$1,300+ monthly payment????!!!!!!
- Thread starter BigJohn
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I just configurated a F150 on Ford's website. It was $38000 for a XL F150 4x2 with the 3.3l v6. It would handle all of my truck needs. If I didn't need to tow around a Jeep, I could get by with my $200 camper trailer frame with homemade sides I welded together out of a free bedframe...behind the Grand Marquis. Single cab, long bed.
$40,000 for a 2wd work truck with the base engine is still pretty steep!
$40,000 for a 2wd work truck with the base engine is still pretty steep!
JTK
$100 Site Donor 2025
I've been paying about $750/mo for two vehicles for at least the last 25yrs.
If it's not all for monthly payments, it goes into savings for the next down payment towards the next vehicle purchase.
I tend not to keep my vehicles until they're at the end of life, nor do I care to pay the price for repairs as they age and more importantly, downtime.
Vehicles are typically a rusty mess by 10yrs of age where I live.
If it's not all for monthly payments, it goes into savings for the next down payment towards the next vehicle purchase.
I tend not to keep my vehicles until they're at the end of life, nor do I care to pay the price for repairs as they age and more importantly, downtime.
Vehicles are typically a rusty mess by 10yrs of age where I live.
If your house payment is $7-10K/mo (common for current buyers in major metropolitan areas), is $1300/mo for a car payment outside of reality? Probably not...
That's certainly possible; they are in the business to make money.
The dealer adds no value, only cost. If the company makes more, they can keep it, put it into R&D, lower prices, depending.
There’s a lot of controversy on distribution models, but arguably, there can be value in the more personal relationship between the end user and their local dealer.
Lexus has been good to me, at least I'm pretty sure that's what they want me to think. I've bought 4 cars from Putnam in Redwood City. The monster Stevens Creek just wants customers with the black credit card.
The Honda dealerships could care less; I've hoped for the relationship you speak of.
I see little value in the dealership model. The Internet has changed everything and as older customers fall off, the future generations of buyers will be far more Internet savvy. A car is a product; the dealer is a middleman in an expensive building and he ain't paying the rent.
I’d like to get in on some of that chest-thumping action!As a long time member here (even beat Pablo by a few months) I always note that these threads turn into "chest thumping" posts - the better than thou members chime in about how great they manage their finances and everyone else is wrong (somewhat bigot-like).
This thread follows the pattern, but is different. In the past, the tone would be to the extreme that anyone that even financed their vehicle responsibly was wrong (pay cash only). At least now we truly have a ludicrous situation to rant about.
Carry on chest thumpers!!!!!!!
Can I stereotype people, too?
That seems to be popular…and included in your post…
There’s some wealthy folks that can afford $1300 a month, others make bad decision and should not buy that vehicle.
Lucky Lopez on YouTube has very good videos explaining the car dealership game.
During Covid lockdown car dealerships didn’t bother to run credit scores, just how much you make per week. Uncle Sam paying people $1000 per week to stay home and people went out buying $80K vehicles…… then a week later called bank of job layoff and they needed loan forbearance. They never made 1 payment and bank could NOT repo vehicle. Crazy !!!!
Lucky Lopez on YouTube has very good videos explaining the car dealership game.
During Covid lockdown car dealerships didn’t bother to run credit scores, just how much you make per week. Uncle Sam paying people $1000 per week to stay home and people went out buying $80K vehicles…… then a week later called bank of job layoff and they needed loan forbearance. They never made 1 payment and bank could NOT repo vehicle. Crazy !!!!
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All I know is basic finance taught me about the opportunity cost of money. It only spends once.
So the only question is, what do you want? Ultimately it's real simple.
So the only question is, what do you want? Ultimately it's real simple.
I haven’t read all 6 pages but if no one covered it, would someone propose what is a reasonable percentage of gross family income to pay for a car loan? I’ve always noticed families with two significant bread winners tend to handle car loans better.
I’ll go first. 10% is probably doable. PS. I’ve never had a car loan.
I’ll go first. 10% is probably doable. PS. I’ve never had a car loan.
Depends really. Tesla does the direct sales model, and they have sales associates that stay in touch, that one can get information regarding special marked units (demos) before they are published for sale on the website so you can still build a relationship with them. In addition, since its a one pay model, one can sit pretty knowning the next person buying a tesla isnt paying less, well at least until Tesla themselves decides to drop prices by 20% the next day for growth purposes. So no scummy dealership to screw you, just the mfg.
Truth be told, relationships in the car business are really dependent on the market timing. I have seen colleagues boast about their "family and friends deal" because of their relationship with the GSM of a a local dealership and a quick glance, it was anything but. On the other hand, I have seen deals, that were done with unknown dealerships (no previous sales history with them) that were unicorn status due to the alignment of incentives both dealer/mfg contributions combined with lucrative finance/lease programs.
Its not a one size fits all.
Depends really on person to person.
No more than half the household annual income as the total purchase price of the all the vehicles with or without loans.
Ex: $100K total annual income, no more $50K on all the vehicles purchases. Each spouse would be allowed up to $25K on vehicle in a two driver house hold. If you do loans then it’s 15-20% down and pay it off in 5 years or less.
That is how we do it. And I’ve both had loans and paid cash. I’d rather keep the cash in the bank these days and just take out the loan. If you can pay it off anytime you want, it’s irrelevant to your financial situation either way.
There's an alernative... Drive what ya got; take that would-be payment and bank it or invest it in something that gains a little interest.
Over 2 years or 3 years you can go in with a monster down; maybe even cash.
Other benefits include timing the car market to get the car/deal you really want.
In the meantime, you are paying yourself the interest. Win-win!
Or go for that $1,300 payment for that big beautiful depreciating asset. Your call...
In my experience anyone capable of saving up for years to pay cash for a decent vehicle purchase is 1) probably already financially savvy enough to be investing and 2) not dropping $100K on a truck. Unless they’re loaded and then its a moot point anyways.
I'm sure you are right. My alternative is really to get people to think about what they are doing and plan for it. If you fail to plan you plan to fail. Or however that goes...
Then you find yourself up against the wall and at the mercy...
gathermewool
Site Donor 2023
With trade-in, you too could so the same and your payment will probably be reduced drastically. How does $1,299/month sound to you?
Well.... don't that take the rag off the bush?
I use home equity to make the truck and suv payments.
Not with that attitude. I drove $800 cars until I paid my mortgage off 10 years early.
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