What is your "Debt Free Date"

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   / What is your "Debt Free Date" #131  
Hard to believe you purchased that truck for $16,000. Someone must have lost their mind for the day.

Eddie

not at all. the truck was sitting on the lot for over 4 months. they didnt even wash it anymore.

back 2 to 2-1/2 years ago NO ONE wanted a diesel rig here. Diesel fuel was nearing $5 a gallon. I NEED a diesel rig to pull my trailers, so i dont care the cost of the fuel. The truck is not used very much anyways cept for a few weeks in the winter and alot of weekends during the summer. they were more than happy to sell it to me, and they even sent it out to be detailed.
 
   / What is your "Debt Free Date" #132  
...The only way out of the massive federal debt is inflation. They will just print money until there is enough to pay off all the creditors. At that point, anybody with a mortgage is going to be really happy.

First thing you have said that I can agree with.

Inflation is the traditional way governments have gotten out of debt crisis. If you look at history, this goes all the way back to the Roman Empire. They didn't have economic theory to guide them, but they sure knew how to cause inflation.

If you stand back, look at the overall picture, and ask how do we get out of the massive government debt we have, the only answer which does not include politically unpalatable measures is massive inflation.

Currently, mortgaged real estate is significantly overweighted in my portfolio, stocks are normally-weighted, and I have no fixed-income securities of any type. When the inevitable inflation comes this should be a good mix.
 
   / What is your "Debt Free Date" #133  
Good God, man! Don't buy that new truck! 0 percent interest on something that will lose 10% or more of its value in the first 1 second after purchase is NOT a good investment. AAAHHHHHH!!!!!! :laughing:

But seriously, 0 percent seems like a free loan until you look at it like this. Also, factor in the sales tax, plates and insurance VS a 3 year old truck with 2 years of factory warranty left. Add all the number up on a spread sheet and see if it doesn't shock you. Let some other sucker eat the depreciation. :thumbsup:


That's the reason I bought a used truck & tractor for cash. 0% isn't really 0% they are making it up somewhere. You can bet , They aren't loosing a dime at 0%. Too many risk factors to taking out a loan. I may want it today.But, I wait,save & pay cash
 
   / What is your "Debt Free Date" #134  
Eddie Walker had a pretty good summary, but he forgot to mention one thing regarding the tendency to blame corporations and banks. Those people who took out loans they couldn't afford didn't do it under duress, no one was holding a gun to their head. They were being just as greedy as the banks; actually more so. The gov't was pushing the banks to make the risky loans, but no one was pushing individuals to take out a loan they couldn't afford. They were greedier than the banks.

One interesting thing about this whole mortgage problem is that the same thing happened in other countries. I suspect the politicians and the commentariat read the same journals and share the same ideas and push them in whatever country they are in--it's not just the USA that went down this path.
 
   / What is your "Debt Free Date" #135  
agree 110%

Two years ago i bought a then 3 year old F350 ... used with 27,000 miles on it. It was a 4 door, 4x4, diesel automatic.

They wanted $24,000 but i got it for $16,000 CASH out the door (plus sales tax and lic and insurance though). So heres a 3 year old truck for 16,000 that has the original sales sticker inside the glove box that read $48,500.

So some other schumk wasted 32,000 of their money and i get a nearly new truck with very low mileage for a song.

Except for a transmission temp sensor, the truck has worked flawlessly.

Good point on buying used to say debt free or get that way quicker.

Many USED vehicles on dealer lots can be bought for near dealer trade in value (book because the dealers give less than book) if they have set on the lot for 90 days.

Why?

If the dealer (can vary from brand to brand) sells you a new vehicle for $50,000 that cost him $40,000 and gives you $15,000 for your trade-in he is $5,000 in the hole cash wise because $40,000 was taken out of his bank account when the sell was entered into the system.

Let a vehicle set on his lot for 90+ days and show him $16,000 cash if you really want to buy the vehicle because the odds are you will have just bought yourself the vehicle. It is all a cash flow matter.

Now if it is a hot item it will be long since sold when 90 days roll around. The number of buyers of 350 4WD diesels are relative low. Had it been a F150 with a much broader market it may not have been on the lot.

