Americans And Car Loans

[red 928]

[Arizona_928]

Originally Posted by Alan A

They build in repo costs.

Do they... eh no. They're selling a car at high retail and charging stupid interest due to risk involved. Repo means nothing to these guys as they usually have their own tow trucks to collect on the defaults.

[wdfifteen]

Originally Posted by MMARSH

Thats my Question....So your saying if you make car payments, you can't afford it?

I'm saying HE couldn't afford it. He and is wife, son, and daughter lived in a very small, rented 3 room house. By my standards, if you can't afford a decent house for your family you can't afford a new car every two years. The house was so pathetic when he died and the rest of the family moved out the owner bulldozed it.

[GH85Carrera]

Originally Posted by red 928

How about the really smart people who take
out a home equity loan to buy a car?
That way they can make payments on the car for 30 years.
Even LONGER if they continue to refinance and draw out equity.
If they play their cards right, a car loan could last a lifetime
and they could end up paying for a dozen cars at the same time!

One of my former co-workers lives in a 900 sq ft house over close to the airport. They have been living there since the 1970s. They drive decent cars, but nothing lavish. They do go on a lavish vacations every year, and put everything on a credit card. Then pay the card off each year. I asked why not skip one vacation, and put that money in savings and pay cash for the vacation. They looked at me like I asked them for a threesome in the front yard. The concept of paying in advance and not paying interest just made no sense to them. I just shook my head. It was their money, and their choice.

[oldE]

Originally Posted by Seahawk

I have no issues with car loans/leases in the least, especially if the people getting the loans are fiscally aware and driving a new car makes them happy. Life is way to short to not fund those things that are of value in your life.

No finger pointing on my end: I have horses FTOG, the single dumbest fiscal choice on the planet earth. Owning horses makes a car payment look like couch money.

I feel your pain, Brother. The wife was into horses before she met me. She'll be shoveling horse poop long after I'm gone.
By the way: should that be FTLOG?

Best
Les

[john70t]

Talked with someone who is an educator and wife an investment consultant.
Drive a short ways to work, store it inside the garage, dealer serviced, etc.
They lease a standard korean plastic-chrome fake-leather daily driver for about $400/mo.
That's $24,000 for five years. As in almost paid off.

So instead of driving it under warranty, and getting 1/3rd back on resale, they rent.
(oh, and they are still responsible for maintenance and damage)

[MMARSH]

Originally Posted by wdfifteen

I'm saying HE couldn't afford it. He and is wife, son, and daughter lived in a very small, rented 3 room house. By my standards, if you can't afford a decent house for your family you can't afford a new car every two years. The house was so pathetic when he died and the rest of the family moved out the owner bulldozed it.

Ok. That makes perfect sense to me and I agree with you. It just seems that some people here automatically assume if you have a car payment, you can't afford the car and i wanted to understand where that comes from.

[MMARSH]

Originally Posted by Seahawk

I have no issues with car loans/leases in the least, especially if the people getting the loans are fiscally aware and driving a new car makes them happy. Life is way to short to not fund those things that are of value in your life.

No finger pointing on my end: I have horses FTOG, the single dumbest fiscal choice on the planet earth. Owning horses makes a car payment look like couch money.

I agree with that 100% People blow money on all kinds of things, if you can afford it and it makes you happy, go for it. You can't take it with you.

[stevej37]

^^^ That's my biggest fear....of dying with more than $5 left in my account.

[upsscott]

My vehicles make me happy. I did do a 36 month loan on the gladiator with a huge down payment. It’ll be paid off this summer. I love that truck so much that I think it’ll be my last. When that terrible 3.6l gives up rather than buy a new truck I’ll slap a LS in that biatch. By then everything will be EV anyway. Do what makes you happy as long as you are within you means, even buying a horse.