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Joined: Dec 2005
Posts: 4,185
Campfire Tracker
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Campfire Tracker
Joined: Dec 2005
Posts: 4,185 |
Yes, but the debt is linked solidly to an asset. That asset is depreciating, and there are significant costs in transactions.
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Joined: Dec 2008
Posts: 2,385 Likes: 3
Campfire Regular
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Campfire Regular
Joined: Dec 2008
Posts: 2,385 Likes: 3 |
I see a handful of peoples credit histories and there's a LOT of people making 800-1100.00 month vehicle payments. SCARY to say the least
Never underestimate the value of a late model used 4 wheel drive pickup to a guy with 6 teeth that lives in a trailer park.
I was thinking the other day how much I used to hate Bill Clinton. He was freaking George Washington compared to what they are now.
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Joined: Jan 2010
Posts: 23,572 Likes: 2
Campfire Ranger
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Campfire Ranger
Joined: Jan 2010
Posts: 23,572 Likes: 2 |
huge difference having this conversation with a man in his late 40's to early 60's where you're established, you're generally flush with cash or least as much cash as you've ever been in your life
and a guy in his 20's trying to juggle a rent or a house payment, keep diapers on kids and food on the table just starting out at the low end of his earning career.
When I was 33 or so I bought a Honda Odyssey mini van. I remember at the end of the day it was $27K and some change, a $500 a month car payment for 48 months with whatever little I could put down as a payment. I held on to that car for 12 years and 225K trouble free miles.
The funny part is 20 years later I still won't buy a car worth more than $27K, I guess I have some mental hangup that no car should be cost more than that. But now I have the liquidity that it doesn't impact my life at all if I own one.....or two.
that said, I have 4 vehicles and if you totaled what I paid for them, Its still less than $20K
But I encourage everyone who can do it to go buy those expensive new cars and leases. I need to keep being able to buy low mileage nice vehicles in a price range I can afford. I'll be there in 10 years to make you a deal on it.
Last edited by KFWA; 02/28/21.
have you paid your dues, can you moan the blues, can you bend them guitar strings
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Joined: Jan 2010
Posts: 23,572 Likes: 2
Campfire Ranger
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Campfire Ranger
Joined: Jan 2010
Posts: 23,572 Likes: 2 |
The rules are different for those of us who live in the salt belt. I need to enlist my friends from down south in helping me find a good used Land Cruiser. Lustine Toyota in Woodbridge has a gray one, 2019 with only 27,000 miles. Lifetime warranty on power train. Owned by the dealership and driven by the GM for a year. It’s nice. $72k To each is own, that doesn't look like a land cruiser to me. That design has taken its character away.
have you paid your dues, can you moan the blues, can you bend them guitar strings
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Joined: Aug 2002
Posts: 14,073
Campfire Outfitter
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Campfire Outfitter
Joined: Aug 2002
Posts: 14,073 |
My 19yo son purchased a 2015 Lariat w/ 85k miles in Nov 2019 for $26k. He put $10k down on a 5yr loan and paid the 2.5% loan down to $3k by Nov 2020 and is now just paying the remaining payments to build his credit for a house purchase down the road. Over the last year he's also saved enough to make that same truck purchase in cash now so he could trade it and own a new one outright but he's doing meticulous preventive maintenance and is planning on driving it another 125-150k miles.
My 17yo daughter bought her first car for $3k cash at 15yo before she had a license and then sold it last year and upgraded to a 2012 Subaru w/95k and its paid off.
I purchased a loaded 2013 Suburban w/117k miles last August its paid off.
My wife's 2002 Lexus LX470 needed some serious work in Nov 2020 so we traded it off for 6k and purchased a 2015 Lexus RX350 w/37k miles. We took out a $22k loan for the vehicle/taxes/plates. I'm paying that off March 15th so we'll have free and clear titles on everything in a couple weeks and some nice (to us) vehicles to drive.
We're small fish in the economic pond so I like to find nice vehicles with lots of life left in them and usually take out a 5yr low interest car loan just in case and then, since I hate debt, try to pay them off ASAP as long as everything goes ok. I'd like to have enough $$ to just write a check without worrying about it but that's usually not an option. We are working on it though and moving in the right direction!
