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

[ksteezy]

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.

Did something very similar web I bought my TL-S, putting 20k + as a down payment on a car is not smart no matter what your situation is bro, not coming at you, just speaking from experience.

I seriously found my middle ground with leasing
-no maintanence out of warranty worries
-no huge down payment
-good credit no problem
-new car every 3 years, no attachment responsibilities.

 

[ricky409]

Did something very similar web I bought my TL-S, putting 20k + as a down payment on a car is not smart no matter what your situation is bro, not coming at you, just speaking from experience.

I seriously found my middle ground with leasing
-no maintanence out of warranty worries
-no huge down payment
-good credit no problem
-new car every 3 years, no attachment responsibilities.

what about the mileage though?

i've considered leasing... but i'm in dallas bruh...

i'm puttin in 20k miles EASY... it may go down because job transition and copping a motorcycle...

but that mileage limit is scary.

 

[da r entertainment]

Did something very similar web I bought my TL-S, putting 20k + as a down payment on a car is not smart no matter what your situation is bro, not coming at you, just speaking from experience.

I seriously found my middle ground with leasing
-no maintanence out of warranty worries
-no huge down payment
-good credit no problem
-new car every 3 years, no attachment responsibilities.

what about the mileage though?

i've considered leasing... but i'm in dallas bruh...

i'm puttin in 20k miles EASY... it may go down because job transition and copping a motorcycle...

but that mileage limit is scary.

That is the main reason I could never do a lease.

 

[stroshow]

A year or so ago I had an E350 with a ~$350 monthly payment over three or four years, I can't remember. I've since downgraded to a used Subaru with the same relatively low mileage that's paid for and let me assure you that I will never have another car payment again. In the case that one is using the financing to live beyond his or her means (I understand that people need a vehicle to get to work, school, whatever, and some need financing for a practical car; these are not the folks I'm referring to)... it's just throwing money away. Aim to put that money to work for you, so you don't have to work so hard for it. You'll feel much better about your current financial situation and you may even put yourself in a position to be able to afford that car you like without the note at a later date.

 

[zapatohead408]

97 MONTHS!!!! DAMN People keep trying to buy stuff they can't afford.

yup.

But help me out guys. Really this only affects you if you wont pay it off. If it is a 97 month loan wouldn't the monthly payments be so low that people can more easily afford to buy cars? There's no doubt that the car will be worth less by the time you pay it off, but the car loses value when you drive it off the lot.

For example, my old man is 47 and wants a new car but can't get all of the money out. If he where to do that 97 month financing, what bad would come of it if he makes all of his payments, most likely pays it off early and isn't looking to sell anytime soon, if ever at all?

With that being said, I will never make a payment and I will always buy used, unless it's for my future Corvette or Camaro.

 

[stillin729]

Bottom line:

if you come out on top in the end then more power to you if you want a 97 month car loan

YOLO

 

[jewseejay]

A year or so ago I had an E350 with a ~$350 monthly payment over three or four years, I can't remember. I've since downgraded to a used Subaru with the same relatively low mileage that's paid for and let me assure you that I will never have another car payment again. In the case that one is using the financing to live beyond his or her means (I understand that people need a vehicle to get to work, school, whatever, and some need financing for a practical car; these are not the folks I'm referring to)... it's just throwing money away. Aim to put that money to work for you, so you don't have to work so hard for it. You'll feel much better about your current financial situation and you may even put yourself in a position to be able to afford that car you like without the note at a later date.

U might get hit by a bus stepping out ur subie tho... then what. Like stillin.said u cant take it with you... im not living outside my means by paying for a car i want/enjoy driving.... YOLO.

Only time ill count another mans pockets or even.comment is if they dont have a proper living arrangement. Payin 10 percent plus.in.interest etc. Then maybe too much yolo

 

[do work son]

0% financing for 60 months FTW. Paying off my car in 60 months exactly, not messing around with posting interest.

 

[truballa101]

8 year car loan...I'm dying

 

[SneakerProSr.]

