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.
Who said everyone should share the same goals? A career isn’t something that defines me as a person and not having one certainly doesn’t rob me of the ability to pursue whatever I’m passionate about. Let’s not let group-think control what we are - you’re “career” is simply one facet of life. I simply prefer to be in a position where life is liquid and can spent how I choose (rather than the typical must work to pay the bills). Sure everyone has the option of following my path, but it takes a certain degree of self control and no desire to “keep up with the Joneses” (and never ending rather depressing cycle).
Since when is being financially prudent and driving a car 10 years considered the equivalent of separating 2 ply toilet paper? How old are you? We aren’t talking about driving Al Bundy’s Dodge your entire life just to save money.
I don’t really care what your goals are and don’t feel like you need to justify your priorities to me. I’m just some random guy on the Internet. But you’re the one who stated your goal is not working, saving money you don’t spent, then accused everyone else (I assume those still remaining productively employed) of not learning financial prudence in high school.
Being financially responsible is spending money within your means, not just being thrifty. For some those means mean you drive a different Ferrari each day to match your shoes. For others it’s driving a 3 year old Civic. Transportation cost are just as expected as groceries and cell phones. You don’t to have hobble together a 20 year old car to claim financially responsibility. In fact most people I know doing that is because they hit rock bottom in the first place. Now if you buy an expensive new car and end up living in it, you might have a problem.
Buy new car
Make payments for 5 years
Drive car for 10-12 years (maybe even 15)
Vs
Option 2:
Buy new car
Make payments for 5 years
Buy new car
Make payments for 5 years
Rinse and repeat for life
Obviously option 1 saves money. And you aren’t really taking some big gamble as a 10-12 year old vehicle will in most cases have less than 180k miles. Perhaps take that money saved and apply it toward things that cause more stress than the thought of breaking down...paying off one’s house, paying off high interest credit cards, student loans, building a retirement, children’s college fund, etc. You aren’t exactly living like a 3rd worlder by driving a 10-12 year old vehicle. Sheesh, no wonder the average American has less than $5k in savings.
You forgot the replacement for your 10-12 year old car on Option 1. Do you only expect to live another 10-12 years? That 12 year old car now has essentially no resale value and new cars are much more than they were 12 years ago. Hopefully you didn’t use that savings to pay off your home loan, otherwise you’ll be financing your next car at tomorrow’s higher, non tax deductible interest rates, while saving your lower tax deductible mortgage.
You pay off your “bad debt” first if you made the mistake of taking it on in the first place. Cars and houses are not “bad debt”. You need a roof over your head and a car to get around. From there it’s just a matter of spending within your means. Don’t assume just because somebody drives a new Audi every 3 years that they don’t also have a well funded retirement account.
The OP mentioned that women tend to drive cars that are 2010 or newer these days. Wow, a mid-size sedan that is 8 years old is such a status symbol. We're willing to "get in debt up to our eyeballs" just so we can show off how badass we are in a 2010 Toyota Camry.
Who cares that we have to pay a $200 payment a month, which is clearly going to drain us dry? We don't have to worry about it...us silly girls just aren't practical about finances, and we can always meet a guy who will pay our way. After all, we just won't be able to take care of ourselves after making a car payment on such a fancy car, right?
Driving a 20-year-old car and getting stranded on the side of the road regularly would be so much better. After all, then, we could get "rescued" by sweet and chivalrous guys like the ones on this thread.
This is so ridiculous.
Ha ha ha!
Because we know "nothing" about cool cars like M3s (which I wouldn't touch with a 10 foot pole).
The OP mentioned that women tend to drive cars that are 2010 or newer these days. Wow, a mid-size sedan that is 8 years old is such a status symbol. We're willing to "get in debt up to our eyeballs" just so we can show off how badass we are in a 2010 Toyota Camry.
Who cares that we have to pay a $200 payment a month, which is clearly going to drain us dry? We don't have to worry about it...us silly girls just aren't practical about finances, and we can always meet a guy who will pay our way. After all, we just won't be able to take care of ourselves after making a car payment on such a fancy car, right?
Driving a 20-year-old car and getting stranded on the side of the road regularly would be so much better. After all, then, we could get "rescued" by sweet and chivalrous guys like the ones on this thread.
This is so ridiculous.
Or something could happen to us while we were stranded and then we could get slammed for not taking the “reasonable precaution” of having a newer, more reliable car that would have ensured we wouldn’t have been stranded in the first place. At least these guys are too sweet and chivalrous to have mentioned that we all have to have large rear-view mirrors so we can put on our make-up while we talk on our cell phones as we are driving down the freeways in our comfortable, convenient (though poorly-maintained) cars.
the money for hobbies and stuff is for when things are going well and your not saddled with a car payment. and downsizing BEFORE you lose everything and run through your savings is a good way not to end up homeless.
