Unless the investment made with the cash outpaces the cost of borrowing, which in this day and age is nearly a given. Pretty easy to beat 5-10%.
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The average car loan today is $48,000
- Thread starter odie
- Start date
It means assets far out weigh money ever borrowed. And you are right. It does cost more. Again- it's emotional- not financial.
Can't it be situation dependent?
Took a loan on the wife's Subaru because rates were 2.9% even though I could have paid cash no problem. Paid cash for the balance on my vehicle because the rate was at 9.8%.
Took a loan on the wife's Subaru because rates were 2.9% even though I could have paid cash no problem. Paid cash for the balance on my vehicle because the rate was at 9.8%.
Yes, and we can see the after market wheels and running boards to start. What else is rolled into that deal?
I've seen this story before.
I'm thinking she was a volunteer, not a victim here.
I am not letting her off the hook, but just because you can take advantage of someone, doesn't mean you should.
She didn't have internet access to research smart vehicle buying?
Look, I couldn't work at a dealership, so I'm not defending them.
She is the one with the ultimate power. She can say no, this deal makes no sense.
She didn't use her power.
It's hard to feel sorry for someone who doesn't appear to do their due diligence.
I hope it's a lesson learned for her.
Given no sane person would take this deal, I have to assume she wasn't. And someone took advantage of that.
Maybe she deserved to be taken advantage of? And the ones that did - deserve their fate also. Karma is real.
People know what they are signing up for. Today's buyers are not buying Corollas like they were in the past, they are buying a lifestyle and everything they buy are more expensive than their parents because they want to.
You can blame QE and low interest rate for it. I ain't complaining, but I won't feel sorry for people who complains when they are caught blowing their money on lifestyles. In a way that's how economic stimulation work: you lend them money to buy things and build things. It is a natural course in a time when everyone is flooded with money finding a way to turn into productivity and then consuming it.
You can blame QE and low interest rate for it. I ain't complaining, but I won't feel sorry for people who complains when they are caught blowing their money on lifestyles. In a way that's how economic stimulation work: you lend them money to buy things and build things. It is a natural course in a time when everyone is flooded with money finding a way to turn into productivity and then consuming it.
2025 Gas Equinox interest 0.00% when we purchased Nov 2024 I wasnt going too, but then figured the interest I am getting back leaving it in the bank pays me $100 a month by using GM money. 36 months 0.00% at $876 a month for 36 months.
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I bought a 14 E350 cabriolet 1 owner that the carfax had only reports of "vehicle serviced" at the selling dealer. I went to the dealer and asked for its service records. At first they couldn't pull them up but one guy looked up the owners name and up came all the services. The guy always took it back to the dealer. Never went more than 7k miles ici. Had all filters changed excessively, tranny fluid and coolant exchange. I sort of lucked out and got a really good vehicle. They are out there.
I suppose that we all make our choices based upon what we feel is the best use of our available resources.
I know people who are so car-poor that they can't afford a decent vacation or even any local entertainment. Apparently having a couple of what they consider to be nice newish rides and a mortgage while having little left for anything else makes sense to them.
How you were raised also can have an effect either way. Some who were raised in strained circumstances decide that having gained a decent income they should now treat themselves while others practice frugality in daily living and have plenty of money available for vacations and entertainments, like plays and ball games as well as a nice pile to provide for a planned retirement.
At the end of the day, we'll all retire because we want to or have to or we'll die in the harness.
I'd prefer to retire while still able to enjoy some leisurely travel and wifey and I have planned accordingly.
I know people who are so car-poor that they can't afford a decent vacation or even any local entertainment. Apparently having a couple of what they consider to be nice newish rides and a mortgage while having little left for anything else makes sense to them.
How you were raised also can have an effect either way. Some who were raised in strained circumstances decide that having gained a decent income they should now treat themselves while others practice frugality in daily living and have plenty of money available for vacations and entertainments, like plays and ball games as well as a nice pile to provide for a planned retirement.
At the end of the day, we'll all retire because we want to or have to or we'll die in the harness.
I'd prefer to retire while still able to enjoy some leisurely travel and wifey and I have planned accordingly.
See my reply (above) to Jeff. It's not confusing at all. I'm not going in to my psyche for further explanation.
This is very true. In the early 1990's I had a friend who made the deals at a Chevrolet dealership in Menlo Park (big bucks there) that sold mostly loaded PUs, big Blazers and Corvettes. He knew all the pro football, baseball and basketball players. Ed made A TON of money.
I asked him one day how he felt when he got way too much money for a so-so vehicle for buyers who could not really afford it. I expected some remorse, whatever. Ed replied, "I thrive on that" while pumping his fist.
The dealership is not your friend.
Some are nicer than others when taking your money. But yes-they will still take as much as you let them.
Or, just blinded by wanting.
Short term thinking.
We can only speculate.
It's not the dealer's job to talk you out of a bad decision. It's their job to move the metal.
We already have laws that require financing documents to show the full cost with interest if a loan is used to buy a product.
She either looked or didn't.
Either way, she signed.
Heck, I could be her father and I've not yet purchased a vehicle that costs that much.
Different mindset I suppose.
Yes, it seems crazy to me. But I don't live her life. For all we know, she grew up with parents who made poor choices and she's living what was modeled for her.
My late mother wasn't good with money. I decided to NOT follow that path.
Having to take your own money you earned mowing lawns when you were a school boy and pay the electric or water bill to get it turned back on might do that to you.
I now have the "irrational" habit of having things stocked up in my home because we were often out of stuff when I was a kid.
We all adapt in different ways.
Indeed. I wonder about that myself at times, I've lost the desire to travel, and am quite happy to just sit around at home (not spending money in the process). Yet I'd like to have a nice home and a car that doesn't need work every time I turn around. Different choices for everyone--but I know the numbers for my own choices and am unlikely to be blindsided by consequences.
Agreed, but even at today's prices there is a pretty wide gulf between a new or newish car that won't need work every time you turn around and spending $48K.
You don't live in a cheap state. Living where you are is a choice. So the issue is-can you afford a newer vehicle-and don't want to spend the money?
It seems many on here are just tightwads (not that there is anything wrong with that) and just want to leave money to their heirs and drive beaters in the meantime.
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My understanding is that states vary in cost but are closer than what most think--a state with lower taxes tends to be lower income, thus balancing out. Yes, Boston, NYC, San Fran are wild examples that buck the trend, but otherwise, they tend to flatten out a bit.
Yes it's a bit of a choice, but once one sets down roots, it's hard to uproot them. I'm rather settled into my job and taking a different one would be apt to land me in... a more expensive place. If I thought NH was expensive I'm guessing my eyes would pop out if I shopped the tech corridor on 495 in MA. Pay might rise but I'm dubious if it'd match the rise in housing cost. And I'm hesitant to make any changes that I don't need to in today's enviroment.
As to affording new: depends on how you define "afford". Could I tote the note, or could I pay cash? I don't have enough cash lying around for a $48k vehicle. Could I tote the note? sure, if I quit saving for retirement. To me, it's a hard no, but others might disagree.
True, but for most, buying a 3 to 5 year old car means a high APR and still financing $20k, and then having to deal with people insisting that not paying cash for a depreciating asset is the dumbest idea they have ever heard of.
At your age you have to focus on your retirement and keep an older yet reliable car.
