good advice, not everyone has the super fil that I have for car repair.EdWort said:Feels good, no car payment. Now, start sticking half of that payment away in a fund for maintence and repairs. It will come in very handy when you have a $1,500 repair bill in the next year or so.
Yup...it works well. Eventually you pay 1/2 of a new car in cash....then 3/4 then, all of it.TexLaw said::rockin: I hate to be the cold water, but you ought to go ahead and put the other half of that old payment aside so that you don't have a payment at all next time.
One loan is at 1.9%, the other's not too much higher. That's free money as far as I'm concerned.Bobby_M said:I'd never buy a car on a loan. I can't believe how normal it seems to most people to just accept that $400+ car payment. It's one of the fastest depreciating piece of junk we ever buy and people let the bank take money on top of that.
Excellent! We just sent in our last payment on Monday. Bought a Mazda Protege for my wife back in 02'. Got 0% financing. This has been a great car. Just replaced the original battery after 67 months of service. Nothing but brakes, fluids, air filters, for this one. When we were looking at different cars I told my wife about someone I knew who was still driving the Mazda they had in high school 15 years earlier. Hope we get that kinda longevity. +1 on putting at least half of the new $ back. We were looking forward to the "raise" as well but decided to build a maintenance/down-payment fund instead. I'm still pretty lit up about our good news. Congrats to you again.Kevin Dean said:Today, I'm done! Paid off the remaining balance and it's MINE!
You're right about that. My car is in the shop right now and you can't get anything except oil change for less than $300. I lease a Honda Accord for SWMBO, after 3 years get another one. Only thing you change is oil. I figured out all the costs and is actually cheaper than doing anything else. And you know what feels better than no car payment? No house payment, paid last payment yesterday.EdWort said:Feels good, no car payment. Now, start sticking half of that payment away in a fund for maintence and repairs. It will come in very handy when you have a $1,500 repair bill in the next year or so.
A 2003 Chevy Malibuorfy said:What car is it?
I was a starving college student at the time I got this car and it was all I could do to pull together a down payment. When you have a certain amount of income and an immediate need that risk assesment swings quite a bit.Bobby_M said:I'd never buy a car on a loan. I can't believe how normal it seems to most people to just accept that $400+ car payment.
I'm not a fan of rampant consumerism either. That said, the main reason I hate my car is because it's "nothing special". My wife and I are really shifting into that "cheap car" mentality though we're making the added switch that the car we buy has to be "fun" for us (we've each got different criteria on that one).The Pol said:and we have a household income of approx. $100k. My neighbors who are barely employed own the same size house as we do, and own cars worth about $60k... That seems to be the American way
My grandparents co-signed on this (it was supposed to be a guarantor but the dealer filled it out incorrectly) and I managed to get 2.5 APR on it.Bobby_M said:Yeah, at 1.5% or even anything less than 3% is worth financing if you have an investment return that beats it.
Radiator flushes shouldn't be that much. :cross:joejaz said:My car is in the shop right now and you can't get anything except oil change for less than $300.
The idea of taking out a car loan is abhorant to Bobby_M and the idea of leasing is even worse to me! He thinks in terms of "asset" and I don't, I consider it a very expensive consumer good so depreciation doesn't really matter much to me and I don't ever plan to sell it unless my goal is to get it off my hands. that said, the idea of paying to use, but not own, the car really doesn't sit right with me.joejaz said:I lease a Honda Accord for SWMBO, after 3 years get another one. Only thing you change is oil. I figured out all the costs and is actually cheaper than doing anything else.
Have to have one first. It's on my list.joejaz said:And you know what feels better than no car payment? No house payment, paid last payment yesterday.
