Sticker shock....!!!

[two_bit_score]

I have a separate savings account for vehicles. Each month I put in $400 per vehicle we have and make the payments to myself. That's about $5000 per year. That makes a nice down payment when it's time to replace after 4 or 5 years.

Chris

That is a great idea. If more people did that they would probably drive their paid for vehicles longer. Remember everyday you drive a paid for vehicle you are making money. They would also owe less and be better off financially overall.

An old gentleman I knew always said: "One thing guaranteed to keep a working man poor is a new car."

 

[KenB2920]

The profit on a full sized truck is as much as $10K, while it is a few hundred dollars on a fuel economy type car. Which one do you think they are going to push?

Larro

Bought my 2009 GMC 2500Hd SLT 2 with Duramax Diesel for 41k and the sticker was 53k. The Economy was doing poor then and they couldn't sell a truck to save their sole. Even though I feel I did well negotiating with several dealer until I got the "final" price where I wanted it, I wonder how much they still stuck me for.

The good news, this truck was paid off 2 weeks ago!!! Great feeling. My wife drives a 2006 G6 GT which has been paid off for over 3 years. Unfortunately it has 114k on it (runs perfect) but I think our family is outgrowing it and well be gettin a new car soon. (She deserves it).

 

[Larro Darro]

Remember everyday you drive a paid for vehicle you are making money.

The last time we owed on a vehicle was for Margie's '05 Prius. We borrowed $10K from Mamma, but had it repaid that same year. We are getting the roof and front bumper painted this month for $500. The sun has faded the roof, and the paint on the bumper cover is peeling. The same fellow who is painting it installed it after a SUV backed into the Prius in the courthouse, so he isn't charging for the bumper. With new paint, the car will be looking good for another 9 years. And the higher gas prices go, the smarter I look for talking her into buying it.

Larro

 

[ultrarunner]

Never had payments on anything but first mortgages...

I can see taking advantage of a no or very low interest loan.

It's just when I have to write a check to buy something it really makes me stop and revaluate.

Only bought one new car and that was in 2002 and still have it... special deal because I was working overseas at the time...

 

[RollingsFarms]

I usually will finance something every now and then just to keep my credit score high. My dad was an old school guy and paid cash for everything. I mean everything! Never even owned a cell phone but that's another story. He went to buy his last truck and they pushed him to buy it on credit. He didn't have any because he never had a credit history! He told them that was fine he will be back in 30 mins with the cash. They thought he was full of it but he had the last laugh at their expense. My truck loan is for 1.9% for 60 months. Not too bad, I have a ton of equity already in this truck anyways from my trade in. Plus I double my payments every month and that knocks it way down. If the interest had been higher then 1.9 I would have just paid cash.

 

[Citydude]

I usually will finance something every now and then just to keep my credit score high. My dad was an old school guy and paid cash for everything. I mean everything! Never even owned a cell phone but that's another story. He went to buy his last truck and they pushed him to buy it on credit. He didn't have any because he never had a credit history! He told them that was fine he will be back in 30 mins with the cash. They thought he was full of it but he had the last laugh at their expense. My truck loan is for 1.9% for 60 months. Not too bad, I have a ton of equity already in this truck anyways from my trade in. Plus I double my payments every month and that knocks it way down. If the interest had been higher then 1.9 I would have just paid cash.

Well, even if the interest is 4%, why pay cash? The cash you would have paid, invested, could have made you your payments back plus more in last years/this years market if you have an investment fund. If not, then yep, pay cash.

 

[RollingsFarms]

Well, even if the interest is 4%, why pay cash? The cash you would have paid, invested, could have made you your payments back plus more in last years/this years market if you have an investment fund. If not, then yep, pay cash.

I wouldn't even accept new a car loan at 4% because I could run down to several banks and beat that all day. I see your point though and agree.

 

[Citydude]

I remember in the early 80's a 4% loan would have been unheard of. We're pretty fortunate now days. :thumbsup:

 

[lutt]

I wouldn't even accept new a car loan at 4% because I could run down to several banks and beat that all day. I see your point though and agree.

I agree, think our credit union is at 1.9 right now. That's pretty cheap interest. LUTT

 

[sld]

I remember years ago when fully loaded bass boats were topping 50k and they were financing for 10 years!

Just because you can afford the payment does not make it affordable!

I am thinking about downsizing from my F250 to a new F150. Thinking hard about it but just can't pull the trigger. We have paid cash for our last several vehicles and I can't see writing that big check. At least I don't HAVE to sell my F250. lol.