A Car payment if for suckers

[winb83]

Sure. But in terms of financing a car 10k is not a lot. I wouldn't finance a car anyway. Doesn't matter the threshold. I buy what I feel I can afford outright. Owing others money isn't something to brag about period. Simple is sweet. Debt free, emergency fund, investments in solid funds/real estate etc. is how I like it. These banks ain't stupid man and I'm not out to prove I'm smarter than these banks finessing people into thinking debt is a good thing for financial stability. Play with fire enough you'll get burned.

If there's a job loss/disability/hardship the last thing I wanna think about is who I owe money to. Like I said debt=risk.

Total agreement. There's no reason to take on unnecessary debt to get a car just because inflation is at 1.6% and I can get a car loan for 2.6%. I don't see the point of taking a loan to invest the money. I don't like being in debt and while I can see taking on some debt to get a house taking it on for a car doesn't seem wise. If you're buying a car that cost enough to even consider taking out a loan to buy it the damn thing is probably still on the heavier side of it's depreciation and is probably losing 15% of it's value a year still.

We're really borrowing money to buy something that's losing 15% of it's value a year so we can take the money we would have used to buy it and invest it? If you buy a car at year 4-5 yeah it might require some maintenance but the depreciation is really gonna slow at that point and it's probably fallen to a dollar amount that anyone with a decent job can save several months and just buy it cash. If we buy it before that 4 year mark the question becomes will the depreciation of the car and interest combined outpace the growth of the investments?

 

[TRFG]

Terrible way to build credit if that's what you wanted to do.

Now, I know you don't know what you're talking about

 

[Truefan31]

Now, I know you don't know what you're talking about

Lol ok if you say so. I don't know many real advisors that'd tell you to go get a car payment to build credit.

 

[Truefan31]

Total agreement. There's no reason to take on unnecessary debt to get a car just because inflation is at 1.6% and I can get a car loan for 2.6%. I don't see the point of taking a loan to invest the money. I don't like being in debt and while I can see taking on some debt to get a house taking it on for a car doesn't seem wise. If you're buying a car that cost enough to even consider taking out a loan to buy it the damn thing is probably still on the heavier side of it's depreciation and is probably losing 15% of it's value a year still.

We're really borrowing money to buy something that's losing 15% of it's value a year so we can take the money we would have used to buy it and invest it? If you buy a car at year 4-5 yeah it might require some maintenance but the depreciation is really gonna slow at that point and it's probably fallen to a dollar amount that anyone with a decent job can save several months and just buy it cash. If we buy it before that 4 year mark the question becomes will the depreciation of the car and interest combined outpace the growth of the investments?

I look at it as separating my investments from my assets. When you're focused its easier to attain goals. Clear lines. Minimize risk by avoiding debt. Debt is a wealth killer. People get caught up in rates and interest which is important but imo being organized helps drive investing and retirement savings. Inflation is always present, it's why after my emergency fund I basically max out as much as possible on investments. My emergency fund has a clear purpose:for emergencies. Not to invest, but to do what I intended it to do. It's why things like whole life insurance are scams. They try to be more than what they should be, and it's why it fails at all of it.

Zero debt means a lot to me. I own my vehicles. Nobody or no bank can tell me shyt. I do basic maintenance and they've lasted years no problem. I lose my job, I get hurt/disabled whatever, they're still mine. I don't owe anyone on them. My cars aren't means to borrow and invest. They're cars. I leave it at that. My house is mine. It's not a means to borrow against and invest. It's risky. With those things covered, it becomes easier to focus on building funds up for other things like investing/real estate. When people can focus on one goal it's easier to accomplish. I learned the hard way over years now looking back its so easy what to do but we get caught up thinking we're smarter than banks and/or we want to stunt to people who really don't matter.

People quickly forget the lesson kids are taught: earning and actually saving up to buy something. When you do you tend to appreciate it more too.

 

[Slap Yarmulkes]

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.

 

[Truefan31]

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.

I think only you can really determine if it was worth it to you. Do you feel like you overspent on a work truck? While good first impressions are definitely a factor, I think if you do a good job and provide a good service your business will go where you want it. Was getting the truck an expense you factored into starting the business? May I ask what kind of business?

 

[Slap Yarmulkes]

I think only you can really determine if it was worth it to you. Do you feel like you overspent on a work truck? While good first impressions are definitely a factor, I think if you do a good job and provide a good service your business will go where you want it. Was getting the truck an expense you factored into starting the business? May I ask what kind of business?

I'm own a painting business. I paint apt complexes mostly. Business is actually pretty good, more than enough to justify the payment, but sometimes I just really regret financing this damn truck.

 

[Truefan31]

I'm own a painting business. I paint apt complexes mostly. Business is actually pretty good, more than enough to justify the payment, but sometimes I just really regret financing this damn truck.

That's good man. Well can you just pay it off quickly since you seem to wanna keep the truck? Or are you thinking of selling and getting something cheaper?

