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Smart Shopper Buy Here, Pay Here
328 messages, Last post on Jul 19, 2009 at 7:42 PM
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Replying to: qbrozen (Jun 08, 2006 1:11 pm)
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| some secured Credit cards to help rebuild your credit some. | |
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"I just can't fatham throwing away $10,000 into a depreciating asset" Why does it matter if it is depreciating or not? If you need an item and plan to use it until it is worthless, it makes sense to buy it. I paid $5 for lunch today and I think the value of what I ate will depreciate very quickly. I can't imagine anyone would pay much for what is left after I am done with it. Does that mean I should have financed my lunch at a Buy Here - Eat Here diner?
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Replying to: bobst (Jun 08, 2006 1:27 pm)
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Replying to: devond (Jun 08, 2006 11:41 am) As to leasing depreciating assets and buying appreciating ones, that works well for oil tankers and skyscrapers. However, when it comes to paying double digit interest on a car loan when you have the money in the bank barely earning single digits.........well you do the math, especially when you have the ability to save $2K a month. |
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Replying to: devond (Jun 08, 2006 2:16 pm) No, I don't think so... bobst can get on one's nerves occasionally, but he ain't stupid... and when he says these things, he usually has a reason. as lunch is never considered an asset... ask anyone that has a lot of money and wants to keep it they always lease... No no no bobst has it right and you have it wrong... I'm not saying leasing is bad, it can be the right thing in some situations... but it has nothing to do with the fact that a car is a "depreciating asset". These "rules of thumb" like Buy What Appreciates etc. ad nauseam really don't mean anything... you have to work out the nitty gritty in pretty much every case. Many people say a car is not an investment; I say if it gets you to work and back, that sounds like an investment to me... of course it'll lose value and cost money to own, but so what? If ya need it ya need it... I know about buying used and driving cheap ... or buying new and driving cheap... or getting the wrong car and driving not so cheap... I've done it every which way over the last decade or two.. and by the way, I don't "need" to buy a car... my fiance has a perfectly good mercedes Well alrighty then. And your question for us is...? I know what your question is; you've gotten some good feedback. Repair your creit starting with a secured card. If you have $6k, buy a $5k car for cash and keep a grand for repairs. An '02 Taurus with 85k should fit the bill nicely. Join a credit union, see if they'll loan you $2k on said Taurus; pay it off over a year at least. Get a Sears card and use it. All this will help. If you go the BH-PH route, make sure -- the pros here can tell you how you can make sure -- that your payments will get reported to the bureaus; otherwise it won't do anything for you. Good luck, and next time somebody says something "stupid", think on it for awhile. Feeling old today, I remain, -Mathias (World Cup starts tomorrow)
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Replying to: devond (Jun 08, 2006 1:14 pm) Right now I own a vehicle with 100K on it. By the time it was all said and done I paid about 17K for it. I financed it for 5 years 4 years ago, and paid it off in 3. I think the original price was 16K, but with added interest I think it came to about 17K. These are rough numbers here, I really don't know. Anyway, my point is, I have now put over 75K miles on it in the last 4 years (it had 25K when I bought it). I have had a few things go wrong, but all I think I have only spent about $500 in repairs in the last 4 years and 75K miles. I am about to spend another 1-200 in repairs next week. This is not including oil changes and tires and brakes of course. Anyway, my point is, I plan to drive this vehicle till the wheels practically fall off. I could be theoritcally driving it another 4 or 5 years putting hopefully the total mileage close to 200K. That would be nice. If I can get that much out of the vehicle, I would consider that original 17K money well spent. Sure the vehicle probably won't be worth much more than 1000 by the time I am done with it, but I sure was able get it's worth out of it.... |
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Replying to: steine13 (Jun 08, 2006 5:49 pm) Or is the 15K car not a Mercedes and therefore you don't want to be seen in that particular car? I mean even the above mentioned Taurus would do you well. It's cheap, reliable, and will help you rebuild credit. It aint a flashy car, or a "cool" car, but what's more important? Looking cool in a borrowed Mercedes or, or having a solid credit history that you worked hard to build? |
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Now that we are way off topic of the BHPH dealers, I will try and get back on topic....  There are a ton of them here in PHX Az. I'm not quite sure I would trust them and I have always had a bad feeling about them. I have never had an experience with one, so I don't know. The last 3 cars I have purchased have been through dealerships - one was used sight unseen which I will never do again, but it was a family business and I was desperate. Even my uncle tried to tell me not to buy this particular vehicle but it was what I wanted so he got off the auction for me. My next vehicle was a scant 1 1/2 years later from a dealership that took the wreck I had previously bought off my hands. It was also used and is still on the road 4 years later and still going strong. My last vehicle was bought new 2 years ago, and after experiencing it once, I think I will buy used again next time around. It was overall a better experience - as long as I can find the vehicle I want which can be difficult when buying used. I don't think I will ever see the need for me to use a BHPH place. But I do believe they fill a market need for those that can't get the financing from a dealership or a bank. Not that my credit is perfect, I have worked hard to get it to where it is now and had to pay a fairly high interest rate on the 2nd vehicle. (The first was financed through mom and dad and I just made the payments  ), but after it was paid for it really helped the credit and when I bought the new one a couple years ago, the dealership didn't even flinch. The rate still wasn't fantastic, but it was better and they didn't have to hunt down a lender like the first time....
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Replying to: devond (Jun 08, 2006 1:14 pm) Now I'm really lost. So you don't want to buy a car?? Or is your mental roadblock putting $10k down on a car? Cause, I don't know if anybody explained this, but you gotta pay for the car either now or in monthly payments. As a matter of fact, its sometimes BETTER to pay it now to avoid the interest, and considering your credit history, that would amount to ALOT of interest. So, pay $10k on a depreciating asset now? Or pay $15k over the next 3 years? Now you tell me which way is actually "throwing away" more money. |
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