Originally Posted By: hattaresguy
Originally Posted By: apwillard1986
If people work and make their own money they can buy whatever they want however they want. I wouldn’t apologize to anyone for how I spend my money and I don’t expect anyone else to apologize to me.
What people live in or drive doesn’t make me a dollar difference so I choose to continue to focus on myself and my family.
It absolutely is, I just don't want to hear the crying when they hit 65 and try to retire but can't, and end up living in [censored] little apartments on SS. Which may be even impossible for people with lots of unpaid student loans since they can garnish SS, so out in the streets in some cases.
I don't want those people eying up my tax dollars and expecting any kind of federal help.
I have no problem with people who want to [censored] their money away, its a free country and I think its fantastic they have that option. I just don't want to hear complaining later in life about poor choices made.
IMHO no one should be in a new car unless they.
1. Max out an IRA. ($5k a year)
2. Max out a 401K ($17500) this year
3. Have no consumer debt, ie credit card, student loan.
4. Have 6-12 months cash on hand.
5. Own a house if they want one with a reasonable mortgage, or rent something decent if that suites them better.
Than, sure buy a new car, which as far as I'm concerned is a luxury purchase.
But I bet only maybe 5%-10% of new car buyers fall into that group.
People cry and complain, but their isn't a state in this country where you can't find a very nice used vehicle for $8k-$10k. Instead of getting into a cycle of $500 a month car payments that could be funding an IRA.
I agree with much of what you said. I might modify/make additions to your list:
1. I would say that it is more important that they at least have a IRA/401 (if not both) and make at least a 20% contribution, based on their income.
2. If they buy a car on a note, they should have a substantial downstroke (at least 1/3)
3. They are realistic and are willing to by a car within their means. Example: if I am graduating from college and I suffer from BMW wants but I have a Ford Focus budget, I buy my budget instead of my desires.
4. The length of the note should be reasonable. Many say no more than 36 months, I say 48 (and generally pay it down early.) but it IMO is not advisable to buy a depreciating asset and finance it for 5, 6, 7, or even 8 years.
5. If one is going to buy a new car, they need to understand that it is a longer term commitment to "drive out" the depreciation. In other words, plan on keeping it at least 7 years.
I don't necessarily think that used cars are as great a deal as many claim, especially in today's market, unless you buy a highly undesirable car or go at least 5 years old. However people need to select a car that they reasonably afford, have a solid down payment, and be prepared to drive the wheels off of it.
Buyers who go in shop for payment, overbuy a car, finance to the max, buy GAP insurance, and put down zero or minimal downstrokes, are a car dealers dream.
Originally Posted By: apwillard1986
If people work and make their own money they can buy whatever they want however they want. I wouldn’t apologize to anyone for how I spend my money and I don’t expect anyone else to apologize to me.
What people live in or drive doesn’t make me a dollar difference so I choose to continue to focus on myself and my family.
It absolutely is, I just don't want to hear the crying when they hit 65 and try to retire but can't, and end up living in [censored] little apartments on SS. Which may be even impossible for people with lots of unpaid student loans since they can garnish SS, so out in the streets in some cases.
I don't want those people eying up my tax dollars and expecting any kind of federal help.
I have no problem with people who want to [censored] their money away, its a free country and I think its fantastic they have that option. I just don't want to hear complaining later in life about poor choices made.
IMHO no one should be in a new car unless they.
1. Max out an IRA. ($5k a year)
2. Max out a 401K ($17500) this year
3. Have no consumer debt, ie credit card, student loan.
4. Have 6-12 months cash on hand.
5. Own a house if they want one with a reasonable mortgage, or rent something decent if that suites them better.
Than, sure buy a new car, which as far as I'm concerned is a luxury purchase.
But I bet only maybe 5%-10% of new car buyers fall into that group.
People cry and complain, but their isn't a state in this country where you can't find a very nice used vehicle for $8k-$10k. Instead of getting into a cycle of $500 a month car payments that could be funding an IRA.
I agree with much of what you said. I might modify/make additions to your list:
1. I would say that it is more important that they at least have a IRA/401 (if not both) and make at least a 20% contribution, based on their income.
2. If they buy a car on a note, they should have a substantial downstroke (at least 1/3)
3. They are realistic and are willing to by a car within their means. Example: if I am graduating from college and I suffer from BMW wants but I have a Ford Focus budget, I buy my budget instead of my desires.
4. The length of the note should be reasonable. Many say no more than 36 months, I say 48 (and generally pay it down early.) but it IMO is not advisable to buy a depreciating asset and finance it for 5, 6, 7, or even 8 years.
5. If one is going to buy a new car, they need to understand that it is a longer term commitment to "drive out" the depreciation. In other words, plan on keeping it at least 7 years.
I don't necessarily think that used cars are as great a deal as many claim, especially in today's market, unless you buy a highly undesirable car or go at least 5 years old. However people need to select a car that they reasonably afford, have a solid down payment, and be prepared to drive the wheels off of it.
Buyers who go in shop for payment, overbuy a car, finance to the max, buy GAP insurance, and put down zero or minimal downstrokes, are a car dealers dream.
