I've known this since about 12 (thanks Dad). Never had a car payment never will. Too bad he doesn't take it to the next level and talk about what a rip off full coverage insurance is on your cash vehicle.
Because you get a new car with a warranty for under 20k that will be significantly safer, more efficient, and more than likely more reliable. For a couple hundred a month..sure.
My car loans are at 1.9% and 0%.
I didn't watch the video, but I'd lose way more in depreciation and inflation saving up and upgrading my car (assuming the method based on posts)
the real trick is not getting a new car every 3 years.
3 years? I've been driving for 4 and am on car number 7 or 8. i lost track
WTF? Why would you go through so many cars?
I bought my first car used. It was 8 years old and I drove it for another 5 years before getting my current car which was also used but only ~8 months old. I have had that car for about 3 years now.
3 years? I've been driving for 4 and am on car number 7 or 8. i lost track
All of my cars are used and paid for in cash up to this point
I'm a car guy who gets bored easily and want to try different cars. I eventually will go back to the cars I loved the most and buy one of each. :thumbsup:
All of my cars are used and paid for in cash up to this point, I usually make money or break even after all is said and done because I don't keep them for a long time they barely have time to depreciate.
Why not just lease?
edit: I guess if you are breaking even then it's not a bad deal, but seems like a hassle anyway.
hahahaha... -12% sounds about right for the last 10 months. Pretty much everything linuxboy said across the board. I don't ever even recall seeing 12% on all stock index funds when times were good. It's incredibly insulting that he "suggests" people invest in such high risk funds for short term reasons.
+2
Unfortunately, Dave's advice is stupid. It does not take into account increased car repairs from driving older vehicles nor does it account for sales tax from buying the cars.
What about the increased risk of massive car repairs from driving a $1,500 and $5,335 car for 20 months with no warranty (I've own cars in that price range that have required $1,000+ in repairs in one year)? Title fees from switching cars so often? Etc...
Meh, I only lease cars because I was spoiled as a child. Growing up in a Ford family, the way it works for employees at a certain level is you can lease up to three cars per family, one year leases, at a ridiculously good rate that includes insurance. They have even better specials for certain models/model versions that they want to sell that year. So in high school, after I turned 16, I had three different brand new cars for a year. Spoiled me for life.WTF? Why would you go through so many cars?
I bought my first car used. It was 8 years old and I drove it for another 5 years before getting my current car which was also used but only ~8 months old. I have had that car for about 3 years now.
12% from a mutual fund? i don't buy that..a fantastic ROI is like 8%...typical i imagine is half that.
also, this is why you don't take out 72 month loans at 8.9%. My car loan was 19k @ 3%...in total, I'm only paying $1500 interest over the course of the loan.
And I put 10% of my salary towards retirement (+5% employer contribution = 15% total)
No, I am just pointing out how everyone on the forum is brilliant, makes all the right life choices, is good looking and has a hot wife/girlfriend.
I can't remember who the financial guy was who said this, but if you *need* to take the loan out for more than 36 months, then you can't afford the car. There are reasons to extend the loan beyond 36 months (0% interest, etc.), but if you can't afford the payments for a 3 year loan, then you're spending too much on the vehicle.
I can't remember who the financial guy was who said this, but if you *need* to take the loan out for more than 36 months, then you can't afford the car. There are reasons to extend the loan beyond 36 months (0% interest, etc.), but if you can't afford the payments for a 3 year loan, then you're spending too much on the vehicle.