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Posted: 8/14/2007 1:55:40 PM EDT
Holy crapola, how anyone can pay over $500.00 a month for a new car for an average of 58 months is beyond me. Thats more then my house payment is. No wonder so many people can't pay the bills, it's being spent on a depreciating hunk of plastic and steel sitting in the driveway.
Link Posted: 8/14/2007 1:57:09 PM EDT
Nice, so I'm shelling out the average for my above average car! (Porsche Boxster)
Link Posted: 8/14/2007 1:58:27 PM EDT
I haven't had car payments in almost 8 years.

Feels good to make interest and not pay it.

Also feels good to get a great car for rock bottom price by paying cash.
Link Posted: 8/14/2007 1:58:38 PM EDT
I believe it, with all the wanna be 'rich' folks around any more.
Link Posted: 8/14/2007 1:58:41 PM EDT
So, I should not be happy about my $800.00 truck payment?

Bryan
Link Posted: 8/14/2007 1:59:54 PM EDT
I haven't had a car payment since 2000, and won't ever have one again. Plenty of great used cars out there in the $5k-$10k range, and I'll pay cash.

I know a guy who is spending almost $1000 a month on a car payment, and he can't figure out why he's always broke. I've suggested he sell the car and get something cheaper, but his response is always "girls like my ride". Young and stupid, hopefully he'll learn with time.
Link Posted: 8/14/2007 2:00:01 PM EDT
All those people that gotta have the latest bling. Can't afford it? No problem, lease it instead. You can also rent big wheels now too.

Link Posted: 8/14/2007 2:00:05 PM EDT
Drive a new car off the lot, it automatically lost $5000 in value, and everyday afterwards, an additional $10.

Buy a used car that only has about 2 or 3 years on it, and it's 1/2 to 1/4 the original price.

New cars are a scam.
Link Posted: 8/14/2007 2:00:09 PM EDT
Yikes!

I'm paying $320 on my Suburban now but am trying to sell it so I can buy something with cash. I'm sick of paying out every freakin payday.
Link Posted: 8/14/2007 2:00:22 PM EDT
If I make the minimums on my Mustang, it's $600. Ahhh...gotta love my "have it now" syndrome.

(I'm throwing money at it like a mad man to pay it off early, which is why I'm broke all the damn time).
Link Posted: 8/14/2007 2:02:10 PM EDT
We own two cars, and have no payments.

I do make monthly "payments" to a seperate money market account, so the next car I'll buy with cash. It's nice to earn interest on those "payments" rather than pay interest for the loan.

Over the years my car pride has diminished, which is nice, since they're one of the worst investments out there.
Link Posted: 8/14/2007 2:02:21 PM EDT
$750
Link Posted: 8/14/2007 2:06:01 PM EDT
New cars can be a wise move but only if you plan on keeping the car for the lifetime of the vehicle.

I bough an unsold o6 in february of this year for 6k under invoice and I've been putting about 2k into paying it off every month. Should be done with it soon and I hope to drive it until it can't be driven no more.
Link Posted: 8/14/2007 2:06:11 PM EDT

Originally Posted By N1Rampage:

Buy a used car that only has about 2 or 3 years on it, and it's 1/2 to 1/4 the original price.


Yeah, but how do you know it wasn't drag-raced off of the lot at redline with 6 miles on the odometer, or that the oild was ever changed?

My current car, I bought new. I paid it off two years ago. I know the engine was broken in properly, that all the maintenance has been done, and that it hasn't been tortured and abused. It broke 100,000 miles a few weeks ago, and there's every sign that I can get another 100,000 or more out of it.

New cars are a ripoff if you keep them for a short while. But if you buy with the intention of keeping it for a long time (which means choosing a car that's likely to last for a long time and taking care of it!), the averaged-out cost of ownership drops quite a bit.
Link Posted: 8/14/2007 2:07:35 PM EDT
Own both cars outright. Will buy my truck in the next 1-2 years and pay cash for it. Used F250/350 Diesel FTW!!! I have already talked dealers down to 22,000 for a used 2006 with 32,000 miles...

