Average Monthly Auto Loan Now $503 @ 68 months
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Kyle C. Barker
Migos VERZUZ Mahalia Jackson
@ your parents co-signing 100k loans
Naw those are probably grad plus loans. Sounds like he's in medicine with all the talk of passing boards. That's capital investment in my book
i only pay 298
NotAnFBIagent
[redacted]
fukk getting your pockets ran every month
Just gimme a nice used car and I'm straight
Just gimme a nice used car and I'm straight
Heres the thing.... some people are able to save enough for retirement..... AND have a car note. AND have a car note.... that is nowhere near $5500/yr. Both me AND my wife's cars don't even cost near that much. You like math? Let's take your very optimistic 8% return in the context of a 2.5% car note. That's still a 5.5% return, and instead of having all your cash tied up in a car you have it generating income. So what are you talking about? If someone wants to buy a $10K car as well as invest, why the fukk would they take that $10K and spend it all on a car, if they could put $1K down and have the other $9K generating a net 5.5%? Your logic makes no senseJust for kicks i did a roth ira calculator, starting at 25 until 62 (social security age), doing 5500 a year and i put a very conservative 8% earnings rate. At least 1.2 million. Over 1.2 million from about 200k in contributions. That grew TAX-FREE. And that's a low estimate, seeing how even the S&P 500 averages about 10% annually even after inflation.
Hope those new car payments are worth it
The Roth IRA just might be the GOAT retirement/investment tool for people, especially for beginners. Putting in after tax dollars, the earnings/growth is tax-free as well when you withdraw at retirement age. It's basically a savings account that has the ability to earn at least 10%, and if a catastrophic event happens, you can access and withdraw the contributions you've made at any time with no penalty or taxes.
i'm not saying your right or wrong, just that the less debt you have the better. Especially on a car loan. Don't even pay 2.5%, not even zero percent interest, just buy a car. I don't believe in buying new cars anymore, it's just not worth it unless you basically got no debt whatsoever (no mortgage too), at least 6 month emergency fund, 15-20% income retirement savings, college savings for kids if you have any, and a bunch of money to blow. Read up on millionaires. Just about all of them do not buy new cars while building their wealth/net worth. They save the money up and buy a car outright. OWN is the key.
The whole point of being debt free is minimizing risk. Anytime you have anything like a car loan, student loan, loans of any kind (mortgage too), it's a risk. Risk of foreclosure, repossession, etc. Debt means you are leveraging items with future earnings that have not been earned yet.
I understand the value of credit scores, but increasing credit should not involve car loans. Ever.
Being in debt just means that you're making someone else rich while you take all the risk.
And yea there is a risk to credit, but there's a risk to using cash too. Say you buy that car cash, and then are in a position where you wouldn't have been able to pay the note. You probably won't be able to pay for other essentials like car insurance, gas or your rent/mortgage either, AND the cash you could have had to get through the rough patch is tied up in an illiquid depreciating asset.
There are risks associated with buying cheap cars with only cash too.... shyt can get to the point where repairs cost more than the car and wind up being damn near like a car note anyway, only for a POS on its last legs. That doesn't make much sense either. Used cars are a lot more expensive than they used to be.... you can't spend like $3K and get a reliable low mileage car. It's not the 90s.
Debt is fine if you are responsible with it and position yourself to be able to service it reliably. I'd much rather have a little debt and all my cash on hand than be cash poor and debt free. People who are afraid of debt usually got burnt by it not knowing what the hell they were doing and by extension shouldn't be giving advice on it. My credit score is in the mid 7s and I get back hundreds of dollars a year from CC rewards..... debt is a great thing
Why spend my money when I can have somebody pay me to spend theirs? 
Rigamortus
Superstar
let me guess it's a 3 series tho right?! What a waste...
This exact model. It's not a bad car. But that premium with that kind of mileage
Homeboy got ripped off
Heres the thing.... some people are able to save enough for retirement..... AND have a car note. AND have a car note.... that is nowhere near $5500/yr. Both me AND my wife's cars don't even cost near that much. You like math? Let's take your very optimistic 8% return in the context of a 2.5% car note. That's still a 5.5% return, and instead of having all your cash tied up in a car you have it generating income. So what are you talking about? If someone wants to buy a $10K car as well as invest, why the fukk would they take that $10K and spend it all on a car, if they could put $1K down and have the other $9K generating a net 5.5%? Your logic makes no sense
And yea there is a risk to credit, but there's a risk to using cash too. Say you buy that car cash, and then are in a position where you wouldn't have been able to pay the note. You probably won't be able to pay for other essentials like car insurance, gas or your rent/mortgage either, AND the cash you could have had to get through the rough patch is tied up in an illiquid depreciating asset.
