Zee09
$200 Site Donor 2023
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10 yr Auto loans....yikes!
- Thread starter ZZman
- Start date
If you can't pay cash, you can't afford an expensive car.
It's really a philosophy question. It depends on whether you want interest working for you (investing) or working against you (borrowing).
The best summation I know of is from Alberta: "Big hat. No cattle." Do you see yourself as a "big hat, no cattle" kind of guy? Or do you identify more with the guy driving the well used, older, but good running half ton and having a big herd?
In my opinion, if you can't pay cash, you can't afford an expensive car.
It's really a philosophy question. It depends on whether you want interest working for you (investing) or working against you (borrowing).
The best summation I know of is from Alberta: "Big hat. No cattle." Do you see yourself as a "big hat, no cattle" kind of guy? Or do you identify more with the guy driving the well used, older, but good running half ton and having a big herd?
Just because the EV's stop running before 10 years is up, doesn't mean the payments will stop.
They'll just get rolled into the next ride.
Do you actually know anyone who has done this?
In Canada most (or maybe all) mortgages are life insured. When the borrower dies the mortgage is paid off. You'd have to be pretty dumb to provide a 30 year mortgage to an 80 year old, or be the insurer who is agreeing to pay off the mortgage when they die. If you know a lender who is actually writing a lot of these deals there may be a lot of money to be made by selling their shares short.
I think it's a great plan - for the borrower. When I get to be 90 I'll buy a multi-million dollar house with a life insured mortgage. When I croak (if I croak) my estate will get the house - tax free and fully paid. All I'd have to do is make the payments for a few years. And hope I don't live too long.
Geez. I’m such a cheap skate. My Versa cost 14k OTD in 2012. It has never failed me. But I get it, if you have the means spend it as you please. It’s a free country. I’ll see you at the next red light.
Not personally but one example from years ago.
The wheeler-dealer aged 102 takes out a 25-year mortgage
A man of 102 has been given a 25-year mortgage for £200,000. If he survived to pay off the debt at age 127, he would be the oldest person who has ever lived
That's good but its only part of my "get rich at the end" plan. He needed to have that mortgage life insured.Not personally but one example from years ago.
The wheeler-dealer aged 102 takes out a 25-year mortgage
A man of 102 has been given a 25-year mortgage for £200,000. If he survived to pay off the debt at age 127, he would be the oldest person who has ever livedwww.dailymail.co.uk
The most expensive car I've evee bought was $20,000. Never owned a new car. I've done a couple of 72 month loans to keep the payments low, but always paid extra every month and usually paid off a couple years early. I transitioned to 60 month loans, then 48 month and so on. Now I pay cash. It's a learning experience.
Picture this. Around 1955. (Yes, I’m old). I used to hang out at a used car lot. Loans were 12 month. Yes, one year. Then they started 24 month car loans. Crazy. I remember thinking who would want to pay on a car loan for two years? Credit is CRAZY today.
I have not taken a car loan since my 1998 Dodge. Now, I pay cash. If I want a certain car, I save for it.
I’ve saved a lot of money in the last 25 years in interest not paid.
I have not taken a car loan since my 1998 Dodge. Now, I pay cash. If I want a certain car, I save for it.
I’ve saved a lot of money in the last 25 years in interest not paid.
Plenty of folks with auto loans that aren't in dire straights or broke or financial morons. Some basic common financial sense is i.e. downpayment, not over extending, low rates, etc. are really all that is required. I own all 5 of my vehicles but would take a loan to buy something today if I needed something new/slightly used without worry...20% down...5 year loan max...pay it off....drive it....a reasonable receipt that has worked for me for many years or can work for many folks that don't have large sums of liquid cash or that want to drive something newer/more reliable. Rates are pretty high now but even then, at some point you need something to drive and paying cash for large purchases isn't always the best or most practical thing to do as much as folks want it to be. To me, I always had an out when I had vehicles that I had borrowed money on. Worse case, I sell it, pay off the loan, and buy something cheap to drive with the balance...not really a particularly risky situation but does require the bits in my second sentence. The more important financial issue, to me, isn't the loan part of this, it's the constant trading-in to a new car every few years with basically a life payment vs. paying off and owning/driving a car for the longer term without payments.
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Maybe all these repoed vehicles will bring the used car prices down? Personally I wouldn’t mind that.
That would be the correction that could happen...just like the housing market crash in '08, folks walking out leaving keys on the counter, foreclosure, prices bottomed out.
I know a few people who did that and had no trouble buying another house any where from 2 to 3 years after that correction.
An estate is still responsible for debts...if there are assets.
Who Is Responsible for a Deceased Relative's Debt? - FindLaw
FindLaw explains who is responsible for a deceased person's debts and how to communicate with a debt collector.
www.findlaw.com
Zee09
$200 Site Donor 2023
Yeah but I ain't got no heirsAn estate is still responsible for debts...if there are assets.
Who Is Responsible for a Deceased Relative's Debt? - FindLaw
FindLaw explains who is responsible for a deceased person's debts and how to communicate with a debt collector.
Jimmy don't sweat the afterlife
You get bored of cars, I get bored of spending money I don't have that is why I have a 21 year old Chevy and 22 year old Toyota still on the road and they will remain on the road for many more years to come, but I could see keeping modern junk that long being a problem for the wallet.
I’m good to go long as manufacturers continue base model cars and trucks. At 70 y/o a 5 year note might not get finished….
In the past, the question has been why would you want to pay cash for the entire vehicle at 0% or 0.9%? Could I write a check for $60k right now? I sure could or I could put a new roof on my house with that $60k plus some other improvements or fund my retirement account and pay either $60K or at most $61,383 dollars back over time. I could write a check for $120K right now to cover the car and the other stuff too but that's a bit more of a bite and at 0% or 0.9% or even 1.9% why - because some guy on BITOG says if I don't write a check for the full amount I can't afford it?
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