What's up with people having 84 month long car loans?

13 others said:
I agree with everything you said there. I definitely think that spending x amount of dollars in your twenties to go on a trip beats doing it at 65. For sure. You can splurge and be financially responsible but at the end of the day, if you don't give a fuck about all that then you're right, it doesn't matter. You very well could be dead tomorrow.
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That's how I rationalized it in my mind; get the mid-life crisis mobile out of my system now, so it isn't a regret later on and do it as responsibly as possible.
 
Companies will always look to take advantage of morons
 
Vehicles are a liability, not an asset. That is probably the hardest thing to teach a young person in the way of finances. Cars are marketed in music, advertising, movies, etc as a status symbol. Kids want that status to keep up with the Jones’s kids.

I’ve had car loans. It took having one to get it into my skull that I don’t need the fanciest car. Buy cash, make sure it’s reliable, and laugh at the broke people.
 
kahiljabroni said:
Debt free is the way to be. I have a paid off car with 25k miles on it...I could easily not have a car payment for the next 10-15 years if I want.

I really don't care about consumer shit...it doesn't make me happier. Driving an expensive car gives me anxiety because I have to stress where I park and getting dinged. Idgaf about latest phones. .they all go to same Internet. Max out retirement while still living comfortably ftw.
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debt free is certainly the way to be, but you cant say you dont care about consumer shit. you spending money on things you dont 'need' is as true as the fact everyone is born with an arsehole
 
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13 others said:
It's crazy. A lot of people have this and they end up in an upside down loan after 5 years max. When did people become so bad with finances? Everyone is up to their eyeballs in debt and they don't know why. Living in an apartment and driving a Benz <45>
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Ghetto rich. Benz's you should lease, IMO. Me and the wife lease an S class she drives it mostly. Really nice car. I also have a Chevy volt ( commuter lease ) and a Ford F150 fx4 that I own.
 
BillytheFish said:
debt free is certainly the way to be, but you cant say you dont care about consumer shit. you spending money things you dont 'need' is as true as the fact everyone is born with an arsehole
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I dont care relative to most people. If anything we splurge on good food and 1 big trip per year but I wouldn't call that consumer goods. Cars, clothes, watches, phones, tvs,etc I don't care about
 
kahiljabroni said:
I dont care relative to most people. If anything we splurge on good food and 1 big trip per year but I wouldn't call that consumer goods. Cars, clothes, watches, phones, tvs,etc I don't care about
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so its whatever the thrift shop has from the 1960s then is it for you and your family lol?
 
By income I'm the 1%. I live in ca. My daily driver is a 13 year old truck and itsi worth about 10k... I bought an old muscle car for weekends. I've never had a car payment. Never will. I'm building rental properties instead of getting my dream car. Some day I'd like a zr1 .
 
BillytheFish said:
so its whatever the thrift shop has from the 1960s then is it for you and your family lol?
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Nah nothing that extreme. My family is just my wife and me and she spends enough on clothes for both of us. I get clothes for xmas,birthday and I'll buy when I need....my point is I don't enjoy it and it's not my hobby.
 
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Live in a rental. Come at me brah.
 
kahiljabroni said:
Nah nothing that extreme. My family is just my wife and me and she spends enough on clothes for both of us. I get clothes for xmas,birthday and I'll buy when I need....my point is I don't enjoy it and it's not my hobby.
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There must be something you spend money on that you enjoy that isnt food/water/shelter/transport

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If its a dealer-financed 0% loan it makes sense to do. This type of loan is widely available to qualified buyers. In this scenario you retain more of the balance longer, which can be sitting in an interest bearing account each year, rather than giving it up sooner on a depreciating asset which will have the same value after 6 years regardless.
 
irc said:
If its a dealer-financed 0% loan it makes sense to do. This type of loan is widely available to qualified buyers.
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Still depends on the term, I had an opportunity to go with a longer term at 0%, but at the end of the day, it still means owing shit on something that depreciates, so I stuck with the shorter term.
 
jlagman said:
"You can sleep in a car, but you can't drive a house."
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You can even sleep while it drives you to work. A house is not going to significantly improve the quality of my life like autopilot has.
 
jlagman said:
Still depends on the term, I had an opportunity to go with a longer term at 0%, but at the end of the day, it still means owing shit on something that depreciates, so I stuck with the shorter term.
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Yeah but that just means you parted with your money sooner rather than later, which costs you money. Let's say you're going to keep a 50k car for 7 years. Scenario A, you purchase the car on a 5 year 0% loan. You will retain a percentage of the price over the course of the 5 years, and leave it sitting in an interest bearing account. Scenario B, you pay the 50k cash up front. 7 years goes by and you sell the car. Either way you paid a flat 50k for the car. But in scenario A a portion of that 50k earned interest the entire time, which you keep, which brings the effective amount you paid for the car to an amount less than the 50k.
 
irc said:
Yeah but that just means you parted with your money sooner rather than later, which costs you money. Let's say you're going to keep a 50k car for 7 years. Scenario A, you purchase the car on a 5 year 0% loan. You will retain a percentage of the price over the course of the 5 years, and leave it sitting in an interest bearing account. Scenario B, you pay the 50k cash up front. 7 years goes by and you sell the car. Either way you paid a flat 50k for the car. But in scenario A a portion of that 50k earned interest the entire time, which you keep, which brings the effective amount you paid for the car to an amount less than the 50k.
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True, lower car payments could make the next few years seem more bearable and at 0%, there's not much incentive for me to pay it off immediately, other than to simply have it over and done with.

I'm on the verge of blowing the majority of my savings on the down payment on my first house. Live and learn, I guess.
 
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