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Paid off!!

XGC75

Go Kart Champion
Those destined for financial security ask "how much?"
Those destined for a life of debt ask "how much per month?"

And investors ask, "where best to direct my cash flow to make the most with what I have?" Car loans are dirt cheap. Some investments can net a lot more than the car loan costs.

butchered by autocorrect
 

nouse4aname

Go Kart Champion
True we're in an odd situation right now with such low interest rates. But a smart shopper is still negotiating the purchase price, not a monthly payment shopper who doesn't even understand negative equity.
 

Highgate Golfer

Ready to race!
Congrats, once my tax refund comes back in April I'll be golden.

I agree completely about directing cash flow to where it earns the best return, but the other school of thought you have to consider is freeing up future cash flow in the form of what used to be your monthly payments. Ie, if you foresee yourself purchasing a home, or moving out, kids, whatever it may be. Free cash flow is king, all the time.

I've done a split in the last year and a half, when I accumulate good chunks of cash, one goes to the loan, the next time it gets saved.
 

McQueen77

Banned
some of the richest people in the world lease cars and always have a car payment, as well as some of the most financially stupid. the blanket generalizations are tiresome. "but warren buffet drives around a 15 year old pickup truck".. i don't know where that urban myth started but i don't buy it. if its true, good for him. i don't care what warren buffet does.

if you are a person who is going to get a new car every 3-4 years, you are always better off leasing, unless you drive more than 15k miles per year. otherwise, you're lying to yourself if you think shelling out thousands in down payments and finance charges is some how saving you money when you go to buy the next new car. yes, rolling over negative equity into a new car loan is like, ground zero financial stupidity. if you put $5k down on a car when you buy it, sure, you won't be 'upside down', but if you turn around and sell the car or worse yet, trade it in in 3 years, you gained nothing by buying that car. nothing.

the cheapest thing to do is buy used and drive for 7+ years. or be like my uncle who buys beaters at auction for next to nothing, drives them a few years and gets something else, always driving beaters.. but then you are stuck driving beaters.. mostly, cars and the money it takes to have them is all varying degrees of loss. I got my GTI in '10 and it is now paid off. its nice not having that car payment, but I'm not pretending it was some good investment or i'm some financial sage because i paid it off. working in the tax i paid at time of purchase on the whole amount, finance charges i paid before it was paid off, tires i just had to get etc. + all the money ill have to pay to keep it running for years to come, its a big fat money pit.it was time for the wife to get a new car and i didn't want 2 payments, so i bit the bullet. now its paid off and i'll drive it into the ground... forget about the fact that when i bought it we werent talking about having kids and now 2.5 yrs later, we got one on the way, and its a 2 door and basically totally impractical as a 'family car'. but guess what, i feel stuck with it now because i 'paid it off'. talk about zero flexibility. sweeeet
 
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nouse4aname

Go Kart Champion
Theoretically anyway it should be a wash. Lease payments just cover depreciation which would be the same value lost if you had bought it then sold privately. Difference being it's a lot easier to give up a financed car in a financial emergency or if you just don't like the car(or it turns out to be a lemon) and want out after 1 year. Leases are a bit of a trap.
 

McQueen77

Banned
Theoretically anyway it should be a wash. Lease payments just cover depreciation which would be the same value lost if you had bought it then sold privately. Difference being it's a lot easier to give up a financed car in a financial emergency or if you just don't like the car(or it turns out to be a lemon) and want out after 1 year. Leases are a bit of a trap.

not necessarily. that depreciation is fixed with a lease whereas, selling it privately can go different ways and you may or may not get enough to 'come out even'. but yes, somewhat easier to get out of a financed car vs. leased..

end of the day, its all a loss w/cars.. the key is just minimizing the loss as best you can.
 

XGC75

Go Kart Champion
I got my GTI in '10 and it is now paid off. its nice not having that car payment, but I'm not pretending it was some good investment or i'm some financial sage because i paid it off. working in the tax i paid at time of purchase on the whole amount, finance charges i paid before it was paid off, tires i just had to get etc. + all the money ill have to pay to keep it running for years to come, its a big fat money pit.it was time for the wife to get a new car and i didn't want 2 payments, so i bit the bullet. now its paid off and i'll drive it into the ground... forget about the fact that when i bought it we werent talking about having kids and now 2.5 yrs later, we got one on the way, and its a 2 door and basically totally impractical as a 'family car'. but guess what, i feel stuck with it now because i 'paid it off'. talk about zero flexibility. sweeeet

You should find someone local to trade :D But in all seriousness, you could claim a $1 transaction and pretty much only pay for the paperwork and plate. It's your car now, you can do whatever you want!

butchered by autocorrect
 

jni3

Ready to race!
remember it's not bad to finance for a bit to raise your credit score. my original plan was to finance for six months then pay it off. i've got one more month to hit that mark. of course i've also been making double payments and paying bi-weekly to save on interest. i'm shooting for that magic number of 850 with only 22 more points to go.
 

McQueen77

Banned
i'm shooting for that magic number of 850 with only 22 more points to go.

anything over 770 is prime borrower tier a-rating credit. doesnt matter if you are 798 or 850, youll get the same rates
 

jni3

Ready to race!
anything over 770 is prime borrower tier a-rating credit. doesnt matter if you are 798 or 850, youll get the same rates

maybe, but it matters to me
 

booey1979

Go Kart Champion
Because rolling potential negative equity into a new car loan somehow makes sense? Or paying interest at a rate faster than investing can net makes sense?

Just sounds like you're hating to be honest.


OP - Congrats!

Yes I'm a hater. I have a masters degree with a cushy ass job with great benefits. Yup hater right here. Yup I'm a hater. I don't know where u got Rolling a loan into a negative equity suggestion since I didn't write that, maybe you are psychic?
 
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