What's new
Fantasy Football - Footballguys Forums

This is a sample guest message. Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!

When to buy a car (1 Viewer)

need2know

need2know

Footballguy
Curious as to what the thoughts are on this.

I have had the same ride for almost 6 years.  Been paid off for awhile.

Still in good shape.  2008 Infiniti.  87k miles.  Recently had to do brakes and some other minor work.  Did find out I have a repair on the horizon that may run me a grand.  The car is only worth 8k max in KBB.

Part of me is cool driving this thing into the ground but I am wondering if I should just go ahead and get out of it.

Not crazy about having a car payment again but would do it if I really liked the car.  

What do you guys usually do?  Ride em into the ground or constantly upgrade?

 
Last edited by a moderator:
My car is 03 with 200k

But I drive 100 miles a day.

I just spent 1500 bucks on a variety of repairs. 6 more months and I'm done

 
Close to being in the same boat, but mine are both older cars and really could be replaced. But, they are paid off. On one of them I am reaching the point where I am dumping too much dough into it.

BUT, I still spend way less per year vs having a car payment.  If you can afford it, do it. If you don't care, save your money for other stuff. Or the chance to retire earlier. Or pay off the house.

 
Just keep it and build your wealth. 87k is nothing. Thing must be like new still. 

Although some of the newer advances like backup cameras, side monitoring and connectivity are big. 

 
What does the rest of your financial picture look like? Are you maxing out your IRA and 401k? Are you in debt in other areas?

 
8 years old and 87k miles?  You've got like 6 more years in that car.

Dagone.

Starting year thirteen with my trailblazer.  145k and rising

 
need2know said:
Yes. No debt of any kind.
Click to expand...
If you have no debt, you're maxing out retirement savings, and doing all the other financial stuff you should be doing and can still take on an additional car payment without issue, then it's really just preference.

Most folks aren't in such good financial shape so it should be a tougher choice for them because that money would best be spent elsewhere...but if you've got all the bases covered...good savings, no debt, fully funded retirement, good insurance, etc...then why not?  I assume you could pay for the new car in cash and not have to finance it?  That'd be the main issue.

 
proninja said:
I buy cars at roughly the same profile as yours, I find they're the best value. New enough so they don't suck and have repairs all the time, old enough so when I do have to spend a grand every few years on something that comes up it's still way cheaper than an upgrade would be. 
Click to expand...
Yes.  I would get something like a 2013 with 20k miles

 
adonis said:
If you have no debt, you're maxing out retirement savings, and doing all the other financial stuff you should be doing and can still take on an additional car payment without issue, then it's really just preference.

Most folks aren't in such good financial shape so it should be a tougher choice for them because that money would best be spent elsewhere...but if you've got all the bases covered...good savings, no debt, fully funded retirement, good insurance, etc...then why not?  I assume you could pay for the new car in cash and not have to finance it?  That'd be the main issue.
Click to expand...
I would put down some cash to get the monthly payment lower and pay it off fast.  Would rather pay a little in interest for a couple years than take out 25k cash.  

 
need2know said:
I would put down some cash to get the monthly payment lower and pay it off fast.  Would rather pay a little in interest for a couple years than take out 25k cash.  
Click to expand...
Then the only advice I'd give is to keep the car until you can pay for nearly the whole thing in cash.

 
adonis said:
If you have no debt, you're maxing out retirement savings, and doing all the other financial stuff you should be doing and can still take on an additional car payment without issue, then it's really just preference.

Most folks aren't in such good financial shape so it should be a tougher choice for them because that money would best be spent elsewhere...but if you've got all the bases covered...good savings, no debt, fully funded retirement, good insurance, etc...then why not?  I assume you could pay for the new car in cash and not have to finance it?  That'd be the main issue.
Click to expand...
And yes I feel very fortunate.  My wife and I both have decent jobs and have been making good financial decisions for the most part.

 
proninja said:
imo if this is the case you're spending too much money on the car. 