As noted before in 2010 we got a 2003 Escalade with 102K miles for $13,000 vs the $17,000 starting price. I would not even test drive it at the $17,000 so the manage sent back the deal of the day price of $14,500. I said would drive it home for the wife to test drive but they had to get serious on the price because I only buy wholesale.

When I got back a few hours later (home was about an hour away) they said make an offer and I offered $12,000 cash. They ran backwards like they are trained to do but then knew I was serious that I buy at wholesale which I told them up front that morning when I stopped in.

The sales manager stated they were retail and could not stay in business selling for wholesale. I told him I was in business and fully understood what he was saying and that I did not expect him to sell me a vehicle at wholesale and I was fine him not selling on my terms and that my offer was just there in case he wanted to trade his plastic/metal object for my cash and him saying no would make me just as happy if not happier because I would still have my money and the need to the SUV was really just a want.

The salesman and I BS about folks we knew in common, etc and I said I had to go because it was 4PM and I had not had lunch. He then came back into selling mode (actually was doing it all the time to keep me in the show room) he asked what if he could get me the car for $13K would I say yes?

Well I knew what the manager was going to say or had already said on that deal. I said I knew what he was going to say and was not sure but I was going to the back of the lot where they had me park and get my Blazer and he could let me know what the manager said. When I got back up there the guy was waving from me to pull over and park because we had a deal at $13,000.

Okay that was long. The background was they had a GM vehicle on a Ford lot. They had sold it once but the bank would not play. It was over 90 days old. They knew I was serious about only paying wholesale ($13,000 was above their cost I am sure) and it was 4 pm closing time on a Saturday afternoon. 18months/13K miles later all is well with the car. This will work over and over if you are not real picky and demanding a vehicle today. Active dealers taking in late model trades can develop real cash flow problems. You just have to out sale the dealership.

They are suckers for large chunks of cash :thumbsup:.

Buying used vehicles when they are needed can shorten one's Debt Free Date.:)
 
   / What is your "Debt Free Date" #136  
I would dispute this, when the DEMS via Fannie Mae and Freddie Mac made the banks make loans that the banks KNEW were bad, that is GOVERNEMENT causing the housing debacle!

It's fun to blame the gummint for the problem, but the fact is that it was caused by greed, pure and simple. People started thinking the price of real estate would always go up, so they started speculating on a "sure thing." People started mining their equity to buy toys, and banks kept writing the loans because they were "secured." Loan officers got to collect their commissions on the loans, then bank executives bundled the loans into securities and sold them, collecting another commission.

We didn't have to bail out the banking system because of Fannie Mae or Freddie Mac, we had to bail out the banking system because banks started loaning on what they thought the value of the property would be years in the future.

If you really want to know what property is worth, look at the median family income in the area and multiply by 3.5. No matter how fancy the house is, people can only afford a mortgage 3 to 3.5 times their annual income. Toward the end of the boom they knew the loans were nonsense, which is why Citibank got dinged for shorting their own derivatives.

It doesn't take long to figure out that housing is not under priced, real estate prices just returned to their base values after a period of runaway speculation. In areas with a growing population, demand will force a modest rise in prices. In areas with static or declining population, housing prices will remain static or will fall.
 
   / What is your "Debt Free Date" #137  
I bought a brand new pickup for 1/3 off the sticker price by buying last year's model. The local dealer brokered in 100 of last year's unsold rigs, cut 1/3 off the sticker price, and held a "take it or leave it" sale. They went like hotcakes.
 
   / What is your "Debt Free Date" #138  
As for getting large tax refunds.... yikes! I want no tax refund at the end of the year. In fact, I would rather owe some money than get a refund at the end of the year.

Are you saying that you have worked it out so that you pay no income tax?

Or, are you saying that you have it worked out so that your actual tax liability is equal to your withholdings or your quarterly payments?
 
   / What is your "Debt Free Date" #139  
Are you saying that you have worked it out so that you pay no income tax?

Or, are you saying that you have it worked out so that your actual tax liability is equal to your withholdings or your quarterly payments?

The latter I'm sure.
 
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