Cloud's car stuff - Page 17

Cloud · 10-14-2010, 03:19 PM

I agree; awareness is key. Pay attention! But you still need to check!

Local dealer called and said they are getting a Juke -- one -- tomorrow and would I like to come look at it "before it sells."

Yes. yes I would! Don't know what color/trim, but I can't wait to see the damn thing in person. Seems like it's going to be a pretty hot item, so may have to wait awhile for a decent selection and deal. Met with my Credit Union loan officer today in a pre-pre-approval interview, and I think I'm good to go! (crossing my fingers)

Cloud · 10-16-2010, 06:25 PM

Saw a juke in the flesh today and got a chance to drive it! Really a perfect car for me. They are trickling into dealers slowly. Will have to wait to get the exact one I want. (black or white SL w AWD and red interior trim)

xoxoxoBruce · 10-16-2010, 08:33 PM

You go girl...

Cloud · 10-17-2010, 12:18 PM

I'm pretty amazed at the crap things people are doing with their car loans in general. I'm guilty of this also--in 2001 I bought a new car with my crappy credit and got a subprime 18% loan. With interest, I ended up paying twice the amount of the car. Now I know better.

Even on forums where people are supposedly trying to improve their financial situations, I see people buying too much car (if credit is bad, why are people buying $40K cars?); putting down the absolutely minimum down payment, thus putting themselves underwater immediately, having to buy gap insurance, leasing a car which never lets them have no monthly payments, trading in cars with underwater loans, thereby still paying interest on a car they don't even own. getting ridiculously long loan terms (why would you want to be making payments for six years, for crying out loud?) and focusing too much on monthly payments and not total amount owed. (But I got a sweet ride! and my payments are lower!).

I know I'm lucky in that I've managed to save a decent down payment., my car is not dying (even though it's 9 years old), and that I've managed to improve my credit scores and financial situation enough that I can probably get a decent loan, but I'm still left shaking my head at some of the things people will do to get wheels.

tw · 10-17-2010, 12:48 PM

Quote:

Originally Posted by Cloud

but I'm still left shaking my head at some of the things people will do to get wheels.

I have said this often. If one needs a loan to buy a car, he probably has no business buying that car. I will never understand why people borrow money to buy a car they have no business owning.

xoxoxoBruce · 10-17-2010, 01:44 PM

Because they need the car to get to work and earn the money to pay for the car, which beats sitting at home with no job and no money. Buying a new car is the way to get on the road with minimum cash, especially if you are mechanically challenged.

tw · 10-17-2010, 08:14 PM

Quote:

Originally Posted by xoxoxoBruce

Because they need the car to get to work and earn the money to pay for the car,

Yes, a home equity loan also makes no sense for same reasons. Rare exceptions may exist due to abnormal events. But we are not discussing the abnormal. We are discussing a majority who foolishly and repeatedly buy cars with loans.

Why would the exception need a car loan? To never waste money on car loans in the future. To get out of debt and never need a car loan in the future. An exception.

One can buy a Honda or Toyota for $4000. Why apply for a car loan for a $25,000 car (or a $41,000 Chevy Volt) when the owner can only afford $4000? Because he wants to pay more money for every future car?

Consumer Reports is full of inexpensive seven year old cars that are reliable.

Borrowing money to buy something that does not depreciate makes sense (ie a house). Borrowing money to create an income source makes sense (ie a business). Borrowing money to only remain in debt on something that loses value quickly makes little sense.

Why do so many have balances on credit cards? Same 'need'. Makes so sense. But then many (is it a majority?) also do that mistake.

Ironically (and this never made sense to me), many know this is illogical. And still do it. Why borrow money to almost double the cost of a product?

classicman · 10-17-2010, 02:09 PM

HA HA HA stop with he reality Bruce - those who live in their self-created alternate reality cannot understand.

glatt · 10-17-2010, 02:54 PM

Actually, I agree with tw on this. It makes a tremendous amount of sense to pay cash for a car. Better to be making payments into a savings account where you will have interest working FOR you than to be paying someone else and have even higher interest working AGAINST you. If that means making do with a shit car for years while you save up the cash to buy one outright, then so be it. This is coming from someone driving a 15 year old car. Not gonna buy another one until we have the money for it. And then when we do, we'll start saving for the next one right away.

