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I cant even imagine a car payment of $500. My mortgage is just a tad bit over that.
Last truck I bought, in 2013, I put half down and financed the rest over 36 months at 0%. Paid it off in 11 months. Now Im adding a little each month into an auto fund, so that if and when I want another one, Ill have a good bit to put down.
I cant even imagine a car payment of $500. My mortgage is just a tad bit over that.
Last truck I bought, in 2013, I put half down and financed the rest over 36 months at 0%. Paid it off in 11 months. Now Im adding a little each month into an auto fund, so that if and when I want another one, Ill have a good bit to put down.
$500 for vehicle payment. Who does that??
Lots of people do. I actually have a car payment in excess of that however my wife gets reimbursed from her employer in excess of the payment
My in-laws. $40K in CC debt. One leased Nissan already at around $350 and they just went out and leased an Infiniti QX50 for $515/month this weekend!!! The kicker is my FIL can't even drive! He has a suspended license!
No retirement savings. No savings period. It's the stupidest thing ever.
I cant even imagine a car payment of $500. My mortgage is just a tad bit over that.
Last truck I bought, in 2013, I put half down and financed the rest over 36 months at 0%. Paid it off in 11 months. Now Im adding a little each month into an auto fund, so that if and when I want another one, Ill have a good bit to put down.
$500 for vehicle payment. Who does that??
Get a loan for 0% and put anything down or pay off early, who does that?
Seriously, if you can borrow at zero, and invest risk free at 1%, you borrow at zero and invest at 1%.
But on to the car payment.
In a month my household income is going to double, after taxes, retirement savings (25% of everything), and shoring up the emergency fund to reflect the new earnings, I'll have $30k/yr that doesn't have a home.
So I'm looking at a brand new vette. Right about $1,000 a month in payment, but it doesn't change a thing for me on the finance side.
I could buy the car cash in six months, but if I get a 0% or even 0.9% I'm taking it and letting it ride for the full 36 or 60 months (depends on finance offers).
Is a car a depericating asset? No, it's a tool, not an asset. I don't expect to have much more than scrap value on this car in a decade, but I'll have a bunch of fun from now to then.
Then again I live well now, my family is taken care of, my kids college is accounted for, and I don't want to get into the headache of buying property beyond a personal residence, so what else should I do with money buy enjoy the utility it brings.
Maybe I'll get s SS instead as its a sleeper, but I like the way the vette looks and drives.
Get a loan for 0% and put anything down or pay off early, who does that?
Seriously, if you can borrow at zero, and invest risk free at 1%, you borrow at zero and invest at 1%.
But on to the car payment.
In a month my household income is going to double, after taxes, retirement savings (25% of everything), and shoring up the emergency fund to reflect the new earnings, I'll have $30k/yr that doesn't have a home.
So I'm looking at a brand new vette. Right about $1,000 a month in payment, but it doesn't change a thing for me on the finance side.
I could buy the car cash in six months, but if I get a 0% or even 0.9% I'm taking it and letting it ride for the full 36 or 60 months (depends on finance offers).
Is a car a depericating asset? No, it's a tool, not an asset. I don't expect to have much more than scrap value on this car in a decade, but I'll have a bunch of fun from now to then.
Then again I live well now, my family is taken care of, my kids college is accounted for, and I don't want to get into the headache of buying property beyond a personal residence, so what else should I do with money buy enjoy the utility it brings.
Maybe I'll get s SS instead as its a sleeper, but I like the way the vette looks and drives.
How do I invest at 1% when I have to pay back the zero percent loan?
Now I have a paid off vehicle, and can invest all that money that Id be using to pay off that loan. Win win.
I love not having a car payment. I would ride a bike before taking out a car loan again.
We plan on saving up and paying for gently used cars in cash going forward.
This is what we do. We've had car payments in the past, but haven't had one in the last 8 years. We bought a 2012 sedan with 25K miles for cash last year and getting ready to do the same this year on a 2013. Then we'll drive them until they drop and save for the next round of gently used cars.
How do I invest at 1% when I have to pay back the zero percent loan?
Now I have a paid off vehicle, and can invest all that money that Id be using to pay off that loan. Win win.
I think you missed the point. Scenario 1- you have $30k outstanding on the loan at 0% interest, and you have $30k in your money market account earning 1%. You earn $300 a year for NOT paying the loan off.
Scenario 2 (your choice, apparently)- you use the $30k in your money market account and you pay off the 0% interest rate loan. Now you have no debt and no cash, and earn nothing.
Look, I'm not saying that it's worth the hassle for $300, but I'd certainly rather have a 0% interest rate loan for $30k and have $30k in the bank than to have zeroes all around. If nothing else, it's just a good rainy day fund. It costs you literally nothing to keep that loan outstanding. Why turn down free money?
If you don't have much to put on a down-payment, the only way you would NOT have a $500 payment on a new car is to stretch the payments out 84 months.
Exactly.
I don't have firm data on this but I would say the price of SUVs and light trucks have gone up way faster than the rate of inflation.
Back in 2000, dad bought a baseline S-10 for $9,995 - straight drive, manual everything, no AC even. Today, the lowest possible price of a Coloardo is $20,100.
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