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Smart Shopper Percentage of monthly income spent on a car?
390 messages, Last post on Mar 21, 2009 at 5:50 PM
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Replying to: dtownfb (Mar 09, 2008 1:06 pm) Your point about what if you can't afford to pay cash. I got on Nissans site, and it looks like a new Quest is 25,000-30,000. If you put down $3,000 on a $25,000 Quest, and your rate is 2.9%, your payments are about $410. You need comprehensive insurance on a new car, which is at least $50/mo, so thats $460. If you save $460 a month, in 2 years you've got $11,000. I got on autotrader.com, and there are plenty of Quests, from 1995 to about 1998, with 100,000 miles for $3,000. There are plenty of quests on autotrader that have 200,000 miles, so I'd guess a $3,000 Quest with 100,000 miles will probably be good for another 100,000. Its hard to save money. I heard a guy say its harder to save money than it is to quit heroin. Some heroin users can quit, buy none of them can save money. Good luck with your Quest! 
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After reading these posts, I feel compelled to make a few observations. First off, joesmith2 is a guru. There can be no denying his reason. WHOEVER DOUBTS THIS MESSIAH HAS FINANCIAL INTERESTS IN THE INDUSTRIES...Some additional benefits of driving used cars include: MY 10 COMMANDMENTS 1) LITTLE OR NO CAR WASHES--LET THE RAIN DO IT 2) NOBODY'S GONNA KEY SCRATCH MY CAR IN WALMART PARKING LOT 3) NOBODY'S GONNA STEAL MY CAR AT WALMART PARKING LOT 4) I HAVE THE EXTREME SATISFACTION KNOWING MY NEIGHBORS ARE SADDLED DOWN WITH A DEPRECIATING ASSET? THAT THEY ARE PAYING DEARLY FOR WHILE ON THEIR SECOND EXOTIC VACATION OF THE SUMMER 5) HAVING ALL THAT EXTRA CASH TO BLOW ON MY WIFE AND KIDS 6) KNOWING THAT GETTING IT FIXED IS JUST GONNA BE 1 CAR PAYMENT---NOT 60 7) I DON'T CARE WHAT PEOPLE THINK OF ME, MY FAMILY DIGS ME 8) MY CAR ALWAYS STARTS, HAS A GREAT HEATER AND GETS ME FROM A TO B THE SAME WAY AS A PORSCHE 9) I HAVE ZERO DEBT AND PAY CASH FOR EVERYTHING. I COULD EASILY AFFORD THE HOTTEST CAR, BUT WOULD PROBABLY DIE FROM EXTENDED BUYER'S REMORSE 10) FINALLY, NO ONE (EXCEPT MY WIFE MAYBE), HAS EVER MENTIONED TO ME THAT I HAVE A SHITTY CAR... |
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Replying to: joesmith2 (Mar 09, 2008 2:41 pm) Sometimes there is only the low rate though and no cash back incentive.
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Replying to: british_rover (Mar 10, 2008 6:27 am) Sometimes there is no cash, joe. And sometimes there is BOTH. In the case of the .75% interest, I got the low interest AND a huge discount on the vehicle. This was back when the manufacturers were running that "employee pricing for everyone" thing. I have the same thing on my Honda. It is leased at a rate that works out to ... I forget if its 0.9% or 1.9%, but one of those, and I got it for invoice minus the dealer cash minus some of the holdback. I'd be an idiot if I paid cash for that car. Oh, I'm sure you are all against leasing, I know. I mean, heck, if you leased, you couldn't carry a bogus insurance policy with minimal coverage. I mean, here I am paying $750 a year for a fully covered car with high limits. I'm such a schmuck. |
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Replying to: dtownfb (Mar 09, 2008 1:06 pm)
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Replying to: dtownfb (Mar 10, 2008 9:02 am) 
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Replying to: joesmith2 (Mar 10, 2008 6:41 pm) It's all relative. I am paying 1% for a 60 month loan on my Nissan Armada and paid $2200 below invoice in 2005. You can say I'm paying 6% (or whatever the interest rate was when I bought it) but that would just mean the "price" would have been lower. 6 of one, 1/2 dozen of another. -mike Motorsports and Modifications Host |
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Replying to: joesmith2 (Mar 10, 2008 6:41 pm) If you want to believe that you borrow money at below prime, go ahead. ummm... OK. So, what, you are saying my fixed 1.9% credit card with no annual fees is not real? (or, by that same token, and to keep on the topics of cars, let's look at BMW's current offer of 2.9% APR on CPO bimmers ... ain't no cash allowance on CPO cars, so no hidden cash to worry about.) Ya can't just throw this stuff out there with no supporting data and expect us to swallow it. Please explain your position clearly.
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Replying to: joesmith2 (Mar 10, 2008 6:41 pm) Cash is the best way to go. yes if you are not careful with pricing and negative equity even 0% interest is not what you think it is. I'm looking forward to my last 10 payments on my van and plan to keep it until 100k miles which could be for another 5 years. |
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Replying to: qbrozen (Mar 11, 2008 11:53 am) If I was buying a new car that offered 2.9% interest, I'd ask for a discount for cash. All they can do is say no. But why should they say no? Car companies borrow money from banks, and sell interest paying corporate bonds to finance their operations. Another thing I'd do is pull out my laptop, plug their numbers into an excel spreadsheet, and see if the payments are what they should be for the loan amount and interest. If they want you to make your first months payment when you take delivery, that's a scam. You aren't borrowing the first month's payment, but they're charging you interest on it. How many people read all the fine print on the contract? 
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