A Car payment if for suckers

[Rawtid]

What about a work truck? I felt the need to have a dependable, presentable truck for my business so I financed a new truck. Some days I feel like I did the wrong thing, but when I show up to a new job I feel it's good to make a good first impression.

Most people aren't expected to have a nice looking "work" truck. Dependable, reliable, sure, but good looking?

 

[Truefan31]

Many people are financing a car so they can drive one they really can't afford and if they couldn't finance that $30K car they wouldn't have one because they wouldn't be able to wait 5 years saving $500 a month to get it. What they would do instead is go out and get a car they could actually afford.

My point is that's the car they should be driving anyway. The one they can actually afford. Sometimes just because you can do something doesn't mean you should. My credit is borderline perfect and I have a 6 year job history at a job that more than qualifies me for a loan to get a $30K car. The reality is I can't afford that car. I managed to save $910 a month for every month this year so I could make the payments on the car but I still look at it as if I can't afford the actual car because without those payment no way in hell would I have a car like that.

It's not a good idea to use OPM to live outside your means. That's what being smart about it is. Now if you've reached a point in your life that you got well over $30K and you can walk in there and write that check and it's nothing to you then that's being smart about it but if you had to finance to get the car that's not smart.

Yup it's the same principle of when using cash to pay vs credit cards you spend less. Been proven that people spend about 10-15% more when swiping vs using cash. Because you feel cash. It hurts more giving hard physical bills than simply swiping.

Saving up and buying a car you appreciate it more. You know what it took to get it. You'll value it more.

 

[Slap Yarmulkes]

Most people aren't expected to have a nice looking "work" truck. Dependable, reliable, sure, but good looking?

All of the other contractors I work with drive lifted F-150's & Tundra's. I used to drive a g37 & there was always somebody asking me where was my truck.
I have a "work" truck that I paid cash for, that's the one that I get dirty. But when I'm going to meet up with other trades, basically chopping up business & meeting subcontractors, I drive my nicer truck.

 

[TRFG]

Corporations have basically zero liability to themselves. Leveraging has no real penalty to them.

In personal finance though leveraging future earnings always brings risk. Debt=risk. You have more to lose than corporations who are bailed out by us and given golden parachutes for fukkin up. We don't get that luxury.

I'm sorry breh I can't take you serious anymore

If CEO leverages and loses the board gives him and upper management the

 

[Truefan31]

I'm sorry breh I can't take you serious anymore

If CEO leverages and loses the board gives him and upper management the

With millions as severance. Called golden parachutes. You however don't get that if say you lose your job, get hurt/disabled, or some other hardship. Maybe a severance if you're lucky.

You don't have to agree. Do you. But I know my life is way better without debt than when I had it.

People out here really proud about owing others money smh

 

[MikelArteta]

Yup, you never know when your going die.
Take vacations, enjoy life. Hell I'm 31 feels like a blur, blink my eyes God willing I'll be 62, average lifespan is like 77 for a male.

Save all your money for when you're too old to enjoy it breh's.
Drive piece of shyt cars breh's.
Deny yourself the joys of life breh's.

I remember sitting in a meeting with a 73 years old with a half a mill in the bank and he was miserable as hell, said he worked his whole life and saved all his money and now he's old and al he's got is his money. I met so many old people who never enjoyed thier hard work and they were too old to reap rewards. @Reinscarf told you guys about the woman that saved her whole life, retired, next week went on a cruise and died on the cruise.

You can't take none of this shyt with you when you go. Enjoy your lives.

 

[winb83]

Save all your money for when you're too old to enjoy it breh's.
Drive piece of shyt cars breh's.
Deny yourself the joys of life breh's.

I remember sitting in a meeting with a 73 years old with a half a mill in the bank and he was miserable as hell, said he worked his whole life and saved all his money and now he's old and al he's got is his money. I met so many old people who never enjoyed thier hard work and they were too old to reap rewards. @Reinscarf told you guys about the woman that saved her whole life, retired, next week went on a cruise and died on the cruise.

You can't take none of this shyt with you when you go. Enjoy your lives.

It's important that you plan for the unexpected. There are people out here driving cars that are worth more than they have in their emergency fund. There are people out here financing cars that don't have an emergency fund at all. People driving a $30K car with less than $2000 in savings and no retirement savings.

You have to take care of yourself and plan accordingly. Enjoying life isn't the same as living like a child and indulging in everything that feels good just because you can. When you're dead you won't care about what you left behind. There isn't some purgatory where you sit and reflect on all the shyt you didn't do. On the other hand when you get old and don't have what you need to live off of that's hell.

