U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Frugal Living
 [Register]
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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Closed Thread Start New Thread
 
Old 02-16-2011, 11:46 AM
 
Location: southwest TN
8,224 posts, read 14,827,788 times
Reputation: 14976

Advertisements

It's unfortunate that most people don't pay cash for their cars. 9 years ago we did. There is no way we could have saved ANY money by taking mass transit. Take all your mass transit figures and DOUBLE that - the car costs what it costs regardless if there is 1 passenger or 4. The bus/subway costs per person, so already the savings are cut in half since there are 2 of us. But by paying cash, our insurance was cut in half, and by having a new small car, maintenance is nearly non-existent.

But, I am a couponer. What that means is that I shop, daily. Not just one store, sometimes 4 different supermarkets, sometimes 2 in one chain, 3 in another, and then I hit the pharmacies. Then there are weeks I don't shop at all. Couponing cannot be done on the scale I do it without a car. For one thing, even in NYC, the travel and waiting times to go by bus from location to location would make it impossible; nevermind the cost of taking bus 1 to bus 2 - shop - bus 2 to next store - shop - bus 2 etc. A transfer is available from route to route but not to continue a ride on the same route and not to be used for a return trip.

And, while I live in NYC, I live in the one borough without a subway and where there are 2 main transfer areas, on opposite sides of the island. I tried for 6 months to live without a car here. I spent more on car service (what a taxi is called outside of Manhattan) just to do one grocery shopping per week. Ever try carrying groceries for a family on a bus? For a week? UN HUNH, ain't gonna work - I tried - and the driver told me that next time he would pass me by as it took too long to get all my bags up the stairs onto the bus and then I took up too much room - did you know it's ILLEGAL in NYC to put packages on a seat of a bus?

So the no car is NOT going to work even in the big city.

(watching wind fall out of the sails.)

 
Old 02-16-2011, 12:06 PM
 
5,748 posts, read 10,727,499 times
Reputation: 4502
Look, I don't know your finances, but is it possible that your coupon savings simply pays for your car?

Add it all up: do you save more through couponing than it costs to maintain your vehicle?

Have you taken the time to evaluate the big picture?

Could you move to a borough with better transit or even walkable to work/errands? Does your employer offer transit discounts?

It's easy to focus on the nickels and dimes while ignoring the dollars.
 
Old 02-16-2011, 02:09 PM
 
Location: southwestern PA
20,419 posts, read 37,379,191 times
Reputation: 39005
Quote:
Originally Posted by mysticaltyger View Post
Thank you for saying this. We all know most people don't pay cash for their cars, even though they should.
meh... why pay cash, when you can get 0% financing and invest the money instead?
That's what I did.
I had the purchase price saved in full, but didn't use it to buy the vehicle.
 
Old 02-16-2011, 02:24 PM
 
Location: Conejo Valley, CA
12,476 posts, read 17,388,423 times
Reputation: 4309
Quote:
Originally Posted by Pitt Chick View Post
meh... why pay cash, when you can get 0% financing and invest the money instead?
That's what I did.
I had the purchase price saved in full, but didn't use it to buy the vehicle.
Because dealers will give you cash back that will match the savings you'd receive on the 0% loan. Almost always when financing deals are offered they will also offer a cash-back promotion for cash buyers. Cost wise its the same for them.

So you paid more for the vehicle to get the 0%, essentially you just paid 100% of your interest upfront. Because you are paying your interest upfront, the interest rate incentive is usually the worst one to take. You won't benefit from paying off the car earlier, etc.
 
Old 02-16-2011, 02:27 PM
 
Location: southwestern PA
20,419 posts, read 37,379,191 times
Reputation: 39005
Quote:
Originally Posted by user_id View Post
Because dealers will give you cash back that will match the savings you'd receive on the 0% loan. Almost always when financing deals are offered they will also offer a cash-back promotion for cash buyers. Cost wise its the same for them.

So you paid more for the vehicle to get the 0%, essentially you just paid 100% of your interest upfront. You should have paid cash.

ummm.... no, I didn't.

I negotiated on a Friday based on paying in cash, and got many incentives. I was to get the vehicle Monday.

But over the weekend, I saw the 0% offer and told the dealer I wanted that, WITH the negotiated price.

I also told them I would walk without it.

So I did not pay more at all!
 
Old 02-16-2011, 02:32 PM
 
Location: Conejo Valley, CA
12,476 posts, read 17,388,423 times
Reputation: 4309
Quote:
Originally Posted by Pitt Chick View Post
ummm.... no, I didn't.

I negotiated on a Friday based on paying in cash, and got many incentives. I was to get the vehicle Monday.

But over the weekend, I saw the 0% offer and told the dealer I wanted that, WITH the negotiated price.
Yes, you did pay more. If the dealer was willing to give you 0%, then they would have been willing to give you additional cash-back. Its no different for them, the cash-back will be roughly equal to the amount they lose giving you 0%. Why would they give you one incentive but not the other? Makes no sense.

But you are free to believe you aren't paying the interest upfront, perhaps the dealer has a magic money tree.
 
Old 02-16-2011, 02:44 PM
 
Location: southwestern PA
20,419 posts, read 37,379,191 times
Reputation: 39005
Perhaps I am not making myself clear.
I went in as a cash buyer.
I got ALL the incentives I was eligible for.... loyalty discount, trade-in, dealer cash back, and another I don't remember.

THEN I saw the 0% and got that on top of the already discounted, already negotiated cash price.

I did not pay more for the vehicle by taking the 0%.
 
Old 02-16-2011, 02:53 PM
 
Location: Conejo Valley, CA
12,476 posts, read 17,388,423 times
Reputation: 4309
Dealers have numerous incentives, just because you got some cash-back doesn't mean you could not have gotten more. The dealer would have given you additional cash-back instead of the 0%, there is no reason why they wouldn't. The 0% rate costs the auto company money, they have no reason not to give you the same amount as cash-back. In each case it would be the same profit margin.

When you get a promotional APR at a dealer you're not getting free money, the additional interest is built into the price.
 
Old 02-16-2011, 02:57 PM
 
Location: southwestern PA
20,419 posts, read 37,379,191 times
Reputation: 39005
Okay... I'm done explaining!
Your mind is made up... and you are not hearing what I am saying.

Believe what you want...
 
Old 02-16-2011, 03:02 PM
 
Location: Conejo Valley, CA
12,476 posts, read 17,388,423 times
Reputation: 4309
Quote:
Originally Posted by Pitt Chick View Post
Okay... I'm done explaining!
Your mind is made up... and you are not hearing what I am saying.

Believe what you want...
You want to believe that the dealer is willing to give you money in the form of a promotional interest rate but not in the form of additional cash-back. This is like suggesting that a business will only accept a $1 dollar bill and not 4 quarters for its product.
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.


Closed Thread

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Frugal Living
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. | Please obey Forum Rules | Terms of Use and Privacy Policy

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top