I have no beef with financing a car you're going to buy anyway, but the minute you use financing to spend more than you would if you were paying cash the arbitrage argument fails. 
Click to expand...
Financing the car has no influence over how much I am willing to spend

 
proninja said:
Oh, see, you just said the opposite when you said "Would rather pay a little in interest for a couple years than take out 25k cash."

Spend a grand to fix your 8 year old car if you want to make the best financial decision. If you want to use that thousand dollars as an excuse to drop 25 on a new car because you just want a new car, then knock yourself out. 
Click to expand...
I think I am gonna just fix my current one.  Really like not having any payment

 
We don't buy cars often, but when we do we plan 2-3 years out and set aside cash so when we do pull the trigger there is no financing.  Agree on the price before you bring this fact up.

 
If you are buying cars new, then you should be keeping it at least 8-10 years for it to make financial sense. Otherwise, you should be looking at leasing. 

 
Binky The Doormat said:
You can pay extra upfront and get more miles on the lease - but they get you really hard.  
Click to expand...
 My last car was something crazy like .30/mile. Bought my latest car. Ill try to hold it for 7 years. It'll definitely end up the kid/hiking mobile for the last few years of its life.

 
Last edited by a moderator:
Dentist said:
If you can't afford to pay cash for the car you can't afford the car.
Click to expand...
If you buy a car with cash you aren't as financially astute as you think with current interest rates. And in general I disagree with this premise anyway. If you have a job that pays you at least twice as much the value of the car, you can afford it. Where people fail is in getting high interst loans because their credit blows. 

Personally I never get anything longer than 36 months and my payment is no more than what I make gross in one day of work. But we all need to have rules. 

 
Doctor Detroit said:
If you buy a car with cash you aren't as financially astute as you think with current interest rates. And in general I disagree with this premise anyway. If you have a job that pays you at least twice as much the value of the car, you can afford it. Where people fail is in getting high interst loans because their credit blows. 

Personally I never get anything longer than 36 months and my payment is no more than what I make gross in one day of work. But we all need to have rules. 
Click to expand...
I have a .9% interest rate. I could've paid cash, but $300/year is worth keeping the cash in my account.

 
need2know said:
Curious as to what the thoughts are on this.

I have had the same ride for almost 6 years.  Been paid off for awhile.

Still in good shape.  2008 Infiniti.  87k miles.  Recently had to do brakes and some other minor work.  Did find out I have a repair on the horizon that may run me a grand.  The car is only worth 8k max in KBB.

Part of me is cool driving this thing into the ground but I am wondering if I should just go ahead and get out of it.

Not crazy about having a car payment again but would do it if I really liked the car.  

What do you guys usually do?  Ride em into the ground or constantly upgrade?
Click to expand...
I don't think there is a blanket answer for your question. I think you have to look at it on a case to case basis. In your case-although your car is older--it has very low mileage.  My understanding is that Infinity's are pretty reliable vehicles--so there is no reason to think that your car will be in need of any major repairs in the near future.  I also don't get the vibe that you dislike your car as of yet. Sure--you probably wouldn't be opposed to a new vehicle--but i don't see you really hating on your car either.  If I was in your shoes--I'd easily hold onto your car for a while longer. You have to consider what kind of car payment you would have if you were to sell your car and get one now.  If you can sell your car now for $8k and were to get a new car--your car payments would be maybe $400-500/month if you wanted to get a new car that is at the level of an Infinity?  That essentially means that your car now is worth roughly 15-17 car payments.  Unless you think your car is going to fall apart in the next 2 years---I don't see it making sense for you to pull the trigger on a new car just yet. 

 
Doctor Detroit said:
If you buy a car with cash you aren't as financially astute as you think with current interest rates. And in general I disagree with this premise anyway. If you have a job that pays you at least twice as much the value of the car, you can afford it. Where people fail is in getting high interst loans because their credit blows. 

