The Average American can’t Afford a New Car

[ksteezy]

Btw wht exactly is the problem?...leased or financed for a certain amount of years you are getting the same out of both cars...10k a year is plenty mileage allowance for the average driver, same insurance, etc...putting down 1k as down payment for a lease or for a financed car is no different bros...you think in the grand scheme of things 4 years later that 1-2k down payment is even going to weigh down on your conscious when is time to either give up the lease or when you are done paying off the car and now you are on your own?

 

[utvol23]

Do what you want but I am just saying that Leasing (Fleecing) is the most expensive way to own a car. IMO having a car payment is not the way to go. Yet we wonder why so many people in this country are swimming in debt.

 

[utvol23]

If you want some piece of mind buy a certified used car and get the extended warranty. Extended warranties are mostly profit for the dealerships but it is still cheaper than a lease.

I just bought a "new" car since someone ran a red totalling my car. I got a benz. I made a mistake in how I paid for it though. I should have just paid cash but had some big expenses at the time. Instead I put 50% down and financed the other 50%. I am however paying 3-4X the normal payment each month so i will be paid off in under a year. My financed rate is under 2% and some would say to just keep paying it off normally since that money invested will make more than the interest I am paying under the financed portion, but I dont like to have payments.

I also have the remainder of the factory warranty and then the certified warranty and I also got the extended warranty so my car has a warranty through 2016. I can also cancel the extended warranty up until it starts and get that portion refunded if I choose. After I finish paying the car off all that money I would have spent on payment I can save so when the warranty runs out I have a big chunk of change to pay for any repairs or even buy a new car if I so please.

 

[Rootin4EverybodyBlack]

Btw wht exactly is the problem?...leased or financed for a certain amount of years you are getting the same out of both cars...10k a year is plenty mileage allowance for the average driver, same insurance, etc...putting down 1k as down payment for a lease or for a financed car is no different bros...you think in the grand scheme of things 4 years later that 1-2k down payment is even going to weigh down on your conscious when is time to either give up the lease or when you are done paying off the car and now you are on your own?

The average person drives 13K a year. So no you're wrong. Which is why those 10k/year leases car companies are offering now aren't feasible for most people.

And no I'm not just talking out my ***, here's the link http://www.fhwa.dot.gov/ohim/onh00/bar8.htm

In order of what's the most intelligent financially: Cash > Financing>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Leasing

 

[ksteezy]

Guess we all have our way of doing things, I did the financing thing since 05' the way I am it wasn't beneficial at all....I get tired of cars easily, so every 3-4 I was looking to get rid of it, even more so when little things started acting up, right before I traded my Acura into jeep I had to come out of pocket some 1200$ because of a sensor....that was my sign.

I like a car while still new, so I'm ok with budgeting within my means for a monthly lease payment...and like I've said before we already own a pretty new car which was financed and now is paid for, so I'm not saying financing sucks, it just comes down to the type of person you are and the type of car you are financing....which is more expensive?...well either financing or leasing, you are not gaining much, cars depreciate fast so I guess it also comes down to picking the best of two evils, no?

 

[ninjahood]

here's da way imma do it:

1. open up a CD account with a bank once da interest rates start going up

2. get da money you wanted to spend on a car (provided you was gonna pay it in full) and deposited it in da CD

3. borrow against da CD amount that use was going to pay for your whip on, set up FIXED payment plans

with da bank that have a LOW FIXED INTEREST RATE.

4. when you finish paying for da loan you'll A.car would have already been paid for B.all da money you started with STILL in da bank

(plus interest you've earned from having your money in a CD account)..THATS how you do smart car purchases.

steezy hustling backwards with that lease. only way im leasing is if i got a LLC where i can write off ALL da payments off on my taxes.

 

[thadocta]

let alone gas lol has anyone ever seen gas prices are the world? in some countries it 9 cents a gallon. ill stick to a used car over any new car.

not sherriffsrs

 

[thadocta]

steezy where did u study economics?

leasing is the worst way to buy a car. the only good thing from leasing is u get rid of it in 3 years but ur paying out ur *** for that luxury. and unless ur leasing a ferrari or lambo all these normal cars will last well past three years without major maintenance

 

[Betonblck]

let alone gas lol has anyone ever seen gas prices are the world? in some countries it 9 cents a gallon. ill stick to a used car over any new car.

not sherriffsrs

Venezuela. Still, it was a bad example to compare other parts of the world.

 

[HankHill]

Guess we all have our way of doing things, I did the financing thing since 05' the way I am it wasn't beneficial at all....I get tired of cars easily, so every 3-4 I was looking to get rid of it, even more so when little things started acting up, right before I traded my Acura into jeep I had to come out of pocket some 1200$ because of a sensor....that was my sign.

I like a car while still new, so I'm ok with budgeting within my means for a monthly lease payment...and like I've said before we already own a pretty new car which was financed and now is paid for, so I'm not saying financing sucks, it just comes down to the type of person you are and the type of car you are financing....which is more expensive?...well either financing or leasing, you are not gaining much, cars depreciate fast so I guess it also comes down to picking the best of two evils, no?

This is the only reason I can see why someone wants to lease a car. Some people just want to have the latest model, or easily switch to different makes and models. Nothing wrong with that.

Me personally, I like to keep something and wear it out.

 

[SneakerProSr.]

Idk man in the last 28 months I've driven 18000 miles.

I plan on buying a new car no matter what in the next 3 years. If the car I bought last month wasn't one of the least depreciating cars in America a lease would have made sense.

