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I'll just say that holding this belief goes hand-in-hand with the fact that you're paying 11% for your car loan and leave it at that...
Oh shut up. Many of us are working class people and simply don't have enough income to have $20k in cash. I work for the government for peanuts so people like you can live a decent life, I can't just conjure up money out of thin air. Neither can a teacher, a cop, or a fireman. Maybe in Europe.
I wouldn't buy a used Volvo. They are not very reliable and the parts are very expensive.
But a used 3 year old Camry or Accord makes sense. At that age and mileage ~40K they still have a lot of life and can be bought for a reasonable discount to a new car. But I also pay cash. No reason to pay 11% interest.
Camry's and Accords actually make better new than used cars. There very high resale value dont give much money off.
For example in a used car, Buick is actually the second most reliable car brand in the world, However, it has pretty bad depreciation compared to a Toyota and not as trendy a car.
You could buy a fairly new buick for half price and drive it another decade with no problems.
Oh shut up. Many of us are working class people and simply don't have enough income to have $20k in cash. I work for the government for peanuts so people like you can live a decent life, I can't just conjure up money out of thin air. Neither can a teacher, a cop, or a fireman. Maybe in Europe.
Well the govt operates like a Circus so kinda makes sense whey they get paid peanuts
I wouldn't make a blanket statement that buying used doesn't make sense anymore.
It does if you're paying with cash, OR you get a good deal on interest rate and total price.
For me buying a new car entails much more than just the initial price and monthly payments. I live in a busy metro area so insurance is sky high for newer vehicle, and so is property tax. A lot of people forget those extra expenses when buying a new car. It can drain your pocket really fast, especially if you don't have a lot of saving.
And I think the deal you got on that Volvo is a little hard to swallow.
Maybe I didn't make it clear-- I don't plan on keeping the warranty coverage for the full 3 years. I'm going to cancel it after the first few months
I'm including it for this comparison to be fair to the NEW car which would have a full 3-5 year warranty. Obviously if you compare used and new without the warranty the used car appears much cheaper, but you're short changing the new car's warranty
I get that but you're comparing apples to oranges by trying to make an apple into an orange. A used car will never be equivalent to a new car.
Your "peace of mind" has no intrinsic value. For some it is worth thousands. For others it isn't worth a dime. Attempting to make a used car equivalent to a new car in terms of warranty is just not cost effective because all parts wear out and the inherent risk/cost of replacing them increases as the car ages. If that kind of new car warranty protection is what you need then you shouldn't be buying a used car at all.
Oh shut up. Many of us are working class people and simply don't have enough income to have $20k in cash. I work for the government for peanuts so people like you can live a decent life, I can't just conjure up money out of thin air. Neither can a teacher, a cop, or a fireman. Maybe in Europe.
Well, I've fallen in the same trap as you - not in terms of a 11% interest rate on a car loan for a used vehicle, but the idea that the "working class" cannot save up and purchase a car with cash. We can, but we have to understand where our priorities are in life.
Take this for instance: on average, a person who has DirecTV spends about $100/month for their service. This is about $1200 a year. Also, the same person will eat out for lunch every day of the working week and will spend anywhere from $7 - $10 a day for lunch. That's around $140 - $200 a month - $1600 - $2400/year. Those two items combined could net you around $3600 a year. You save that for two years, you have about $7200 saved for a vehicle. Now, you can actually find a really nice, reliable vehicle for $7200, and it doesn't have to be 10 years old. Heck just take another six months to save, and you're up to $10k for a car. You can buy a 2012-'13 Nissan Versa or Nissan Sentra with some nice options for that amount.
And once you purchase that car straight out, you can always factor in "car payments" into your budget, except you are paying yourself that car payment instead of someone else. So, 3 or 4 years later, once you've worn out that $10,000 car (maybe even longer than that), the car payments you have paid yourself will be enough to purchase another solid vehicle + whatever you can sell your old car for. Heck, if you were careful with what you purchased, you might have at least $15k - $20k saved up, which would really buy you a nice vehicle!
So, you see, it is possible to save. Now, if you don't ever eat out and you don't have pay TV and you're still struggling, then you have to look at the possibility that you're living beyond your means. And I'd say looking at something like a Volvo is living beyond your means, even used. Like I said before, I've fallen in the same trap. I purchased a brand new car that had a price tag of $30K on it. With a trade in, I wound up financing about $20k, but it's taken me a long time (with refinancing a couple of times) to pay the stupid thing off, and I still owe much more on it than I should. I should have never allowed myself to get into such a situation, and I plan on never getting into that situation again. It will take some time and patience to become one of those who always buys his car with cash, but it's completely possible.
1) Avoid "do-not-fly-list" (terrorists pay cash...)
2) Why pay today for something you won't use until next month?
3) EZ transactions
4) Add more reward mileage / insurance (covered via CC)
5) EZ refunds
6) EZ tracking of expenses (for those of us who get itemized statements based on spending categories)
7) Company travel reimbursement direct to CC company (~$30k / yr)
8) Company WILL not reimburse cash expenses in excess of $50.
just a few reasons why I buy air tickets on credit.
OK OK. You mean buying with a credit card. I buy everything I can with a credit card. But I pay it off every month too. I don't consider that "using credit to finance a purchase" like a home or car. Sure if I don't pay it off I will be financing stuff but thats crazy to pay 12% interest. I think some cards even charge like 19 or 20%. Thats retarded to pay that.
Quote:
Originally Posted by thejackalope
I work for the government for peanuts so people like you can live a decent life
Thats like the funniest thing I have read on this forum in a long time. Thanks for the laugh.
...Oh wait. You were serious?
Quote:
Originally Posted by skinsguy37
Well, I've fallen in the same trap as you - not in terms of a 11% interest rate on a car loan for a used vehicle, but the idea that the "working class" cannot save up and purchase a car with cash. We can, but we have to understand where our priorities are in life.
Exactly. You can save that money, its just a matter of priorities.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,735 posts, read 58,090,525 times
Reputation: 46215
Quote:
Originally Posted by thejackalope
Oh shut up. Many of us are working class people and simply don't have enough income to have $20k in cash. ...
"ignore" works well for this poster...
Quote:
Originally Posted by justanokie
OK OK. You mean buying with a credit card. ...
.....
the question was... "why by airfare with a credit card?" many reasons to do so.
buying a CAR with a credit card? No problem for me to buy a $35 car with a credit card... it costs more to license it than to buy it.
I don't do 'credit' (for cards or cars), as mentioned... get a less expensive car, rather than get credit. Car is just a tool / appliance. in 10 yrs it will be dead and gone (for most people) Mine is 39 yrs and not dead yet, I will probably die first.
Buying a used car from a Stealership and taking out a loan to pay for it has NEVER made sense.
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