Car payments suck.
Link Posted: 8/14/2007 2:08:32 PM EDT
[Last Edit: 8/14/2007 2:09:19 PM EDT by realwar]
Well how else are people suppose to buy a new car?You got 40K laying around?Most people dont so they have to finance the car.
Link Posted: 8/14/2007 2:09:59 PM EDT

Originally Posted By jnojr:

Originally Posted By N1Rampage:

Buy a used car that only has about 2 or 3 years on it, and it's 1/2 to 1/4 the original price.


Yeah, but how do you know it wasn't drag-raced off of the lot at redline with 6 miles on the odometer, or that the oild was ever changed?



You can get a report of the previous owner, and such. I know my used Dodge wasn't abused because the person who owned it had 2 kids (one was obviously still in a child seat by the marks on the back seat) and was in their late 40's. It only had 16,000 miles in 3 years, so it was used for inner city. Also, getting it from a dealership helps out big time. NEVER go to the Cryer-buyer places.

It's all in the details you have to look for.
Link Posted: 8/14/2007 2:10:05 PM EDT
My payment is 560 a month for 4 years. I am however paying around 2-3k a month on it so it gets paid off asap. But so far this month Ive taken in over 10k after taxes....
Link Posted: 8/14/2007 2:10:29 PM EDT

Originally Posted By realwar:
Well how else are people suppose to buy a new car?You got 40K laying around?Most people dont so they have to finance the car.


Who told you that you deserve a 40k car that you can't pay for?
Link Posted: 8/14/2007 2:10:47 PM EDT

Originally Posted By Katana16j:
New cars can be a wise move but only if you plan on keeping the car for the lifetime of the vehicle.



That's what I do. You know it's not been abused, and you get its full value, and you get the thrill of a new car.

Used cars are a good deal if you can really know their history.
Link Posted: 8/14/2007 2:14:05 PM EDT

Originally Posted By realwar:
Well how else are people suppose to buy a new car?You got 40K laying around?Most people dont so they have to finace the car.


Don't buy new. And if you've got to finance, perhaps you shouldn't be spending 40k on a car. Buy an old beater for $500, and learn to repair it yourself. Or take the bus. Then take the money you'd be spending on car payments and put it into an interest bearing account. Do that for a year or two and you'll have enough to pay cash for a good used car. Drive that one until it's completely used up, which will be a long time if you keep up with routine maintenance. Keep saving the "car payment" money, in case of big repairs, or for eventual replacement.
Link Posted: 8/14/2007 2:46:35 PM EDT
$600 a month here....'06 Beemer X5 x 36months. What do you expect for SoCal?
Link Posted: 8/14/2007 2:46:43 PM EDT
[Last Edit: 8/14/2007 2:48:55 PM EDT by fxntime]

Originally Posted By 1shott:
07 Dodge quad cab, HEMI, $400 a month.

You can come out ahead on a new vehicle buy, as long as you are not upside down in the vehicle you want to get rid of.

Between the $5000 rebate, the X-Plan through my employer and a trade in that I owed less on that it was worth, which meant more money to put down, I drove off the lot for $20,000. It was stickered for $32,000

Now when people trade vehicles that they owe more money on than it is worth, than yes you can get in the hole deep and fast.





I know a girl right now paying over $700 a month on a KIA because she flipped a Grand Cherokee and the van before that.
Link Posted: 8/14/2007 2:48:14 PM EDT
I just went up from a $300 payment to a $327 payment, but it's only for 48 months, when I had 42 months left on the car I was trading. I just got a new job that's paying me a whole lot of mileage, so the company is basically paying for the car. That's $327 per month for a Crown Vic LX with 18k miles and leather and loads of toys, so having an average payment of $500 for an average car is brain-damaged.

And no offense, but:


Originally Posted By schizrade:
Own both cars outright. Will buy my truck in the next 1-2 years and pay cash for it. Used F250/350 Diesel FTW!!! I have already talked dealers down to 22,000 for a used 2006 with 32,000 miles...

Car payments suck.


