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Re: Average Car or Truck Payment [Re: andrews1958] #15842631 02/27/21
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Dave Ramsey has done the math on new car loans. If you have a 30 year old couple, and like many couples do, every three years they both buy new cars. If that is a $35K car, there will be about $5,000 depreciation for each car, every year. That is ten thousand a year in depreciation plus maybe $300 a month in interest. That is about $14,000 a year lost because of new cars. Gone with the wind.

If, on the other hand, the young couple buys a good used car for $15K, like the way I bought my pickup three years ago, there is little, if any depreciation. Maybe a thousand a year. Also, save up the money and pay cash and there is no interest.

So as Dave says, the young couple with the new cars is throwing away about $14,000 a year on new cars. Take that forward thirty years, it is getting near retirement time, the young couple has thrown away over $400,000 on new cars. Had they put that money in a mutual fund, where the average return is 12 percent annually, as Dave says they would have $2,000,000 for their retirement fund. They could have retired as millionaires but instead they retire broke because they drove new cars.

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Re: Average Car or Truck Payment [Re: andrews1958] #15842633 02/27/21
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My oldest is a 96, my newest is a 06. I know how to work on all of them and have the tools to replace most any part on the trucks, even my TD. Being able to buy parts at a fraction of the cost that a mechanic or dealer will charge saves quite a bit of money, and being able to work on my own trucks saves a ton of money.

My college student son has a 2010 Toyota Watchmacallit. Last winter he slid into a curb in a snowstorm and bent the tie rod. Toyota dealer said the tie rod is bent we have to replace the ENTIRE rack and pinion steering--$1800. WTF?!!!!

Parts store wanted $200 for the tie rod,, went online and found it for $50, and a special tool required (it wasn't really needed) for $10. Took us about 2 hours (I've never worked on rack and pinion before) to replace it.

A few months later the wheel bearing on that side started making noise. I told my son to take it to the dealer and get it diagnosed, pay them for the diagnosis, and get back with me. He just got a big tax return back so he tells them to just go ahead and repair it. $1500 to replace a wheel bearing..........WTF!!!!!

"Well dad, I should have listened to you"........


Casey

Not being married to any particular political party sure makes it a lot easier to look at the world more objectively...
Having said that, MAGA.
Re: Average Car or Truck Payment [Re: Hastings] #15842959 02/27/21
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Originally Posted by Hastings
Originally Posted by chris_c
0% interest is hard to resist, left the money sit and financed 600.00 per month

Originally Posted by duck911
Wife gets a new car, 0% interest. We pay it off (early). Then I get a new truck, 0% interest. We pay it off (early). Repeat.........
We get to stretch out INTEREST FREE payments, while the money we would have spent "writing a check" is making REAL money.
Simple math.
Originally Posted by Cheesy
0% interest is just a means of raising the cost of the vehicle under the guise of “giving you a free loan”.
There is NO such thing as ZERO interest. It's there and you are paying it.

Price was the same if I paid cash or took the 0% interest

Re: Average Car or Truck Payment [Re: simonkenton7] #15842971 02/27/21
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Originally Posted by simonkenton7
Dave Ramsey has done the math on new car loans. If you have a 30 year old couple, and like many couples do, every three years they both buy new cars. If that is a $35K car, there will be about $5,000 depreciation for each car, every year.

That is ten thousand a year in depreciation plus maybe $300 a month in interest.

Also, save up the money and pay cash and there is no interest.



So Dave will point me to these three year old Toyota Tundras, Tacomas, Sequoias, Highlanders, 4Runners etc... that I can pick up for $15k under new?

What interest rate am I sitting at on a $35000 vehicle that I'm paying $300 in interest each month?

If I save to put cash on a car at $XXX a month there is little difference that me having the vehicle and handing the bank $XXX a month at 0-2 (which is a pittance), no?


Dave Ramsey is great if you are a product of the depression or are not disciplined enough to keep your head above water - you know, the kind of people that put vacay on a credit card and let her ride at 27%.

Re: Average Car or Truck Payment [Re: andrews1958] #15843005 02/27/21
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Dave Ramsey also assumes people have giant paychecks...