I'll say this.

If you have to eat a high interest rate it's not smart to finance.



But 4-5 years at 0-4% interest sign me up.

 

[thenewjs23]

No matter what you throw money down the drain when buying a car, as with most possessions. I will say that a 97 month is a bit excessive IMO. 36 to 48 is my limit. I only buy used and then get the extended warranty. 30k miles is my limit on a used car. I wont do a lease cause you are stuck paying the same debt and its never yours. I see leasing as a cheaper option to renting. I would careless if it was company paid, though.

I bought an 01 Sierra in 04. Put down 16 on 26. Financed @ 36 with 3% apr. Paid it off in 06 exactly two years and have had since then. Other than routine preventive maintenance truck has given me no problems. I have some major work done but it was due to me being a complete idiot in it. Even after that its still runs. It's a V8 6.0 and it will move. So, I just went 7 years without a note and hopefully another 7 before I buy something new.

Bro has Mercedes but he pays out the butt on maintenance. I sat in the office with him when the salesman told him he was going to have to pay 470mo. I was like damn.

He doesn't care cause he loves the car. He has had to sacrifice some other luxuries, but he's happy.

 

[ricky409]

No matter what you throw money down the drain when buying a car, as with most possessions. I will say that a 97 month is a bit excessive IMO. 36 to 48 is my limit. I only buy used and then get the extended warranty. 30k miles is my limit on a used car. I wont do a lease cause you are stuck paying the same debt and its never yours. I see leasing as a cheaper option to renting. I would careless if it was company paid, though.

I bought an 01 Sierra in 04. Put down 16 on 26. Financed @ 36 with 3% apr. Paid it off in 06 exactly two years and have had since then. Other than routine preventive maintenance truck has given me no problems. I have some major work done but it was due to me being a complete idiot in it. Even after that its still runs. It's a V8 6.0 and it will move. So, I just went 7 years without a note and hopefully another 7 before I buy something new.

Bro has Mercedes but he pays out the butt on maintenance. I sat in the office with him when the salesman told him he was going to have to pay 470mo. I was like damn.

He doesn't care cause he loves the car. He has had to sacrifice some other luxuries, but he's happy.

link to vid of your avi.

i like big breasts jumping around.

 

[diego]

Speaking of cars, I'm debating between an E class Benz or Audi A6.
Which should I cop?

Pls respond.
Srs.

 

[stillin729]

I always go 5 years but it's paid off in like 3 but the extra cushion isn't bad especially when my rates are like 2%

 

[ct3]

Anything longer then 60 months is

THIS!!

60 months MAX for financing.
36 months MAX for leasing.

 

[Trent Reznor]

yup.

But help me out guys. Really this only affects you if you wont pay it off. If it is a 97 month loan wouldn't the monthly payments be so low that people can more easily afford to buy cars? There's no doubt that the car will be worth less by the time you pay it off, but the car loses value when you drive it off the lot.

For example, my old man is 47 and wants a new car but can't get all of the money out. If he where to do that 97 month financing, what bad would come of it if he makes all of his payments, most likely pays it off early and isn't looking to sell anytime soon, if ever at all?

With that being said, I will never make a payment and I will always buy used, unless it's for my future Corvette or Camaro.

No because if he ever goes to trade it in, its worth nothing compared to what he'll still owe in financing and he'll get even further down the rabbit hole.

The odds that he'll keep the car for the entire life of the loan is slim to none.

 

[peteweezy]

Who really cares what the next man does if you aren't living stupidly

For the most part they don't care just a low key way to say their friends are stupid and they aren't imo. I might say something to my close friends but doubt it. Its not like they can't afford it just that they could have saved some money. At the end of the day just being real if its not serious life things and/or don't affect me I don't really care too much what cats do even friends.

 

[ricky409]

No because if he ever goes to trade it in, its worth nothing compared to what he'll still owe in financing and he'll get even further down the rabbit hole.

The odds that he'll keep the car for the entire life of the loan is slim to none.

he just said he'll never do that though...

