5th gen payments

[1BADLS3]

Originally Posted by rodscamaro

If you cant put half down, then you cant afford it.

Just saying

You're wrong. On so many fronts.

In fact, in the sea of 0% car loans, it would literally be stupid to put ANYTHING down, since it's free money. If you've got the cash, at the very least, it can sit in a bank account and earn 0.5%-1.0% interest in savings.

It makes sense up to whatever percentage you can make on the money in other accounts, i.e. retirement if you invest aggressively, or other short-term, high-yield investments.

Second, if a fully financed payment along with the sum of your other bills is still totaling less than 36% of your income (as a general, old-school rule), then you absolutely can afford it.

[swagled]

My first car loan in 1992 was 9.5% and I thought I was doing great to get single digits. Yeah at today's rates you may as well finance, even if you can afford to pay cash.

[1BADLS3]

Originally Posted by swagled

My first car loan in 1992 was 9.5% and I thought I was doing great to get single digits. Yeah at today's rates you may as well finance, even if you can afford to pay cash.

So many people don't understand that the late 80's and early 90's were horrid times for borrowing money. Double digit house loans in some cases. Can you imagine? 2.9%, 3.9%, etc was unheard of for cars. 0% was a fairytale.

[Capthowdy]

Money......you can't take it with you when you die...It could all end tomm or 5 min from now...And if you don't spend it....YOU BETTER BELIEVE SOMEONE WILL!! prolly someone you don't want to ...

[CUPRA]

I'm paying $474 a month, 72 months, 3.9% with $7000 down on my 2011 2SSRS with extended warranty.

62 month to go!

[ooojerry]

$232 a month, 72 months, 3.49, 13 down (Majority of savings+lemonlaw money+income).

Age 18(at the time of financing)!

[camarowa]

Originally Posted by 1BADLS3

You're wrong. On so many fronts.

In fact, in the sea of 0% car loans, it would literally be stupid to put ANYTHING down, since it's free money. If you've got the cash, at the very least, it can sit in a bank account and earn 0.5%-1.0% interest in savings.

It makes sense up to whatever percentage you can make on the money in other accounts, i.e. retirement if you invest aggressively, or other short-term, high-yield investments.

Second, if a fully financed payment along with the sum of your other bills is still totaling less than 36% of your income (as a general, old-school rule), then you absolutely can afford it.

This rationale would only hold up assuming you have the full funds to buy the car set aside and could pay off the note whenever required. However, it think it would be fair to say that most folks don't have $30-40k sitting somewhere. Leverage can be your friend, but will more than likely become your worst enemy, especially on a depreciating asset.

[oldfriend]

Originally Posted by COLD_Cam

Mine costed me 0$.

I used part of the heritage money that I was planning to leave to my 2 sons (20-25) (I'm still paying all their studies...)

I guess they'll have to do like me, ie work and earn their own money.

That's why is so cold in CANADA

[1BADLS3]

Originally Posted by camarowa

This rationale would only hold up assuming you have the full funds to buy the car set aside and could pay off the note whenever required. However, it think it would be fair to say that most folks don't have $30-40k sitting somewhere. Leverage can be your friend, but will more than likely become your worst enemy, especially on a depreciating asset.

It's really a suckers argument though. There are so many definitions of affordable, and people's assumption of risk is wildly different. Just something for the guy who posted the "you must have half down" comment to think about.

Me...I put a metric ton of money down on my Camaro, stupid or not, it was just my strategy for this car.

[ooojerry]

Originally Posted by 1BADLS3

Me...I put a metric ton of money down on my Camaro, stupid or not, it was just my strategy for this car.

Was it a metric ton of pennies, nickles, dimes, quarters, dollar bills?!?!?! Im just a little confused!

[OrangeVert]

Transferring funds from savings to pay for the car up front, then $354.16 per month for 10 years, paid back to ourselves at 0% interest. Saved a lot over the last 5 years because there were no new cars special enough to buy until the 5gen Camaro came along! Tried a couple of used ones, but that just didn't work. Turned out to be "time suckers". And time is money, also freedom and fun.

If a credit union or bank would loan us the money at @0% instead - I'd be all for that.

[paultheman2007]

I pay 679 a month with no money down

[blizzpat]

Affordable means you can continue paying bills without a job for quite some time... I doubt many people who have their cars financed could manage over a year with all their bills...

I have never/will never finance a car. I use credit cards in very little situations... I use mostly cash and debit cards... I don't see the point if I have the money in my account why I should borrow it and pay an interest. Not many people are as fortunate, but I think if people stopped spending what they didn't have the world economy in general would be much better (That include you US Govt!!!!).

It's the same argument I give people who mod their engines... If you can't afford a new engine don't mod it...

[OrangeVert]

Originally Posted by blizzpat

Affordable means you can continue paying bills without a job for quite some time... I doubt many people who have their cars financed could manage over a year with all their bills...

I have never/will never finance a car. I use credit cards in very little situations... I use mostly cash and debit cards... I don't see the point if I have the money in my account why I should borrow it and pay an interest. Not many people are as fortunate, but I think if people stopped spending what they didn't have the world economy in general would be much better (That include you US Govt!!!!).

It's the same argument I give people who mod their engines... If you can't afford a new engine don't mod it...

+1