Bought a new car

[RavenSEAL]

$21k is not a ton of money in the bank.

Dude, you're talking to a guy that makes 15K a year (as a college student).

So yeah, 21K is a LOT of money for me.

 

[CraigRT]

Dude, you're talking to a guy that makes 15K a year (as a college student).

So yeah, 21K is a LOT of money for me.

It is a lot of money to everyone outside of AT, and even some within AT (me included)
I do just fine for income and I can't picture ever seeing 21K in my bank account. Having a mortgage payment is getting me my largest asset slowly.

 

[xanis]

To answer the money questions:

I had $12,000 saved from working, and I cashed in a Series 1 bond from my grandfather (his suggestion) which gave me another ~$10,000. I also sold my old car for $1,000.

I paid cash for two reasons. One, I hate debt of any kind. I have student loan debt, but I'm actively paying it down and I should be clear in a year or less. Also, I really didn't want a second monthly loan payment for something.

The second reason is that I'm on my way to saving for my own place. I currently live at home with my parents... I'm sure I'll catch a lot of shit for that, but doing so is allowing me to save a crazy amount of money. Next year, when I'm free of my student loans, I'll cash in the remainder of my bonds and I'll have enough money to BUY my own place. A new car and owning a place... not bad for a 24-year-old, right?

My situation is not typical, and I realize that I am EXTREMELY fortunate.

 

[adlep]

To answer the money questions:

I had $12,000 saved from working, and I cashed in a Series 1 bond from my grandfather (his suggestion) which gave me another ~$10,000. I also sold my old car for $1,000.

I paid cash for two reasons. One, I hate debt of any kind. I have student loan debt, but I'm actively paying it down and I should be clear in a year or less. Also, I really didn't want a second monthly loan payment for something.

The second reason is that I'm on my way to saving for my own place. I currently live at home with my parents... I'm sure I'll catch a lot of shit for that, but doing so is allowing me to save a crazy amount of money. Next year, when I'm free of my student loans, I'll cash in the remainder of my bonds and I'll have enough money to BUY my own place. A new car and owning a place... not bad for a 24-year-old, right?

My situation is not typical, and I realize that I am EXTREMELY fortunate.

Cash is your asset. Take the car payment loan and pay it off sooner if you want to. By doing so, you still have most of your cash, the loan is at 0% or close to 0% (GM will give it to you) and you are building up good credit history which will help you to get better terms on your mortgage (for your own place). What not to like?

- Having cash
- Building up credit history
- Driving a new car
- Knowing that you can pay your car loan at any time because you actually DO have the cash in the bank
- Being able to negotiate great rate on the mortgage because of good credit history you just build up by taking a car loan

You could of gotten all of these above, but now you have a car worth much less than you bought it for and NO CASH

I am sorry to say it pal, but you really suck at managing your money and credit. Learn from this mistake and don't do it again...
Good luck to you. Again, I do not wish you bad, just pointing out some mistakes so that you can learn.

 

[Ferzerp]

Cash is your asset. Take the car payment loan and pay it off sooner if you want to. By doing so, you still have most of your cash, the loan is at 0% or close to 0% and you are building up good credit history which will help you to get better terms on your mortgage. What not to like?
- Having cash
- Building up credit history
- Driving a new car
- Knowing that you can pay your car loan at any time because you actually DO have the cash in the bank
- Being able to negotiate great rate on the mortgage because of good credit history you just build up by taking a car loan



You could of gotten all of these above, but now you have a car worth much less than you bought it for and NO CASH



I am sorry to say it pal, but you really suck at managing your money and credit. Learn from this mistake and don't do it again...
Good luck to you. Again, I do not wish you bad, just pointing out some mistakes so that you can learn.

Unless you take out a loan with a lower interest rate than your return on the cash you have, this is the worst possible advice in the world.

Please give no more financial advice. There are very few situations where using credit on something other than a house or other massive purchase is good advice (people finance cars because they don't have the money on hand to buy outright, not because it's a sound choice). There is the argument of used vs new that I will not go in to, but telling the guy to finance something that he doesn't need to is just all sorts of wrong.

 

[power_hour]

You paid cash?
How about putting $5000 down and financing the rest? Cash is your asset - you don't just trow it away on something that's worth $2000 less the sec. you drive it OFF the lot...
I mean, congrats on the car, its a nice one, but you could of finance it for like 0% with so much down.
?