Why are you running around beating salesmen up on price and wasting their time if you know you're not buying for a year? The internet is a great place to do that kind of research, and you can do it from home in your leopard-print thong. Getting run around by people with no intention of buying is a significant part of why I just left car sales.
Link Posted: 8/14/2007 2:49:00 PM EDT
I can't help but wonder if the people who think they NEED a $40,000 car are the same ones crying about the horrible economy and how they just can't seem to make ends meet?
Link Posted: 8/14/2007 2:49:15 PM EDT

Originally Posted By Matthew_Q:
Nice, so I'm shelling out the average for my above average car! (Porsche Boxster)


I have a friend who's gay, he owns the exact same car! Congrats you own a German Miata

J/K
Link Posted: 8/14/2007 2:49:16 PM EDT
[Last Edit: 8/14/2007 2:50:58 PM EDT by jfrankparnell]

Originally Posted By MrClean4Hire:
I haven't had car payments in almost 8 years.

Feels good to make interest and not pay it.

Also feels good to get a great car for rock bottom price by paying cash.


+1 on all three counts, for both of my cars!

eta: i don't think i'll ever buy a "new" car. i'll let someone else take the depreciation hit.
Link Posted: 8/14/2007 2:49:36 PM EDT

Originally Posted By MrClean4Hire:

Originally Posted By divkat9:

Originally Posted By MrClean4Hire:
I haven't had car payments in almost 8 years.

Feels good to make interest and not pay it.

Also feels good to get a great car for rock bottom price by paying cash.


No doubt it's better to pay cash and be done with but the thought that you get a rock bottom price by paying cash is a myth. You can get a "rock bottom price" on a car whether you pay cash, lease, or finance. Of course with the last two options you are paying interest.
Bottom line is cash no longer gives you greater negotiating power on the purchase price of a vehicle at a dealer.


Dealer?

I'm cash savvy , I buy from individuals and get a carfax report. I can get a better deal from a dealer also. Broke = desperate = stupid and dealers smell that.


Well, you'll notice that I said "from a dealer". No doubt cash talks in a private party sale, how else would they expect to be paid anyway?
There are plenty of people that get sucked into paying more for the car than they should at a dealer. But the guy that walks in and says, "I got cash what's your rock bottom price" gets no better a price than a guy that walks in and negotiates himself a good deal. In fact most dealers in todays market would rather a buyer finance because they can make more money on the financing and warranty products. So you could make the argument that a finance buyer could getter a better price on a car because the dealer will make the profit up on the back end. In other words a manager might say they'll go ahead and sell a used car (or new) for what they have into it because they know if the guy finances they can make $750 on the back end. Funding to dealers from banks on car loans is almost instant with less risk than taking cash from an unknown customer.
Barring a very few types of cars no one should have any problem buying a car for invoice and in many cases less than invoice.
Understand, I'm not arguing against paying cash for a vehicle. Just trying to clear up some misconceptions about buying new or used cars from dealers.
Link Posted: 8/14/2007 2:50:12 PM EDT

Originally Posted By Mazeman:

Originally Posted By MrClean4Hire:


Who told you that you deserve a 40k car that you can't pay for?


People believed they deserved $800K homes that they couldn't pay for. That's why we have the sub-prime mortgage mess.

At least with homes, there was a hope they would go up in value. Not so with cars.


I would say that's half the reason. The Banks deserve the other half of the blame, wouldn't you say?
Link Posted: 8/14/2007 2:50:15 PM EDT
Wife and I have never had more than 1 car payment, and we tend to keep vehicles 6+ years. My 2002 Nissan Altima is 6 years old, 120K miles, paid off and still drives like new. I think we're gonna keep it another 4-5 years.
Link Posted: 8/14/2007 2:52:07 PM EDT

Originally Posted By WS4LIF:
I drive 2 new cadillacs and a NSX....you don't want to know my payments.

BUT, I never loose money on cars, you just have to know how to buy them.


All new cars lose value.
Link Posted: 8/14/2007 2:53:09 PM EDT

Originally Posted By MrClean4Hire:

Originally Posted By WS4LIF:
I drive 2 new cadillacs and a NSX....you don't want to know my payments.