From a place you will not see, comes a sound you will not hear.
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Re: Average Car or Truck Payment [Re: andrews1958] #15843044 02/27/21
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Haven't had one in a while. 10 years or so.

I'd think it'd be pretty dependent on the situation.
Work truck? Is it making you money? Tax benefits?
0% finance? If so, keeping the $50k or whatever in the market making you money may be a better play than dumping it into a car/truck. Then again, if you can't access money to pay it off if you lose your job,etc.., better to not be in that situation.


“Life is life and fun is fun, but it's all so quiet when the goldfish die.”
Re: Average Car or Truck Payment [Re: chris_c] #15843059 02/27/21
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Originally Posted by chris_c
Originally Posted by Hastings
Originally Posted by chris_c
0% interest is hard to resist, left the money sit and financed 600.00 per month

Originally Posted by duck911
Wife gets a new car, 0% interest. We pay it off (early). Then I get a new truck, 0% interest. We pay it off (early). Repeat.........
We get to stretch out INTEREST FREE payments, while the money we would have spent "writing a check" is making REAL money.
Simple math.
Originally Posted by Cheesy
0% interest is just a means of raising the cost of the vehicle under the guise of “giving you a free loan”.
There is NO such thing as ZERO interest. It's there and you are paying it.
Price was the same if I paid cash or took the 0% interest
That is never true if you will dig into it. Price other places. Look for hidden rebates the dealer keeps. Also check out what happens if they claim you are late with one payment. You agree not to sue them. Anyone wishing to give you credit is not your friend unless maybe it's your mother.


"You win no crown of laurel for outrunning a jackass" - Martialis
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Re: Average Car or Truck Payment [Re: andrews1958] #15843062 02/27/21
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Have not had a car or house payment in over 20 years.
Cash is king


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Re: Average Car or Truck Payment [Re: andrews1958] #15843088 02/27/21
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Originally Posted by andrews1958
I have not had one in years. What is a typical monthly car or truck payment these days.

$256.00 per month, for me, with 3.23% annual interest. It's for a car that was a couple of years old when I bought it.


"Our prayers are with the family of George Floyd, and our prayers are also with the family of Ahmaud Arbery in Georgia. We have no tolerance for racism in America. We have no tolerance for violence inspired by racism."

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Re: Average Car or Truck Payment [Re: Cheesy] #15843103 02/27/21
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Originally Posted by Cheesy
0% interest is just a means of raising the cost of the vehicle under the guise of “giving you a free loan”.




Plus you still have a loan, which means you'll pay full coverage for insurance.

I buy liability only, even on brand new vehicles. Don't get in a wreck.

Save enough in ten years to buy another new vehicle....


"...the left considers you vermin, and they'll kill you given the chance..." Bristoe
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Re: Average Car or Truck Payment [Re: Traveler52] #15843156 02/27/21
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Originally Posted by Traveler52
Have not had a car or house payment in over 20 years.
Cash is king


For some, yes, for others not so much.


Conduct is the best proof of character.
Re: Average Car or Truck Payment [Re: andrews1958] #15843286 02/27/21
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I don't make major purchases on credit. So I only pay once for my purchases. If you buy something on credit the eventual cost will be twice as much. If you have the personal discipline to wait, save your money and pay cash, then you can buy twice as much because you pay half the price.

I assume that someone else has mentioned this but I'm not going to read the entire thread to find out. Sorry if the sentiment is a repeat.



Wind in my hair, Sun on my face, I gazed at the wide open spaces, And I was at home.





Re: Average Car or Truck Payment [Re: Jim_Conrad] #15843297 02/27/21
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Originally Posted by Jim_Conrad
Surplus Crown Vic?

close by PD has three going up for auction.

I was tempted.

wife thinks our three already in the driveway are too many, especially when she looked at the insurance bill!


The desert is a true treasure for him who seeks refuge from men and the evil of men.
In it is contentment
In it is death and all you seek
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Re: Average Car or Truck Payment [Re: Cariboujack] #15843320 02/27/21
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Quote
figured that would be my retirement vehicle and I'd never need another one


CaribouJack: If that is ones plan, do equip the rig with a serious rou guard. Have a big 350 Ford purchased with those same intentions and it's packing about an 800lb bumper. Ten years in we got center punched by a van that came into our lane and absolutely destroyed the van from the bumper to the dashboard. Our bumper was bent, but absolutely nothing on the truck was touched. We got a nice new free bumper out of the deal.