Personally I never get anything longer than 36 months and my payment is no more than what I make gross in one day of work. But we all need to have rules. 
Click to expand...
Sure.. mathematically if you're a savvy investor you might come out slightly +EV by taking the loan and investing.

But let's be real, most people aren't you and won't do that.  And they won't be smart with the 36 mo. loan either.. they'll get the 60 or 72 month loan.

For the average person I stand by my statement.   Because it isn't just the price of the car.. it's the increased insurance from a more expensive car, the increased personal property taxes, etc, etc.

It's a mindset that the average person needs...  stop letting cars take up some much of your yearly income

 
Ugh.. are we really talking about leasing... a la fleecing in here?   You guys are all better than that.

A car is a way to get from point a to point b.  Unless your net worth is north of 2 million, then you can show off if you please.

 
Doctor Detroit said:
If you buy a car with cash you aren't as financially astute as you think with current interest rates. And in general I disagree with this premise anyway. If you have a job that pays you at least twice as much the value of the car, you can afford it. Where people fail is in getting high interst loans because their credit blows. 

Personally I never get anything longer than 36 months and my payment is no more than what I make gross in one day of work. But we all need to have rules. 
Click to expand...
The general rule of thumb for smart financial planning is that if you can't pay in cash, you can't afford the car.  If you have to go in debt to get something you want, when it's not a need, then you can't afford it.  It's not about whether you can make the payments or not...that's not how you determine whether it's a good decision or not.

If a person wants a new car but doesn't need one, they should put back the monthly payments they would otherwise be making into an account, until such a time comes that they can pay for the car outright.  Then they have a car, no monthly payments, and they can use the extra 3-400 or more per month that otherwise would be going to a car note for at least 3 years, to put to other things that add to their net worth.  Also, buying a car that's a few years old, past the steep depreciation curve, but well before the major maintenance issue span for cars, is a smarter way to go as well.  You can buy a car, drive it for several years, and then sell it for a good % of what you bought it for and in between you didn't have a monthly note...

 
Dentist said:
Sure.. mathematically if you're a savvy investor you might come out slightly +EV by taking the loan and investing.

But let's be real, most people aren't you and won't do that.  And they won't be smart with the 36 mo. loan either.. they'll get the 60 or 72 month loan.

For the average person I stand by my statement.   Because it isn't just the price of the car.. it's the increased insurance from a more expensive car, the increased personal property taxes, etc, etc.

It's a mindset that the average person needs...  stop letting cars take up some much of your yearly income
Click to expand...
Yes, you've let us know a thousand times on this forum you are happy driving a POS. 

 
Donkey Derp said:
Yes, you've let us know a thousand times on this forum you are happy driving a POS. 
Click to expand...
Eh.. I've seen true POS's..  the stuff truly poor people can only buy and operate.

My car is extremely clean and runs very smoothly and safely.   And by modern standards it's not even that old.   They say the average car on the road is ~11ish years old.. that's the AVERAGE...  so mine at 13 is just slightly below average...   POS is the bottom 5%.. the cars with the massive dents or the paint peeling off and rusting, or the bumper is tied on..  and those people aren't even being frugal.. they're just effing poor..  Those people would think my car was a luxurious experience.

What are you even getting with a new car...  bluetooth?  some safety features that barely matter?    The auto industry has the american public by the balls

 
Here's my when to buy a car decision tree.

Does your car currently run relatively well > don't buy

Is your car totaled or needs major repair far beyond it's value > buy something you can write a check for

Lease > never

But I'm sick of my car and it's dirty and smells > get a full detail for a couple hundo and an air freshener and get over yourself... it's a mode of transportation not a fashion statement.

This decision tree trumps silly stuff like buying at the end of year or end of month or whatever plan to save a few grand...  follow this decision tree and you'll save hundreds of thousands lifetime.

 
Dentist said:
Here's my when to buy a car decision tree.

Does your car currently run relatively well > don't buy

Is your car totaled or needs major repair far beyond it's value > buy something you can write a check for

Lease > never

But I'm sick of my car and it's dirty and smells > get a full detail for a couple hundo and an air freshener and get over yourself... it's a mode of transportation not a fashion statement.