And older does not always mean unreliable. the lady across the street(98 year old retired teacher) has had the same car for 24 years still looks new, drives it to church every Sunday and bingo on Wednesday(I used to think that was a lie salesmen told)
and they have been putting computers in cars since the 80's to test drive and scan them.
I own a scanner myself. anything going out it tells you usually a long time before it becomes a problem.
The 98 year old teacher has a 24 year old car because she only drives like 20 miles a year.
You forgot the replacement for your 10-12 year old car on Option 1. Do you only expect to live another 10-12 years? That 12 year old car now has essentially no resale value and new cars are much more than they were 12 years ago. Hopefully you didn’t use that savings to pay off your home loan, otherwise you’ll be financing your next car at tomorrow’s higher, non tax deductible interest rates, while saving your lower tax deductible mortgage.
You pay off your “bad debt” first if you made the mistake of taking it on in the first place. Cars and houses are not “bad debt”. You need a roof over your head and a car to get around. From there it’s just a matter of spending within your means. Don’t assume just because somebody drives a new Audi every 3 years that they don’t also have a well funded retirement account.
Of course option 1 requires replacing the car - BUT you are going 5-7 years without a car payment OR being required to have full coverage auto insurance.
7 years without a $400 car payment is $34,000. With compounded interest, lower property tax and only having liability insurance for those last 5 or so years, we might as well call it $40,000+ saved. Sure you essentially have a car worth $2-3k after 12 years but you’ve saved over $40,000. Who cares what it’s worth?
Cars are essentially bad debt. They are quickly depreciating assets. Yes, you need a car to get around and driving a 10-12 year old vehicle that has been well maintained since new can easily handle that chore. 150k is nothing on a modern automobile.
Who’s assuming? Read my replies - I’ve said multiple times that if one has all their bases covered - spend away. Heck, spend away even if you don’t.
Regardless, in what world are people living in where buying a new car every 5 years actually saves money compared to driving one 10-12 years? Do most Americans think this way - thus the <$5k in savings?
If you are a typical guy and your car leaves you stranded, you'll likely just be pissed and inconvenienced. You likely won't be worried about being assaulted or raped.
But young women are worried about that.
Also, they are less likely to be able to repair their own cars. If you have a failing car and you must pay the mechanic's shop rate of $130 per hour to get the car fixed, you'll quickly run out of money.
That's why I think the general advice to always just pay cash for a cheap car is bad advice.
Furthermore, newer cars have much better safety systems: multiple air bags, anti-skid control, automatic braking, cross traffic alert, and automatic cruise control.
many women are simply not car people and devote their energy and attention on stuff that matters to them. When my wife worked at BMW Finance, most of the guys were ecstatic and continued to be ecstatic working there and getting to drive the cars.
For my wife, the idea of having a new reliable car that she didn't have to worry about was the big plus, but in the end, they were just cars.
I agree with that poster as many men, in the end, get "Oh molded cheese instead of "geeze"". lol!
Anyway, women earn their own money so they can pamper themselves with it as they choose.
Men just need to start to stop wasting their monies on women who do well enough financially for themselves so they can also (if they want) pamper themselves. Equal rights, right?
I do see more women drive newer cars for whatever reason(s).
Of course option 1 requires replacing the car - BUT you are going 5-7 years without a car payment OR being required to have full coverage auto insurance.
7 years without a $400 car payment is $34,000. With compounded interest, lower property tax and only having liability insurance for those last 5 or so years, we might as well call it $40,000+ saved. Sure you essentially have a car worth $2-3k after 12 years but you’ve saved over $40,000. Who cares what it’s worth?
Cars are essentially bad debt. They are quickly depreciating assets. Yes, you need a car to get around and driving a 10-12 year old vehicle that has been well maintained since new can easily handle that chore. 150k is nothing on a modern automobile.
Who’s assuming? Read my replies - I’ve said multiple times that if one has all their bases covered - spend away. Heck, spend away even if you don’t.
Regardless, in what world are people living in where buying a new car every 5 years actually saves money compared to driving one 10-12 years? Do most Americans think this way - thus the <$5k in savings?
First off dropping full coverage isn’t saving money, it’s just taking on more risk. You could easily say the same about dumping health insurance. You’re also assuming that your car is not requiring major maintenance or repair.
Ok, so now you have $40k for a new car. Now you need to start thinking about your next car because you just handed over your $40k (and you dropped full coverage). The way you got that $40k was saving your payment over a period of time. You’re still reserving money for another car either way.
The more broke you are, the more it makes sense to have reliable transportation, full coverage, a warranty, and predictable operating expenses. Only wealthy people can afford an old busted car.
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.
) 
