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.
Someone is generally paying for below market interest...
I grew up around the car business and cash was always the best deal if you had the cash...
Now, if you didn't have cash then people shopped payments and lower rates equal lower payments. Shopping payments is usually a suckers game...
Brothers are Real Estate Brokers and so many times a younger couple looking to buy their first home will run into problems because they often have two late model car notes... to make matters worse... they often owe more than the vehicles are worth...
As to having the money in the market... been there, done that and speaking only for myself, I'm not a market kind of person... just don't have the temperament for it.
I do like to invest and Income Property has done well by me as have my classic cars...
Bless those that do well in the market and can avoid the pitfalls...
Even when Real Estate hit rock bottom, my rents remained constant and my units full...
My one and only new car cost $30,150 and was blast driving down the autobahn and putting 3k miles on it on 30 days before I had to go home... I paid cash and still have it today.
Last edited by Ultrarunner; 07-05-2014 at 09:50 PM..
If you can afford to pay $300 to $500 on a car payment for four or five years, why can't you afford to put away that amount in savings for 4-5 years and pay cash? All the while you are earning interest on your savings instead of paying interest.
Of course you do have to have a car already to do that, but if you drive around a cheaper car for that amount of time, then you will have the cash to buy a new car, then start all over again.
About 3 1/2 years ago, I paid cash for a new car that was $27k with rebates. I paid $24K plus around $3,800 for my trade in and had a new car paid for. Since then, I have been saving money for the next new car in a few years.
I rather buy new than used because of the driver factor. no one can tell you for sure how it was driven or treated. as shocking as it may seem to some, no, carfax does NOT have all the info on a vehicle.
regarding values: if you plant o keep the car 5+ years then the initial hit isn't even an issue. I got somewhat lucky on my car because CarMax was selling it relatively cheap brand new 2011 toyoa venza. Between their pricing and an additional 1,000 off due to Toyota rebate and my insurance money, I was able to save 10,000 from retail price.the car has maintained its value
Buy new and hold is a good strategy if you follow through.
Sometimes buying used will allow enough time to pass for trends/issues to be documented so as to avoid all together.
Many of the cars I have owned over the years were bought for little more than the sales tax and first year license would have been buying new...
Also someone that commutes a lot would be different than someone that drives mostly local.
I'm about 10 minutes from the job and rarely drive more than 40 miles from home... my new car is a 2002 model, garaged every night and has 68,000 miles now.
It's simple. You wait. You sacrifice. You save. You do without for now. You don't buy designer or maybe even new.
Exactly!
I don't recall the exact statistics, but I do remember reading that an astoundingly high percentage of the population constantly runs a balance on their credit cards, meaning that they are always behind the proverbial eight ball with their finances, and that they are paying frequently exorbitant interest rates in order to buy things that they may not even need in a true sense.
I can't even begin to count how many times people have asked me, "How much is the interest rate on your credit cards?"
When I have answered, "I have no idea", they have usually replied with some sarcastic words on the order of...So, you have no idea how much interest you are paying on those cards?
Then, I simply state that because I pay the balance--in full--each month, I couldn't care less what the interest rate might be, as I am not paying it. Most times, I get blank stares, and I believe that this is most likely because most of those pathetic suckers can't imagine NOT being in a state of constant debt.
A new car purchase makes zero sense in my world. My last purchase was a one year old fleet lease vehicle that saved me $23,000.00 over my best negotiated price for the current year of the same car. It had 20k on the clock, more features and the majority of the original warranty was still in force. Yes... I paid cash and never looked back. It felt good to know someone else took the big hit on initial depreciation and I had no bank to deal with, for the next few years.
I do find it oddly amusing that anyone on an online forum would assume that I care what they think about a private, personal purchase, made with my own money. Since I plan to drive this vehicle for at least 10 years, my costs, including normal wear, tear and upkeep, will have been well worth the coin.
Side note... I have a neighbor, (nice enough guy) who likes to keep up with the Jones. When he saw my "new" Vehicle, he assumed it was truly a new one. A week later he bought a brand new one and invited me to take a ride. I suppose he wanted to compare pee pees, because the conversation soon turned to what he paid. The stunned look on his face when he learned mine was a year old and over $20K cheaper... not to mention, more nicely appointed, was just beyond priceless. I never told him I didn't have a loan on it. He sold his car 6 months later and I never asked how much of a loss he took.
To his credit, he approached me about helping him find "a good deal like you got". It took us a couple of months before I spotted a car that tipped all the marks and I helped him negotiate a deal that was actually better than my own purchase. He still likes to crow that he got the better deal, and I still let him think that I too have a car payment. Perhaps a sin of omission... but still a pretty decent win / win ....eh?
What kind of car was this?
I have a hard time believing that a one year old car lost 23k in value. Most consumer cars fall in the 20-45k range. That would mean there was an initial depreciation of more than 50%.
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.
