all depends...
you assume a person goes through 3 or 4 used cars in a 10 years. I plan on running my current fleet (I have 3) for the next 10 years...I have a 1997, 1991, and a 1990....all running (knock on wood
new cars break down, too...
Upfront a used car might make more sense, but there are also advantages to new cars too (obviously if you stay within your means).
I bought a new car in 2002 (Hyundai Elantra). It is just about paid off now and it only has 60,000 miles on it. If it holds up (which it is in great shape now) I will have it for many years to come. My two used cars before that each had their own mechanical problems, and my latest one had major transmission problems. It was nice not having car payments then, but paying a couple thousand in repairs was killing me.
So when I went car shopping five years ago, I found a decent (brand new) car with a lot of options and safety features for a great deal. I got a better interest rate then a used car, and a 10 year/100,000 mile warranty. So in the past five years I haven't paid a repair bill (except new brakes which I did myself) and my insurance went down due to the safety features. More importantly I had the piece of mind that when I would leave to go to work every morning, my car would start and run fine.
While my car is almost paid off, I will still have about 40,000 miles on the warranty if something major goes wrong.
was like a picture
of a sunny day
“We can complain because rose bushes have thorns, or rejoice because thorn bushes have roses.”
― Abraham Lincoln
but i agree car salesman can me the scum of the earth.....
Till there aint nothing left worth taking away from me.....
We were talking with our mortgage lender who we have known for years and years when we were ready to purchase a house. You are correct. If you are stupid enough to not have done the research on how much you pull in as opposed to how much you can spend. They will put you over the limit and not even blink an eye. Why? Because the bank or whoever win when you lose.
I will agree with it all depends....:)
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Well, you live and hopefully you learn right. Still I do believe lenders have a responsibility as well. Look at all these interest only loans that people have on their homes. Are they foolish for having taken on these loans in the first place? Sure, in some cases, but never the less lots of Americans are about to lose their homes and forever damage their credit which in turn means lots and lots of profit for lending companies. Now is that really a fair way to do business?
That's why I lease. I will never buy a new car, but unfortunetly I like driving anew car so I just lease.
To add something to this story, my brother-in-law is a cop. He has told me plenty of times that he will answer a domestic violence call and the couple will be living in absolute squaler, but they still have the several thousand dollar big plasma screen tv with all the extras, a brand new expensive luxury car parked outside, wearing expensive designer clothing, but the house is roach infested, empty fridge, and kids running around in diapers that haven't been changed in days.
I fight that battle every day in the conflict of where I work and how they do business. It isn't fair at all. But you should be schooled in how much you bring in before you go and take an investment like a house, where you are going to be tied in for life.
I can say I have never heard of "interest only loan".
We live in such a materialistic society, it's sickening sometimes.
Well, maybe its not the world that's heavy it's just the things that you save.
I think I heard that somewhere.
I bought a 1996 Infinity J30 five years ago for $10,000. It had 49,000 miles on it. A mechanic checked it out, and I've had nothing but routine maintenance on it....oil changes, one belt replacement, tires.
It has run great. It now has about 150,000 miles on it, and is still going strong.
Agree with you. My same philosophy as well. I bought new, paid cash, and will keep them for 10 years at least. I also try to save up to be in a position to buy new when the time comes around.