Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Anybody buying a new car has to be absolutely insane unless they have money to burn.
Find a car that is known to be reliable around 10 years old with low miles. For example when I was car hunting the best deal I came across was a 2003 Buick Century with 70K on it, $2600. Just wasn't my style or I would have bought it. Drive it around for about 5 years and then sell it, you'll get about half of what you paid for it. Keep in mind you're also going to save a lot on insurance because you don't need comprehensive.
I buy, I buy frequently, and I generally buy cash (unless rates are insanely low, and then I finance and let my cash earn me more money towards my next car). I buy new, used, whatever. Depends on what I want, what is available, and my mood that day.
I guess I tend to "waste" a good amount of money on my enjoyment of cars, but they really end up being my one and only big ticket vice. I work hard to earn what I earn, which is a decent amount. I am debt free. So as I feel I can comfortably afford things and not harm my long term planning or family I do them.
If I was more in a pinch, I likely would never buy brand new. I would also shop more for need than desire preference, as a dollar can go a lot farther if your not as picky on a particular style/make/model/brand.
You must be one of the following:
1) young
2) didn't save enough when you were young
3) make a below average wage
Buying a new car gets easier as you get older. If you're making below average then you shouldn't buy new, period. Look at $10-15k used cars. But if you're an average wage earner then it should be reasonably easy to buy a $30k car.
If you put down $10k and finance $20k over 4 years at 2.9% then your payments will be about $450/mo. After 4 years your car is paid off and you can drive that car for another 6 years while saving $450/mo to put as a down payment on your next car. $450/mo over 6 years is about $32k. Now you have $32k and a 10 year old car that's still worth about $5k. That's $37k to spend on your next car which you can buy with cash. Drive it for 10 years and save $450/mo and you'll have $45k and a 10 year old car that's still worth about $5k. That's $50k to spend on your next car.
Do you see a pattern here? Even if you can't afford a $450/mo car payment, this logic still works with smaller amounts. If you drive your car for 10 years and keep saving your monthly payment after the car is paid off, you will always be able to buy a more expensive car 10 years later WITH CASH. The problem is, most people will spend that $450 on something else once their car is paid off, then when it's time to get a new car they start whining that they can't afford anything nice.
I am pretty young; in my early 30s and make plenty of money(over $200k/yr) Money isn't an issue. I was just curious what other people are doing. I used to be a new car every year or two kinda guy but I don't see the value in that anymore. We have one company owned car(not my comp) and a 2006 escalade that is payed off and we maintain meticulously.(feels like all the time
We thought about trading in the escalade for a CPO Infiniti QX56 but we didn't want to spend $50-$60k because "we wanted something new".
I am pretty young; in my early 30s and make plenty of money(over $200k/yr) Money isn't an issue. I was just curious what other people are doing. I used to be a new car every year or two kinda guy but I don't see the value in that anymore. We have one company owned car(not my comp) and a 2006 escalade that is payed off and we maintain meticulously.(feels like all the time
We thought about trading in the escalade for a CPO Infiniti QX56 but we didn't want to spend $50-$60k because "we wanted something new".
Ah, gotcha - more of a curiosity question. I think the way I described will allow any average wage worker to buy a new car after he buys his 2nd or 3rd car at the age of 40 something. Problem is, most people don't have the diligence to start a "car fund" once they pay off their car loan. They spend the new-found money elsewhere and then end up borrowing money again to buy their next car. To answer your question, I think most people just finance 80-90% of their new car purchase, kind of like a house, except it's a depreciating asset. Doing this usually prevents them from saving for something else like retirement. We lived in a financially troubled country, my friend. You seem to be doing just fine though.
I save my money until I have enough to buy the car that I want and then I buy it, and keep it for a very long time, which gives me time to save for the next car. When I was young and poor I bought used cars, but found over the long haul I do much better buying new.
Ever wonder why there are so many low mileage used cars out there? People buy new and once the payments start, they realize they cannot afford it. I always buy 1 to 2 year old vehicles except for my wife who wanted a new car to call her own, thus I bought her a 2004 CRV 10 years ago when I could afford it.
Easy, 72 and even 84 month loans are becoming more common as the prices of new vehicles increase.
Those types of loans really spread out the pain, but can really leave you upside down unless you've made a fairly large down payment. They're OK I suppose if you only put 10K miles per year on a car & just drive them until the wheels fall off.
I buy my cars new and loaded, but I keep them 10/15+ years. I don't need a new car every 2/3 years, so I get something I want to drive for the long run even if it costs a little more money. Any car made in the last 4 years or so should last easily 20.
Would love that, but at nearly 100k, it's still a bit more than I want to spend. I'm thinking a supercharged XKR, about 2003-2005. Loved those cars since they were new, and they remind me of a modern E type.
Quote:
Had a chance at a running but unrestored E-type for $8,000 a couple years ago but did not have the support of darling wife.
E types are my wife's favorite cars. She knows everything about each year of them. Her father had 3 '67 4.2 triple carb convertibles over the years, and the last one was supposed to go to her in his will. But he ended up selling it in unrestored condition for $15k thinking he was getting a good deal, back in '01. That same car is a $60k car now in the condition it was in, and I could have restored it myself. She was mad at him for years for doing that. If I do spend a hundred grand on a car, it'll be on one of those for her.
Ever notice how many dealers sell cars not on price, but on the "monthly payment"? A LOT of people walk into a dealer and when asked what they can afford, the don't say $30,000; they say $300/ month.
Once the dealer stops foaming at the mouth, he puts them in the "car of their dreams" for very little down, and payments for the next six years.
Throw this payment in with the big screen TV, the washer and dryer, the rent, the CC balance where they pay the minimum, and these folks have spent every dime they will ever make--mostly on finance charges.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