Biden's most truthful quote ever came during his first press conference, 03/25/21. Drum roll please...... "I don't know, to be clear." and THAT is one promise he's kept!!!
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Joined: Jan 2002
Posts: 12,883 Likes: 5
Campfire Outfitter
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Campfire Outfitter
Joined: Jan 2002
Posts: 12,883 Likes: 5 |
Yes, but the debt is linked solidly to an asset. That asset is depreciating, and there are significant costs in transactions. All true...... but it is the buyer that chooses to link them. It's actually legal in this country to buy a car, heck, even a house, without slapping on the shackles of debt. Anyone that utters "I had to take out a loan" should automatically get a noogie.....
Sic Semper Tyrannis
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Joined: Feb 2006
Posts: 43,954 Likes: 21
Campfire 'Bwana
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Campfire 'Bwana
Joined: Feb 2006
Posts: 43,954 Likes: 21 |
My pickup is worth about 10% of what I make in a year.
And I don't make much....lol
Hell, my two saddle horses are worth as much as that pickup...
WTF?!
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Joined: Dec 2005
Posts: 4,185
Campfire Tracker
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Campfire Tracker
Joined: Dec 2005
Posts: 4,185 |
Yes, but the debt is linked solidly to an asset. That asset is depreciating, and there are significant costs in transactions. All true...... but it is the buyer that chooses to link them. It's actually legal in this country to buy a car, heck, even a house, without slapping on the shackles of debt. Anyone that utters "I had to take out a loan" should automatically get a noogie..... I guess the argument could be made for signature loans, which are not tied to real property collateral or title. I won't make it, and I won't support the "borrowing against" argument either. But the subject here IS auto payments and loans. And they require collateral in most cases. Of course, those who must pursue loans to obtain a vehicle have a choice to simply take the bus.
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Joined: Feb 2010
Posts: 16,126 Likes: 2
Campfire Ranger
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Campfire Ranger
Joined: Feb 2010
Posts: 16,126 Likes: 2 |
Yes, but the debt is linked solidly to an asset. That asset is depreciating, and there are significant costs in transactions. All true...... but it is the buyer that chooses to link them. It's actually legal in this country to buy a car, heck, even a house, without slapping on the shackles of debt. Anyone that utters "I had to take out a loan" should automatically get a noogie..... I guess the argument could be made for signature loans, which are not tied to real property collateral or title. I won't make it, and I won't support the "borrowing against" argument either. But the subject here IS auto payments and loans. And they require collateral in most cases. Of course, those who must pursue loans to obtain a vehicle have a choice to simply take the bus. My fishing boat is the most valuable piece of transportation we own, followed by the lawn mower. I think the wire’s car is third.
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Joined: Feb 2003
Posts: 10,407 Likes: 4
Campfire Outfitter
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Campfire Outfitter
Joined: Feb 2003
Posts: 10,407 Likes: 4 |
huge difference having this conversation with a man in his late 40's to early 60's where you're established, you're generally flush with cash or least as much cash as you've ever been in your life . When I worked at various companies as an engineer, I would ask people if they lived paycheck to paycheck or saved money. a) Nearly 50% were paycheck to paycheck b) Nearly 50% donated the max to 401k, but other than that, could not save money. It turns out married couples are in a race to spend the money before the spouse does. The few exceptions were: a) Bachelors who saved half their income. b) Old people who did not need to work, but worked for fun.
There is nothing noble in being superior to your fellow man; true nobility is being superior to your former self. -Ernest Hemingway The man who makes no mistakes does not usually make anything.-- Edward John Phelps
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Joined: Oct 2007
Posts: 5,468
Campfire Tracker
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Campfire Tracker
Joined: Oct 2007
Posts: 5,468 |
Well, you all do know that having payments for the car/truck/house is the American way.. Buying the retirement home, it will have a Mortgage. Only deduction we will have. At the interest rates they are now. No brainier. I could pay cash, but can do better using the money else where.
