CBS News ( 7 days old ) : New or Used car sticker shock ...
- Thread starter odie
- Start date
Unless I could get a really low APR (3% or less) there is no chance I would ever have a monthly payment on a depreciating asset.
- Joined
- Oct 15, 2022
- Messages
- 319
Vehicle price of $10k at 5% for 48 months is basically $300/month when the dust settles.
Not much worth buying at that price range today unless you're handy with a wrench. Let alone, who would be willing to finance it. Most of those cars at that price are at buy here/pay here lots or private party.
High risk buyers usually get shorter terms and higher interest at buy here/pay here lots making their monthly payment closer to $400- $500 on a well used car. Even 20 years ago, monthly payments would have usually been $350 or higher.
As always, cash is king
Not much worth buying at that price range today unless you're handy with a wrench. Let alone, who would be willing to finance it. Most of those cars at that price are at buy here/pay here lots or private party.
High risk buyers usually get shorter terms and higher interest at buy here/pay here lots making their monthly payment closer to $400- $500 on a well used car. Even 20 years ago, monthly payments would have usually been $350 or higher.
As always, cash is king
Last edited:
or worse...having to lease a car....
Here prices are dropping pretty fast on the older cars, a 10-12 year old simple car is back to $3-4-5k depending on miles and condition. Anything that needs some serious body work or repairs just sits if the seller is sticking to $1.5-2k...
I don't know how much of a PITA it is to get a car from quebec but they have lots of simpler cars for good prices.
I don't know how much of a PITA it is to get a car from quebec but they have lots of simpler cars for good prices.
Zee09
$200 Site Donor 2023
- Joined
- May 5, 2018
- Messages
- 20,980
I can see what your saying. Weird but my properties- houses have no mortgages but I finance my cars. Years ago I didn't.
Why? I don't want my money in a depreciating assets either so I finance.
I like my money in the stock market or real-estate where I can make it work and pay as I go on a vehicle. That's a twist isn't it
That's about the cost of a tire these days.Was under $300 a month 6 years ago with a low rate and paid it off in less than a year . Haven't had a car loan in 5 years since the purchase of the '18 Accent SE that was around $17,000 new . Also traded in another small car towards the '18 Accent .
Just looked up trade in at KBB and its average trade in is $8,982 ($8,327 > $9,636 ) for GOOD . It's a 6 peed auto with close to 50,000 miles.
In 2016 I got a 2009 Scion xB with 80k miles. After 8hrs of haggling I left in new-to-me xB with a $120/month monthly payment. Deer killed it though... Loved that refrigerator on wheels.
Had a few cars after that and helped friends and family get some too. We always got under $350/month, just gotta play the long dealership game of not budging on your monthly number, while they go back and forth in/out of the room.
But last used car we got with payments was in 2021. Should be pretty similar to today's market, but could be off a little.
This is what a $300/mo car payment looks like.
A $25k car (if you can find one) $10k down (anyone sensitive to a $300/mo payment probably doesn't have that available) and a 72 month loan.
I guess you could do a used car, but no way I'd finance something used for 72 mos.
A $25k car (if you can find one) $10k down (anyone sensitive to a $300/mo payment probably doesn't have that available) and a 72 month loan.
I guess you could do a used car, but no way I'd finance something used for 72 mos.
"Unless I could get a really low APR (3% or less) there is no chance I would ever have a monthly payment on a depreciating asset."I can see what your saying. Weird but my properties- houses have no mortgages but I finance my cars. Years ago I didn't.
Why? I don't want my money in a depreciating assets either so I finance.
I like my money in the stock market or real-estate where I can make it work and pay as I go on a vehicle. That's a twist isn't it
It's all money management. If your car loan percentage is less than you return rate on invested income, it always makes sense to finance the vehicle and keep the nest egg invested.
Now let's talk about mortgages on boats with multiple ourboard motors.
This is what a $300/mo car payment looks like.
A $25k car (if you can find one) $10k down (anyone sensitive to a $300/mo payment probably doesn't have that available) and a 72 month loan.
I guess you could do a used car, but no way I'd finance something used for 72 mos.
About the price of a Chevy Trax right now…….
$300 isn't getting much these days. That is a week’s worth of groceries for the average family of four. Maybe two weeks if you really stretch it.
Your expectations are not keeping up with the realities of the economy.
Your expectations are not keeping up with the realities of the economy.
Yes, but it has been a winning game for you lately as markets have risen substantially. I personally have a rather conservative investment setup right now, so earning 4.25% risk free on cash is a no brainer. My 3.5% mortgage is fine because I also like being liquid, but paying 6+% on a car is just something I could not do mentallyI can see what your saying. Weird but my properties- houses have no mortgages but I finance my cars. Years ago I didn't.
Why? I don't want my money in a depreciating assets either so I finance.
I like my money in the stock market or real-estate where I can make it work and pay as I go on a vehicle. That's a twist isn't it
An utterly unremarkable blob yet proof that GM knows a thing about the American consumer. These things are going to be everywhere, just by default of being a price leader.
If you eat Kraft dinner most of the week.
I have a few friends with them- for the price they are not bad at all. Dare I say, I’d be okay with one.
The Trax is the car for people with a “need”, not a “want” I too would like a truck, but I simply can’t justify spending the crazy amount of money needed for a truck now. All I would need is the base model anyways, but pretty much all the automakers are saving them for fleet sales.
With the cost of everything right now, for a new car-they are the right choice. They give my flashbacks of my old Cavalier wagon……….
Similar threads
