Thoughts on buying cars

[yodiggity]

In the book MJ discusses choices and not being a slave to debt. I'm curious to get your thoughts on buying a car.

I'm currently in the market for another car (I drove a Nissan for years, but it wasn't no longer worth fixing). I'm now driving a 2000 Sable, which is my step sons (he is in Florida). The transmission already went out which is costing me 650.00 total (parts and labor by retired mechanic).

I want to buy another vehicle and curious to what you guys philosophy on all this is. I'm thinking of financing something around 12 to 14k (Honda or similar) with some $$$ down.

By the way I'm new and posted an into.

 

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[Rerun]

I just bought a used car with 12,000 miles on it for everyday driving. I was going to pay cash, but got a loan at a fixed 2.75% rate. My philosophy is don't borrow money for things that depreciate in value, but at that rate my cash is better off being used for assets. Otherwise I can pay it off without a prepayment penalty if I get sick of carrying the debt. I'm sure I'll hold on to this vehicle as long as it runs well and remains a safe option for hauling the family around.

Something to think about anyway... hope that helps.

 

[JAJT]

I'm driving a car I paid $10k cash for about 5 years ago - a 2004 V6 Pontiac Grand Am.

For decoration I let someone reverse into my bumper and take half of it with them. A shame I never got their name :sigh:. I'd fix it but it's entirely cosmetic so I just had the shop bend and bolt all the stray pieces together. Needless to say I don't share the car enthusiasm that some do

Sadly with two kids now we need to upgrade to a "family-mobile" (likely a minivan or crossover). Not looking forward to spending ANY money in that direction since our ugly, beaten car works just fine but the size issue is absolutely becoming a problem. When the time comes it will also likely be used, a few years old, and paid for in cash when I save enough up.

I was in debt most of my adult life and won't take on another dollar of financing or debt if I can help it in any way possible.

 

[RBefort]

I used to drive the more inexpensive sports cars, and one decently expensive....basically, I have been car broke most of my college years. I just got out of college, landed a mediocre job after, and regret all of the debt I got. I recently sold my 28k car with a couple 1000 negative equity just to downgrade and start having extra money available. I would say the car you are looking at, depending on the year, will be around 300ish a month. I am almost considering ditching this car, which pmts are around 300/mo, just for something even older. However, I hate having something unreliable, even though buying a newer car w/ warranty costs more than an older one+adding on warranty! Backwards thinking, but I would try to pay cash if you could; unless like you said, that cash can be used elsewhere. Couple things to think about: If you paid cash, how quickly could you recoup that 12k you spent on the car? If you finance, can you pay extra/month, so you didn't drag out a longer loan term? If you put some money down, then you put yourself in a better position than nothing putting any down. We don't know your financial situation, so it's hard to give much advice...personally, you can buy/finance anything you want...taking on debt is pretty much always bad on things like this, but like I said, it depends. From my past issues with vehicles and the prices I spent on them (mid 20s to 60k), I would never buy that high again on most of America's salaries. Ramsey says you shouldn't finance a car and just buy cash. Personally, I think if you are going to drive it a long time and make an effort to pay it off quicker than expeced, it isn't as bad as not putting anything down, getting extended loan term, being car broke, etc.

 

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[1PercentStreet]

I only do 75% down or cash. Debt is no bueno, things can happen which cause your credit to crash. I put my truck on a 12 month loan at 80% down. Credit is up 100 points and going to be paid off this month.(Double payment every month).

 

[Kak]

I am actually fine with using debt or leasing with my business. I get paid monthly for the term of the contracts I arrange, interest rates are extremely low and my money is technically already made when I make purchases like this. I am currently saving for a Rolls Royce Phantom. I drive a 2006 Nissan with 102k miles on it as my daily driver and beater paid cash new.

The plan is to get the nice car next and then trade the Nissan for another beater like a used Range Rover. I am holding out with the nissan to hit about 140k miles.

I keep my own cars running, so they don't have to really be the most reliable cars on the road.

 

[yodiggity]

This is all good stuff. My financial situation isn't too bad. I'm a lil older than probably most on here and have owned a lot of cars through out the years. Most were cash deals. The Nissan was financed and was a bad deal.

These are the things I wanted to avoid that I experienced with the Nissan.

No long term payment options. 36 months tops (unless the car has a high residual value maybe 48 months):

Buy a car that is known for longetivity without major stuff going wrong (something I can drive for at least 8 to 9 years or longer).

Money down.

No high@ss interest rate!

If I finance, somehow buy something with a warranty left (Example: 2009 Accord with remainder of 100k or 7 year fac warranty).

Or just pay cash.

Or another scenario is buy from one of those private lots and research the vehicle and put money down and finance the rest to less the 24 months. The miles would probably be a little high. Probably have to incorporate a mechanic to check the car.

Just brainstorming. More philosophies welcome.

 

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[yodiggity]

I drove my Nissan Altima up to 208,000.00. I had the engine rebuilt once at 130k. Didn't want to do it twice, plus it had many other problems.