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Joined: Nov 2015
Posts: 5,706 Likes: 2
Campfire Tracker
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Campfire Tracker
Joined: Nov 2015
Posts: 5,706 Likes: 2 |
I sure like how everyone talks about paying cash! And how new is bad, only way to go is used, ect..ect.! At our house we keep most daily drivers 15 years or so! We always buy the wife new! I get used. I'm still driving my 06 duramax purchased used in 08. She just got a new Subaru Asent! We have no house payments or card debt! She also brings in good retirement checks monthly! I pay cash. She pays interest! But it's all good, cant take it with us!
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Joined: Nov 2008
Posts: 16,610
Campfire Ranger
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Campfire Ranger
Joined: Nov 2008
Posts: 16,610 |
I don't do loans. I save until I can pay in cash.
"Hey jackass, get your government off my freedom." MOLON LABE
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Joined: Aug 2005
Posts: 10,774
Campfire Outfitter
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Campfire Outfitter
Joined: Aug 2005
Posts: 10,774 |
First words out of a car salesmen's mouth "What monthly payment can you afford?". They will hook you up with a $40K truck for $300/month..........and many people will jump at it without even knowing what the interest rate and term actually is.........I suppose being bad at math is not the salesman's fault.
A true sportsman counts his achievements in proportion to the effort involved and fairness of the sport. - S. Pope
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Joined: Dec 2008
Posts: 8,325 Likes: 1
Campfire Outfitter
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Campfire Outfitter
Joined: Dec 2008
Posts: 8,325 Likes: 1 |
I just ran the numbers on my current truck, it's a ram 2500 tradesman I bought for 45k. I just didn't think the additional 10k for leather seats and chrome on the laramie model was worth it to me. Anyway, 45k at 3.11% for 60 months is $811 a month. A fancier model at $55k would have run $991 a month. That seems like a lot for the average family, but then again a starter home around here is $350k, with taxes and insurance that would be about $1800 a month. I guess everyone got a raise this last year.
"Life is tough, even tougher if your stupid" John Wayne
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Joined: Jan 2012
Posts: 26,577 Likes: 3
Campfire Ranger
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Campfire Ranger
Joined: Jan 2012
Posts: 26,577 Likes: 3 |
That ain't 30 years......
FJB & FJT
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Joined: Jul 2007
Posts: 24,653 Likes: 1
Campfire Ranger
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Campfire Ranger
Joined: Jul 2007
Posts: 24,653 Likes: 1 |
Wifeo and I do one payment deals. If we have the cash we pay it. If we cant afford it we dont buy it. Same.
WWP53D
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Joined: Jun 2012
Posts: 4,555 Likes: 2
Campfire Tracker
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Campfire Tracker
Joined: Jun 2012
Posts: 4,555 Likes: 2 |
0% with a great markdown is rare these days, you can choose 0% or the incentives...you aren't going to get both. I just went through this on a 2020 gmc, the final number is within a few hundred dollars either way over the life of the loan...so dont think you are exactly saving by taking the 0% when it maybe a lot of the times cheaper to take the incentives up front, with the 1.9% interest.
Cash price isn't always the best price either. A lot of makers have incentives if you finance with them, take that extra cash they are offering, and then pay it off shortly afterwards. If not, could be throwing away a few grand. Sort of like what I said above.
Last edited by killerv; 03/02/21.
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Joined: Jun 2020
Posts: 10,840
Campfire Outfitter
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Campfire Outfitter
Joined: Jun 2020
Posts: 10,840 |
My truck financing costs me an average of $350 per year in finance charges . Big deal
FUGK CCP
It’s time to WAKE UP GOD BLESS THE USA WWG1WGA THERE ARE NO COINCIDENCES
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Joined: Jun 2020
Posts: 10,840
Campfire Outfitter
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Campfire Outfitter
Joined: Jun 2020
Posts: 10,840 |
Killer V,
Your name reminds me of Friday night. Except it was killer P , you know that late twenties type.
FUGK CCP
It’s time to WAKE UP GOD BLESS THE USA WWG1WGA THERE ARE NO COINCIDENCES
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