car notes bout to be da new housing bubble VOL. NTers paying BMWs off in 73 months

[melo0115]

Only thing I'll trap myself with is a Nissan GTR, that car can make me a slave any day. But since I don't have that paper yet, furthest I'd go is 12 months of less to pay off a car... Other then that, it's straight cash...

Someone has to buy the new stuff though, but to many people copping the stuff way above their needs is the problem. I never want to be a slave to my possessions. Unless its a GTR.. haha  But i'd have to be making six figures a year or more..

 

[vladimir dinero]

Car salesmen are the grimest people on earth.

this. i was a car salesman, but quit because i felt bad ripping people off. i knew it was time to leave once one of the other salesman ripped off his aunt

and for those that think you're buying a brand new car, a car salesman might have smashed a prostitute in it

 

[crcballer55]

I always love reading NTers "logic" on cars

Say what you will, but people with cash own the real estate market in California now. It doesn't matter if you have an 800 credit score and 30% down, you're not getting a home under $400,000 in this area.

I'm glad to see a lot of people doing "better than they deserve" in this thread. Once there's a bubble, those will be the people who are in a position to take advantage of it.

Haha!

1. You targeted a niche market in the upper echelon of finances/wealth. I was referencing the average consumer...

2. My main point was in relation to automobiles as investments. Not homes...

3. These people/groups that purchase these homes have a thing called, capital. The average citizen sadly does not have multiple forms of liquid assets...

4. To build on #3, people of said wealth tend to already have high credit scores. Your point on being able to pay 30% with perfect credit yet still not beat out 'Mr. Cash' comes down to how fast a house/property/etc. can be sold & closed at. There are still opportunities to buy houses via fixed financing. Your local MLS can dictate that. (Again. You referenced a niche market.) Yes, money talks. However, there are limitations & educated decisions that also come into play...

5. Many 'heavy-hitters' don't put all their eggs in one basket. You want to pay for your car in-full in an average economy? Go ahead. You now just broke your piggy bank and have zero debt in terms of a car note with very little savings left. With that said, I wish you success on starting that saving process all over again. Money is made through expansion. Not through one singular entity. The goal is to accumulate wealth. Not relinquish it...

1) You're assuming that finances change when someone is in the upper echelon as opposed to the average consumer. Most people become wealthy because of good money habits. Financing "assets" that depreciate 60% in 5 years isn't something most people would consider smart since you're going to pay a 10-15% premium over that period to do so.

3&4) Yes, they have capital because the money hasn't been spent one something that went down in value. Sure, it's ok to buy some things like computers, tv, etc, but if too much is spent on those types of things, then there is less to invest in things that go up in value. That's why I don't consider it a bad idea for someone with adequate income, payment history, and savings to finance their home since the opportunity cost is likely greater right now.

As you stated, cash affords you the opportunity to jump ahead of the line because it's more attractive to the seller. I had a client once who went to buy a new Range Rover in cash (Cashiers Check). When the dealership insisted on checking his credit, he walked out and permanently 'fired' the dealership and bought a BMW instead. His credit score was well over 800, but didn't want to take the hit by financing it and having them check. Bottom line, he had a high credit score because he didn't have a lot of payments, and thus had more cash to leverage.

5) You're right, putting all of your eggs in one basket is never a good idea. But if you have to crack the egg to buy a car, you're probably buying too much car. As others have said here, most use payments to buy something they otherwise couldn't afford. It's difficult to explain to someone what life is like without payments when they haven't been there before. When you don't owe anyone anything, there are few experiences like it in the world.

 

[i skate nikes]

#TEAMOWNBRANDNEWWHIPS

 

[reener]

Jamaica has better roads than NYC.

this,

I always wonder why people get big rims in neighborhoods where the roads are absolute trash.
even Hoboken, Nj

Shouts out to student loans that aren't ever going to be paid off.

my dude was getting mail from Sallie Mae in Solitary

wow :x

 

[jayhood23]

@ $900 for a Taurus

My car will be paid off in June, financed it for 36 months at $389/mo (couldn't be happier) and I want a new Cadillac CTS or ATS but I'm not going to do it right away.

