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.
No, I didn't qualify for zero percent and I had over a 750 credit score. The only luxury brand that I test drove at the time that I possibly could get under 2.0% was Acura. And I wasn't going to buy an Acura.
So they didn't offer 0% or you just didn't qualify?
Yeah, the car is going to depreciate. The difference is, I am not paying $500-600 dollars extra interest on top of that every month. If you spent all that time negotiating to a price point that you can live with, why the hell are you giving so much of it back through interest?
Plus, you may have a point if there was a 1.99% loan in my area for a new luxury vehicle. But there wasn't. Even with credit union and my own bank, the lowest was 3.29% - 4.25% for a luxury car newer than 2018. The rate at the dealership was 4.99%.
Lastly, my philosophy is that if I have to invest money to recuperate interest rate, I shouldn't be buying an Audi. To me, if I am doing that, I would just get a Camry and get the 1.99% (or lower) loan that you talked about and put the rest of the money away. The Audi is an inspiration for me to move even higher in life. I am already earning $30,000 more than the average 35 years old in America and I planning to earn $20,000 - $30,000 more than I do now in the next couple of year. That is how I am going to recuperate my money.
If you cannot find 3% loans, then time for another bank, or your credit needs work.
The average return including inflation is way more than even your 4.25% worse case scenario.
You could have taken a loan at 4%, then toss the $45k into an investment that will even getting the average, including inflation, 8% or so.
How much you make is not relevant to this discussion.
Plus, did you even ask Audi if they had some finance offers? Them and everyone at that price point and below have offers, and if not now, than through different times of the year.
You of course can do what you want, but you are not fooling anyone thinking that you are some how virtuous, and saving money with such a purchase. It is like those people who use cash only for all their purchases, ignoring the cash back credit cards because, well, it is symbolic virtue that they use cash only all the time. Some pretentious BS in my opinion.
A car is never going to appreciate ever. You are never going to get the money back. By paying interest, you are giving up even more.
I'm guessing you don't know too much about cars...ever watch a Mecum or Barret Jackson auction? Plenty of $3,000 cars selling for over 100k or more...much more!
You of course can do what you want, but you are not fooling anyone thinking that you are some how virtuous, and saving money with such a purchase. It is like those people who use cash only for all their purchases, ignoring the cash back credit cards because, well, it is symbolic virtue that they use cash only all the time. Some pretentious BS in my opinion.
Oh yeah...love my rewards cards! I carry between 300-500 cash for emergencies (Tucked in a back compartment.) but never touch it....I only use the rewards cards and pay them off every two or three weeks.
Spending money on anything can be an experience, but at the end of the day only material things can have value when you’re done with them.
It can also be said that there’s diminishing returns on vacation spending. Just not working and doing something different for a week or two is the benefit, not the amount you spent during those two weeks.
Yeah, the car is going to depreciate. The difference is, I am not paying $500-600 dollars extra interest on top of that every month. If you spent all that time negotiating to a price point that you can live with, why the hell are you giving so much of it back through interest?
Plus, you may have a point if there was a 1.99% loan in my area for a new luxury vehicle. But there wasn't. Even with credit union and my own bank, the lowest was 3.29% - 4.25% for a luxury car newer than 2018. The rate at the dealership was 4.99%.
Lastly, my philosophy is that if I have to invest money to recuperate interest rate, I shouldn't be buying an Audi. To me, if I am doing that, I would just get a Camry and get the 1.99% (or lower) loan that you talked about and put the rest of the money away. The Audi is an inspiration for me to move even higher in life. I am already earning $30,000 more than the average 35 years old in America and I planning to earn $20,000 - $30,000 more than I do now in the next couple of year. That is how I am going to recuperate my money.
I think you got caught up in the "all financing is bad" advice and failed to miss the point. What they're saying is that if your interest rate is less than the rate of return otherwise invested, it doesn't make sense to just pay cash for a car when you could have your money work for you. The idea is to have appreciating assets (stocks, mutual funds, etc.) pay for your lavish lifestyle of depreciating premium import sedans. You obviously care about this kind of thing otherwise you wouldn't have delayed gratification for so long just to avoid finance fees.
Financing is just a fee to use somebody else's money for something you want today. For most people, it's a drop in the bucket in the big scheme of the overall cost of a particular vehicle ownership. You'll be spending so much more in insurance, tires, premium fuel and depreciation, the financing cost is the least of your worries. If you can actually afford the car, the finance charges alone shouldn't be a problem.
Where the "all financing is bad" advice came from, are from horror stories of people buying cars they couldn't afford at really high interest rates and ending up drowning in debt. Their problem wasn't that they financed, but the rate at which they financed at and attempting to buy a car they couldn't actually afford. For people who can't wrap their head around the world of finance, it's easier to just tell them to pay cash for everything to limit the fallout.
Is this where we break out the measuring tape & compare Johnsons?
19 years without a car payment, three paid-off & quite serviceable cars, no house payment, credit cards used for everything (for the rewards only), paid off in full every month. I have my act together now, but I remember what debt was like & caring about others isn’t a character defect in my book.
I sincerely doubt that those signing $500+ car notes for 69 months are in a similar financial position.
The fact that you're stating your lack of debt and not your sources of revenue and financial assets means you can put the measuring tape away because you're not measuring the right equipment.
Don't take this the wrong way, but some people aspire to more than just 3 old cars and a house. Living frugally isn't really a financially savvy skill, it's just a lowered expectation. Waiting and saving up and paying cash for everything is an excellent idea if you plan to live forever.
Your character defect isn't caring for others but the vanity in thinking the entire country is making the same mistakes you did, that your lifestyle should be everybody else's aspirations, and that you can do something about it on an automotive forum.
I'm guessing you don't know too much about cars...ever watch a Mecum or Barret Jackson auction? Plenty of $3,000 cars selling for over 100k or more...much more!
What percentage of cars sold have increased in value?
Plenty of people who bought powerball tickets won. Millions didn't.
Look at the cost of a new iPhone no one complains about that but with a vehicle it’s different. How about the cost associated with federal regulations and raw material cost. I’m sure you all want more money we’re you work so do the ones working for the automakers. What’s the average house payment compared to 20 years ago. Everything goes up the only thing that comes down is your pants when you getting ready for bed.
I personally don’t know anyone who can afford a 1K iPhone, just got an upgrade on my phone and I got the free one. That’s absurd if you ask me.
I personally don’t know anyone who can afford a 1K iPhone, just got an upgrade on my phone and I got the free one. That’s absurd if you ask me.
I've seen $1000 golf clubs. Most people probably use their phone more than golf clubs.
An iPhone is one of the few things you can buy with 0 percent interest and one of the few electronics that actually hold's some substantial value after 2 years. My last phone I traded for $300. My cell phone bill hasn't really changed much from the days of $1 a minute roaming fees and free flip phones even though I'm packing a small computer, phone, and high definition camera around now in one compact package.
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.