BUT, I never loose money on cars, you just have to know how to buy them.


All new cars lose value.


+1, we can agree on that one.
Link Posted: 8/14/2007 2:55:35 PM EDT

Originally Posted By GeorgeInNePa:

Originally Posted By Mazeman:

Originally Posted By MrClean4Hire:


Who told you that you deserve a 40k car that you can't pay for?


People believed they deserved $800K homes that they couldn't pay for. That's why we have the sub-prime mortgage mess.

At least with homes, there was a hope they would go up in value. Not so with cars.


I would say that's half the reason. The Banks deserve the other half of the blame, wouldn't you say?


True, but..... it's probably easier to get a car loan you can't afford than a mortgage you can't afford.
Link Posted: 8/14/2007 2:56:49 PM EDT
[Last Edit: 8/14/2007 2:58:54 PM EDT by GT86]

Originally Posted By divkat9:

Originally Posted By MrClean4Hire:

Originally Posted By divkat9:

Originally Posted By MrClean4Hire:
I haven't had car payments in almost 8 years.

Feels good to make interest and not pay it.

Also feels good to get a great car for rock bottom price by paying cash.


No doubt it's better to pay cash and be done with but the thought that you get a rock bottom price by paying cash is a myth. You can get a "rock bottom price" on a car whether you pay cash, lease, or finance. Of course with the last two options you are paying interest.
Bottom line is cash no longer gives you greater negotiating power on the purchase price of a vehicle at a dealer.


Dealer?

I'm cash savvy , I buy from individuals and get a carfax report. I can get a better deal from a dealer also. Broke = desperate = stupid and dealers smell that.


Well, you'll notice that I said "from a dealer". No doubt cash talks in a private party sale, how else would they expect to be paid anyway?
There are plenty of people that get sucked into paying more for the car than they should at a dealer. But the guy that walks in and says, "I got cash what's your rock bottom price" gets no better a price than a guy that walks in and negotiates himself a good deal. In fact most dealers in todays market would rather a buyer finance because they can make more money on the financing and warranty products. So you could make the argument that a finance buyer could getter a better price on a car because the dealer will make the profit up on the back end. In other words a manager might say they'll go ahead and sell a used car (or new) for what they have into it because they know if the guy finances they can make $750 on the back end. Funding to dealers from banks on car loans is almost instant with less risk than taking cash from an unknown customer.
Barring a very few types of cars no one should have any problem buying a car for invoice and in many cases less than invoice.
Understand, I'm not arguing against paying cash for a vehicle. Just trying to clear up some misconceptions about buying new or used cars from dealers.


OK, but using your example, if a dealer lowers the selling price knowing that they'll make it up in fees or interest, that doesn't translate into the buyer getting a better deal. The "price" of the car itself isn't important. What is important is what the car is actually costing you when you drive it off the lot. Doesn't matter if it's part of the car's price, or fees, or tacked-on interest (a lot of dealers add on a point or two after getting your rate from the bank)--it's all money out of your pocket.
Link Posted: 8/14/2007 2:56:50 PM EDT

Originally Posted By divkat9:

Originally Posted By MrClean4Hire:

Originally Posted By divkat9:

Originally Posted By MrClean4Hire:
I haven't had car payments in almost 8 years.

Feels good to make interest and not pay it.

Also feels good to get a great car for rock bottom price by paying cash.


No doubt it's better to pay cash and be done with but the thought that you get a rock bottom price by paying cash is a myth. You can get a "rock bottom price" on a car whether you pay cash, lease, or finance. Of course with the last two options you are paying interest.
Bottom line is cash no longer gives you greater negotiating power on the purchase price of a vehicle at a dealer.


Dealer?

I'm cash savvy , I buy from individuals and get a carfax report. I can get a better deal from a dealer also. Broke = desperate = stupid and dealers smell that.


