Car Payments

[GREENBACK]

Originally Posted by EEinNJ

. I bought used a few times, but if you don't get a good one, you'll spend just as much in repairs.

Even though you obviously want something reliable and in good mechanical shape I'm not sure if this is fully accurate. If you pay 400/mo. for a vehicle for five years that's 24k. You can do a lot of car repairs for that amount and that doesn't take into account the repairs on the newer vehicle.

[disneysteve]

Originally Posted by GREENBACK

Even though you obviously want something reliable and in good mechanical shape I'm not sure if this is fully accurate. If you pay 400/mo. for a vehicle for five years that's 24k. You can do a lot of car repairs for that amount and that doesn't take into account the repairs on the newer vehicle.

I agree. Every time I do some repair on my car (a 1998 Camry), someone asks me why I don't just replace it. Let's say I spend $1,200/year on repairs. That's $100/month. I ask them to show me which new car I can get for $100/month. None that I know of.

[autoxer]

Three years ago, I was paying $460/month on a 5 year loan for a new car. I sold that car and for the past two years I have been driving a car that I bought for $1750. I love cars, but it didn't feel like a big downgrade to me. My 'jalopy' has a sunroof, a CD player, and a fun 5 speed transmission. I don't care if it makes funny noises or I have to roll the windows down manually. I don't think that it has depreciated at all, while I 'spent' about $10k in depreciation in the car that I bought new.

[Mr Hopkins]

We have a 09 Ford Fusion SE V6; we bought it new on a 5 year note for $416/month. We also have a 99 Pontiac we bought 7/02 for 16k. It ran $300/month on (I think) a 5 year note with 23k on the clock. You take a big hit when you buy new but if you keep it for a long time I think its worth it. As long as you take care of it, it should be less headache in the future.

[SavingCash]

2001 Hyundai Accent bought used in 2002 with 12k miles on it. Payment was around $150 per month. It's been paid off for years now and still kicking.

[project15]

03 VW GTI. Financed in August 2006 for $15k with $2k down payment for 60 months at a min payment of around $275. Just paid it off this week for a total of 30 months!

Both cars are paid off now! It feels great. We're currently funding our "future car" fund so we can pay cash or a significant down payment in about 5-7 years.

[mommyof4]

Originally Posted by SavingCash

2001 Hyundai Accent bought used in 2002 with 12k miles on it. Payment was around $150 per month. It's been paid off for years now and still kicking.

Those Huyndais are great little cars. Not fancy, but they are very reliable, and get good gas mileage, too.

[LivingAlmostLarge]

I agree it's cheaper to repair my corolla than replace it. Unless it's totaled, knock on wood. But I think I want to replace the focus in 2-3 years.

[Tree0164]

I like to only fiannce cars for 36 months with no bigger than a $250 car payment per month. We buy used 3-4 years old with no more than 50k on the car.

We will probably have to buy a new to us car since we have 1996 (bought in 1999) with 110k on it and 2001 (bought in 2005) with 50k. While not on its last legs the 96 is starting to show its age in repair needs.

I really don't want to take a car loan out for the next car-I got about 10k that I can either pay cash or do a downpayment on.

[asmom]

Lemme see,

I forget the actual purchase price but my monthly payments were $442/mo for a 5-year loan at 4.25% interest. I paid it off in just over 3 years. And yes, I see no reason to buy new again.

[mrpaseo]

I joined the service in 1992 with a 2.5 year commitment. My frst tour I had some issues (Branching from a rebelious childhood), when I decided to re-enlist I purchased my first brand new vehicle. A 1994 Toyota Paseo (I still drive this vehicle today). I paid $14,500 ($2,500 down, $12,000 loan). I am unsure exacly how long the loan was but shortly afterwards I went on my second deployment, this deployment brought me to Bosnia for 9 months. Before I returned I had the vehicle paid in full. The payments were 241 per month. I went over 10 years without a vehicle payment.

In 2007 I purchased a RAV-4 Limited SUV for a little over $34,000 (It has all the extras). After 16 years of service I wanted to have a nice vehicle paid in full before retirement that would bring me well into retirement. I purchased this vehicle just before my six deployment. This deployment brought me to Iraq for 15 months. Before I returned I paid the vehicle in full (18 months). I hope to go another 10 years without a payment. The payments were $465 per month, but I never paid less than $700 with a final payment of $25,000 dollars in Dec 08.

I decided to purchase new vehicles for a few reasons but one key point I want to make is I do proper maintenance on both vehicles and I intend to drive these vehicles until they need to be retired to the junk yard in the sky.

Since I paid $14,500 for the Paseo and I have been driving it for 14.5 years I basically rented the vehicle for about 83 dollars per month. Each month that number is smaller and smaller.

BTW I know the investment potential loss of the last 14.5 years.

[mrpaseo]

BTW Dave Ramsey has a pretty interesting plan for purchasing vehicles that allows you a new vehicle every 7 years (I think that is what I read). The video is free on line, check it out.

Drive Free, Retire Rich

[Ima saver]

Originally Posted by mdcrim

Unfortunately for me, I love vehicles. I always have way more that I need and never seem to be able to part with one to get the next. There are 2 drivers in my household and between us we have 3 motorcycles and 2 cars (a sedan for sensibility and a Wrangler for fun). I just got rid of an SUV in January and have been craving a pickup because I miss having the ability to pick up some mulch or plants and get rid of stuff. I have already had to borrow the neighbors minivan to trade a friend an exercise bike for a treadmill and I had to order mulch delivered. I need a new wheelbarrow but have no way to fit the one I want in any of my vehicles. Frustrating. Probably should have kept the SUV, but it wasn't the greatest mechanically...

All of my vehicles are paid in full though. If I finance at all, it is for a max of 36 months and I will never take on a payment of more than $300 per month. That pretty much limits me to a max of about $10,000 financed, as credit union interest rates are around 4%.

I have to agree with you, my dh loves vehicles and I kind of like them too. Between the two of us, we have 6 vehicles; 3 corvettes, a 1933 ford victoria and 2 work vans. Oh well, you only live once!

[Pitman]

I love vehicles as well. It make sense if you don't care about your car, to drive around in a "jalopy" as one member said. But if someone can afford, and loves vehicles, I see nothing wrong with that person spending his/her hard earned cash on the car they desire.

btw, I frequent a slew of Car forums, mostly Infiniti, BMW, Acura, and Lexus, there was a post on the BMW about car payments, and some were paying upwards to $750/month for some their cars. A little crazy for my taste, but if they can afford, I say why not.