a real problem..car payments

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Comments

  • even flow?
    even flow? Posts: 8,066
    Dustin51 wrote:
    They'll sell you whatever they can regardless of whether I believe you have the means for it.


    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.
    You've changed your place in this world!
  • Abuskedti
    Abuskedti Posts: 1,917
    inmytree wrote:
    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 :D) inspected and I would get in any one of them and drive to Canada....mileage on all three add up to over 460 thousand miles...

    new cars break down, too...

    I will agree with it all depends....:)
  • gue_barium
    gue_barium Posts: 5,515
    I own a beautiful $400 '85 Buick.
    all posts by ©gue_barium are protected under US copyright law and are not to be reproduced, exchanged or sold
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  • Dustin51
    Dustin51 Posts: 222
    even flow? wrote:
    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.


    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?
    Be excellent to each other
  • mammasan
    mammasan Posts: 5,656
    know1 wrote:
    I agree. You should only buy used cars and you should only pay in cash.

    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.)

    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.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • even flow?
    even flow? Posts: 8,066
    Dustin51 wrote:
    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?


    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".
    You've changed your place in this world!
  • hippiemom
    hippiemom Posts: 3,326
    know1 wrote:
    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.
    Right now I've got a '98 Accord with about 95,000 miles on it. Never had to do anything but routine maintenance on it ... muffler, a couple of belts, that's it. It was a bit older than what we usually buy (we got it 3 years ago), but the mileage was so low and the price was so good, we couldn't resist. It's a great car, I'm happy with it. My husband has an '02 Century with around 60,000 miles, no problems with that one either. We do the same thing as far as making payments into our car fund, then paying cash for the next vehicle. We both hate having to make monthly payments for anything, so we don't.
    "Nothing in the world is more dangerous than sincere ignorance and conscientious stupidity." ~ MLK, 1963
  • Dustin51
    Dustin51 Posts: 222
    mammasan wrote:
    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.

    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.
    Be excellent to each other
  • nick1977
    nick1977 Posts: 327
    A used car makes so much more sense than a new car....provided you have a good mechanic look it over and inspect it carefully. I've done this will all of my cars, and have not had problems with them.

    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.
  • pjfanatic4
    pjfanatic4 Posts: 127
    Abuskedti wrote:
    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...

    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.
  • mammasan
    mammasan Posts: 5,656
    Dustin51 wrote:
    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.

    It is sickening. I personally would love to be able to drive a nice luxury car but I don't have the finacial means to. I'm sure if i neglected my other finacial obligations I too could own a BMW or a Mercedes but what type of person would that make me.
    I see nothing wrong with wanting some material possessions in life weither it be a a luxury car or a bigger house or even an expensive entertainment system but people have to prioritize. Those things are great but will not bring you true happiness only temporay enjoyment.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • dunkman
    dunkman Posts: 19,646
    Abuskedti wrote:
    it is not true..


    it is true my good man

    go and buy a brand new car today for say $19995 drive it around for 2 hours and then take it to another garage and see how much you get for it

    cars depreciate the minute you buy them... i still buy new-ish cars though but its relative to what you can afford... i dont want some piece of crap that needs maintenance... but i know my beloved purchase will be worth a 1/9th of what i paid for it 5 years later
    oh scary... 40000 morbidly obese christians wearing fanny packs invading europe is probably the least scariest thing since I watched an edited version of The Care Bears movie in an extremely brightly lit cinema.
  • LikeAnOcean
    LikeAnOcean Posts: 7,718
    Abuskedti wrote:
    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...
    A new car is the worst financial move. Any expert would agree buying a two year old used car is the best bet. If you can afford it, great. I've bought a new car before. Probobly wasn't the smart move, but I also felt it was safer. But only safer for the first few years. The minute you drive off the new car lot, you loose atleast 2,000. Thats $2000 you could easily fix up any lemon used car with. Just for turning the keys and driving off the lot. Not worth 2 G's.
  • Abuskedti
    Abuskedti Posts: 1,917
    dunkman wrote:
    it is true my good man

    go and buy a brand new car today for say $19995 drive it around for 2 hours and then take it to another garage and see how much you get for it

    cars depreciate the minute you buy them... i still buy new-ish cars though but its relative to what you can afford... i dont want some piece of crap that needs maintenance... but i know my beloved purchase will be worth a 1/9th of what i paid for it 5 years later

    Well, if you intend to purchase a new car then sell it a few hours after you drive it - you would not do well..

    which is why I indicated that I would be keeping my new cars 10 years.
  • Abuskedti
    Abuskedti Posts: 1,917
    LikeAnOcean wrote:
    A new car is the worst financial move. Any expert would agree buying a two year old used car is the best bet.

    I am an expert and I strongly disagree..
  • gue_barium
    gue_barium Posts: 5,515
    dunkman wrote:
    it is true my good man

    go and buy a brand new car today for say $19995 drive it around for 2 hours and then take it to another garage and see how much you get for it

    cars depreciate the minute you buy them... i still buy new-ish cars though but its relative to what you can afford... i dont want some piece of crap that needs maintenance... but i know my beloved purchase will be worth a 1/9th of what i paid for it 5 years later
    It's true. And here's a great thing about beaters. I bet I can turn around and sell my $400 rust bucket for $600-700.
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    except by express written permission of ©gue_barium, the author.
  • gue_barium
    gue_barium Posts: 5,515
    Abuskedti wrote:
    I am an expert and I strongly disagree..

    You are a chumpo, in my opinion. No offense.
    all posts by ©gue_barium are protected under US copyright law and are not to be reproduced, exchanged or sold
    except by express written permission of ©gue_barium, the author.
  • Dustin51
    Dustin51 Posts: 222
    gue_barium wrote:
    You are a chumpo, in my opinion. No offense.


    Um, I just want to say that I can niether confirm nor deny either of the points being made here today.
    Be excellent to each other
  • Abuskedti
    Abuskedti Posts: 1,917
    gue_barium wrote:
    You are a chumpo, in my opinion. No offense.

    Chumpo? no offense taken.
  • LikeAnOcean
    LikeAnOcean Posts: 7,718
    Abuskedti wrote:
    I am an expert and I strongly disagree..
    How much sense does it make to buy something that only seconds later looses thousands in value? Tell me?

    You're better off buying a $500 beater and running it into the ground every few months.

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