 

[DrX]

cars are for suckers if youre in a major ity, i might get rid of mines when i move...take the train and bus everywhere...im almost done paying it off tho

 

[Slap Yarmulkes]

That's good man. Well can you just pay it off quickly since you seem to wanna keep the truck? Or are you thinking of selling and getting something cheaper?

See that's the thing, I already have a cheaper truck that I work out of. I just bought this truck because I go out and do a lot of bids and my cheap truck is covered in dirt and paint all the time. I know it sounds stupid, but most of my clients & fellow contractors in my circle have nice trucks. I'm basically just paying this note to fit in...

 

[Truefan31]

See that's the thing, I already have a cheaper truck that I work out of. I just bought this truck because I go out and do a lot of bids and my cheap truck is covered in dirt and paint all the time. I know it sounds stupid, but most of my clients & fellow contractors in my circle have nice trucks. I'm basically just paying this note to fit in...

It's not stupid, it's actually common.

Well it's obviously up to you. What's the ratio of your payment vs your NET income? Other than that, if you like the truck and want to keep it then I'd suggest paying it off early. If you don't like it sell it and either get something else or reinvest into your business possibly.

 

[crush_sumpin]

I disagree with this post. For the author to make a blanket statement abut car payments being for suckers is a sucker comment in and of itself. Regardless of the person's age..do you even know their circumstances for having a car payment? So I guess everyone's situation is the same huh? Sometimes I think people just post stuff on here to illicit responses instead of bringing something to the forum that we can build on..

now, if you are living far beyond your means & part of that is your car payment, then yes, imo that's some ignorant shyt. Trying to impress people who don't give a damn about you, just so you can step out of that vehicle, knowing you can't afford an oil change or new tires, much less the payment each month..smh.. and you know what's worse, when you see someone in that shiny car or suv, with the rims and all..and you look inside and it is trashed, nasty smelling, looking like kids have been slowly tearing it apart. engine running bad..but it's a range rover..foh

 

[winb83]

I disagree with this post. For the author to make a blanket statement abut car payments being for suckers is a sucker comment in and of itself. Regardless of the person's age..do you even know their circumstances for having a car payment? So I guess everyone's situation is the same huh? Sometimes I think people just post stuff on here to illicit responses instead of bringing something to the forum that we can build on..

now, if you are living far beyond your means & part of that is your car payment, then yes, imo that's some ignorant shyt. Trying to impress people who don't give a damn about you, just so you can step out of that vehicle, knowing you can't afford an oil change or new tires, much less the payment each month..smh.. and you know what's worse, when you see someone in that shiny car or suv, with the rims and all..and you look inside and it is trashed, nasty smelling, looking like kids have been slowly tearing it apart. engine running bad..but it's a range rover..foh

The vast majority of people finance a car. I've heard statistics of over 70% of cars sold in America are financed. If we're being honest here people finance a car in many cases for the same or similar reasons as to why they're drowning in consumer debt. They want something and don't have the money in most cases to buy it outright so they borrow the money to get it. In other less frequent cases they don't want to spend the money. In other even less frequent cases they're looking to gamble with the money but really are you gonna pretend like most cases aren't the first?

People like to dress a car up as a need. Maybe to a certain extent a car is a need but there's a lot of want wrapped around that need as well. Unless you're very low income when you get to the price that financing a car is justifiable you're probably taken a need and added enough want to it to drive up the cost. People rationalize it by saying they need a stable reliable car and end up buying a car they don't have the money for. In reality they can get a stable reliable car for much less than they spent also by buying an older used car and getting a couple mechanics to check it out before the purchase.

Think about it though if car financing didn't exist what would those people do? They'd buy the best car they could afford rather than be enabled to buy a car they don't have the money for.

 

[Truefan31]

The vast majority of people finance a car. I've heard statistics of over 70% of cars sold in America are financed. If we're being honest here people finance a car in many cases for the same or similar reasons as to why they're drowning in consumer debt. They want something and don't have the money in most cases to buy it outright so they borrow the money to get it. In other less frequent cases they don't want to spend the money. In other even less frequent cases they're looking to gamble with the money but really are you gonna pretend like most cases aren't the first?

People like to dress a car up as a need. Maybe to a certain extent a car is a need but there's a lot of want wrapped around that need as well. Unless you're very low income when you get to the price that financing a car is justifiable you're probably taken a need and added enough want to it to drive up the cost. People rationalize it by saying they need a stable reliable car and end up buying a car they don't have the money for. In reality they can get a stable reliable car for much less than they spent also by buying an older used car and getting a couple mechanics to check it out before the purchase.

Think about it though if car financing didn't exist what would those people do? They'd buy the best car they could afford rather than be enabled to buy a car they don't have the money for.

Bingo. These banks aren't dumb. How do you think they have such nice buildings?

 

[PrnzHakeem]

Bingo. These banks aren't dumb. How do you think they have such nice buildings?

The building? They financed them.