 

[youngdoc]

I lease. I realize it's the most expensive way but I like the convenience of being able to switch it up every 3-4 years plus not worrying about maintenance.

After residency I'll be able to afford a car I want for more than 3 years and I'll buy.

 

[utvol23]

steezy where did u study economics?

leasing is the worst way to buy a car. the only good thing from leasing is u get rid of it in 3 years but ur paying out ur *** for that luxury. and unless ur leasing a ferrari or lambo all these normal cars will last well past three years without major maintenance

Right and most people dont have the money to afford that luxury of losing that money nor do they have the money with which to afford buying a new car and losing almost 60% of its value in the first 4-5 years which is why you buy slightly used car.

 

[SneakerProSr.]

steezy where did u study economics?

leasing is the worst way to buy a car. the only good thing from leasing is u get rid of it in 3 years but ur paying out ur *** for that luxury. and unless ur leasing a ferrari or lambo all these normal cars will last well past three years without major maintenance

Right and most people dont have the money to afford that luxury of losing that money nor do they have the money with which to afford buying a new car and losing almost 60% of its value in the first 4-5 years which is why you buy slightly used car.

What if people buy cars that don't depreciate at that rate?

 

[utvol23]

I lease. I realize it's the most expensive way but I like the convenience of being able to switch it up every 3-4 years plus not worrying about maintenance.

After residency I'll be able to afford a car I want for more than 3 years and I'll buy.

In a few years you definitely be able to afford most cars you want unless you have massive student loans so youll be able to buy and not be too concerned with taking the financial hit.

In regards to wanting to switch it up every few years why not buy a used certified car keep it for a few years and then sell it. It will still be under warranty while you own it and you wont lose a tremendous amount in value.

 

[utvol23]

What if people buy cars that don't depreciate at that rate?

What cars are those? Most cars depreciate drastically esp in the first two years. Show me some examples of cars that dont take a huge hit as soon as you drive it off the lot

 

[luckyluchiano]

What cars are those? Most cars depreciate drastically esp in the first two years

honda?

 

[utvol23]

For example one of the least depreciating cars is a toyota prius. a 2013 runs around 24.5K while a used 2011 Prius costs ~19K.

 

[thadocta]

What if people buy cars that don't depreciate at that rate?

What cars are those? Most cars depreciate drastically esp in the first two years. Show me some examples of cars that dont take a huge hit as soon as you drive it off the lot

da hemi

srs

 

[utvol23]

honda?

A new base honda accord LX costs 21.5K a 2011 used honda accord costs 15.5K.

That IS A HUGE LOSE about 28% in two years

 

[luckyluchiano]

A new base honda accord LX costs 21.5K a 2011 used honda accord costs 15.5K.

That IS A HUGE LOSE about 28% in two years

only ones I seen for 15 were ones with over 50k miles everything else was about 18k

 

[utvol23]

$16,281

Very Good
$15,731

Good
$15,281

Fair
$13,731


Values from KBB with 29.9K miles

 

[SneakerProSr.]

What if people buy cars that don't depreciate at that rate?

What cars are those? Most cars depreciate drastically esp in the first two years. Show me some examples of cars that dont take a huge hit as soon as you drive it off the lot

da hemi

srs

Man you knew where I was going .

The Dodge challenger r/t is the example.

 

[wawawowee]

This is a excellent thread! Here is my situation... I just payed off my credit card debt about the end of 2012 (That took about 7 years to pay), so that's one debt that I don 't have to worry about paying. On July of 2010, I financed a 2007 Impala LT used(My first car). The sticker price was $11,999, but I negotiated to drop the price to $10,500. I put down $2,500, which made my loan about $8K after everything. My note is $194.75 a month, which was good for my income. I have never missed a payment or payed late (Smart payment plan FTW) and my account is current. I plan on paying the reminding $4k and some change withing the next couple of days to get this dept out my head and the only debt I plan on paying after my car note is my student loans, which will take in effect in November of this year. My question is, Since I've been paying my note for about 2 in the half years, will it make my credit look real good if I decide to pay the remaining balance in full even though, my loan is up to 5 years? I'm hearing that if you pay off a car before the 5 year plan, it won't show that much impact of improvement on your credit score, is that true?

sorta. credit isnt JUST how high your score is. its a combination of your score and your history. They dont care that you paid off a $10,000 loan in 3 weeks. They want to see that you have a long history of paying back your debts. If you owed $10,000 on your credit card, the credit bureaus would rather see 10 payments of $1000 than 2 payments of $5000. 10 payments shows you pay on time consistently and are responsible. 2 payments wont show that.

Example: When i went for my car, i had okay credit. i had just under 700. Didnt matter. I couldnt get a great monthly payment from most places because i didnt have a long history of repaying debts.

Not so great example: If a basketball player shoots 2 shots in a game and makes it...hes technically 100% on fg shooting. But nobody cares. Everyone would rather see hes 60% from fg in 30 games..

You're playing their game which is a game you're not supposed to win. 

If someone has 250k in various investments and a total networth multiples of that, they will have no problem approaching their bank for a car loan with a 2-3% rate. They can have 0 credit history. It won't matter. 

Credit history is only important for those that don't have the financial assets to back up the debt that they may be taking on. In that case, the lender wants to see a consistent history of paying back obligations because there's nothing tangible backing up the loan. Most personal loans are unsecured. 

 

[diego]

Everyone on NT drives M3s with over 100k miles on it. My favorite part is when everyone claims their way is the best way.