 

[skipper]

I'm driving an 11 years old Nissan with 200k kilometres and so far no major maintenance (not even a clutch [it's a stick drive, we all drive stick over here]). I'll keep it as long as it goes. We do have another family car though, Ford Focus with diesel engine. It was bought new 4 years ago, with cash.

The real issue in Europe are becoming gas prices. I just paid 77E for a tank. In a country where the average (not median!) pay is less than 1000E. Crazy!

 

[G-man422]

Glad to have you here, Yodiggity,

Buy a car that is known for longetivity without major stuff going wrong (something I can drive for at least 8 to 9 years or longer).

I have always liked Honda and Toyota when it comes to longevity and value.

Why finance when you can pay cash for a reliable older vehicle? Drive the sable and save some money to purchase a car that has been well taken care of with low miles for the year.

Check out:
Toyota Camry
Toyota Corolla (or Chevy/Geo Prizm which is just a rebadged Corolla)
Toyota Matrix (or Pontiac Vibe, which is just a rebadged Matrix)
Honda Accord
Honda Civic


I have owned 2 Hondas, 4 Toyotas, 2 Fords and 2 Dodges, and am just letting you know that based on my experiences, American cars seem to have more frequent and major problems.

Best of luck and keep us osted as to what you find.

Also, KBB.com is your friend when trying to see what you should (or shouldn't) pay for a vehicle.

~ G

 

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[socaldude]

I would go with a Toyota or Honda Sedan 4 cylinder. Reliable and efficient.

The Fastlane is about living below your means with the intent to expand your means. You delay gratification.

WAY TOO many people take the easy way and get the new car.

 

[PatrickP]

Or go both ways

I actually use the Honda 1000 times more often than the other one.

True story I was in a convenience store, kid comes in says WOW is that your car? I look out the window and hes is pointing toooooooooooo wait for it . . . . the Honda lol I said ahh yea. He said I LOVE those cars lol

 

[Runum]

Or go both ways

I actually use the Honda 1000 times more often than the other one.

True story I was in a convenience store, kid comes in says WOW is that your car? I look out the window and hes is pointing toooooooooooo wait for it . . . . the Honda lol I said ahh yea. He said I LOVE those cars lol

View attachment 3842View attachment 3843

Been looking at a Honda Fit to replace the wifey's jetta in a couple of years. The viper looks tough!

 

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[PatrickP]

I REALLY Like the Honda.

I have a 2007 and have 180,000 miles on it. I don't even go to a job/work and neither does my wife.

I was going to buy a new one last year but saw they are up to something like 16K for the base model.

I used it up in NY with some pretty good size hills and with the stick shift it performed like a champ!

Have gotten a new pair of brakes front and back. New battery few months ago. 3 sets of tires and one repair, cant remember what it was.

It cost around $800 That's all. Very good IMO.

 

[Kak]

I REALLY Like the Honda.

I have a 2007 and have 180,000 miles on it. I don't even go to a job/work and neither does my wife.

I was going to buy a new one last year but saw they are up to something like 16K for the base model.

I used it up in NY with some pretty good size hills and with the stick shift it performed like a champ!

Have gotten a new pair of brakes front and back. New battery few months ago. 3 sets of tires and one repair, cant remember what it was.

It cost around $800 That's all. Very good IMO.

I kinda want one now LOL GEEZ man that worked out well! I do live in Houston though and a little car makes me weary. Sure it can be a safe car but a compact will never be as safe as an SUV.

 

[PatrickP]

I do know what you mean because I used to live in a farm town. I honestly would go days without seeing a another car. They all drove trucks and few had SUVs almost no minvans nor cars.

But it does have I believe 6 airbags including ones on the side.

BUT I do drive with my lights on all the time and even then I am not sure if people see the car or not.

 

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[tincho1492]

I've never owned a car nor drove one, but I'm sure that when I do I will feel like a child with a new toy

My town is very small and everything is a couple of blocks of distance so I think that I will continue this way until I can afford one, at least something for the rainy days

 

[Kak]

I do know what you mean because I used to live in a farm town. I honestly would go days without seeing a another car. They all drove trucks and few had SUVs almost no minvans nor cars.

But it does have I believe 6 airbags including ones on the side.

BUT I do drive with my lights on all the time and even then I am not sure if people see the car or not.

The ability to shoot around at 35mpg though is amazing. I average 14 in my Xterra. I could probably take on a lease payment and still net a savings.

 

[yodiggity]

Just read the Chad Johnson bought a 376K Lambo. This is topical for a few reasons! Check me out.

 

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[JaySoriano]

This isn't exactly "fastlane" but this is an interesting video on the subject:

Drive Free Cars - YouTube

Looked at in another way, buy an inexpensive car, use the rest of your money and invest in creating/growing a business that pays for a car you desire

 

[Rawr]

You can buy a number of quality cars in the 3-4k range that are 2003-2005 and you could pay that off in what, 2-3 months?

 

[Johnathanfx]

I've have always been able to pay cash for my cars. The most expensive was 2,300. Now I have a new way to decide if I should buy something. I only buy a car with what I can make in a month. I only buy a house with what I make in a year. Later when I make more its going to be a week for a car a month for a house. If you are serious about getting any where in life you have to have discipline.

 

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