- #312 of 390
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Re: first link [gasman1]
by masterpaul1
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Sep 18, 2006 (5:18 pm)
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Replying to: gasman1 (Sep 06, 2006 10:02 am)
All good comments. We have two vechicles, coupe and minivan, for our family of six. We spend about $200 a month for gas and $185.00 for vechicle insurance in both vechicles. (Both vechicles are paid off). When we had to purchase our minivan back in 2003, we did not want a car payment. So, I took the money out of my 401(K) for 5 yrs which cost me about $330 a month, which paid for the purchase price, title, taxes etc. (The money is taken out of my paycheck before I even get it.) Also, the principle and interest is placed back in my 401(K) account. Me and my wife have found ways to make our money work for us, instead of us having to work so hard for it. We do still struggle from time to time. We went from two incomes back in 2003 totaling about 85K, to just one income at around 55K now. We have more now, then what we had 5 yrs ago. We used the equity in our home to pay off around 35K in debt's that we both had before we got married. We only have one credit card worth $500, a reserve line credit on my checking account of $4K and around $3K for our garage. We purchased our vechicles used of no more than two yrs old. 
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- #313 of 390
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Re: first link [gasman1]
by lemko
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Sep 25, 2006 (9:12 am)
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Replying to: gasman1 (Sep 06, 2006 10:02 am)
Those things only make people look foolish in my eyes. My circa 1986 Zenith console television still delivers a clear, crisp picture. I can't think of any existing band that is worth $100 a ticket and I'm not willing to watch the geezers who still make up once-good bands make fools of themselves on stage. I'll go to Hawaii provided somebody else is paying for it and if you're leasing a car, you obviously can't afford it. Fools and victims. Victims and fools.
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- #314 of 390
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Re: first link [lemko]
by carlisimo
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Sep 25, 2006 (9:48 am)
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Replying to: lemko (Sep 25, 2006 9:12 am)
"Those things only make people look foolish in my eyes. My circa 1986 Zenith console television still delivers a clear, crisp picture."
Oh man, if I known that I wouldn't have listened to your guys' advice at all!
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- #315 of 390
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Re: Recent college grad... [beanboy]
by hansienna
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Sep 27, 2006 (5:47 pm)
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Replying to: beanboy (Mar 19, 2001 6:43 am)
I needed a reliable car when I first graduated from college so I got a new one where monthly payment was 15.9 % of my pay before taxes. Before it was paid off in 3 years, the monthly payment was about 8 % of my pay.
Six years later, we kept paying monthly payments into savings and have paid cash for cars ever since.
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- #316 of 390
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Re: Recent college grad... [hansienna]
by carlisimo
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Sep 27, 2006 (6:09 pm)
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Replying to: hansienna (Sep 27, 2006 5:47 pm)
I'm noticing the same effect. Combined with a less-than-perfect used car experience, I think I should've aimed higher when I bought my current car.
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- #317 of 390
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Re: first link [biancar]
by nvbanker
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Oct 02, 2006 (9:38 am)
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Replying to: biancar (Aug 16, 2006 5:06 pm)
"And if the minority are buying new, where would the majority get their used cars?"
There are always rental fleets.
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- #318 of 390
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Re: Average Monthly Payment
by joesmith2
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Feb 26, 2008 (9:51 pm)
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Replying to: 98monte_ls (Mar 22, 2001 9:35 am)
I'm 60, and I've owned at least 50 cars. I've never made a car payment in my life, and I don't regret it. I have a few bucks saved up, the reason I was able to save a few bucks is because I'm not making car payments. I don't carry collision insurance, fire insurance, theft insurance, because I don't have to. Those are all rip-offs. If you buy a new car, and it gets stolen, they'll give you what the car's worth. If it gets stolen 5 years later, they give you maybe half what you would have gotten 5 years earlier, but do your insurance payments go down? Look at the fine print, they charge you for life insurance so that if you die before the car's paid for they'll still get their money. My advice: DON'T MAKE CAR PAYMENTS. You can get a good car for $5,000, a decent car for $2,000, a car that runs good for $1,000. Save your money until you have enough for a better car. If you're making car payments, you don't own the car, it owns you. 
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- #319 of 390
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Re: Average Monthly Payment [joesmith2]
by tidester HOST
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Feb 27, 2008 (12:15 am)
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Replying to: joesmith2 (Feb 26, 2008 9:51 pm)
I'm 60, and I've owned at least 50 cars.
That works out to about one "new" car every 9 months or so. Instead of making monthly payments you're just spreading them out over a somewhat longer period. 
but do your insurance payments go down?
That's one way of looking at it. On the other hand, if they did lower your premiums as your car got older they would have to have charged you a whole lot more when it was younger. Insurance is about diluting risk and, yes, that comes with a price. Of course, you're free to carry the risk entirely on your own shoulders. That's your choice but to call it a "ripoff" because you chose another course is probably a bit overstated.
You can get a good car for $5,000, a decent car for $2,000, a car that runs good for $1,000.
Of course you can! And you can also get by on about $6 a day for groceries. It all comes down to the priorities that you set for yourself. Just remember that the "savings" you enjoy in buying used derive from the fact that others made a different choice. If everyone stopped buying new cars then the cost of those used cars would become astronomical.
tidester, host
SUVs and Smart Shopper
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- #320 of 390
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Re: Average Monthly Payment [tidester]
by joesmith2
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Feb 27, 2008 (7:03 am)
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Replying to: tidester (Feb 27, 2008 12:15 am)
One car every 9 months, that's true, but in my defense I've almost always had 2 cars, and 3 when I was married or living with a woman (there have been many)! Also, in the 1960's and 70's cars didn't last as long as they do now. Back then cars were never financed for more than 3 years. I wasn't as smart when I was younger, and I did buy a few cars who's useful life was quite short. I found that when you manage to save 10 or 20 thousand dollars, you don't really want to buy a new car. You can, but you've worked so hard to save all that money, you decide you'd like to keep most of it. You're right about the savings, some people sell their 5 year old car, and they get much less for it than it's worth. That's where I step in. Thank you people!
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