I'm gonna use the $ that was designated for the payments into getting the vehicle in tip top shape and maintenance along the way.

Don't really seeing myself buying a new car for another 3-4 years. By the time it comes down to get a new whip, I'll have saved a nice down payment so my payments won't be stupid high.

 

[stillin729]

doesn't really matter if you are ahead and have a good interest rate...

but it's the budget ballers with crap credit and 9% interest rates for 72 months with like $1,000 down max

 

[waitwut]

brb gonna go cop da r8 wit da 97 month car note

 

[franco23x]

Can finally get 100 months to pay off this m5

Spoiler: Warning: Spoiler!

live within your social class

 

[hybridsoldier23]

When you don't owe anyone anything, there are few experiences like it in the world.

So true. Being free and clear of debt is an amazing feeling. I've already paid cash for everything I NEED and can just go out and own everything I want (minus a home). Knowing that what you have in your home and driveway is paid for and you have full ownership over feels like quite an achievement.

Knowing I'm not a slave to constant payments for the next 4-5 years on anything (car loan, student loans, credit cards) is such a weight off the stress of normal everyday life. So many of my friends and co-workers in their mid-late 20's are drowning in over 40-60k of car/student/CC debt. They complain and stress so much over the interest rates and payments or stupidly think they can pay the minimum and will "make enough money to just pay it off later in life". That does not work. Female friends who say "I'm going to find a doctor or a rich dude to take care of it" make me extra >:

Getting out of debt is a long process and sacrifices have to be made. You can't be already underwater and think that buying a 30k car is a good idea just because you can make the payment for the next 6 years. That type of thinking just baffles my mind and there is 0 justification for it.

Sadly, there is always going to be lenders looking for people that they can screw over with this nonsense and there will be people buying in. Do yourself a favor and get educated about what you're getting into with these long term commitments and take a step back and look at if your lifestyle is actually affordable on your salary. We all saw what the sub-prime mortgages did to families a few years back emotionally and financially. Be proactive and don't let that happen to you and yours.

 

[sniper]

I always love reading NTers "logic" on cars & purchasing items in general. Most are still spending $200+ on shoes all while still living at home without a single asset to their name...

I both own & lease my cars. There's a difference in investing in something versus financing. Yes, you'll have a car to your name, but it's not a home. It's a form of transportation. (A mobile 'accessory' for some. A means of transportation for others.) Unless you plan on having that car for it's whole tenure and could careless about residual, purchasing one outright may be your best option as you, more or less, just need something to get you from Point A-to-Point B. However, that doesn't seem to be the case here. I, for one, enjoy placing myself in a new vehicle every 2-to-3 years as I have another car for daily-driving. You call it "borrowing", I call it not having one car for 10+ years. Not all cars become "Classics" or those sought after relics so you may want to rethink things through if you really wanted to make an "investment"...

Also, this 'Cash is King' mentality is ridiculous. This is the modern era, folks. Having good credit is actually 'King'. Not sure if you watch too many music videos, but I can see a lot of you living beyond your means with that simplistic frame of mind...

Cash, back then gold, will ALWAYS be king my friend. ALWAYS.

This reasoning might be why you "were" an auto credit analyst instead of "are/am" an auto credit analyst...

Don't get me wrong, cash is still critical in this world. However, it certainly is no longer "King". You putting cash in front of gold, I'd probably go with gold. Yes; it fluctuates, but it's been much more stable than the USD. Gold has much more collateral and, in essence, is an asset to the effect that it has value like cash. It's also better than cash as it has no national obligations. It's an internationally controlled asset...

I always love reading NTers "logic" on cars

Say what you will, but people with cash own the real estate market in California now. It doesn't matter if you have an 800 credit score and 30% down, you're not getting a home under $400,000 in this area.