1Minute
Re: Average Car or Truck Payment [Re: MadMooner] #15843321 02/27/21
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Originally Posted by MadMooner
Haven't had one in a while. 10 years or so.

I'd think it'd be pretty dependent on the situation.
Work truck? Is it making you money? Tax benefits?
0% finance? If so, keeping the $50k or whatever in the market making you money may be a better play than dumping it into a car/truck. Then again, if you can't access money to pay it off if you lose your job,etc.., better to not be in that situation.

Decisions, decisions eh?

Maybe Uncle Joe will offer us all a "free" new e-vehicle?

We went the 0% route in 2016 on the wife's vehicle. I wanted her to have AWD when she moved here to snow country, I got to keep the old paid off Matrix for a daily driver and I get to save my old Tacoma for a hunting and "farm supply" vehicle to keep the mileage down on it. ANd our little bit of money got to stay in investment accounts to supplement my retirement.

Y'all keep paying taxes so we Boomers can live these lavish lifestyles we should be accustomed too. grin


The desert is a true treasure for him who seeks refuge from men and the evil of men.
In it is contentment
In it is death and all you seek
(Quoted from "The Bleeding of the Stone" Ibrahim Al-Koni)

member of the cabal of dysfunctional squirrels?
Re: Average Car or Truck Payment [Re: Hastings] #15843338 02/27/21
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Originally Posted by Hastings
Originally Posted by chris_c
Originally Posted by Hastings
Originally Posted by chris_c
0% interest is hard to resist, left the money sit and financed 600.00 per month

Originally Posted by duck911
Wife gets a new car, 0% interest. We pay it off (early). Then I get a new truck, 0% interest. We pay it off (early). Repeat.........
We get to stretch out INTEREST FREE payments, while the money we would have spent "writing a check" is making REAL money.
Simple math.
Originally Posted by Cheesy
0% interest is just a means of raising the cost of the vehicle under the guise of “giving you a free loan”.
There is NO such thing as ZERO interest. It's there and you are paying it.
Price was the same if I paid cash or took the 0% interest
That is never true if you will dig into it. Price other places. Look for hidden rebates the dealer keeps. Also check out what happens if they claim you are late with one payment. You agree not to sue them. Anyone wishing to give you credit is not your friend unless maybe it's your mother.



I always price several places, always do my homework. I never have a late payment

Re: Average Car or Truck Payment [Re: hillestadj] #15843356 02/27/21
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simonkenton7 Online Content
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Originally Posted by hillestadj
Originally Posted by simonkenton7
Dave Ramsey has done the math on new car loans. If you have a 30 year old couple, and like many couples do, every three years they both buy new cars. If that is a $35K car, there will be about $5,000 depreciation for each car, every year.

That is ten thousand a year in depreciation plus maybe $300 a month in interest.

Also, save up the money and pay cash and there is no interest.



So Dave will point me to these three year old Toyota Tundras, Tacomas, Sequoias, Highlanders, 4Runners etc... that I can pick up for $15k under new?

What interest rate am I sitting at on a $35000 vehicle that I'm paying $300 in interest each month?

If I save to put cash on a car at $XXX a month there is little difference that me having the vehicle and handing the bank $XXX a month at 0-2 (which is a pittance), no?


Dave Ramsey is great if you are a product of the depression or are not disciplined enough to keep your head above water - you know, the kind of people that put vacay on a credit card and let her ride at 27%.




Dave, and I, didn't say you would buy a 3 year old vehicle. You mis read my post. You get one older than that. My Nissan Frontier was 8 years old, always garaged with 42K miles on it, and I paid $15 grand for it. This is a 4WD vehicle that costs $32 grand new.
I have had the Nissan for 2 1/2 years and it is a great vehicle. Still looks like

I said you would pay $300 a month interest on TWO new vehicles, not one. Once again, you misread my post. Actually that number is low in my experience, in fact the last time I had a car loan the interest rate was 10 percent, so the interest on two new cars would be about double that.