Cut him some slack. Nothing wrong with paying cash. You only lose $$$ on your car if you decide to dump it or it gets written off without gap insurance. OP: Congrats on the purchase. That car reminds me of my old Suzuki Swift. Colour looks good, wheels look sharp and it has a sunroof - score! Have fun and drive safe bud.

 

[adlep]

Unless you take out a loan with a lower interest rate than your return on the cash you have, this is the worst possible advice in the world.

Please give no more financial advice. There are very few situations where using credit on something other than a house or other massive purchase is good advice (people finance cars because they don't have the money on hand to buy outright, not because it's a sound choice). There is the argument of used vs new that I will not go in to, but telling the guy to finance something that he doesn't need to is just all sorts of wrong.

Read what I have said -0% (easy to get with GM cars and some down). He could of gotten a common 0% loan with some down payment. Nothing wrong with taking that kind of "loan" and building up your credit. Also, if the shit hits the fan he can always pay it up (with his cash reserves). Not sure what your problem is, but it is really, really simple?
Lets suppose that you are taking a loan on a car at 0% and take the cash and invest it with a mutual found at 5% yield, thane you are actually MAKING 5% on your cash.
This is a sound financial advice. And you seem to have some reading comprehension problem.
I am out of this thread, congrats on the car and sorry to hijack this thread. I am sure that it will be a great vehicle. It looks great.

 

[nace186]

Read what I have said -0% (easy to get with GM cars and some down). He could of gotten a common 0% loan with some down payment. Nothing wrong with taking that kind of "loan" and building up your credit. Also, if the shit hits the fan he can always pay it up (with his cash reserves). Not sure what your problem is, but it is really, really simple?
Lets suppose that you are taking a loan on a car at 0% and take the cash and invest it with a mutual found at 5% yield, thane you are actually MAKING 5% on your cash.
This is a sound financial advice. And you seem to have some reading comprehension problem.
I am out of this thread, congrats on the car and sorry to hijack this thread. I am sure that it will be a great vehicle. It looks great.

^ He made some good points.

 

[foghorn67]

Nice car! I loved driving those things.
Easily the best in class. The only people that don't think that are those who haven't driven it.
My dad is shopping for a new car, and I am having him look at one of these.
And yes, he will pay it in cash. Lol.

 

[bigi]

God. 21K for this? Are you sure?

 

[foghorn67]

God. 21K for this? Are you sure?

You haven't priced out any new cars lately, have you?
It's not 1998 anymore.

 

[NutBucket]

It isn't, but people see $21k for a small car like a Sonic it just too much, even if it is loaded with everything.

Typical American thought process btw; I could have a loaded Sonic or a mid-range Accord/Fusion/Sonata. Bigger must be better right?

 

[foghorn67]

It isn't, but people see $21k for a small car like a Sonic it just too much, even if it is loaded with everything.

Typical American thought process btw; I could have a loaded Sonic or a mid-range Accord/Fusion/Sonata. Bigger must be better right?

Folks like him better get over it fast. Even domestics are going to upscale price modeling. The new Fusion won't be cheap when it's available. The only way to beat this is to buy small, or used. Or Korean.
If I bought new, I would prefer fully loaded and small. I can't stand de-contented cars.

 

[xanis]

I am sorry to say it pal, but you really suck at managing your money and credit. Learn from this mistake and don't do it again... Good luck to you. Again, I do not wish you bad, just pointing out some mistakes so that you can learn.

Thanks for the advice, but I think I've got myself covered. It's not like I made this decision overnight; I talked with people I trust, people that are good with their money, and no one seemed to think paying cash was such a horrible idea.

I actually did look into financing, purely to build credit. I wasn't able to get the 0% you're talking about, so I would have been paying interest had I taken out a loan.

Like I said in my other post: I'm in a good situation financially at the moment, and I'm in a position that allowed me to pay cash for the car. I don't regret the decision. I have my whole life to take on vehicle loans.

