Tell us about your auto loan...
- Thread starter Corollaman
- Start date
This is BITOG, where many members have a superiority complex, including ME!
Take it from me, a well off Jew that pays cash and knows a thing or three.
Watch this video if your a cash buyer.
The past 5 years my auto loans have ranged from 0-1.9%...doesn't make much sense to not take the loan. The money literally costs nothing and can be invested elsewhere.
Only car I’ve had a loan on in years was the C7. Borrowed $7,500 to get the $1000 rebate for financing through GM. Paid it off the first month. The finance guy wanted me to keep the loan for at least 3 months so they’d get paid but the dealer screwed around with me too much so I didn’t want to help them out.
Our Camry was 0% and we did little to pay off early. Tundra I think was closer to 5% but we paid off fast when the loan was sold to some bank that had a horrible website and got tired of the loan. Not looking forward to the next one but it likely will be 1.9% or less.
A dealership asking favors. I love it!
As if they would in some way reciprocate if you needed a favor.
No current loans.
What's a loan?
I think getting cars expensive enough relative to your income to need a loan is kind of a bad idea if you can work on it yourself. But my wife thinks differently, and as long as the interest rate is super low then its not too bad of a financial decision as long as you keep in mind the what the total cost is. We never talked payments for our Outback with the sales guy, and we were just going to slap the car on our home line of credit, but that interest rate is a bit more than 1% so we took the loan.
Just curious: is a $500-$900/mo monthly payment a significant part of your overall monthly budget?
Not remotely...I can easily spend that on takeout/restaurants during normal times.
Not really, we put about 2500 a month into retirement savings and also go on a five figure trip every year (well, not last year...).
But we also don't have kids so that makes a big difference.
Exactly. That’s why I chuckle when folks on this forum groan about a car payment.
The truth is if there’s a “good” to CV-19 it’s that money has never cheaper. My house is at 2.75% for 30 years, my vehicles are at 1.9% for 60 months and my education loan is at 0.65%. I have no other debt. These three items represent all my debt and they are **** near free.
You don't need loans to buy surplus Crown Vics............
Thing is, with new cars, in order to get the “best deal” financing aka taking a loan out is the best route to go.
All the rebates and stuff are usually only if you finance through the manufacture.
The key is, take a loan out and pay the car off asap.
My parents on the other hand haven't taken out any loans for the 3 cars they have right now.
Only car they took a loan out was the 2013 Honda Accord because Honda had a 0.9% APR going on at the time. They paid it off within a month or two.
All the rebates and stuff are usually only if you finance through the manufacture.
The key is, take a loan out and pay the car off asap.
My parents on the other hand haven't taken out any loans for the 3 cars they have right now.
Only car they took a loan out was the 2013 Honda Accord because Honda had a 0.9% APR going on at the time. They paid it off within a month or two.
It kind of is for us, both of us are paying into decent pensions at work, and then trying to save like a $100k each for the kids for university. We did self funded leave in 2019 and went on vacation for 6 months to Australia and New Zealand. Also trying to save a bit more to retire around 55 while still doing some travelling... Kids sports and summer camp adds up too, plus we get taxed about the same or a bit more as California I think.
In gross terms, no $500-900 isn't a big part of the monthly budget, but after all the deductions, taxes, savings, and important stuff is paid for we sure don't want to blow $500 a month on take out or another car payment.
Cash is always the way to go.
AZjeff
$50 Site Donor 2023
When you pay over $10,000 cash isn't there an IRS form they have to submit to check for money laundering or something?
