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Old 12-03-2014, 10:41 AM
 
89 posts, read 136,721 times
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How are people buying cars these days? Just about every car is atleast $30k and suv and minivans over $40/$50k. Is everyone financing or saving large sums of money?

The price of a quality new car with some nice options are absolutely insane.
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Old 12-03-2014, 10:44 AM
 
Location: East TX
2,085 posts, read 1,818,152 times
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Personally I buy used and finance at insanely low interest rate from credit union to leave money in better investments. At 1.9% credit union rate, paying cash would be almost as foolish as buying brand new.
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Old 12-03-2014, 10:46 AM
 
Location: Vallejo
13,437 posts, read 15,036,253 times
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Mine was more like two-thirds that amount. I took the 0% for 60 months. Always a big fan of using someone else's money for free while my investments earn returns.
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Old 12-03-2014, 10:52 AM
 
Location: Long Island
8,507 posts, read 11,379,976 times
Reputation: 4759
It depends on where you are in life (kids, need a new house, etc.) but generally - save. You don't need a new car every 3 years. Even if you're a car guy.

I don't care for comments like if you make X amount, you can only afford X car. You don't buy a car often and only spend moderately on other things while maintaining a decent salary, you can buy nearly any car south of 100k, financing at low % or not at all. I've had 2 cars in 20 years of driving. The only itch for a new car I get is because of advancement in technology (active cruise sounds pretty cool).

I don't believe in buying used, because it's my hard-earned money and I'm not buying someone else's hand-me-downs. Just principle.

Last edited by ovi8; 12-03-2014 at 11:01 AM..
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Old 12-03-2014, 10:59 AM
 
Location: Los Angeles (Native)
24,145 posts, read 13,668,407 times
Reputation: 11353
There are a lot of options for less than $30,000 it seems.

Here are some
The Best 30 Under $30K: Comparisons, Tests, and More! – Feature – Car and Driver

Here are a bunch under 20k
Model:*2014 Kia ForteStarting price*$15,900Fuel economy:*25/37... Photo-5298091.71751 - Houston Chronicle

I feel that most people actually can't afford a new car and that people are spending much more in general than they should on cars. To top it off a lot of people are paying high interest rates too.

Of course there is always the option of used cars which can be bought for a lot less.

I think that a lot of people have the mentality of "I work, I deserve a nice brand new car" , but in reality these cars are a luxury they can't afford..even if they aren't a luxury brand.

A newer more expensive car also means more car insurance too.
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Old 12-03-2014, 11:03 AM
 
Location: Los Angeles (Native)
24,145 posts, read 13,668,407 times
Reputation: 11353
Quote:
Originally Posted by ovi8 View Post
It depends on where you are in life (kids, need a new house, etc.) but generally - save. You don't need a new car every 3 years.

I don't care for comments like if you make X amount, you can only afford X car. You don't buy a car often and only spend moderately on other things while maintaining a decent salary, you can buy nearly any car south of 100k, financing at low % or not at all. I've had 2 cars in 20 years of driving. The only itch for a new car I get is because of advancement in technology (active cruise sounds pretty cool).

I don't believe in buying used, because it's my hard-earned money and I'm not buying someone else's hand-me-downs. Just principle.
Interestingly, I'm noticing that slightly used car prices aren't much different than buying used. Of course if you are looking at buying a used car that is like 5yrs old or older it's a different story.

Interesting you've only have 2 cars in 20 years of driving, would you mind sharing which cars those are?

I think i've had about 6 cars in 16 years of driving.
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Old 12-03-2014, 11:13 AM
 
Location: Pikesville, MD
5,229 posts, read 11,481,696 times
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As a car guy, who like all kinds of cars and can't own all of them at once, I'll own them sequentially . Sometimes that's a cool used car, sometimes it's a new car. And frankly I went from growing up below the poverty line to making 6 figures all the while owning over 130 different cars in the span of 37 years of driving. And I still spent time with family (in fact, having my family be part of my hobby has been quite rewarding: working on project cars with my wife and son, racing cars with my wife, etc). And we still have time to travel, go RVing, have nice dinners, etc.

So how did I afford having a new MINI Cooper, and new Volt, a Suburban, and the '79 Chevy hot rod pickup and my '63 Mercury Comet all at the same time? I worked for it. I'm going to get rid of the Volt and probably get a Jag convertible next year. Why? I haven't had one yet and I really like them.
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Old 12-03-2014, 11:28 AM
 
Location: Long Island
8,507 posts, read 11,379,976 times
Reputation: 4759
Quote:
Originally Posted by jm1982 View Post
Interesting you've only have 2 cars in 20 years of driving, would you mind sharing which cars those are?
'95 Isuzu Rodeo went nearly 14 years and 115k before the GM tranny died, had it rebuilt, died again 2 years later. 16 years for my first car and would probably still have it otherwise.
'08 BMW X5 going on 7 years now - still drives like a dream, just wish I had the new idrive
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Old 12-03-2014, 11:35 AM
 
Location: 4222'55.2"N 7124'46.8"W
4,837 posts, read 9,230,811 times
Reputation: 2878
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.
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Old 12-03-2014, 11:37 AM
 
Location: East TX
2,085 posts, read 1,818,152 times
Reputation: 3171
Quote:
Originally Posted by Merc63 View Post
As a car guy, who like all kinds of cars and can't own all of them at once, I'll own them sequentially . Sometimes that's a cool used car, sometimes it's a new car. And frankly I went from growing up below the poverty line to making 6 figures all the while owning over 130 different cars in the span of 37 years of driving. And I still spent time with family (in fact, having my family be part of my hobby has been quite rewarding: working on project cars with my wife and son, racing cars with my wife, etc). And we still have time to travel, go RVing, have nice dinners, etc.

So how did I afford having a new MINI Cooper, and new Volt, a Suburban, and the '79 Chevy hot rod pickup and my '63 Mercury Comet all at the same time? I worked for it. I'm going to get rid of the Volt and probably get a Jag convertible next year. Why? I haven't had one yet and I really like them.
New F type? Love that car.

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. While I personally have not had the opportunity to own and enjoy as many cars as you, my career allows me some latitude to play around and see some cool stuff.

I do think a lot of people are spending more on cars than they really can (or should) afford to, but that is better served for a different thread.
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