PS. I drive a 97 Ford Taurus. Last year I spent $2800 on the trans. Over $500 on the coolant system. Over $300 on brakes. Right now my Taurus is at R&S getting the radiator flushed and the heater fixed, also backfiring --- I have 108,000 miles on it. Wow, I own it. Lucky I only drive 15 miles to work. You will always have a carpaymt whether it's a lease, new car or used becuse you have to maintain it. The lease eliminates the major maintenance.joejaz said:Here's why a lease works for me. Three year lease, Honda exl approx. $25000 fully loaded, $300 per month nothing down, sign and drive (12000 miles per year). To buy would cost $483 amonth for 60 months @ 6% interest with nothing down. The equivalent time to pay off this vehicle @ $300 a month @6% would be 9 years. Then I own a 9 year old car with 108,000 miles on it. After the first three years you start to put money into the car for maintenance, tires, brakes, trans and radiator flushes, tuneups ups etc. Otherwise I can have a brand new car every three years.
It may not work for everyone, but in my situation it works. When I first started leasing it was out of necessity. My car went down and I had to take my wife's, the Taurus. I was able to lease with nothing down and since she didn't put that many miles on it , it was perfect for her and the family car on weekends. I too used to buy the $1000-$2000 cars for myself but put a lot of money out for maintenance. I'm very hard on a car, that's why she has the new car and I only drive it on weekends. As far as trying to impress people, to me it's only transportation. Why wife won't let me cruise for chicks anymore and besides, they arn't that impresed by a Honda Accord. It is nice though to have something that you can't hear a block away and I really don't want her driving arround in something that's going to break down.knarfks said:No offense Joe, but you are talking about a taurus. They are known for being pieces of crap, especially the transmissions.
The other thing is, after 3 years a honda accord is still worth close to 12 grand, therefore your still paying the same money if you were to trade it in, and you would be gaining equity on a car. The other thing is a honda accord from my experience if taken care of can be a nice car for at least 180k miles. Then the sad thing is it is still worth around $3-4k then.
Unless you have a transmission, a motor or something really major going out every single year you would still be saving money over car payments.
Oh, well. I'm one of those people who buy older cars for around a thousand in decent condition, or needing a repair that is mostly labor, then do it myself. I drove my last car for 2 years, I spent a grand total of $600 in 2 years including oil changes. The transmission did go out, but I just junked the car and got $150 back on that. The car looked nice, good interior, just needed a timing belt when I got it.
Went to a used car lot, found a decent car for $1500 yesterday, buy them before the car place repairs them, they will sell them for 100-200 over what they traded them in for. If it lasts 2 years I'm essentially paying $60 a month, and I save money not having to pay full coverage insurance. If it gets totaled I replace it with another reliable used car. Basically I'm paying 240 a month less in car payments, and 100 a month less in insurance, no to mention there is no interest.
Not directed at Joe or anyone in particular, just a soap box moment:
I'm not out to impress people. My cars have always been ok looking, but mechanically sound. It's a mode of transportation, not a compensatory mechanism for inadequacies with a boring life or inability to get women(if single or in midlife crisis) or to impress a neighbor who doesn't give a crap anyway, and if they do it is a sad sad thing. If you can afford to pay cash for a car that you like great, go for it, but if want to buy something that will keep you in debt well beyond when the car is worth anything, think twice about it.
so sad to hear you have bought the car that is going to make you miserable . If you are very lucky you got one that will not . the engines have a major flaw . the head gaskets suck . I went through several before figuring out it is a waste of time and also two engines .HAHA, Henry Hill
I just bought a 95 lumina for little to nothing to replace the $200 car that lasted me 2 years. Clean interior and only a few dings. Runs great.
I have never put out that much for maintanance, although I have only taken a car to a shop once. If you know what to look for in a used car it isn't that bad. Pay attention to the car if it starts making weird noises, fix them promptly before it gets worst. The biggest money saver is to do it yourself when fixing cars. Most things are easy to do and only require a few tools. If the repair was more than the car was worth, the car goes to the scrap heap. (Steel is $160 a ton right now, so a typical car is worth about $300)