Only way I'd buy a car with a loan is if the interest rate was 0%.

xoxoxoBruce · 10-17-2010, 05:50 PM

Quote:

Originally Posted by glatt

Actually, I agree with tw on this. It makes a tremendous amount of sense to pay cash for a car. Better to be making payments into a savings account where you will have interest working FOR you than to be paying someone else and have even higher interest working AGAINST you. If that means making do with a shit car for years while you save up the cash to buy one outright, then so be it. This is coming from someone driving a 15 year old car. Not gonna buy another one until we have the money for it. And then when we do, we'll start saving for the next one right away.

Only way I'd buy a car with a loan is if the interest rate was 0%.

Unless you can do your own maintenance and repairs, you'll spend more than you would financing a car, unless you can get something reliable. You're not going to get something reliable for a couple hundred bucks, so unless you can get a family hand me down or something, you have to buy a car that's going to cost serious money, at least a few grand. You'll have trouble saving that without a job, and you'll have trouble borrowing that without a job, but you need a car to keep a job.

Now the best financing deals are on new cars, even 0% in some rare cases. That's why I think it's best to go with a new, reliable car, with a warranty, so you can save for what you really want.

The problem with many people is they over buy, only concerned with the monthly nut, not the total deal. Also trading up every year or two, getting deeper in the red with every move, just because as time passes they get more credit. It's a reflection of our times and our values, the same ones that caused this recession and being owned by walmart/China.

Cloud, we are not talking about you, or your situation, we've drifted into new territory.

classicman · 10-17-2010, 05:09 PM

Define a "shit car" please.

Cloud · 10-17-2010, 05:20 PM

I'm choosing to buy a new car rather than used, and a car that's a "step up" from my last one. But this makes sense to me, in my situation and my time of life. Keep the economy moving along, yeah. not saying that people shouldn't buy new cars, or get loans--just that people (me too!) need to be smarter about these things.

there are a lot of things I could be smarter about in my life, frankly

classicman · 10-17-2010, 06:06 PM

Well put Bruce. I think there is a HUGE difference between buying a new Hyundai versus a new Hummer or Mercedes.

glatt · 10-17-2010, 07:56 PM

Yeah Cloud, I'm not talking about you. I'm confident you have your head screwed on right with this purchase. You've given it a lot of thought, and I think it's a good car you are looking at.

Classic, for me, a shit car is a car that is so old, it costs about a grand a year in repairs to keep running reliably. Even at a grand a year, it's still much cheaper than buying a new car. Once the body rusts out, then it's over, but until then, you can keep a car going for much cheaper than buying new.

Bruce, you're right. The hard part of what I'm talking about is getting that first car. I inherited my grandfather's car when I started out, and got a few years out of it. Enough time to buy my first real car with the money I had been saving.

The other option is to spend a couple grand on a car that will cost a grand a year to maintain. Many don't have the funds for that.

tw · 10-17-2010, 08:24 PM

Quote:

Originally Posted by glatt

Classic, for me, a shit car is a car that is so old, it costs about a grand a year in repairs to keep running reliably.

Once I got rid of a new Ford, I never put anywhere near a grand per year into any car. That even includes the Chevy that required a new timing belt every 40,000 miles (+/- 500 miles). Driving a car for 12 and 14 years has been routine.

Probably my biggest maintenance expense was new exhaust pipes (and then a cement truck took out that car). BTW, did you know insurance will reimburse for recently replaced parts?

10-14-2010, 03:19 PM	#1
Cloud ... Join Date: Feb 2007 Posts: 8,360	I agree; awareness is key. Pay attention! But you still need to check! Local dealer called and said they are getting a Juke -- one -- tomorrow and would I like to come look at it "before it sells." Yes. yes I would! Don't know what color/trim, but I can't wait to see the damn thing in person. Seems like it's going to be a pretty hot item, so may have to wait awhile for a decent selection and deal. Met with my Credit Union loan officer today in a pre-pre-approval interview, and I think I'm good to go! (crossing my fingers) __________________ "Guard your honor. Let your reputation fall where it will. And outlive the bastards!"

10-16-2010, 06:25 PM	#2
Cloud ... Join Date: Feb 2007 Posts: 8,360	Saw a juke in the flesh today and got a chance to drive it! Really a perfect car for me. They are trickling into dealers slowly. Will have to wait to get the exact one I want. (black or white SL w AWD and red interior trim) __________________ "Guard your honor. Let your reputation fall where it will. And outlive the bastards!"

10-16-2010, 08:33 PM	#3
xoxoxoBruce The future is unwritten Join Date: Oct 2002 Posts: 71,105	You go girl... __________________ The descent of man ~ Nixon, Friedman, Reagan, Trump.