There are risks associated with buying cheap cars with only cash too.... shyt can get to the point where repairs cost more than the car and wind up being damn near like a car note anyway, only for a POS on its last legs. That doesn't make much sense either. Used cars are a lot more expensive than they used to be.... you can't spend like $3K and get a reliable low mileage car. It's not the 90s.
Debt is fine if you are responsible with it and position yourself to be able to service it reliably. I'd much rather have a little debt and all my cash on hand than be cash poor and debt free. People who are afraid of debt usually got burnt by it not knowing what the hell they were doing and by extension shouldn't be giving advice on it. My credit score is in the mid 7s and I get back hundreds of dollars a year from CC rewards..... debt is a great thing
You say some can have a car note and save for retirement. My simple answer is why have a car payment at all? If you can save for retirement you can save to buy an affordable car.
Sure people feel like they can afford car payments. The simple question is:why? Why have a car payment if you can help it? Buy a car you can afford realistically. If you're buying a 10k car you should probably have no debt other than maybe a mortgage. There's plenty of good 10k cars. Tons actually.
Rough patch? Even more reason to not have debt and have an emergency fund. Car insurance, gas, property taxes etc you should factor all that in before buying a car you think you can afford. You have a car note but no emergency fund?
Plus you know car insurance is cheaper when you own your car right? Taxes on your car are cheaper buying used vs new also.The risk with credit far outweighs any little risk with cash. Credit=debt that you plan to pay with future earnings you haven't made yet. There's risk all over that. You keep saying have cash on hand with a car note, I'm saying fukk making someone else richer and really own your car from the jump while having cash. I'm sorry but if someone became disabled, or got laid off, a car note isn't gonna make them feel better. Knowing you outright own your shyt and got emergency funds will feel better than that.
Your numbers analogy just focuses on math but real life accounts for overall success. Let's say you're making your 5.5%. Here's a way to look at it. If you owned your home free and clear, would you borrow money out and take a loan on your mortgage to invest to make 5.5%? Hope not. You're borrowing at 2.5% to try to hopefully make 5.5%. My point is don't borrow shyt and make realistically 8-12%. Hopefully you'd invest with extra money you've saved and are willing to take risks with.
Bragging about credit scores just means banks love to put you in debt. Because you're likelier to make them richer.
Such a simple concept but it gets forgotten:live on less than you make. Want something? Save for it. A home? If you can't save and buy outright at least have 20% down and do 15 year fixed, monthly payments not exceeding 1/4 of your take home pay.
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I have a 25k loan over 5 year interest rate @ 2.5%. So my monthly payments started at around $500.00. But started making double payments immediately. And in 3 months time now my monthly minimums are like $380.00
I personally recommend going with a longer term loan and just paying extra every month. That way you not forced to pay the higher monthly payments with a shorter term loan
I personally recommend going with a longer term loan and just paying extra every month. That way you not forced to pay the higher monthly payments with a shorter term loan
How much do u earn?
Around 100k
If you finance a 15k car like you just said at a low rate, you're making someone else richer. Loans are front loaded too so your beginning payments are where they get their money from interest. Also while you're financing you're paying more on car insurance as well since full coverage is required.
On top of that, buying your car outright means you own it. You don't owe anyone else. It's yours, in case of things like job loss, injury, it's still yours. Financing means you're leveraging debt against future earnings you haven't made yet. It's risk.
That's good money. If you like your car man pay that shyt off quick imo. Don't make the lenders richer.
Yup. Like shackles to your financial freedom. Starting to make you mad it looks like. That's good.
500 a month? Think about it buy outright an affordable car, could take some of that 500 and do a Roth IRA, instead of a lender you're making sure YOU GET RICHER
I posted earlier how about doin a Roth IRA, 5500 a year can mean easily over a million at retirement. And almost all of it is tax free unlike typical 401ks which will tax you when you withdraw. About 200k to get about 1.2 million tax free dollars.
But people want a car payment
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