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Here's my philosophy on cars and repayments. If you can't afford it don't buy it. My sister has gotten a new posh car, but as I have said to mum, she doesn't own it, the bank does.
All these people who are speeding passed me on the freeway are rushing to a job that they hate. The irony is, I actually like my job and I don't desperately have to go there.
It is better to own an old car that you own outright and save to buy a new one than paying it off.
Any loan these days is a rip off (hidden costs etc). If you suffer a little while driving the old and unglamorous, I think, this is how you get ahead of the game. It's very nice to walk into anywhere (any shops) and pay cash. You don't have buyers remorse, you just own it and that's it.
I don't care if people look down there noses at me and judge me, they don't know, I am in a better position than they are. I am not wasting my money paying monthly loan fees and interest which is dead money. My money is my money and what I get paid is mine. It's a nice peaceful feeling. I bet some people can't sleep at night with worry with all the bills they have.
I might be wrong, but the impression I get is that having a nice set of wheels in the US is a huge status symbol. Like a validation. Well that's fine, but if you don't own it, then it's not reality. It can be taken off you at any time. Personally myself, I wouldn't risk it. Not judging others, that's their choice if they want to live like that, but I prefer my peace of mind the way I get there.
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Aussie, you clearly don't understand that financing a car under certain conditions is the better choice. We could buy my car at $42,000k or so outright. However, at 0.9% interest we're MUCH better off holding on to that cash and investing it and making MORE on the invested money than the finance interest rate. It's not terribly hard to get a return well above 0.9% interest.
Even if you had the cash, you'd be stupid not to finance the car in that scenario.
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Here's the thing User, that is a great deal. I have not seen that interest rate here in Oz. Usually they are around 8 or 9% for a car loan, and then there is set up charges and monthly $10 fee. Loan insurance. Car insurance.
If I was looking at a higher end deal and that was an option available I may look at that as an option. However, I have not seen that here. Also, I have noticed that cars cost more here than there in the US. We have an option at work, where you can pay a car off (has to cost a over a certain amount). You can pay it off through your salary and you don't pay tax on it.
I guess I was talking generally about people who take out these car loans. That is why we see so many repossessions. In the case of my sister, she had equity on her house. Instead of selling her house and taking the money and running. She borrowed on the equity. She now is in debt up to her eyeballs. She looks as though she is better off than me. However, just last week she was charging her organic milk on the credit card. She cannot make money fast enough as it is all going on interest. I am talking about consumerism and lack of common sense.
Sounds like you have a good deal and that financially you have a good head on your shoulders to manage your finances sensibly. The only problem might be for someone who gets that 42k loan and doesn't have money in the bank (eg making 5% interest in another account). Then they are losing money even if it is a little.
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I'm 37 years old, if I couldn't afford to finance an expensive car then I did something wrong with my life.
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^
Some would argue if you couldn't afford to straight up purchase an expensive car at age 37 then you have performed poorly in your life.
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(10-26-2012, 10:36 PM)sally Wrote: I'm 37 years old, if I couldn't afford to finance an expensive car then I did something wrong with my life.
1. There is nothing wrong with your life if at 37 you don't finance an expensive car.
2. There is a power in being able to do something and choosing not to by being sensible with your money instead.
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(10-26-2012, 10:37 PM)OnBendedKnee Wrote: ^
Some would argue if you couldn't afford to straight up purchase an expensive car at age 37 then you have performed poorly in your life.
You guys need some financial guidance. We COULD buy the car outright but that doesn't make financial sense. It's better to take the cheap financing and invest the money instead.
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(10-26-2012, 10:37 PM)OnBendedKnee Wrote: ^
Some would argue if you couldn't afford to straight up purchase an expensive car at age 37 then you have performed poorly in your life.
Yeah, I thought about that. I could pull it off, but I wouldn't feel 100% comfortable about it unfortunately and like User said there are better things I could do with that money.
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(10-26-2012, 10:37 PM)aussiefriend Wrote: There is a power in being able to do something and choosing not to by being sensible with your money instead.
Thats what my grandparents told me about my piggy bank, I'm not six years old you fucking asshole.
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I agree with username it doesn't always make sense to purchase with cash, but the peace of mind and pride of ownership sometimes trumps that which is fiscally wise.
Quick edit to add:
Sally stated it better and more succinctly than I ever could.
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(10-26-2012, 10:58 PM)sally Wrote: (10-26-2012, 10:37 PM)aussiefriend Wrote: There is a power in being able to do something and choosing not to by being sensible with your money instead.
Thats what my grandparents told me about my piggy bank, I'm not six years old you fucking asshole.
Sally you are such a nasty piece of work. I like to save my money, I don't think there is anything wrong with that. It's a personal choice. You are a horrible person in real life trust you to make it personal. I think you are a classic pretender and a horrible bitch to boot.
God bless you and your rich expensive car that you drive around in your neighbourhood. At 37 yell out the window and tell everyone that your life is the bomb.
*wave* Hello everyone, I'm important, I'm special, I've got this expensive car that I am paying off. Too funny.
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(10-26-2012, 10:59 PM)OnBendedKnee Wrote: I agree with username it doesn't always make sense to purchase with cash, but the peace of mind and pride of ownership sometimes trumps that which is fiscally wise.
Heresy! You're clearly not married to a Certified Investment Management Analyst. They have a whole different set of rules. 
Meh, he's done well for us. 
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(10-26-2012, 11:11 PM)aussiefriend Wrote: God bless you and your rich expensive car that you drive around in your neighbourhood and at 37 tell everyone that your life is the bomb.
*wave* Hello everyone, I'm important, I'm special, I've got this expensive car that I am paying off. Too funny.
You're jealous!!! 
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All my neighbors are white and have expensive cars so it's not like they'd be impressed. Sometimes while I'm driving through brown town, however, I see the niggers hating. I'm not gonna lie, it's a good feeling.
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No one is impressed with one single (expensive car). Now, a full stable of them- all displayed on a rotating garage floor- then, ok. . . maybe.
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(10-19-2012, 11:23 AM)Duchess Wrote:
Some of you may think this is too personal of a question, if so, ignore it.
Do you think your car payment is high? Mine is 325.00 & I'm wondering if that's average.
Paid my truck off quite a few years ago. I would have loved a $325 payment though. Mine was almost $450
Of the millions of sperm injected into your mother's pussy, you were the quickest?
You are no longer in the womb, friend. The competition is tougher out here.
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(10-26-2012, 11:11 PM)aussiefriend Wrote: (10-26-2012, 10:58 PM)sally Wrote: (10-26-2012, 10:37 PM)aussiefriend Wrote: There is a power in being able to do something and choosing not to by being sensible with your money instead.
Thats what my grandparents told me about my piggy bank, I'm not six years old you fucking asshole.
Sally you are such a nasty piece of work. I like to save my money, I don't think there is anything wrong with that. It's a personal choice. You are a horrible person in real life trust you to make it personal.
So you know me in real life and I'm turning your choice to save money into a personal matter, ok then  .
I think I should remind you that I was one of the few that didn't make fun of you when you were here pissy drunk and making an ass out of yourself even more than usual.
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^
That is true.
I followed that thread and was surprised, nay- impressed with Sally's restraint.
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I am fortunate enough to get cars for much less than most of you pay and make a profit when I decide I want a different one. It is a rolling investment. Hehe
Also, if you pay cash for a car you can usually get up to an 8% discount, sometimes more. I would rather own it out right.
I do have a mortgage though.
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