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so your saying go from a payment to a smaller payment? problem is YOU WOULD STILL HAVE A PAYMENT!!! if you income drops or you get laid off, if you don't have a car payment in the first place thats one less thing to worry about while your getting back on your feet. and when I worked at a car lot there were plenty of cars that came back(repo'd) that were mostly paid off(five or 6 months away from being paid off).
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No you wouldn’t. So your car is 6 months from being paid off. It’s still worth something. Sell it. Take the cash and buy a temporary used car with the cash, or buy a more modest car to fit your deduction in salary. At that point you could also trade in your expensive, high maintenance, 91 octane drinking, poor gas mileage, high insurance cost, expensive tire eating, luxury car and get something the complete opposite that will save you in total cost of ownership. The car’s price is just one of many factors. That’s why the overall equity in the car is important. There are certain cars I would avoid just for this reason.
What does it matter anyway it’s no one’s business what you drive your not paying for it, this tread made a sharp left turn somewhere. Starts out why women drive new cars to being how frugal in your choices, hey people it’s their money they can spend it the way they want to. There’s another forum on economics if you have to justify your spending habits but don’t try to push them on others.
Person 1: buys a new car for $40k and drives it 5 years. Their payment is $650/month (0% interest). After 5 years the car is paid off and they buy another $40k car (assuming no inflation for the sake of easy math). Their payment is now $420/month for 5 years assuming they get $15k for their original car. Total expenditure for 10 years of driving = $65,000. After 20 years that’s $130k.
Person 2: buys a $40k car and drives it 10 years. They are out $40k. Let’s say the car is worth $5k after 10 years and they trade it in on another $40k car. That’s $40k + $35k ($5k for the trade in) which equals $75k for 20 years of driving.
Person 2 saves money on property tax because their car isn’t valued as high (let’s say $1k). They also save money on insurance because they can drop down to just liability after say year 6. Over 20 years that is 8 years without full coverage - a savings of about $4k.
Total savings for person 2 = $130k - $75k + $4k + $1k = $60k.
Now let’s say they average a 5% return on that savings — over 20 years we are talking $100k+.
And no, I’m not saying that everyone is required to take the lower cost option, but let’s not pretend that there’s no savings to be had.
This was pointed out to me during a conversation about how being "Mr.Fixit" is not as appealing to women as it was for previous generations like the old saying "if she don't find you handsome at least she can find you handy", anyway it was pointed out that most women drive new cars that Joe Shadetree can't work on beyond minor stuff. Well I actually thought about women I know, women I've dated(who had cars) and I starting just paying attention when I'm out driving or Cycling to the women driving or getting in and out of cars.
Well that guy was right for the most part, on average most women I see out and about are in cars no older than 2010ish, you see an 86 escort driving by 9 times out of 10 it's gonna be a guy driving it.
And while it seems the most high end cars are driven by men so are the vast majority of beaterz(2X4 as a bumper, coat hanger as a car antenna etc etc). Even lower income women(service workers, like fast food or waitress types) seem to have newer cars or they get rides to work but not much in between.
The only main exception I've noticed is older retired women.
Why do you guys think this is?
I'm not sure what exactly to make of it, but observationaly, it does appear to be the case. In my family, I drive a 2018, my husband a 2014. And we are not alone.
My theories?
1. Woman want and need safer vehicles. Many of us, not all; do not want to constantly be involved with repair work on our own. I know they exist, but I personally do not know of any women who think that "tinkering away" on the car is a good way to spend a Saturday afternoon.
2. Women tend to have better credit.
3. Women, in many families, are still charged with the responsibility of driving the children around. The safer, newer car is generally given to the woman.
4. Women want to drive clean, newer cars. It doesn't matter if the car is an affordable, fuel efficient sub compact or a huge SUV.
I'm not sure what exactly to make of it, but observationaly, it does appear to be the case. In my family, I drive a 2018, my husband a 2014. And we are not alone.
My theories?
1. Woman want and need safer vehicles. Many of us, not all; do not want to constantly be involved with repair work on our own. I know they exist, but I personally do not know of any women who think that "tinkering away" on the car is a good way to spend a Saturday afternoon.
2. Women tend to have better credit.
3. Women, in many families, are still charged with the responsibility of driving the children around. The safer, newer car is generally given to the woman.
4. Women want to drive clean, newer cars. It doesn't matter if the car is an affordable, fuel efficient sub compact or a huge SUV.
I agree with all your points...except maybe credit, where men overall have better scores.
Women tend to be more "princess-y" about their cars. It's just how they are. They want nice, new, shiny, and safe. Women feel safe in newer cars. Men are fine driving older beaters. We take one for the team so the woman can have the nice car.
For a long time in this country the avg family only had a single car. Wow times have changed.
1. Woman want and need safer vehicles. Many of us, not all; do not want to constantly be involved with repair work on our own. I know they exist, but I personally do not know of any women who think that "tinkering away" on the car is a good way to spend a Saturday afternoon.
2. Women tend to have better credit.
3. Women, in many families, are still charged with the responsibility of driving the children around. The safer, newer car is generally given to the woman.
4. Women want to drive clean, newer cars. It doesn't matter if the car is an affordable, fuel efficient sub compact or a huge SUV.
Generally speaking, of course, I would tend to agree with these points. I'd add to #1, however, that safety is a concern because of OUR personal safety as a woman. If my car breaks down in a bad neighborhood, I'm a much bigger target (for crimes being committed against me) than your typical man. Sad but true.
I certainly don't live in fear, in fact I probably take more risks than I should. But if I can eliminate one potential risk by having a reliable car, that's worth a little extra $$ to me.
People who pay "cash" upfront for a car still have a car payment. They just made it in advance.
I guess you're technically right, but it's an odd way to look at that. Also, you're discounting the folks who "came into money" suddenly (inheritance, bonus at work, lottery/gambling winnings, etc) or who earn enough to use one or two paychecks to buy a car outright.
well, I once saw a brand new BMW with the plates "WAS HIS" ... so why do they have brand new cars, well... there is your explanation LMAO!
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