Dave's advice is unassailable if you will closely read the numbers that Dave puts up, and not make up your own numbers in a misguided attempt to show that Dave is wrong. In fact, the interest costs even at 10 percent are insignificant compared to depreciation.
Dave is correct that, if you buy a new car every 3 years on a note it will cost you a million bucks by the time you are 60.

And he is also right that you can't afford a new car unless you have a net worth of a million dollars. The only way around that, and I know several people who are doing it, is to buy an expensive new vehicle, and drive it until the wheels fall off. Keep the new car for 16 years and it will work out well for you.

You say that you can get a car note for 2 percent. Well, they used to be 10 and 12 percent, and interest rates will be back up high again by and by. These things run in cycles.

Re: Average Car or Truck Payment [Re: slumlord] #15843383 02/27/21
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Originally Posted by slumlord
Originally Posted by muleshoe
Originally Posted by slumlord
Aint had one since 1998



A car?


The topic is payments, promissory notes, debt, surety. No, the topic was the average monthly vehicle payment amount...









Last edited by JimH; 02/27/21.
Re: Average Car or Truck Payment [Re: Valsdad] #15843401 02/27/21
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Originally Posted by Valsdad
Originally Posted by MadMooner
Haven't had one in a while. 10 years or so.

I'd think it'd be pretty dependent on the situation.
Work truck? Is it making you money? Tax benefits?
0% finance? If so, keeping the $50k or whatever in the market making you money may be a better play than dumping it into a car/truck. Then again, if you can't access money to pay it off if you lose your job,etc.., better to not be in that situation.

Decisions, decisions eh?

Maybe Uncle Joe will offer us all a "free" new e-vehicle?

We went the 0% route in 2016 on the wife's vehicle. I wanted her to have AWD when she moved here to snow country, I got to keep the old paid off Matrix for a daily driver and I get to save my old Tacoma for a hunting and "farm supply" vehicle to keep the mileage down on it. ANd our little bit of money got to stay in investment accounts to supplement my retirement.

Y'all keep paying taxes so we Boomers can live these lavish lifestyles we should be accustomed too. grin

P

I'd rather we take on an "Adopt a Boomer" type program.
Instead of paying SS taxes, cut out the middle man and just send a check to your adopted Boomer.


😁


“Life is life and fun is fun, but it's all so quiet when the goldfish die.”
Re: Average Car or Truck Payment [Re: MadMooner] #15843431 02/27/21
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Valsdad Offline
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Originally Posted by MadMooner
Originally Posted by Valsdad
Originally Posted by MadMooner
Haven't had one in a while. 10 years or so.

I'd think it'd be pretty dependent on the situation.
Work truck? Is it making you money? Tax benefits?
0% finance? If so, keeping the $50k or whatever in the market making you money may be a better play than dumping it into a car/truck. Then again, if you can't access money to pay it off if you lose your job,etc.., better to not be in that situation.

Decisions, decisions eh?

Maybe Uncle Joe will offer us all a "free" new e-vehicle?

We went the 0% route in 2016 on the wife's vehicle. I wanted her to have AWD when she moved here to snow country, I got to keep the old paid off Matrix for a daily driver and I get to save my old Tacoma for a hunting and "farm supply" vehicle to keep the mileage down on it. ANd our little bit of money got to stay in investment accounts to supplement my retirement.

Y'all keep paying taxes so we Boomers can live these lavish lifestyles we should be accustomed too. grin

P

I'd rather we take on an "Adopt a Boomer" type program.
Instead of paying SS taxes, cut out the middle man and just send a check to your adopted Boomer.


😁



Send me your first payment on a trial run.

I'll let you know how it works.

Kinda like a Beta Test on your idea.

Of course, I keep my Social Security I paid into for 50+ years, until all the bugs are worked out.

Oh, and my pensions and IRA type income too.


The desert is a true treasure for him who seeks refuge from men and the evil of men.
In it is contentment
In it is death and all you seek
(Quoted from "The Bleeding of the Stone" Ibrahim Al-Koni)

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