In your life a car can possibly be one of the most expensive purchases you make beyond a house. After a certain point it reaches all the functionality you need of it and the extra spending is all excess and wasteful. If you've reached a level in life where wasting money is something you can afford because you have it to waste great but most people are a job loss away from complete ruin and they're borrowing money to get that car anyway.

I wanna be that guy that can live 6 months to a year on an emergency fund if the company I work for folds up or has to downsize. I don't wanna be the guy who was "enjoying life" and got blindsided when I hit a rough patch because I was really just treading water and living outside my means.

A $4-$5K car isn't a POS it's a manageable serviceable vehicle that does what I need it to do and that's it.

 

[1thouwow]

Haven't had a car payment since 2014 and I got a 2012 car

 

[Mainevent_7]

I'm already prepared to put a 5k down payment and finance the 25k for a car. Saving 2.5k a month for a whole year is something I'm not interested in doing. Paying a small monthly payment allows me to save money in other areas( bigger emergency fund, home improvements, vacations, stock investments).

 

[winb83]

I'm already prepared to put a 5k down payment and finance the 25k for a car. Saving 2.5k a month for a whole year is something I'm not interested in doing. Paying a small monthly payment allows me to save money in other areas( bigger emergency fund, home improvements, vacations, stock investments).

I don't think anyone prefers to save $2500 a month for a year to get a car but the alternative is paying a fair amount extra for the car. The question should never be how much a month it should always be how much total. Smaller monthly payments means a longer loan term and more interest paid. These people want you only thinking about a monthly payment It's how they get you to pay more for something that actually cost less.

 

[Truefan31]

I'm already prepared to put a 5k down payment and finance the 25k for a car. Saving 2.5k a month for a whole year is something I'm not interested in doing. Paying a small monthly payment allows me to save money in other areas( bigger emergency fund, home improvements, vacations, stock investments).

Hey I'm not tryin to tell you what to do but it's easier to do things one at a time vs tryin to do all at once.

Just for example if you bought a 5k car now (there's plenty of good ones) you can solely focus on building the emergency fund. Once that's good move on to the next. Focus solely on home improvements, once done move to the next. It's why budgeting is important and not being in debt. It clearly outlines where your money is going. Debt prevents building capital for these things. It distracts from where the money should go.

When you see the clear outline a budget can provide it brings clarity and also creates goals that you can focus all your energy on. When focused on single tasks it's easier to achieve.

 

[5n0man]

You were gifted a car. End of discussion

This.

A car is a tool used to travel and that's all it is. End of discussion.

If a guy walked up to you and said he'll sell you a $5 bill for $5.21 would you buy it off him? If you did would that make you a sucker?
Suddenly if some zeros get added behind the numbers it makes you less of a sucker? If he sells you $30,000 for for $31,280 aren't you not the same as a the guy that bought the $5 for $7.14? You even paid the same interest rate.

I hear where your coming from, but like dude said you were gifted a car. Do you know how hard it is to get around in many parts of the country? Some people don't have the option of a free running car in good condition.

 

[winb83]

This.

I hear where your coming from, but like dude said you were gifted a car. Do you know how hard it is to get around in many parts of the country? Some people don't have the option of a free running car in good condition.

I wasn't just gifted a car. I had a car note and totaled my car, my parents gave me a car that was over a decade old and was rusted and burns oil. My air never worked in it either. I've had that car for about 4 years now and it isn't a pleasant experience owning it. At this point the car needs more in repairs that it's worth but it's still driveable so I drive it. Just recently the transmission slipped on it for example.

I was a idiot with money so until year 3 I didn't start saving car note level money. But the level of car I drive you can get for under 2 grand. 132,000 miles and 14 years on it needing new tires, a redone suspension, and ac work that's all together more than the $1500 the KBB says the car is worth selling private party. It was worth $500 more when I got it.

On a positive note my insurance is dirt cheap because I don't carry insurance on the car itself just liability.

I will drive the car until it can't be driven anymore. What I'm not going to do is use the car's low value and poor condition to justify financing a car 12x what it's worth just because it's a bit rough.

My car before the totaled one was a $1500 beater I drove a year and a half until the transmission failed. I was paid $300 by a guy who hauled it off when it died.

I know about driving beater cars. It Isn't a big deal. At the same time there's always a temptation to replace my current car and I actually have the money to do so right now buy why? It still runs.

 

[PrnzHakeem]

I know about driving beater cars. It Isn't a big deal. At the same time there's always a temptation to replace my current car and I actually have the money to do so right now buy why? It still runs.

nikkaz not trying to buy and drive beaters. Got a wife and baby.

I'm fine with you risking your own safety and life, but I'm not going to risk mine to make you broke bad credit nikkaz feel good about your dumb opinion

 

[Self_Born7]

word... just get one of your boys to go down to the docks, and life one for you, and pay him up front...