Well, you'll notice that I said "from a dealer". No doubt cash talks in a private party sale, how else would they expect to be paid anyway?
There are plenty of people that get sucked into paying more for the car than they should at a dealer. But the guy that walks in and says, "I got cash what's your rock bottom price" gets no better a price than a guy that walks in and negotiates himself a good deal. In fact most dealers in todays market would rather a buyer finance because they can make more money on the financing and warranty products. So you could make the argument that a finance buyer could getter a better price on a car because the dealer will make the profit up on the back end. In other words a manager might say they'll go ahead and sell a used car (or new) for what they have into it because they know if the guy finances they can make $750 on the back end. Funding to dealers from banks on car loans is almost instant with less risk than taking cash from an unknown customer.
Barring a very few types of cars no one should have any problem buying a car for invoice and in many cases less than invoice.
Understand, I'm not arguing against paying cash for a vehicle. Just trying to clear up some misconceptions about buying new or used cars from dealers.


That's actually a strategy I've considered. Act like a sucker and sign up for a crazy low payment ad a ridiculously high interest rate - but pay off the loan the next week. You'd have to make sure there was no penalty for such, though.
Link Posted: 8/14/2007 2:57:33 PM EDT

Originally Posted By divkat9:

Originally Posted By MrClean4Hire:

Originally Posted By WS4LIF:
I drive 2 new cadillacs and a NSX....you don't want to know my payments.

BUT, I never loose money on cars, you just have to know how to buy them.


All new cars lose value.


+1, we can agree on that one.


Not ALL. Very rare supercars can appreciate right off the lot.
Link Posted: 8/14/2007 3:01:02 PM EDT

Originally Posted By PAEBR332:

Originally Posted By divkat9:

Originally Posted By MrClean4Hire:

Originally Posted By WS4LIF:
I drive 2 new cadillacs and a NSX....you don't want to know my payments.

BUT, I never loose money on cars, you just have to know how to buy them.


All new cars lose value.


+1, we can agree on that one.


Not ALL. Very rare supercars can appreciate right off the lot.


I don't think he owns any of those.
Link Posted: 8/14/2007 3:01:51 PM EDT

Originally Posted By GT86:


OK, but using your example, if a dealer lowers the selling price knowing that they'll make it up in fees or interest doesn't translate into the buyer getting a better deal. The "price" of the car isn't important. What is important is what the car is actually costing you when you drive it off the lot.


No doubt- the final cost of the vehicle is paramount. I was speaking specifically to the "cash gets a better purchase price" argument. Not arguing that cash gets a better final cost.
I think the only time it makes any sense to finance is when you can get a 0% rate and take the cash you have and continue to invest it earning a better return than 0%.
Link Posted: 8/14/2007 3:03:27 PM EDT

Originally Posted By Mazeman:

Originally Posted By GeorgeInNePa:

Originally Posted By Mazeman:

Originally Posted By MrClean4Hire:


Who told you that you deserve a 40k car that you can't pay for?


People believed they deserved $800K homes that they couldn't pay for. That's why we have the sub-prime mortgage mess.

At least with homes, there was a hope they would go up in value. Not so with cars.


I would say that's half the reason. The Banks deserve the other half of the blame, wouldn't you say?


True, but..... it's probably easier to get a car loan you can't afford than a mortgage you can't afford.


As far as the lending mess, i can hear the crybabies now:

"Its everyones' fault - EXCEPT MINE!"

Then Congress will start proposing "relief bills" for all the poor "victims."
Link Posted: 8/14/2007 3:05:33 PM EDT

Originally Posted By MrClean4Hire:

Originally Posted By PAEBR332:

Originally Posted By divkat9:

Originally Posted By MrClean4Hire:

Originally Posted By WS4LIF:
I drive 2 new cadillacs and a NSX....you don't want to know my payments.

BUT, I never loose money on cars, you just have to know how to buy them.


All new cars lose value.


+1, we can agree on that one.


Not ALL. Very rare supercars can appreciate right off the lot.


I don't think he owns any of those.


