I thought I made a poor car purchasing decision...

[Red]

You've all heard me b!tch and moan about my fiancee and I buying two new '02 Civics last year and how it was not financially smart to buy two new brand new Civics when we only make $10/hr and are saving for wedding / paying off credit cards...

Listen to this: A guy at our work, age 22 (two years older than us) went out and bought a '04 Subaru WRX STi for $34,500 out the door. His payment is $550/month for SIX years...... and I wonder what his insurance is... AND he says he is trying to pay off his credit cards as well. And yes, he also makes $10/hr. So you figure he is probably not going to be leaving home until he is 28. For a CAR!

 

[Heisenberg]

I will never ever ever finance a car. You end up paying way over what the car is worth.

 

[DanFungus]

nice car though

 

[Red]

Originally posted by: DanFungus
nice car though

I fully agree.

 

[jdini76]

Originally posted by: Heisenberg
I will never ever ever finance a car. You end up paying way over what the car is worth.

Then how would you buy a car? are you rich or something?

 

[Descartes]

How the hell could someone making $10/hr finance a $34k car? I wouldn't think any financial institution would go for that, but who knows.

[edit]Doh, I see that he lives at home. That's pretty pathetic.[/edit]

 

[iamwiz82]

Originally posted by: Heisenberg
I will never ever ever finance a car. You end up paying way over what the car is worth.

actually if you are a goo negotiator(or employee discount) you can end up paying sticker price after interest

 

[rh71]

There are plenty of 0% finance deals... find them... take them over the cash back if you have to.

And yes... what your coworker did was pretty dumb long-term... but I bet he's a real stud with the ladies for the moment... until he shows them his bedroom... at his parent's house.

 

[Nocturnal]

Originally posted by: jdini76

Originally posted by: Heisenberg
I will never ever ever finance a car. You end up paying way over what the car is worth.

Then how would you buy a car? are you rich or something?

Second hand, save your money, some people are just rich and have 20-30k saved up for a new car.

 

[Jadow]

I make twice that, and my car was only $5800 bucks, with a cool $115 a month car pmt for about 3.5 more years.

edit. but I'm not a car guy, to me a car is just to get from point A to point B, and to tow my boat when I want to go fishing.

 

[Nocturnal]

Originally posted by: Descartes
How the hell could someone making $10/hr finance a $34k car? I wouldn't think any financial institution would go for that, but who knows.

[edit]Doh, I see that he lives at home. That's pretty pathetic.[/edit]

All he had to do was have a clean/good credit history, claim he pays no rent, and he can easly get that loan. It's possible, a lot of companies want to finance you. He probably got an outrageous interest rate as well. I'm pretty sure he didn't care, young people like that are just happy to be approved for the loan and drive the car off the lot. Maybe as he is pondering how in God's name will he be making the payments tonight, he'll realize what the hell he just did.

 

[Heisenberg]

Originally posted by: jdini76

Originally posted by: Heisenberg
I will never ever ever finance a car. You end up paying way over what the car is worth.

Then how would you buy a car? are you rich or something?

I just save up my money until I can afford to buy what I want. I don't get a new car every 2 years or buy brand new either though. I suppose if I could find a real 0% financing deal I'd seriously think about it, but they never seem to have them when I want to buy.

 

[Saulbadguy]

Some people like to have nice cars. Some people like to have nice homes.

You can sleep in your car, but for the most part..you can't drive your home.

 

[iamwiz82]

Originally posted by: Jadow
I make twice that, and my car was only $5800 bucks, with a cool $115 a month car pmt for about 3.5 more years.

edit. but I'm not a car guy, to me a car is just to get from point A to point B, and to tow my boat when I want to go fishing.

you financed a $5800 making $20/hr? why?

 

[badet77]

My brother is the same way, pisses me off.. he owes credit card company a lot of money and he wants to buy a $30,000 car! he only works part time for $12/hr.. i dunno how ppl can just spend money on cars and not think bout saving for their future..

