Last post on May 09, 2013 at 9:32 AM
You are in the Sedans
What is this discussion about?
BMW 3 Series, Infiniti G37, Acura TL, Lexus IS 350, Mercedes-Benz C-Class, Cadillac CTS, Volvo S60, Audi A4, Acura TSX, Car Comparisons, Sedan
#12550 of 16087 Re: 2012 TL SH-AWD [sweendogy]
Nov 30, 2011 (3:07 pm)
Sweeny you have stated that I could have had a 335i for extra $10-20/m if I leased the car, since you assumed I leased it. You kept posting the "Lease specials" from Infiniti however it takes $4K out of pocket to get those lease specials, that is not smart buying... Use someone else's money to lease a car and take that $4K and use it for something else.. Lie maybe the stock market..
BTW, you asked how do people pay cash for cars... Three ways, they saved up to pay cash, second, made a killing in the stock market or third mommy and or daddy gave them the money.
For me it was #1 and #2. When I got out of college, I kept the car I had, a 65 Mustang coupe for about 10 yrs post graduation, at that time I would place $300/m in a savings account, Then bought Harley stock before the stock split (doubled my money) then split again (double it again) and finally split again (doubled it again.)
I was able to buy my first BMW cash, and a house in San Diego (this was before the big boom in housing prices) Since then done very well in the stock market and flipping houses (stopped flipping houses for now.) People can buy cars for cash, but there are sacrifices one needs to make to do it.
So my 2011 BMW was bought cash as well as the 2005. I take what the money payment would be and stick it in the bank so in 6 years I'll have enough to pay cash for the next one.
This is how people pay cash for cars.
BTW, the stock market has been very good to flightnurse the past 2 days, got to love when an airline files Chp 11...
#12551 of 16087 Re: 2012 TL SH-AWD [flightnurse]
Nov 30, 2011 (3:27 pm)
Nice story- wow - I'm out
#12552 of 16087 Re: Please explain [fedlawman]
by kirstie_h HOST
Nov 30, 2011 (5:53 pm)
Not everyone can afford to pay cash for each vehicle. However, the key, as in all financial decisions, is to manage your debt. My goal has been to never be upside-down in a vehicle regarding value:debt ratio. Why does the amount have to get bigger?
I financed my last car for 5 years (due to unknown future financial circumstances) and paid it off in 4. When that was done, I had a nice downpayment that I chose to use to pay for an entire vehicle in cash. My SO, on the otherhand, has a vehicle he financed for 5 years, almost 4 years into it and it's almost paid off and he intends to keep it. If you're not upside-down and don't have visions of getting the most you can possibly afford, financing is a reasonable solution to not having the full whack.
(Stock market was nice to me too, especially Ford, which our stock club bought for something like $4 and sold a few months later for $7)
#12553 of 16087 Re: Please explain [kirstie_h]
Dec 01, 2011 (6:50 pm)
Interesting - what if finance rates were 10% ? Would you have financed or looked for a lesser car?
I agree smart thinking needs to go into taking down a material purchase - and given the current environment of higher used car values and lower bank rates are getting people into cars they would not normally afford. Maybe there is more to this... Thoughts
Btw new car sale numbers very strong for the Americans, Germans, toyo an Nissan. Honda still struggling with the flooding problems.
#12554 of 16087 Re: Please explain [sweendogy]
by kirstie_h HOST
Dec 02, 2011 (9:18 am)
A lesser car. No one NEEDS a fantastic car. I chose to do that this time around and purchased a "lesser car" in lieu of financing, so that I could pay cash. Last time I didn't have quite enough cash for a "lesser car," plus I was driving a WHOLE lot at that point in time. Now I'm not. It was worth it back then to finance, and it didn't come close to stretching my budget.
#12555 of 16087 Re: Please explain [sweendogy]
Dec 02, 2011 (6:12 pm)
What do you mean if rates were 10%, they are for many people. When you see those "special" rates from manufactures they are for "well qualified" buyers. Which is terms mean credit score greater then 700.
When it comes to keeping up with the Jones, people will pay to say in the car that makes them feel good... It might not be the top of the line model though.
#12556 of 16087 Re: Please explain [flightnurse]
Dec 02, 2011 (6:32 pm)
Interesting pt, I didn't consider people without super credit. Are people walking in and leasing/financing 40k at 10%plus rates still? Or are theses people now saving, given the current Eco climate? Given recent car sales it would suggest they are not saving. If that's the case we are all in big trouble.
#12557 of 16087 Re: Please explain [kirstie_h]
Dec 02, 2011 (7:26 pm)
A lesser car. No one NEEDS a fantastic car. I chose to do that this time around and purchased a "lesser car" in lieu of financing, so that I could pay cash.
I read in an article once that if one person buys a new car every three years, trades in the old one, versus another person who buys a 2 yo car and drives it 10 years, repeatedly, and invests the money saved versus person #1s case, then person #2 will retire at 65 with a $million dollars saved by NOT buying new cars all the time.
I'm somewhere in the middle, buying new cars but always driving them 150K miles and 8-10 years or so. But I really do appreciate those who buy/lease new cars often, as it helps the economy.
#12558 of 16087 High Interest Rates
Dec 02, 2011 (9:16 pm)
I think a lot of us here do have excellent credit that affords us top tier financing, but yes many people out there are taking out 7 - 8 year loans with 10+ % interest.
#12559 of 16087 Re: High Interest Rates [nyccarguy]
Dec 02, 2011 (11:09 pm)
I used to be a new car every 3 years kind of guy. That changed once I had kids and a mortgage.
If only more people knew how liberating it feels to pay off a car and keep driving it payment free. Every time I think about owning a new car (Audi TT RS anyone?), I go in the garage and appreciate what I already have.
We are a brainwashed, instant gratification, consumer society.