+1 again. Very few cars appreciate after purchase. And most that do begin a sharp depreciation within about six months or whenever the next biggest thing comes out.
Of course- we're not talking about Ferrari's that the factory has invited you to purchase as a reward for being a good Ferrari owner or other cars in a similar vein.
Link Posted: 8/14/2007 3:06:44 PM EDT

Originally Posted By divkat9:

No doubt- the final cost of the vehicle is paramount. I was speaking specifically to the "cash gets a better purchase price" argument. Not arguing that cash gets a better final cost.
I think the only time it makes any sense to finance is when you can get a 0% rate and take the cash you have and continue to invest it earning a better return than 0%.


Gotcha.

And yeah, a 0% loan is probably the only thing that would get me to finance another car.
Link Posted: 8/14/2007 3:08:26 PM EDT

Originally Posted By GT86:

Originally Posted By divkat9:

No doubt- the final cost of the vehicle is paramount. I was speaking specifically to the "cash gets a better purchase price" argument. Not arguing that cash gets a better final cost.
I think the only time it makes any sense to finance is when you can get a 0% rate and take the cash you have and continue to invest it earning a better return than 0%.


Gotcha.

And yeah, a 0% loan is probably the only thing that would get me to finance another car.


You think that is a good idea?

You are better off paying interest on a used car.
Link Posted: 8/14/2007 3:08:57 PM EDT
$300 a month here on a $4000 loan (from my father).
Link Posted: 8/14/2007 3:10:32 PM EDT
Mines financed, but at least its zero%.
Link Posted: 8/14/2007 3:10:42 PM EDT
Suckers!
Link Posted: 8/14/2007 3:11:01 PM EDT

Originally Posted By Bohr_Adam:
I can't help but wonder if the people who think they NEED a $40,000 car are the same ones crying about the horrible economy and how they just can't seem to make ends meet?


My thoughts too.
Link Posted: 8/14/2007 3:14:20 PM EDT

Originally Posted By MrClean4Hire:

Originally Posted By GT86:

Originally Posted By divkat9:

No doubt- the final cost of the vehicle is paramount. I was speaking specifically to the "cash gets a better purchase price" argument. Not arguing that cash gets a better final cost.
I think the only time it makes any sense to finance is when you can get a 0% rate and take the cash you have and continue to invest it earning a better return than 0%.


Gotcha.

And yeah, a 0% loan is probably the only thing that would get me to finance another car.


You think that is a good idea?

You are better off paying interest on a used car.


Only if I was in the market for a new car, which I doubt I would be.
Link Posted: 8/14/2007 3:14:33 PM EDT
Cars are like Big Mac's. You buy them to consume them. People that worry about the "value" of a vehicle after it's in their driveway are retarded.

I drive a 98 civic with over 150,000 miles on it. I'll pass it on to my son when it hits 200k. Then I'll buy another car and consume it until I'm tired of it. If somebody wants to give me some money for my trash thats fine. If they don't well thats fine too. Once I'm done with a car it holds the same value to me as a bag of kitchen garbage.
Link Posted: 8/14/2007 3:15:27 PM EDT
The average person lives beyond their means.
Link Posted: 8/14/2007 3:21:43 PM EDT

Originally Posted By GeorgiaBII:
Cars are like Big Mac's. You buy them to consume them. People that worry about the "value" of a vehicle after it's in their driveway are retarded.

I drive a 98 civic with over 150,000 miles on it. I'll pass it on to my son when it hits 200k. Then I'll buy another car and consume it until I'm tired of it. If somebody wants to give me some money for my trash thats fine. If they don't well thats fine too. Once I'm done with a car it holds the same value to me as a bag of kitchen garbage.


+1

The idea of resale value is moronic to me. I'm not planning on selling my car. When I wreck it or it falls apart, I'll chuck it.

Link Posted: 8/14/2007 3:44:24 PM EDT

Originally Posted By MrClean4Hire:

Originally Posted By st0newall:
nothin wrong with 500 a month when your takehome is 8k a month and you dont have kids or a big mortgage...


Then you should be able to pay cash moneybags


The only time you would not do so is if you were earning outsize returns on your cash. In that case, it is better to borrow at 8% to buy a car, and keep your cash invested at a higher return.

YMMV.
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