This decision tree trumps silly stuff like buying at the end of year or end of month or whatever plan to save a few grand...  follow this decision tree and you'll save hundreds of thousands lifetime.
Click to expand...
:lmao:  

 
adonis said:
The general rule of thumb for smart financial planning is that if you can't pay in cash, you can't afford the car. 
Click to expand...
No it isn't, that's the Dave Ramsey rule of financial planning.

So what about a house?  If you can't buy a house in cash you can't afford it? 

Also, buying a car that's a few years old, past the steep depreciation curve, but well before the major maintenance issue span for cars, is a smarter way to go as well.  You can buy a car, drive it for several years, and then sell it for a good % of what you bought it for and in between you didn't have a monthly note...
Click to expand...
This I agree with. 

In general buying a new car every few years regardless of how much money you have isn't the best idea because of steep depreciation.  So picking up something 2-3 years old is more logical, sure.  If you are gonna buy new and hold for 8+ years, that's smart too.  In general people with means should do what they want though, especially in the case where the guy has no debt and is maxing his retirement accounts out.  Treat yourself sometimes. 

 
Last edited by a moderator:
My 2000 Rav 4 is at 270k. Heat kinda sucks when it's under 10º F but it's still going. Wifes 2001 Neon has 170k and the Head Gasket just went. Not fixing it, looking for something now. Won't buy new, but Used is definitely on the table.

 
If people don't buy new cars, there isn't going to be much of a supply of used cars.  

Seems like some people might enjoy driving a newer car and skip the booze/cruise/season tickets.  Not sure why the hate on how people spend their disposable income.

 
need2know said:
Curious as to what the thoughts are on this.

I have had the same ride for almost 6 years.  Been paid off for awhile.

Still in good shape.  2008 Infiniti.  87k miles.  Recently had to do brakes and some other minor work.  Did find out I have a repair on the horizon that may run me a grand.  The car is only worth 8k max in KBB.

Part of me is cool driving this thing into the ground but I am wondering if I should just go ahead and get out of it.

Not crazy about having a car payment again but would do it if I really liked the car.  

What do you guys usually do?  Ride em into the ground or constantly upgrade?
Click to expand...
I'll ride my highlander (07/140k) into the ground, probably our odyssey (12/100k) too.

 
Nugget said:
If people don't buy new cars, there isn't going to be much of a supply of used cars.  

Seems like some people might enjoy driving a newer car and skip the booze/cruise/season tickets.  Not sure why the hate on how people spend their disposable income.
Click to expand...
Completely agreed, there should be no hate here.  I'll spend money how I choose (others will think we're nuts), you do you. 

 
Donkey Derp said:
Dentist said:
Here's my when to buy a car decision tree.

Does your car currently run relatively well > don't buy

Is your car totaled or needs major repair far beyond it's value > buy something you can write a check for

Lease > never

But I'm sick of my car and it's dirty and smells > get a full detail for a couple hundo and an air freshener and get over yourself... it's a mode of transportation not a fashion statement.

This decision tree trumps silly stuff like buying at the end of year or end of month or whatever plan to save a few grand...  follow this decision tree and you'll save hundreds of thousands lifetime.




 
Click to expand...
:lmao:  




 
Click to expand...
What's funny about this?  

Or do you just disagree?

 
You must log in or register to reply here.

Similar threads

Anarchy99
Obscure Records That You Think You May Hold
2
Replies
76
Views
1K
rockaction
rockaction
Senor Schmutzig
I had a heart attack this weekend...
2 3
Replies
115
Views
4K
Mr.Pack
Mr.Pack
Quint
LG OLED TV - Never Again (a rant) *Update & Resolution Added*
Replies
49
Views
3K
Ilov80s
Ilov80s

Users who are viewing this thread

Total: 1 (members: 0, guests: 1)
Back
Top