I'm glad to see a lot of people doing "better than they deserve" in this thread. Once there's a bubble, those will be the people who are in a position to take advantage of it.

Haha!

1. You targeted a niche market in the upper echelon of finances/wealth. I was referencing the average consumer...

2. My main point was in relation to automobiles as investments. Not homes...

3. These people/groups that purchase these homes have a thing called, capital. The average citizen sadly does not have multiple forms of liquid assets...

4. To build on #3, people of said wealth tend to already have high credit scores. Your point on being able to pay 30% with perfect credit yet still not beat out 'Mr. Cash' comes down to how fast a house/property/etc. can be sold

1) You're assuming that finances change when someone is in the upper echelon as opposed to the average consumer. Most people become wealthy because of good money habits. Financing "assets" that depreciate 60% in 5 years isn't something most people would consider smart since you're going to pay a 10-15% premium over that period to do so.

3&4) Yes, they have capital because the money hasn't been spent one something that went down in value. Sure, it's ok to buy some things like computers, tv, etc, but if too much is spent on those types of things, then there is less to invest in things that go up in value. That's why I don't consider it a bad idea for someone with adequate income, payment history, and savings to finance their home since the opportunity cost is likely greater right now.

As you stated, cash affords you the opportunity to jump ahead of the line because it's more attractive to the seller. I had a client once who went to buy a new Range Rover in cash (Cashiers Check). When the dealership insisted on checking his credit, he walked out and permanently 'fired' the dealership and bought a BMW instead. His credit score was well over 800, but didn't want to take the hit by financing it and having them check. Bottom line, he had a high credit score because he didn't have a lot of payments, and thus had more cash to leverage.

5) You're right, putting all of your eggs in one basket is never a good idea. But if you have to crack the egg to buy a car, you're probably buying too much car. As others have said here, most use payments to buy something they otherwise couldn't afford. It's difficult to explain to someone what life is like without payments when they haven't been there before. When you don't owe anyone anything, there are few experiences like it in the world.

1) That's just it. Finances actually do change with levels of income. I can do far more with 100K than I can with 10K. It's simple economics. It's just that a large % of people do not understand or have the correct means of using their existing funds. You telling me that most people become wealthy because of good money habits is like telling me most people become clean with water & soap. It's common sense. Regardless, I never referenced automobiles in my first note as an "investment/asset". I believe I was talking about the average consumer in regards to homes since you brought-up California real estate out of left field...

2) I think you negating #2 clarifies that...

3) Are we on the same page here? I'm talking about capital in regards to investments. Actual investments as in, you accrue profit/funds from a particular business venture. I'm not talking about "investing" in an LED TV with your Best Buy credit card. You bringing up electronics & gadgets is, again, out of left field...

4) False. Cash affords you the opportunity to jump ahead of the line because it's more attractive to a desperate seller. Not sure what line of work you're in, but people of wealth tend to take the bigger reward. You initially brought-up California so I'll work off that. Right now, California is a seller's market. Not a buyer's. Sellers aren't necessarily looking for that quick return as they once were. Of course cash is a wonderful proposition, but if you can exceed your return through other justifiable means over a period of time that are more than that initial cash offer, where's the loss? The true people of wealth aren't dependent on if their property sells or not. Again, this is a different market we're discussing here so if you really want to delve into that, this can get quite lengthy as the scenarios are endless. I can say someone who finances can pay a seller more versus someone with cash. You can say someone with cash can match that offer and close quicker. However, that person who has that sum of cash to do so is certainly not an average consumer and, therefore, does not apply to what we're talking about as I'm assuming everyone here is not of the status. I'd suggest sticking to the topic of cars/leasing/financing/cash/etc...

In regards to your Range Rover / BMW friend. You do realize that you don't start with a credit score of 800, yes? Everyone essentially starts from nothing and builds their credit over time. Your friend had to build his credit by paying off debts/bills/etc. That's the whole point of credit. You demonstrate your ability of managing your income-to-debt ratio. Your credit doesn't take a hit by financing unless you don't pay your bills. If it does take a hit, it will not be enough to be considered damaging as you perpetually raise that existing score, whether low or high, if you, again, pay your bills. Bottom line, BMW owns Range Rover so they would have received his money regardless of whom he went with...