 

[Trent Reznor]

oh and to you 97 monthers....

DONT FORGET GAP INSURANCE!

Can't stress this enough.

Nothing worse than hearing the car you just paid for, for 3 years that got wrecked is only worth a 1/3 of what you financed and you still owe the rest.

 

[ricky409]

THIS!!

60 months MAX for financing.
36 months MAX for leasing.

but...

when did 60 months or 36 months become the sweet spot?

 

[Trent Reznor]

he just said he'll never do that though...

Ok to further clarify then...

1.) MOST prime rates aren't done for anything over 60 months so to even get into the 66 month or over crowd you're looking at sub prime.
2.) Your interest will be so crazy in that bracket that you'll wind up paying 3x your cars OG worth through the course of the loan. (quick ballpark there.)
3.) Like I said above with GAP, if you don't have it and your car gets wrecked insurance doesn't give you what you owe, only what its worth so its a huge gamble keeping it that long.

 

[Trent Reznor]

but...

when did 60 months or 36 months become the sweet spot?

Cause those are usually the MAX terms for prime financing, i.e 5% or lower.

I haven't been in the game for over 5 years, but when I did it I NEVER gave a prime rate for anything over 60 months. EVER. It was industry standard.


I never did leasing so I can't give too much info on that.

 

[stroshow]

U might get hit by a bus stepping out ur subie tho... then what.

Sure, I might get hit by a bus. But I probably won't. Odds are I'm going to be around for a while, so I feel as though it's appropriate to plan for the future it's likely I'm going to experience.

 

[ct3]

but...

when did 60 months or 36 months become the sweet spot?

This is in terms of whichever comes first.

Most cars warranties end and they start to mess up after 60 mons/5 years/60'000 miles. This is also when most of the major maintenance comes into play.

For leasing, 36 months is normally the standard across the board; however, some companies offer lower or higher month terms. 36 months is normally when the complementary maintenance schedule ends.

I would never go any higher than 36 leasing or 60 financing. That’s just my personal ceiling.

As you can see, I HATE maintenance outside of the normal, which is why I faithfully go to the dealer on schedule, and this coming from two hand-me downs that broke down on me at the most inopportune times. I do understand that cars do need maintenance and I follow them to the T, but I prefer to lease/buy a (NEW) car every 3-5 years rather than getting in that comfort zone of "being car note free", because let’s say you decide to drive a car til the wheels fall off and then it just completely dies on you; you're going to end up ponying up the money for either A) pricey maintenance B) down payment on another car OR C) public transportation.

I'd rather tailor my income to paying a note on something that I can manage from the start, than to get comfortable not paying a note only to have to drastically alter my income at later date due to an unforeseen circumstance.

So to sum it up, I prefer leasing than buying, but to each is own.

I’m currently leasing a 2011 CR-V that ends June 2014.

 

[crcballer55]

97 MONTHS!!!! DAMN People keep trying to buy stuff they can't afford.

yup.

But help me out guys. Really this only affects you if you wont pay it off. If it is a 97 month loan wouldn't the monthly payments be so low that people can more easily afford to buy cars? There's no doubt that the car will be worth less by the time you pay it off, but the car loses value when you drive it off the lot.

For example, my old man is 47 and wants a new car but can't get all of the money out. If he where to do that 97 month financing, what bad would come of it if he makes all of his payments, most likely pays it off early and isn't looking to sell anytime soon, if ever at all?

With that being said, I will never make a payment and I will always buy used, unless it's for my future Corvette or Camaro.

The problem is that you have negative equity for MUCH longer. The average car loses about 50% of its value in about 5 years. If you're taking 8 years to pay it off, it'll take you at least 6 years before you have ANY equity in it. Plus, you're actually paying more over the long term for that same car just because you wanted lower payments. Most people only factor in what they are comfortable paying monthly instead of the total cost of the item. This is why rent-to-own places are so prevalent in places with low financial savvy, because they are the ones more likely to fall into this mindset and not realize they're actually paying double for the same item.