OVERKILL
$100 Site Donor 2021
Originally Posted By: Nick R
You seem to ignore what I said. My parents tend to keep cars a long time. This was unusual for them. Again we had the expedition for 8 years, jeep for 6 and the mustang 4. Before that we had the Windstar for 7 years. Its not the norm for them to trade in often.
Nick, we are only responding to what we see as a trend here. I'm certainly willing to look at the past history of vehicle ownership and see that this current trend doesn't mirror it. But at the same time, it IS a trend, and one you were participating in quite heavily. You've stated that this has stopped with the Focus. If this is indeed the case, then I think that is excellent. But that still begs the question as to why such a polar shift in the buying habits of your parents? That's the question I have now. You don't have to answer it, but I am just being honest, as this is what has piqued my curiosity.
Quote:
And your math doesn't make sense either. So with an extremely low interest rate, why wouldn't you want to finance it long term? You also are ignoring that we all overpay significantly on our payments and contribute a lot to our savings. I put $200/no in my 401k and $400/no in my Roth IRA. You want to tell me again how stupid I am?
Well, one can always buy a vehicle with cash, have NO monthly payment and then sock what would be the monthly payment into those investments. I believe that's what he's digging at.
When I was much younger, I was saddled to payments with my Explorer. I was in school and my parents wanted me to have a reliable vehicle, but I think in a way, my dad also wanted to teach me a bit of a lesson. Getting out from underneath that thing was one of the most refreshing experiences of my life.
Bought my next three vehicles with cash. Yes, they were older. But I didn't have any monthly payments. Which was an excellent thing for somebody who was young, with an unsteady financial situation and trying to make it on their own. We bought the Expedition for a song on a short-term loan (24 months) that we paid off early to get some credit so we could qualify for a mortgage. And when I could afford it, I bought the M5. I've never owned a new vehicle, and my parents have only ever bought one new, and they still own it. It is now 13 years old.
I don't think it is about the affordability of it. It is what could that money be doing better for you? You could be investing it and making a profit like Pop_Rivit for example. In the case of your parents, it could be set aside for a big down-payment on their house purchase so that the amount they need to mortgage is less. This ultimately saves them money in the long-run.
I understand the appeal of a new vehicle, trust me. I was drooling over an X6 on Wednesday while I was waiting for my ride home. Thought about trading in the Expie on it.... But it doesn't make sense. The Expie is paid for and has been incredibly cheap to own. That money is better spent on house renovations, paying off my mortgage early....etc. Because ultimately, debt-free is where you want to be at the end of the day.
Hopefully you see what I'm getting at. This isn't in any way a rip at you and yours. Just a different perspective on how money can be managed. I'm sure my way isn't the picture-perfect example I think it is to many others on here either
You seem to ignore what I said. My parents tend to keep cars a long time. This was unusual for them. Again we had the expedition for 8 years, jeep for 6 and the mustang 4. Before that we had the Windstar for 7 years. Its not the norm for them to trade in often.
Nick, we are only responding to what we see as a trend here. I'm certainly willing to look at the past history of vehicle ownership and see that this current trend doesn't mirror it. But at the same time, it IS a trend, and one you were participating in quite heavily. You've stated that this has stopped with the Focus. If this is indeed the case, then I think that is excellent. But that still begs the question as to why such a polar shift in the buying habits of your parents? That's the question I have now. You don't have to answer it, but I am just being honest, as this is what has piqued my curiosity.
Quote:
And your math doesn't make sense either. So with an extremely low interest rate, why wouldn't you want to finance it long term? You also are ignoring that we all overpay significantly on our payments and contribute a lot to our savings. I put $200/no in my 401k and $400/no in my Roth IRA. You want to tell me again how stupid I am?
Well, one can always buy a vehicle with cash, have NO monthly payment and then sock what would be the monthly payment into those investments. I believe that's what he's digging at.
When I was much younger, I was saddled to payments with my Explorer. I was in school and my parents wanted me to have a reliable vehicle, but I think in a way, my dad also wanted to teach me a bit of a lesson. Getting out from underneath that thing was one of the most refreshing experiences of my life.
Bought my next three vehicles with cash. Yes, they were older. But I didn't have any monthly payments. Which was an excellent thing for somebody who was young, with an unsteady financial situation and trying to make it on their own. We bought the Expedition for a song on a short-term loan (24 months) that we paid off early to get some credit so we could qualify for a mortgage. And when I could afford it, I bought the M5. I've never owned a new vehicle, and my parents have only ever bought one new, and they still own it. It is now 13 years old.
I don't think it is about the affordability of it. It is what could that money be doing better for you? You could be investing it and making a profit like Pop_Rivit for example. In the case of your parents, it could be set aside for a big down-payment on their house purchase so that the amount they need to mortgage is less. This ultimately saves them money in the long-run.
I understand the appeal of a new vehicle, trust me. I was drooling over an X6 on Wednesday while I was waiting for my ride home. Thought about trading in the Expie on it.... But it doesn't make sense. The Expie is paid for and has been incredibly cheap to own. That money is better spent on house renovations, paying off my mortgage early....etc. Because ultimately, debt-free is where you want to be at the end of the day.
Hopefully you see what I'm getting at. This isn't in any way a rip at you and yours. Just a different perspective on how money can be managed. I'm sure my way isn't the picture-perfect example I think it is to many others on here either
