532/month for an Altima is just rape....
Almost f*cked my future. Had to humble myself
- Thread starter ProfessionallyTrill
- Start date
I will never try to get a loan from a dealership again, most of those people don't know what they're doing. I think they also get extra money when you gotta finance. It's better to go there already approved through your bank/credit union & you'll probably have a lower interest rate than they could ever get you.
I can't wait till I get me a new car & the stealership asks if I need them to find me a loan
"No, I already have my own"
This is what I did, I just got a used car for 14k, with a loan in hand from the credit union. My monthly is only 250. But this summer I plan to work a few gigs and knock the loan down around 5k.....if I can get most of paid off by the end of year then I'm Gucci.
SadimirPutin
Superstar
You did the right thing
Consumer debt is one of the things that strangles your financial flexibility
Another tip I give people is never go into arrangements where you are penalized for paying back early.....
I still live at home, so my only bills are the car note and chipping like 3-4 hundred a month for groceries. I make like 3500-4000 during slow months but 5500-7000 during peak season. Right now my goal is building that 2-3 month emgerency fund, then going ape shyt on this loan. Im thinking about getting another job as a waiter on the weekends. To bring in more dough.
SadimirPutin
Superstar
I think credit unions are far more community and member focused than banks in my experience
So they will likely be glad to see you pay back your loan without duress to your financial well being
plus if you pay it back early I am sure if you ever need to seek capital to invest in something else they will be happy to accomodate you in terms of rates and other contract terms in the future
The manager at credit union is actually a long time friend of my mom. My mom actually used to work there as one of her supervisors, so she hooked me up, even when my credit was shaky, as I was taking steps to be debt free. I was at a low point and she was willing to work with me. I put zero down a car...because I literally had like $20 to my name after paying off debt. But needed a reliable whip.
GnauzBookOfRhymes
Superstar
You had some good info in here, but disagree with what's in bold.
As long as you have the income to support it, debt by itself isn't inherently bad, or a sign you're living beyond your means. If you have strong credit and can qualify for 0% or very low interest rates, why pay 30/40K cash? If the shyt hits the fan for you personally/financially, you can always walk away from a loan. Again, it is all about understanding how to utilize debt strategically.
It's the train of thought though. Why be in debt if I don't have to be? And again you're still making someone else richer (bank) even at 0% interest.
If shyt hits the fan you'll have a car that's actually yours. You won't have to walk away from anything. Besides, just walking away from a loan because someone was irresponsible is fiscally wrong. And you'll incur additional penalties/taxes/fees by doing that too.
Not sure where 30-40k comes in for a car? I make decent money and I'd basically never buy a 40k car unless I was a millionaire. There's too many good/great cars for way less than that. Cars imo are an expense not an asset.
If spending 40k on a car outright would hurt you financially then you honestly shouldn't be buying a 40k car.
That's the fundamental flaw of debt. As long as you have the income to support it. Unless your income is guaranteed for life you are facing possible income loss or reduction.
Would you finance a loaf of bread and make monthly payments on it? Probably not because that dollar amount is insignificant to you. If a 30K-40K car is a significant amount of money to you and you would rather finance then that's a sign you are buying more car than you can really afford.
Debt is a trap. These companies use all types of lures to get you into the trap. Strategic use of debt is buying stuff using debt that you actually have the money for to get the perks they offer customers as a lure to get them into debt then eliminating the debt by using the cash you had.
The psychology of debt is this. If I have to spend years saving 40K to get a car when I have that money saved after all the time it took I don't wanna drop it all on a single purchase. If instead I can have that 40K car now and make small payments on it over years I don't mind as much because I never really feel the 40K loss. Meanwhile the person that can actually afford the 40K car they walk in there and drop the cash on it and don't think twice. It's like them buying a loaf of bread.
People don't seem to get this. You should never buy a car you wouldn't be comfortable dropping the cash for right then and there. People constantly use debt to overextend themselves and in good times it doesn't effect them but in hard times they feel the mistake they made.
GnauzBookOfRhymes
Superstar
I actually respect people who are about the debt free lifestyle and stick to it. Finances are always case specific and people should never make decisions they aren't not PERSONALLY comfortable with. Just a difference of opinion.
For instance I do a bit of real estate investing so for me, when choosing between having a car fully paid off vs a very low interest rate (which after various deductions and depreciation effectively makes it zero percent) and having the additional cash in an account. I will choose having the cash. Not only does it help if I want to seek financing for acquisitions, I can also use it to reinvest in a property (that can be rented out or flipped).
For instance I do a bit of real estate investing so for me, when choosing between having a car fully paid off vs a very low interest rate (which after various deductions and depreciation effectively makes it zero percent) and having the additional cash in an account. I will choose having the cash. Not only does it help if I want to seek financing for acquisitions, I can also use it to reinvest in a property (that can be rented out or flipped).
New car. Im back 
Paid for. No car note.
/thread
Paid for. No car note.
/thread
What u gotNew car. Im back
Paid for. No car note.
/thread
2004 Toyota Camry with low miles.
Not the best but leather interior and its clean til I can afford something better
one should have two cars. your daily driver you can scratch up and your sunday car.