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J

JackBurton

Lifer
Jul 18, 2000
15,993
14
81
Originally posted by: Armitage
Originally posted by: kranky
Originally posted by: MommysLittleMonster
Originally posted by: gigapet
bought a used car. Got a spectacular deal on it.

Bad News: I am financing a depreciating asset.


Good News: I freaking love this car
Click to expand...

My friend works at Carmax and he told me this crazy story from the other day. Some mother and daughter come in to buy a car for the daughter. The mom is co-signing. The daughter is early 30s.

Background info.

Daughter filed for bankruptcy two years ago.
She makes 70K a year now.
Lives with her mother.


They come in and they like the Mercedes ML500. Carmax price=$30K. Out of 6 banks, one will approve them for 22% interest for 72 months. Total price with interest comes to about $50+K. They decide to do it.
Click to expand...

Some people are completely clueless about finances. I have a good friend - a college graduate, no less - who cannot grasp the most fundamental principles of budgeting. He asked me for help last month getting his finances under control and we looked at all his spending. There was $300 a month we couldn't account for initially.

Turned out that's what his family spent at the Dairy Queen each month in the summer. They go every day. And when I pointed out how he could easily save most of that and still enjoy ice cream (but at home), he shrugged and said "Well, we like Dairy Queen." That's when I said I couldn't help him because he didn't want to change anything, he just wanted more money to magically appear out of thin air.

That lady is probably figuring that she can enjoy a nice lifestyle and if things go to crap she can use bankruptcy to bail her out again. If so, she'll be in for a rude awakening!
Click to expand...

That's almost certainly what she's thinking.
I didn't follow the recent changes to the bankruptcy laws all that closely ... what's so different now?
Click to expand...

Nothing really major changed in the bankruptcy laws in her situation. Since she filed for bankruptcy, she can't file Chapter 7 for another 8 years after her previous bankruptcy has been discharged. She can't file Chapter 13 for four years after her previous bankruptcy has been discharged.
 
R

rahvin

Elite Member
Oct 10, 1999
8,475
1
0
Originally posted by: BoberFett
With all of this low financing going on right now on new cars, I think somebody would be a fool to buy a used one at 9.x% or whatever the current used car rate is. Buy a new car with 1.9% or 2.9% or whatever rate they use rather than buy it with cash, then invest that cash in something with a higher rate of return than you're paying on the car.

The problem for most people though is that they don't invest that cash, they spend it on something else.
Click to expand...

The only problem with that is that generally the auto manufacturers offer one of two deals, either the low interest rate or anywhere from 1k-3k off the vehicle price. To get the low APR you generally give up a price discount in that price range and with that being the case you are a fool to take the low APR instead of the discount.
 
A

aeroguy

Senior member
Mar 21, 2002
804
0
0
Originally posted by: dullard
Originally posted by: gigapet
48
Click to expand...
Then you broke two major financial rules. Never finance a car for more than 36 months.
Click to expand...
I disagree. You should get a 60 month loan and invest the difference in the stock market (company 401k or index funds or something), assuming you get a relatively low interest rate on the car (4% or less) and have enough will power to invest it and not spend it.
 
J

JackBurton

Lifer
Jul 18, 2000
15,993
14
81
Originally posted by: aeroguy
Originally posted by: dullard
Originally posted by: gigapet
48
Click to expand...
Then you broke two major financial rules. Never finance a car for more than 36 months.
Click to expand...
I disagree. You should get a 60 month loan and invest the difference in the stock market (company 401k or index funds or something), assuming you get a relatively low interest rate on the car (4% or less) and have enough will power to invest it and not spend it.
Click to expand...
If that is your strategy, you'll come out better leasing. There is no smart reason for getting into a 60 yr term for a car.
 
G

gigapet

Lifer
Aug 9, 2001
10,005
0
76
2000 740i sports package

55k miles
excellent condition
clean car ffax no accidents

it was a steal cuz my boy does wholesale

3 year full premium warranty

PICS

not 56k safe

http://pics.bbzzdd.com/users/gigapet/DSCF0307.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0308.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0310.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0311.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0312.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0313.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0314.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0315.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0317.jpg
 
C

Chrono

Diamond Member
Jan 2, 2001
4,959
0
71
Originally posted by: gigapet
2000 740i sports package

55k miles
excellent condition
clean car ffax no accidents

it was a steal cuz my boy does wholesale

3 year full premium warranty

PICS

not 56k safe

http://pics.bbzzdd.com/users/gigapet/DSCF0307.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0308.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0310.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0311.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0312.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0313.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0314.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0315.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0317.jpg
Click to expand...

nice car. how much? you're still an attention whore though.
 
G

gigapet

Lifer
Aug 9, 2001
10,005
0
76
Originally posted by: Chrono
Originally posted by: gigapet
2000 740i sports package

55k miles
excellent condition
clean car ffax no accidents

it was a steal cuz my boy does wholesale

3 year full premium warranty

PICS

not 56k safe

http://pics.bbzzdd.com/users/gigapet/DSCF0307.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0308.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0310.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0311.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0312.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0313.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0314.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0315.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0317.jpg
Click to expand...

nice car. how much? you're still an attention whore though.
Click to expand...

i'd prefer not to say.
 