10-17-2010, 12:18 PM	#4
Cloud ... Join Date: Feb 2007 Posts: 8,360	I'm pretty amazed at the crap things people are doing with their car loans in general. I'm guilty of this also--in 2001 I bought a new car with my crappy credit and got a subprime 18% loan. With interest, I ended up paying twice the amount of the car. Now I know better. Even on forums where people are supposedly trying to improve their financial situations, I see people buying too much car (if credit is bad, why are people buying $40K cars?); putting down the absolutely minimum down payment, thus putting themselves underwater immediately, having to buy gap insurance, leasing a car which never lets them have no monthly payments, trading in cars with underwater loans, thereby still paying interest on a car they don't even own. getting ridiculously long loan terms (why would you want to be making payments for six years, for crying out loud?) and focusing too much on monthly payments and not total amount owed. (But I got a sweet ride! and my payments are lower!). I know I'm lucky in that I've managed to save a decent down payment., my car is not dying (even though it's 9 years old), and that I've managed to improve my credit scores and financial situation enough that I can probably get a decent loan, but I'm still left shaking my head at some of the things people will do to get wheels. __________________ "Guard your honor. Let your reputation fall where it will. And outlive the bastards!"

10-17-2010, 01:44 PM	#6
xoxoxoBruce The future is unwritten Join Date: Oct 2002 Posts: 71,105	Because they need the car to get to work and earn the money to pay for the car, which beats sitting at home with no job and no money. Buying a new car is the way to get on the road with minimum cash, especially if you are mechanically challenged. __________________ The descent of man ~ Nixon, Friedman, Reagan, Trump.

10-17-2010, 02:09 PM	#8
classicman barely disguised asshole, keeper of all that is holy. Join Date: Nov 2007 Posts: 23,401	HA HA HA stop with he reality Bruce - those who live in their self-created alternate reality cannot understand. __________________ "like strapping a pillow on a bull in a china shop" Bullitt

10-17-2010, 02:54 PM	#9
glatt ™ Join Date: Jul 2003 Location: Arlington, VA Posts: 27,717	Actually, I agree with tw on this. It makes a tremendous amount of sense to pay cash for a car. Better to be making payments into a savings account where you will have interest working FOR you than to be paying someone else and have even higher interest working AGAINST you. If that means making do with a shit car for years while you save up the cash to buy one outright, then so be it. This is coming from someone driving a 15 year old car. Not gonna buy another one until we have the money for it. And then when we do, we'll start saving for the next one right away. Only way I'd buy a car with a loan is if the interest rate was 0%.

10-17-2010, 05:09 PM	#11
classicman barely disguised asshole, keeper of all that is holy. Join Date: Nov 2007 Posts: 23,401	Define a "shit car" please. __________________ "like strapping a pillow on a bull in a china shop" Bullitt

10-17-2010, 05:20 PM	#12
Cloud ... Join Date: Feb 2007 Posts: 8,360	I'm choosing to buy a new car rather than used, and a car that's a "step up" from my last one. But this makes sense to me, in my situation and my time of life. Keep the economy moving along, yeah. not saying that people shouldn't buy new cars, or get loans--just that people (me too!) need to be smarter about these things. there are a lot of things I could be smarter about in my life, frankly __________________ "Guard your honor. Let your reputation fall where it will. And outlive the bastards!"

10-17-2010, 06:06 PM	#13
classicman barely disguised asshole, keeper of all that is holy. Join Date: Nov 2007 Posts: 23,401	Well put Bruce. I think there is a HUGE difference between buying a new Hyundai versus a new Hummer or Mercedes. __________________ "like strapping a pillow on a bull in a china shop" Bullitt

10-17-2010, 07:56 PM	#14
glatt ™ Join Date: Jul 2003 Location: Arlington, VA Posts: 27,717	Yeah Cloud, I'm not talking about you. I'm confident you have your head screwed on right with this purchase. You've given it a lot of thought, and I think it's a good car you are looking at. Classic, for me, a shit car is a car that is so old, it costs about a grand a year in repairs to keep running reliably. Even at a grand a year, it's still much cheaper than buying a new car. Once the body rusts out, then it's over, but until then, you can keep a car going for much cheaper than buying new. Bruce, you're right. The hard part of what I'm talking about is getting that first car. I inherited my grandfather's car when I started out, and got a few years out of it. Enough time to buy my first real car with the money I had been saving. The other option is to spend a couple grand on a car that will cost a grand a year to maintain. Many don't have the funds for that.

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