Just for fun, how are you enjoying your car payment

I bought my present Corvette, paid MSRP of $88,500, and took a $40K 5 year car loan @ 2.44%.

I could have easily paid 100% cash by making an IRA withdrawal, but then I would have had to pay income tax on the withdrawal. So I make my $708 monthly car payments out of the minimum annual required withdrawal of my IRA. 2.44% is a bargain in today's market. By keeping that money in my self managed IRA, I just made a small killing in the bond market. Enough to pay for five years of interest, and more.
 
goingplacesanddoingstuff said:
Agreeing to these offers, though, often gives up all one’s negotiating power. It often leads one to pay more for the car than one otherwise might.
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What? No it doesnt. Negotiating power comes from knowledge, due diligence, and when to recognize dealership BS and walk away.

Anything that is factory to consumer, dealers have zero say whether it effects the final transaction details.
Anything that is Factory to dealer, dealers control that money.

Figuring out the latter is hard work because who wants to open their wallet for a customer to withdraw funds from free of charge.

If you look at captive finance giving a subvented apr rate dealers enjoy this because its an easier and faster transaction for both parties and the dealer makes some in the backend even if the front end deal was a loser or mini profit deal.

What I think you might be hinting at is that folks loose their logic when they see 0%, and take on more car then they need since free money?
 
I bought both my vehicles in 2021, One in August, and the other in December. Both were paid off by the end of that December. I took their loans, not caring what the interest was (was pretty good, though, IIRC), Because I know "cash is no longer king" in the car world. I Have no bills, and anything they might have taken from me in the deal, I got the satisfaction of 'sticking it to the man" by them not getting their kickback for the loan.
 
There are good reasons and bad reasons to get a car loan, or any loan for that matter. A loan is simply using other people's money to gain an asset.
There are ways to minimize interest expense; start making payments to yourself before buying that beautiful whatever. Do this for 3 years or more and go in with a huge down or even better. Basically pay yourself all that interest. You may also get to take advantage of timing such as ultra low interest rate promotions, etc. Ya never know, but you can't negotiate if you can't walk away.

Remember that cars are depreciating assets. For example, when we bought the 2018 Model 3, not exactly a cheap run around, I went in knowing that the vehicle would depreciate quickly being a new, untested product from a fledging company.

In my case, my only priority was paying off my house. Everything else was fluff. I made plenty of mistakes along the way (aka stupid Corvettes). The impossible dream became a reality.
 
For those presuming someone is guaranteed an ROI on their money retained by getting a car loan greater than the loan rate… where’s the crypto/real estate/stock proceedings made with that $20,000 y’all retained 5 years ago?

If people actually pick and time investments as well as some people are claiming to then why are they worried about dropping what should be chump change on a new sub-$60k mainstream vehicle? They should have become wealthy in the markets already.

People just always want to think their way was the best way. Whether it’s wise to get a loan depends on too many factors. It’s ok for some, not others. That’s ok.
 
"Kumbaya" thread for the beater club........

My 2020 F150's payment is $250.00/month
My wife's 2022 Highlander is $350.00/month. Payments are low due to equity of vehicles traded in.

Up until the vehicle shortage-frequent trading was a game one could play.
 
CKN said:
"Kumbaya" thread for the beater club........

My 2020 F150's payment is $250.00/month
My wife's 2022 Highlander is $350.00/month. Payments are low due to equity of vehicles traded in.

Up until the vehicle shortage-frequent trading was a game one could play.
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vehicle shortage was perfect for some folks. Imagine vehicles with historic negative equity being offered a way out because a used car lot needed inventory.
 
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I'll be retired (very early) 22 years in March. For the last 10 years or so I've had a consulting business, which I created to pursue a hobby. I currently have one vehicle loan which is a business expense and tax write-off for that business.
 
oldgrayman said:
Some of us can't . Nothing to be ashamed of .
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Brah! Some much this. ^

If you can afford to pay cash for a vehicle, consider yourself in the top 1% of the population on the planet…. One should be thankful for being so fortunate and able to reap the benefits of their hard work vs being judgmental of others for not being in same position.
 
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