M

m2kewl

Diamond Member
Oct 7, 2001
8,263
0
0
sports package my @$$ - get rid of those nasty rims.

nice car!! :D any pre-bangle BMW gets my vote :thumbsup:
 
G

gigapet

Lifer
Aug 9, 2001
10,005
0
76
Originally posted by: m2kewl
sports package my @$$ - get rid of those nasty rims.

nice car!! :D any pre-bangle BMW gets my vote :thumbsup:
Click to expand...

rims are way too small. I want to the throw the rims on the new 645 on there.
 
A

aeroguy

Senior member
Mar 21, 2002
804
0
0
Originally posted by: JackBurton
Originally posted by: aeroguy
Originally posted by: dullard
Originally posted by: gigapet
48
Click to expand...
Then you broke two major financial rules. Never finance a car for more than 36 months.
Click to expand...
I disagree. You should get a 60 month loan and invest the difference in the stock market (company 401k or index funds or something), assuming you get a relatively low interest rate on the car (4% or less) and have enough will power to invest it and not spend it.
Click to expand...
If that is your strategy, you'll come out better leasing. There is no smart reason for getting into a 60 yr term for a car.
Click to expand...

I agree, 60 year car loans are generally a bad idea.

Edit: Can you even lease used cars?
 
ElFenix

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,402
8,572
126
Originally posted by: Armitage
That's almost certainly what she's thinking.
I didn't follow the recent changes to the bankruptcy laws all that closely ... what's so different now?
Click to expand...

you basically have to go to chapter 13 first now instead of chapter 7, iirc. chapter 13 is restructuring, your debt isn't relieved. chapter 7 is relief.

turns out most people, even when you could take chapter 7 instead of 13, took 13 because they didn't want to feel like complete deadbeats.
 
JImmyK

JImmyK

Golden Member
Oct 9, 1999
1,145
36
91
Originally posted by: gigapet
bought a used car. Got a spectacular deal on it.

Bad News: I am financing a depreciating asset.


Good News: I freaking love this car


update

2000 740i sports package

55k miles
excellent condition
clean car ffax no accidents

it was a steal cuz my boy does wholesale

3 year full premium warranty

PICS

not 56k safe

http://pics.bbzzdd.com/users/gigapet/DSCF0307.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0308.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0310.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0311.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0312.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0313.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0314.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0315.jpg

http://pics.bbzzdd.com/users/gigapet/DSCF0317.jpg
Click to expand...

Interesting, the main part of the sports package is the 18 inch BMW rims with the fat lip and staggered stance. You might have got owned by your friend...
 
A

archcommus

Diamond Member
Sep 14, 2003
8,115
0
76
If you guys all mention 36-month loans for cars, what monthly amount do you consider average or normal?
 
D

dethman

Lifer
Oct 12, 1999
10,263
3
76
Originally posted by: Doggiedog
I've got some 18" BMW rims. I'm still trying to figure out what to do with them.
Click to expand...

wtf happened to those things? look like they were in an explosion.
 
D

Doggiedog

Lifer
Aug 17, 2000
12,780
5
81
Originally posted by: dethman
Originally posted by: Doggiedog
I've got some 18" BMW rims. I'm still trying to figure out what to do with them.
Click to expand...

wtf happened to those things? look like they were in an explosion.
Click to expand...

My sister scratched that rim a bit but I also think its visual effects from the flash and the rain on the tires.
 
J

JackBurton

Lifer
Jul 18, 2000
15,993
14
81
Originally posted by: aeroguy
Originally posted by: JackBurton
Originally posted by: aeroguy
Originally posted by: dullard
Originally posted by: gigapet
48
Click to expand...
Then you broke two major financial rules. Never finance a car for more than 36 months.
Click to expand...
I disagree. You should get a 60 month loan and invest the difference in the stock market (company 401k or index funds or something), assuming you get a relatively low interest rate on the car (4% or less) and have enough will power to invest it and not spend it.
Click to expand...
If that is your strategy, you'll come out better leasing. There is no smart reason for getting into a 60 yr term for a car.
Click to expand...

I agree, 60 year car loans are generally a bad idea.
Click to expand...

LOL. Yeah, you're right, 60 year car loans are bad. :) My mistake. ;)
Edit: Can you even lease used cars?
Click to expand...
Sadly enough, yes you can. There was this guy on the radio that wanted a certain kind of BMW (I can't remember exactly which model) but he couldn't afford to buy a new one, couldn't afford to lease a new one, and couldn't even afford to buy a used one. So his question was, can I lease a used BMW. What a pathetic loser.
 
G

gscone

Senior member
Nov 24, 2004
489
0
71
That is not the sports package. SPorts package on the 7 series comes with M- Parellel rims and is slightly lower.

Still overall, a nice car.

 
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