5) I'm referencing what business-minded people typically do with their money. Of course someone who doesn't have the means of purchasing something yet exerts & exhausts their funds into something impractical will suffer the consequences...

 

[stillin729]

you can't take it with you; I am not saying live outside your means but it always makes me laugh when people think they are finance experts for other people

if you want to drive a 1989 Corolla and live car payment free than more power to you but don't knock the next man for what they do

 

[ricky409]

you can't take it with you; I am not saying live outside your means but it always makes me laugh when people think they are finance experts for other people

if you want to drive a 1989 Corolla and live car payment free than more power to you but don't knock the next man for what they do

this.

Repped

 

[sniper]

you can't take it with you; I am not saying live outside your means but it always makes me laugh when people think they are finance experts for other people

if you want to drive a 1989 Corolla and live car payment free than more power to you but don't knock the next man for what they do

this.

Repped

Haha!

Agreed. I went on a tangent explaining my case, but he definitely simplified it enough to get the point across...

 

[ricky409]

Double dribble

 

[Trent Reznor]

This reasoning might be why you "were" an auto credit analyst instead of "are/am" an auto credit analyst...

Don't get me wrong, cash is still critical in this world. However, it certainly is no longer "King". You putting cash in front of gold, I'd probably go with gold. Yes; it fluctuates, but it's been much more stable than the USD. Gold has much more collateral and, in essence, is an asset to the effect that it has value like cash. It's also better than cash as it has no national obligations. It's an internationally controlled asset...
1) That's just it. Finances actually do change with levels of income. I can do far more with 100K than I can with 10K. It's simple economics. It's just that a large % of people do not understand or have the correct means of using their existing funds. You telling me that most people become wealthy because of good money habits is like telling me most people become clean with water & soap. It's common sense. Regardless, I never referenced automobiles in my first note as an "investment/asset". I believe I was talking about the average consumer in regards to homes since you brought-up California real estate out of left field...

2) I think you negating #2 clarifies that...

3) Are we on the same page here? I'm talking about capital in regards to investments. Actual investments as in, you accrue profit/funds from a particular business venture. I'm not talking about "investing" in an LED TV with your Best Buy credit card. You bringing up electronics & gadgets is, again, out of left field...

4) False. Cash affords you the opportunity to jump ahead of the line because it's more attractive to a desperate seller. Not sure what line of work you're in, but people of wealth tend to take the bigger reward. You initially brought-up California so I'll work off that. Right now, California is a seller's market. Not a buyer's. Sellers aren't necessarily looking for that quick return as they once were. Of course cash is a wonderful proposition, but if you can exceed your return through other justifiable means over a period of time that are more than that initial cash offer, where's the loss? The true people of wealth aren't dependent on if their property sells or not. Again, this is a different market we're discussing here so if you really want to delve into that, this can get quite lengthy as the scenarios are endless. I can say someone who finances can pay a seller more versus someone with cash. You can say someone with cash can match that offer and close quicker. However, that person who has that sum of cash to do so is certainly not an average consumer and, therefore, does not apply to what we're talking about as I'm assuming everyone here is not of the status. I'd suggest sticking to the topic of cars/leasing/financing/cash/etc...

In regards to your Range Rover / BMW friend. You do realize that you don't start with a credit score of 800, yes? Everyone essentially starts from nothing and builds their credit over time. Your friend had to build his credit by paying off debts/bills/etc. That's the whole point of credit. You demonstrate your ability of managing your income-to-debt ratio. Your credit doesn't take a hit by financing unless you don't pay your bills. If it does take a hit, it will not be enough to be considered damaging as you perpetually raise that existing score, whether low or high, if you, again, pay your bills. Bottom line, BMW owns Range Rover so they would have received his money regardless of whom he went with...