 

[rh71]

Originally posted by: Saulbadguy
Some people like to have nice cars. Some people like to have nice homes.

You can sleep in your car, but for the most part..you can't drive your home.

Spoken like a true 20-year old.

 

[Conky]

I don't finance cars any more. I don't finance anything besides a house and it's almost paid off.

I have a lot more money now that I don't pay loanshark interest rates on credit cards anymore.

I still get new credit cards and apps all the time. They all meet my shredder. If I don't have the cash I don't buy... real simple. Visa debit card is all I need.

 

[CTrain]

Its the American way. Live in debt.

 

[isaacmacdonald]

hmm, that sounds mildly retarded. he's paying up the ass for something that's steadily devaluing. It's fine when you have money to spare but $20k a year isn't that far from the poverty line.

 

[Jadow]

because when I bought it, I just got out of college, and wasn't making that scratch. Besides, the interest rate was really low, 4.9%. I could pay it off with one phone call today, but I don't want to blow my casino wad.

 

[m2kewl]

that's a kick arse car!! more power to him!

 

[Vic]

Originally posted by: Heisenberg
I will never ever ever finance a car. You end up paying way over what the car is worth.

Not true at all. Just depends on the financing. I financed my car for 4 years at 1.9% and the total interest paid over 4 years on $23.5k will be a whopping $900 bucks!!! :Q :Q
As I put no money down and MSRP on my car was right at $27k at the time of purchase, I'll actually only pay ~$24.4 after all is said and done.
Free money IMO as instead of paying cash, I've invested that money elsewhere where it will make far more than the $900 over the 4 years... oh, and I'm making extra payments already so I'll pay even less interest.

Now let's take your same logic and look at home financing. Let's say you buy a modest $150k house, and let's even assume you put the necessary 20% down ($30k) to avoid PMI or other expensive financing hassles. And let's say you get an amazing (for today) 30 year fixed rate at 5.5% with no closing costs. That would leave a monthly P&I payment of $681.35 and after 30 years (if you make all 360 payments), you will have paid $125,284.85 in interest alone.

I'm sorry... you were saying?


edit: but yeah... Redhotjrm's friend was stupid. Not for financing the car, but for buying more car than he could afford.

 

[Heisenberg]

Originally posted by: Vic

Originally posted by: Heisenberg
I will never ever ever finance a car. You end up paying way over what the car is worth.

Not true at all. Just depends on the financing. I financed my car for 4 years at 1.9% and the total interest paid over 4 years on $23.5k will be a whopping $900 bucks!!! :Q :Q
As I put no money down and MSRP on my car was right at $27k at the time of purchase, I'll actually only pay ~$24.4 after all is said and done.
Free money IMO as instead of paying cash, I've invested that money elsewhere where it will make far more than the $900 over the 4 years... oh, and I'm making extra payments already so I'll pay even less interest.

Now let's take your same logic and look at home financing. Let's say you buy a modest $150k house, and let's even assume you put the necessary 20% down ($30k) to avoid PMI or other expensive financing hassles. And let's say you get an amazing (for today) 30 year fixed rate at 5.5% with no closing costs. That would leave a monthly P&I payment of $681.35 and after 30 years (if you make all 360 payments), you will have paid $125,284.85 in interest alone.

I'm sorry... you were saying?

I forgot.

 

[WinkOsmosis]

Why did you buy two Civics???

 

[AAjax]

Originally posted by: jdini76

Originally posted by: Heisenberg
I will never ever ever finance a car. You end up paying way over what the car is worth.

Then how would you buy a car? are you rich or something?

Every car I have ever bought I paid cash for, the last one is a 99 Nissan Altima (bought it two years ago)
Let some other sucker take the depreciation hit on it. If you must purchase somthing that is going to depreciate (like a car) you are getting it twice when you finance.
Just learn to save your money. Set goals and stick to them. The car I owned before that was a 89 Merkur Scorpio that I bought for 500$ at a auction. Lasted four years and no it was far from cool (neat but not cool) But I saved up until I could get a car I really wanted.

And yes I want a cookie