Would you take out an 84-month car loan?

[bjl584]

We've bought a couple that were 2-3 years old coming off of leases.

My current car was a creampuff. It was 6 years old but only had 26,000 miles. It was literally driven by a little old lady.

Old Leases are a good way to buy.
Be wary of old rental cars however. Those cars are typically beat on pretty hard before they are sold off.

[GoodSteward]

I'm very curious as to how many people I now do taxes for and see driving super nice cars. I can honestly say we make more than 99% of them and yet most have nicer cars than we do. Average is a luxury SUV, many tesla, porsche, bmw, lexus, audi, Suburban, yukon denali, or F-150, 250, 350 type truck. I wonder how people afford it when i see what they make. Sure it's a lot of money $200k but it's not an extravagent amount. Certainly not in the category of being able to buy an car worth $50-100k without blinking.

But maybe I'm too fiscally conservative. I feel really indulgent having bought my minivan for $28k. It's the most we've ever spent on a car. I mean my DH commented that we drive cars finally nicer than rental cars we usually get. And I LOVE my car. But seriously I guess it's the only way to get into these cars is the 7 year loans?

$200k a year is extravagant in my eyes. I'm doing what I am with only around 100k a year pre-tax. I couldn't imagine another 75k a year (after tax) in 100% cash flow. I'd feel like a millionaire!

What van did you get? Near the end of last year we got a 2015 Toyota Sienna. Had 45k miles on it. I paid 25k for it. The most expensive and lowest mile vehicle we ever bought. I got it on 75 payments at 3.79% with the intention of paying it off early. To help, I recently got tied into a local credit union. They dropped it to 60 months and 2.59%. Nothing major, but with all the changes and adding a few bucks I'll have it paid off in at least 4 years, but more likely in the 3 range. I would like to get ahead of our mileage issue, and avoid payments or at least having to finance as much at a time.

[LivingAlmostLarge]

$200k a year is extravagant in my eyes. I'm doing what I am with only around 100k a year pre-tax. I couldn't imagine another 75k a year (after tax) in 100% cash flow. I'd feel like a millionaire!

What van did you get? Near the end of last year we got a 2015 Toyota Sienna. Had 45k miles on it. I paid 25k for it. The most expensive and lowest mile vehicle we ever bought. I got it on 75 payments at 3.79% with the intention of paying it off early. To help, I recently got tied into a local credit union. They dropped it to 60 months and 2.59%. Nothing major, but with all the changes and adding a few bucks I'll have it paid off in at least 4 years, but more likely in the 3 range. I would like to get ahead of our mileage issue, and avoid payments or at least having to finance as much at a time.

No $200k isn't another $75k after tax more like $60k after taxes. You get him with a lot more things and it's not enough to really justify expensive stuff.

I got a 2015 Toyota Sienna AWD limited for $28k with 45k miles. What trim did you get? The most expensive vehicle we've ever bought as well. Now we have two cars bought for over $25k (DH has a 2016 Subaru Legacy).

Personally I'm unsure if i'll ever indulge in a more expensive car but we'll see. I'll say it depends. And more importantly right now i'm still super happy my new car and my plan is to keep it another 7 years till it hits 10 years. I'm putting a ton of miles we have 55k miles already since December. So if it goes 200k i'll be thrilled.

[GoodSteward]

No $200k isn't another $75k after tax more like $60k after taxes. You get him with a lot more things and it's not enough to really justify expensive stuff.

I got a 2015 Toyota Sienna AWD limited for $28k with 45k miles. What trim did you get? The most expensive vehicle we've ever bought as well. Now we have two cars bought for over $25k (DH has a 2016 Subaru Legacy).

Personally I'm unsure if i'll ever indulge in a more expensive car but we'll see. I'll say it depends. And more importantly right now i'm still super happy my new car and my plan is to keep it another 7 years till it hits 10 years. I'm putting a ton of miles we have 55k miles already since December. So if it goes 200k i'll be thrilled.

60k a year is around 5k a month. Considering we already have some cash flow, that'd be unbelievable to think about. lol However, to get a 200k income around here would require an investment into the local school system where you make regular deposits at the gas station, and receive your dividends from the state once it matures into a "win".

Wow, same van and miles, but different trim. Interesting. We got the XLE premium with the Bluray system. They also had to put 4 new tires on it to make it certified used. My wife and kids love it. I don't know why people want SUV's over vans, except for their "image". IMO, vans are more practical, and you get more for your money in nearly every way. More usable space, better seating, better MPG, better rear storage, can actually use the rear seats for people with legs, and they have an easier entry with a lower floor level and sliding side doors. The only time it would be a problem is if you actually ever need the utility part of SUV, and needed to go off-road. In that case, a truck would be better in my mind. Seats the same, but you have the rear to use for transporting too.

I know of two people who wanted an SUV, and wouldn't touch a van. Once they used them on a trip, they loved them. lol

[LivingAlmostLarge]

I got the 20" blueray DVD, leather, AWD and power everything. Super nice. Crazy bells and whistles. $200k doesn't go far depending on where you are. Certainly I don't think enough to buy the tesla, porsche or luxury cars.

Oh I know barely anyone who picks a minivan. I've heard it all. Most of them say "oh it's not as safe as an SUV. It feels less sturdily built, less solid." Most people I know drive a luxury SUV, I don't think I know many who choose to drive a minivan where I live nor those who I do taxes for. the most surprising part is what people drive for what they make.

[nadine_doa]

Since I became disabled, I was left with a 2012 Accent with 35k miles on it. It should last me a good long time, I plan to drive it until the repairs are more costly than the worth of the car. Now I have a savings fund for my next car and hope to be able to pay cash.

Ah, a person after my own heart.

We have a 2006 PT Cruiser in our stable. We always said we would replace it if it cost more to fix it than it was worth. At Christmas last year we were in Phoenix and the Cruiser's head gasket blew. Cost $4500 to have that and some other problems fixed.

I thought about it at the time and realized, yes, that probably is about the retail value of that car. But we couldn't buy another $4500 2006 PT Cruiser that we knew the history of so intimately. So we've kept the car and will continue to keep it running. For now.

To answer the OP, no, I would not take out an 84 month car loan. I have taken out loans for my business from time to time but I don't do that any more. It always made me feel tired and encumbered.