 

[alkemyst]

Read what I have said -0% (easy to get with GM cars and some down). He could of gotten a common 0% loan with some down payment. Nothing wrong with taking that kind of "loan" and building up your credit. Also, if the shit hits the fan he can always pay it up (with his cash reserves). Not sure what your problem is, but it is really, really simple?
Lets suppose that you are taking a loan on a car at 0% and take the cash and invest it with a mutual found at 5% yield, thane you are actually MAKING 5% on your cash.
This is a sound financial advice. And you seem to have some reading comprehension problem.
I am out of this thread, congrats on the car and sorry to hijack this thread. I am sure that it will be a great vehicle. It looks great.

0% loans and the 1.99% typically take not only credit scores into the very high 700's, but you will need big debt trade lines.

 

[DaTT]

I was waiting for someone to chime in with, "You could have gotten a used XXXX for that price".

I wanted a small car. I realize that the Fusion isn't gigantic, but it's still a bigger car than I wanted to drive. Also, I didn't want a used car. I know that might not make a lot of sense to people, but I wanted a brand-spanking-new car. I could have gotten a few nice used cars for $20K I'm sure, but I wanted a new one. I saved enough money to pay cash anyhow, so I decided to get what I wanted.

I think everyone should buy brand new at least once in their life. It' s a cool feeling picking up your car that has like 5 KM (miles) on it.

 

[adlep]

Thanks for the advice, but I think I've got myself covered. It's not like I made this decision overnight; I talked with people I trust, people that are good with their money, and no one seemed to think paying cash was such a horrible idea.

I actually did look into financing, purely to build credit. I wasn't able to get the 0% you're talking about, so I would have been paying interest had I taken out a loan.

Like I said in my other post: I'm in a good situation financially at the moment, and I'm in a position that allowed me to pay cash for the car. I don't regret the decision. I have my whole life to take on vehicle loans.

:thumbsup:
Technically wise, the Sonic got a lot of great reviews. I am sure it drives great.

 

[RavenSEAL]

To answer the money questions:

I had $12,000 saved from working, and I cashed in a Series 1 bond from my grandfather (his suggestion) which gave me another ~$10,000. I also sold my old car for $1,000.

I paid cash for two reasons. One, I hate debt of any kind. I have student loan debt, but I'm actively paying it down and I should be clear in a year or less. Also, I really didn't want a second monthly loan payment for something.

The second reason is that I'm on my way to saving for my own place. I currently live at home with my parents... I'm sure I'll catch a lot of shit for that, but doing so is allowing me to save a crazy amount of money. Next year, when I'm free of my student loans, I'll cash in the remainder of my bonds and I'll have enough money to BUY my own place. A new car and owning a place... not bad for a 24-year-old, right?

My situation is not typical, and I realize that I am EXTREMELY fortunate.

Lucky bastard

 

[ultimatebob]

Funny... I just picked a brand new Chevy Cruze Eco for about the same price today. You were probably the reason I was on hold waiting for the Onstar guy to activate my account

 

[Insomnihacks]

Congrats on the new ride! If I could pay cash for a vehicle I would.

Just to hit on the "credit" talk....Just remember that since you didn't finance it that when you go to get an auto loan eventually, that you won't have a higher "Auto-Enhanced" FICO score but alas you have plenty of time to build up a credit profile. That vehicle will last you a long time.

If you currently don't have any credit cards it would be a good idea to at least get two of them. It's much better to have some revolving accounts with some healthy age to it when you eventually go to get a mortgage. Of course this means using them responsibly.

Two most important dates are "Reporting Date" and "Due Date". The reporting date is the date that they report information to the 3 CRA's. The due date is of course the date that your bill is due. What matters most is the Reporting date (Yes due date is important as well but hear me out). This is when they will report the balance of your card. You really only want around a 9% utilization rate total with both accounts. You don't want them reporting a high balance because it shows irresponsible use of credit and your FICO score can suffer. Lenders like to see a decent gap between available credit and credit utilization.

But hey, what do I know? I'm merely a guy that went from the low 400's to 670 in one year......

Note: Clearly you are financially responsible. I was merely throwing in my 2 cents

 

[Oil]

0% loans and the 1.99% typically take not only credit scores into the very high 700's, but you will need big debt trade lines.

Not really for GM vehicles. I got 0% financing on my 2010 Tahoe when I was 22. The only things I built credit from were a small student loan (~$5k) and a '08 Altima (~$17k). Both were co-signed with my father. I only got a couple thousand dollars with the Altima trade in. Not huge amounts of money we're talking about