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So you're saying everyone who has a new car has a car loan. Not so.
True. My husband paid cash for his brand new car last Spring. When I needed a new car, I financed less than half of the cost, just to keep my credit score strong over time. I have a large reserve that could easily be used to make payments of just pay the thing off completely if I lost my job. Not everyone with a new car is an idiot. There are still those of us who live at or below our means.
Show me a person who pays $10G...$15G...$30G etc in cash for a near new car and I will buy you a Steak dinner. NO...they are making payments.
At one time decades ago...two yrs was the norm for payments. As the prices got higher the time payments got longer. Now people can buy with very little or NO DOWN pymt...whose the LOSER?.
Over 50 yrs ago had a car repoed for three days because they did not receive my one pymt in the mail. Their paperwork caused the problem. A co-worker had his Vette taken from the parking lot while working. His pymts were current and he sued and got the car back plus the title with a paid in full receipt.
Later on had a job change with my income cut in half. Making ends meet was a problem with car pymts etc. (learned a BIG lesson)
NO THANX to any more car pymts. You have a problem with a job/income or unexpected medical bills and your up the creek without a paddle.
I went into business for myself... paid cash for all my cars buying for whlse and not retail...thereby saving a few hundred in price and finance charges/interest.
Got to the point where I had 2-3 Cads at one time (business needs) and would sell off the older car each yr and buying a newer model with low miles and still NO car pymts while paying a cash difference.
Go by any new car dealer and see the signs that offer "Financing"... Yep...people are making pymts.
Guess I'll go and have my steak dinner tonight by myself.
Dealers have gone to prison for NOT complying with these regs: Form 8300 Compliance Articles from Cash Transaction Management Services (http://www.ctmservices.net/articles_june28.asp - broken link) Guidance
Steve... I paid cash for my one and only new car...
Never had a car payment in my life and I've owned at least 60 vehicles... still have many of them
My Grandfather as in the car business since the 1920's... he would council, young couples especially, that if they couldn't pay a new car off in 3 years tops... they needed to lower their sights and buy something less expensive.
Some listened and became lifelong customers and others went somewhere else to buy...
Lets see now...$50K in the bank and acrueing interest against a new car large depreceation one trip around the block...no brainer there.
Those who pay cash are very limited in numbers...very small minority.
New a Oral Surgeon who bought a airplane with his credit card...on the first of the month sent off a check paying in full. Very few people in this world like that.
Too many Banks and Finance companys giving car loans...don't see them going out of business very soon...must be many people making pymts to keep them in business.
In the early 1950's I was involved in the car business at a young age and saw the people coming in to buy a used or New car while filling out a credit form...they are still out there today.
No offense to anyone...todays Mortgage problems and Bk's going on speaks louder then my few words of limited visions.
Go by any large Apt complex and see the late model cars in the open pkg spaces. People cannot afford to buy a house but have the money to pay for a Apt and New car pymts. Driving a NEW car is more important then owning a home for many. To each his/her own is why I have NO sympathy for anyone driving a NEW car today.
The way they make their bed is the way they will sleep in it.
Just out of curiosity, what kind of an employer is so dimwitted as to realize that he is overpaying someone only after three years? And what kind of employer actually admits such stupidity on by making an issue of it?
Do you really have to ask? The federal government!
Lets see now...$50K in the bank and acrueing interest against a new car large depreceation one trip around the block...no brainer there.
Those who pay cash are very limited in numbers...very small minority.
New a Oral Surgeon who bought a airplane with his credit card...on the first of the month sent off a check paying in full. Very few people in this world like that.
Too many Banks and Finance companys giving car loans...don't see them going out of business very soon...must be many people making pymts to keep them in business.
In the early 1950's I was involved in the car business at a young age and saw the people coming in to buy a used or New car while filling out a credit form...they are still out there today.
No offense to anyone...todays Mortgage problems and Bk's going on speaks louder then my few words of limited visions.
Go by any large Apt complex and see the late model cars in the open pkg spaces. People cannot afford to buy a house but have the money to pay for a Apt and New car pymts. Driving a NEW car is more important then owning a home for many. To each his/her own is why I have NO sympathy for anyone driving a NEW car today.
The way they make their bed is the way they will sleep in it.
Steve
I agree with just about everything you posted... Entry level receptionists with 50k SUV loans and med techs with school loans buying new because they don't want someone else's problems...
As a Rental Property manager... I would say number 3 on the list of why tenants get into trouble is their car note. Had quite a few good tenants go bad over the years because they choose to pay for their new car note, license and reg over the Roof Over Their Head... ended up loosing both in most cases.
Credit certainly has been easy to get... it has been much easier to buy a new car because buying a used car requires that you have some cash
Several of my Section 8 tenants have bought new cars and all have regretted it...
As for buying for cash... many of my friends are elderly and the Great Depression is real to them... as it was for my Father and my Grandparents.
Every trip shopping with my Grandmother started and ended at the Bank of America... she would show me the homes of people she knew that lost everything in the Depression and thought my having a credit card would be the financial ruin of me...
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