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So you're saying that the best way to think of cars is as an appreciating asset? What percentage of new car-buyers would you guess make money on the car when they sell it as a used car 3, 5, or 10 years later?
I didn't say that. I DID say some cars appreciate appreciably.
Yep. Then nobody would lend money to college students. They have zero credit history and zero income history. We just lived that with sub-prime mortgages where the Federal government said it was fine to dump mortgages onto Fannie Mae and Freddie Mac where there was no shot that the mortgage wouldn't eventually default. It almost sent us back to the stone age as the financial industry collapsed.
Back on cars....
Buying cars is an ego and emotional thing. Nobody wants to buy a poverty spec base trim level Hyundai Accent since it projects 'loser'.
Sam used to drive an old beater, he was no loser. His truck fit his lifestyle, he was an avid hunter.
Local lore is that Sam came to my area on his own to scout potential store locations. At the first two real estate offices, the realtors blew him off and assumed he wasn't worth their time when they saw his truck parked in their lot.
He made some very, very nice commissions for the third real estate office, where they took his commercial land purchase interests more seriously.
His Midwest competition Fred (the other Fortune 500 supercenter founder) was more of a minivan guy. I used to live down the street from one of Fred's kids when I was growing up. Fred hated dealing with car salesmen for assorted reasons, and one day Fred's kid called my parents asking if his father could borrow our minivan to go for a test drive. He decided he liked it and sent his personal assistant over to a local dealership to buy one for himself a few days later.
Yep. Then nobody would lend money to college students. They have zero credit history and zero income history. We just lived that with sub-prime mortgages where the Federal government said it was fine to dump mortgages onto Fannie Mae and Freddie Mac where there was no shot that the mortgage wouldn't eventually default. It almost sent us back to the stone age as the financial industry collapsed.
Back on cars....
Buying cars is an ego and emotional thing. Nobody wants to buy a poverty spec base trim level Hyundai Accent since it projects 'loser'.
In 2000 I bought a Hyundai Accent, 5 speed. I loved that car. Drove it for 140,000+ miles. Cost me just under $10,000 The smarter thing would to have bought the one remaining 1999 Accent that they wanted $5,000 for. By the end of the weekend that car was gone. I don't care what other people think.
According to Suze Orman, lots car buyers are being downright dumb. Suze is a internationally known financial expert who has made a lot of people rich. I'm in her camp on this one because I think 60 plus month car loans are all about learning the hard way.
Suze has made HERSELF rich. Not sure about anyone else. I could care less what Suze says about anything financial. I will buy what I want, how I want, whenever I want. I have taken out multiple 60 month car loans over the years and I would do it again if that were the best route for ME. It is absolutely amazing how people can make such generalizations about people's finances when they have never even met them.
I get that simpletons can benefit from Suze and Dave, but........
Um...Sam didn’t get rich for driving a beat up truck. He got rich because he started Walmart. Of all the successful people who have financed new cars why pick the one guy who preferred old trucks? It has nothing to do with the topic.
If you think there’s a day of reckoning coming when everybody who’s been leasing luxury cars will finally have to face the music, I hate to break it to you, but if it didn’t happen during the Great Recession it’s probably not going to happen.
Suze has made HERSELF rich. Not sure about anyone else. I could care less what Suze says about anything financial. I will buy what I want, how I want, whenever I want. I have taken out multiple 60 month car loans over the years and I would do it again if that were the best route for ME. It is absolutely amazing how people can make such generalizations about people's finances when they have never even met them.
I get that simpletons can benefit from Suze and Dave, but........
Suze provides a way for poor people to be less poor. Rich is a relative term.
Suze provides a way for poor people to be less poor. Rich is a relative term.
Rich is a relative term. Thank you, that was gracious of you. Suzy has contributed in her own fashion to her audience of knowledge seekers. So have dozens of other financial experts via books, radio, TV, seminars and websites.
I hope something I have contributed has made someones circumstance a little easier. Think about the times in this life when you wished you (knew that) whatever the question or problem might have been.
Rich is a relative term. Thank you, that was gracious of you. Suzy has contributed in her own fashion to her audience of knowledge seekers. So have dozens of other financial experts via books, radio, TV, seminars and websites.
I hope something I have contributed has made someones circumstance a little easier. Think about the times in this life when you wished you (knew that) whatever the question or problem might have been.
By complaining about how long car loans are?
Living within your means has nothing to do how long your car loan is. The only reason a 6 year car loan would be bad is if the car’s life expectancy is 5 years.
She mentions nothing of total cost of ownership, APR, nor depreciation. Her financial advice is damn near useless.
Never use your own money when somebody else’s money is cheaper. I’d finance a car for 10 years under the right terms and circumstances. Never tell anybody to never lease and never finance for long terms without specific constraints.
By complaining about how long car loans are?
Living within your means has nothing to do how long your car loan is. The only reason a 6 year car loan would be bad is if the car’s life expectancy is 5 years.
She mentions nothing of total cost of ownership, APR, nor depreciation. Her financial advice is damn near useless.
Never use your own money when somebody else’s money is cheaper. I’d finance a car for 10 years under the right terms and circumstances. Never tell anybody to never lease and never finance for long terms without specific constraints.
You are right but there are exceptions. I can name at least 6 plant closings in this life which have ended the possible of mortgage or rent payments never mind car payments.
10 million people lost their homes in the recent great recession. 2.5 million lost their businesses. Etc, Etc.
Lots of people have not experienced layoffs or business closings. But a car being repossessed is the least of their worries.
Here's to always being able to use someone else's money and every plan working out perfectly.
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Sam used to drive an old beater, he was no loser.
