Car Payments

[LivingAlmostLarge]

Okay, so help me out here. What's the range of people's car payments (amount, length of payment) and what type of car did you buy?

We had a car payment of a $150/month for 3 years for a Ford Focus 2000. It was a ~$5k loan.

Since then we haven't had a car payment and I think we probably should be saving for it. But right now it's just not a priority. I know I'll get into trouble with our next cars because we don't have anything saved up.

[DebbieL]

I had a car payment of $241 on my 2003 Toyota Corolla (bought new). It was a 7 year loan (but I paid it off in about 3). I don't think I'd ever buy a new car again, but maybe one that's 2 years old or so. I don't ever want a car payment again. I hated it.

[MonkeyMama]

My personal rule has always been to buy something I could pay off within the year. Paying cash is my second rule, but as a teen buying a first car, and having bought our last car after periods of no income, I've used the one-year rule most.

Right now we have a 2001 Ford we paid $8k cash for in 2002.

& a 2005 Dodge Grand Caravan - purchased for $12k in 2006 - financed $3k for like a year.

If the Ford was totaled tomorrow we'd pick up something in the $5k range. Lots of great deals right now. We've had great luck with older cars. But mechanically the Ford is top notch - I think it will last longer than the van. The van I would like to chuck, personally. 2005 wasn't a good year. I've driven 20-year-old cars with less problems. But as such, I'd rather drive a used car and just buy what we can truly afford.

After our first child decided my sports car was not practical and traded down for a $1k Saturn with a ton of miles. Drove it 3 years - no prob - replaced it with minivan when we had second child. My first car cost about $1500 (13-year-old Toyota) and I drove it 7 years.

[rizzmo]

Bought a 2006 chevy aveo new and my car payment was $300 for 5 years. I paid an extra $1,000 each month and had it paid for in 11 months. Will keep it until 2016 and won't buy new agian.

[cooliemae]

bought a 2002 used Dodge Ram my payment was $300/month for 60 months, but paid it off in 36 months.

[Fizgig]

$26k new Mini Cooper, bought 11/07

$12k down payment, financed the rest on a 4 year note for $325/mo.

I'll have it paid off in May, after 17 months of payments.

In theory I'm a buy used gal, but I was set on the mini, and they don't depreciate to the point where buying used was worth it. Can't believe I paid that much for a car, but I have no regrets.

[kork13]

In May '07 I bought a new '07 Honda Civic Si for $21k. Paid $10k upfront, financed $11k on a 5-yr loan. The payment was $225, but I made payments of $500/mo, and I just paid it off 2 weeks ago (inside of 22 months).

[KTP]

In the past? Always went for 36 month loans. Seemed about the right length of time for an asset that isn't really an asset. All cars are paid off now, and 2 of the three were paid off early. 36 months is a stretch for a lot of people, but if you think about it, it really makes you feel good to have a car paid for while it is still under the original warranty.

If you are going for the 36 month loan, I would skip things like paint protection, fabric protection, and extended warranties. These things are almost scams they make so much money for the dealership. They push them REALLY hard too. Use the cash to protect your wallet instead of the paint, which usually gets by just fine as it is.

[Ima saver]

2008 new corvette, my payment is $600 a month.(put $20,000 down)

[LivingAlmostLarge]

Wow lots of a variability. And lots of people saying never buying new again.

[GREENBACK]

I'm happy to say I haven't had a vehicle(car/truck/boat) in a couple of years. Last payment was on my used '98 GMC Sierra. My payment was about $330 a month. 5yr. loan on 19k. Still runs good and is perfect for it's purpose which is towing, hauling and off road use. Got a few dents but I drive them til they die.

[red92s]

2003 Mazda Protege5 wagon, bought in may of 2007 for $7800 (KBB was $12k at the time). Put in $2800 from an insurance check, and financed the remaining $5k for 36 months. Payments were $171 I think. Paid off around the start of fall last year . . . call it 18 months. Unfortunately, my loan was a simple interest loan, so paying it off early didnt save me anything (except stress and headaches).


There really is a sweet spot on buying used cars. For me, something in the 40-50k mile range is ideal. The vehicle is though the rapid portion of decreasing value, probably about 2-3 years old, and probably around 50% or more off original price.

Next vehicle will likely be a current generation Volvo V50 T5 AWD wagon.

[skydivingchic]

I bought a certified used RAV4 back in 2002. Financed a bit over $16000 for 5 years at around 6%. My monthly payment was $318. I paid it off after 3 years in one lump. I'm currently saving for a new to me car and hope to pay cash when the time comes.

[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%.

[arthurb999]

Do yourself a favor and save up and buy a used certified pre-owned... off lease car... cash.

[simpleyme]

Drive Free, Retire Rich

watch the video it is good

(it is a little out of date but the message itself is solid )

[mommyof4]

I'm paying $230/mo for my 2006 Huyndai Elantra. It's a great car, only cost me 15k to begin with, and I've had no problems with it. I bought it used with only 1500 miles on it, and I got a good deal. I should be done in 24 months.

[tripods68]

Originally Posted by simpleyme

Drive Free, Retire Rich

watch the video it is good

(it is a little out of date but the message itself is solid )

A great Dave Ramsey video A great lesson to learn.

[EEinNJ]

I haven't had a car payment since 1997, 2 yr lease on a Taurus SHO was 400/month. Nice car but a bad deal financially. Never again. Instead, I save $400 a month, and pay cash when it's time to buy. I bought used a few times, but if you don't get a good one, you'll spend just as much in repairs. Just keep saving, don't buy expensive cars, and eventually payments will be a thing of the past. Don't tell the Big 3, they're kinda sore about this idea

[Caoineag]

Our goal is to be car payment free and so we paid cash in full for our vehicle and will probably do the same for the next one (I don't like monthly bills so I tend to minimize them as much as possible). That said, I think 36 months would be the best option if you have to finance.

I think we will try to buy new for the next one but we will see when we get to that point. Currently our 300k+ mile Subaru is doing just fine.