5) I'm referencing what business-minded people typically do with their money. Of course someone who doesn't have the means of purchasing something yet exerts & exhausts their funds into something impractical will suffer the consequences...

I Chose not to go back..Big difference. And I was never let go. I couldn't see myself doing finance work at 40. No way. I ran two states during my time. I was a damn good credit analyst bro. Crushed bonuses every month.

When I started dreaming about credit reports, I knew that was the end for me. And for a very long time, there weren't many opportunities for auto finance credit analysts around me. Many many many people I know lost their jobs and couldn't find another.

Luckily I landed a gig that I don't think about when I leave. Perfect..

And there wasn't a need for the monster explaination. I wasn't comparing investments, and the actual value of gold and such. I strictly said cash > credit. For the next 50 years, it'll remain that way.

Don't get me wrong, you can make a ton of cash with good credit, but its the ones with the cash to buy outright that wind up being the ones with the most.

and @ 9% interest rates. That was part of my prime bracket when I worked for Wells. I was a sub prime guy, MOST of my loans were in the 15-20% range.

 

[illicit305]

this is a relative argument , if your out of a job your more in trouble then being out of the car that you need to pay , the problem isnt the consumer financing the car , the problem is the consumer not hustlint and staying on point with work and paying

 

[getyashinebox]

Just bought a new car, negotiated $7635 off MSRP, down payment $28500 (includes cash I got for my previous car), and financed the rest 3% at 36mo $320/mo (had the cash but have non existant credit history, so...). I did A LOT of research to get the best deal I could on the car, and was patient in selling my car privately to get top dollar.

The most important info IMO is my down payment was a very strict percentage of my total liquid funds and my monthly payment was a very strict percentage of my monthly DISPOSABLE income. The percentages were different but neither exceeded 15%.

Basically, I set myself up so that I can recoup my out of pocket cash in about 6mo and monthly payments will not affect my lifestyle prior to buying the car. The car is also exactly what I wanted and I'll be happy with driving it for 6+ yrs.

 

[SneakerProSr.]

Yeah I have a lot of disposable income I just don't see myself settling for a used car or keeping one long enough to pay it off. My car note is 6.5% of my gross monthly income.

If I get married maybe but as long as I'm single I'm coping a new car every two or three years.

I bought my first car with my own money at 17. I worked like a slave in the summer and saved 1700 dollars.

The car I bought lasted about a year and the transmission went out. After that I told myself I'd never drive a bucket again in my life no matter the cost. I like cars a lot, people on this messageboard have made Nike a billion dollar company paying 175+ for shoes and 200 for jeans. I think that's wayyy more ridiculous than my 400 a month car payment.

#teamnewwhips for life.

 

[stillin729]

I will always have a relatively new car; I usually get a new whip every few years

I might actually cop a BRZ soon

 

[rawex5]

Just bought a new car, negotiated $7635 off MSRP, down payment $28500 (includes cash I got for my previous car), and financed the rest 3% at 36mo $320/mo (had the cash but have non existant credit history, so...). I did A LOT of research to get the best deal I could on the car, and was patient in selling my car privately to get top dollar.

The most important info IMO is my down payment was a very strict percentage of my total liquid funds and my monthly payment was a very strict percentage of my monthly DISPOSABLE income. The percentages were different but neither exceeded 15%.

Basically, I set myself up so that I can recoup my out of pocket cash in about 6mo and monthly payments will not affect my lifestyle prior to buying the car. The car is also exactly what I wanted and I'll be happy with driving it for 6+ yrs.

Damn, 28k down. What car did you get?

 

[stillin729]

28k down with no credit seems like a bad decision

 

[htg designs]

buy a good used car (unless you can afford new). Why have another bill?

 

[$tacy]

#teamcash every car I had I bought

 

[getyashinebox]

stillin: I understand why you'd say that without knowing my situation, but I was very comfortable putting that down (28500 wasn't out of pocket btw, 13k was from selling my old car).