The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

Today I said F*ck YOU to my auto loan.

A detailed account of a Fastlane process...

TreyAllDay

Whatever it takes
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
311%
Feb 9, 2016
560
1,743
33
Edmonton, AB
4 years ago, I was relatively fresh out of college and moving up in the corporate world. Of course, my scripted self said "go out and buy a new vehicle. you're making more money now". I did, and like an idiot I accepted 13% interest on a drawn out 6 year loan, plus a $360/month insurance payment at first. In the end, on a $20K vehicle, I would be paying about $30k. Screwed up my credit after missing payments, ended up a bit depressed over the overwhelming responsibilities, and wasted months smoking weed and sulking over it. Seriously, the trap is real lol.

Anyway, today after 5 months in business, I got to say "F*ck YOU" and pay off the remaining balance in cash. Feels good to not be a sucker anymore.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Niptuck MD

plutocrat-in-training
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
164%
Aug 31, 2016
1,421
2,330
NORWAY - POLAND - WEST EUROPE
Congratulations. Now dont do it ever again LOL

You are one step closer to AUTONOMY
 

TreyAllDay

Whatever it takes
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
311%
Feb 9, 2016
560
1,743
33
Edmonton, AB
Couldn't agree more! Car payments suck!! I don't have any now but have in the past. It's a noose. Avoid it if at all possible.
Yep. There are some great dealerships out there, but the majority of them (especially if they specialized in used vehicles) are just terrible. High pressure preying on people who don't know any better.

Sent from my SM-A520W using Tapatalk
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

TreyAllDay

Whatever it takes
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
311%
Feb 9, 2016
560
1,743
33
Edmonton, AB
Geeze. I get collection calls 5x a day. Ugh... I know what your all going to say...

Congrats though.
Went thru a time where I tried avoiding the problem, literally wouldn't accept a call from a number I didn't know. But honestly if you just talk to them, make a plan, and slowly rebuild your credit you can put it behind you relatively fast.

Sent from my SM-A520W using Tapatalk
 

LeoistheSun

Silver Contributor
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
152%
Oct 3, 2017
426
646
Honolulu
Went thru a time where I tried avoiding the problem, literally wouldn't accept a call from a number I didn't know. But honestly if you just talk to them, make a plan, and slowly rebuild your credit you can put it behind you relatively fast.

Sent from my SM-A520W using Tapatalk

Funny thing is, I told them that. And they were like "okay, no problem. We'll call you tomorrow..." ...yeah
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Tom.V

Tom
FASTLANE INSIDER
Read Fastlane!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
237%
Feb 20, 2012
977
2,314
34
San Juan
So much hate for auto loans. Just refi if the rate is too high, stretch it out as a long as they will let you, buy at the bottom end of the depreciation curve, and trade it out every 12-24 months before 50k/miles. Limited downside due to position in depreciation curve and limited cash in a depreciating asset while maintaining resale value below that threshold.

But happy for you! Breaking free from the shackles of debt is extremely liberating.
 

Philip Marlowe

Every Day On, No Days Off
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
329%
Apr 28, 2017
279
918
40
NE
Was in with a mortgage broker and just to understand my limits, I asked how much (based-on the information I provided) could I borrow.

I was SHOCKED.

They were willing to offer me something close to 45% of my monthly take-home pay. The explanation was that I have good savings and credit, which doesn't take into account any other normal debts I incur every month on the millions of other things I pay like daycare, cable, gas, food, etc.

Most people lending money don't give an F about you. And they're more than happy to extend your payment timeline and jack-up the interest rate (the question you should NEVER answer when asked is "Well, what did you want your monthly payments to be?").

None of the changes after the financial crisis did anything to actually address the problem. Namely, people borrowing WAY more than they can afford and lenders who are happy to give it to them.

Ugh.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

c4n

Full throttle
FASTLANE INSIDER
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
265%
May 30, 2017
379
1,003
I accepted 13% interest on a drawn out 6 year loan

Holly $h!t, interest rates on loans can be that high in the US? And people are taking them for "luxury" items?!? Talk about sidewalking...

Glad you got out of it, congrats!
 

MidwestLandlord

Legendary Contributor
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
759%
Dec 6, 2016
1,479
11,226
Holly $h!t, interest rates on loans can be that high in the US? And people are taking them for "luxury" items?!? Talk about sidewalking...

Glad you got out of it, congrats!

Usury laws vary by state. In my state, there is no cap to what interest can be charged on an auto loan.

My sister (hardcore sidewalker) once bought a car that was valued at $900.

She paid $4,300 for the car after all the various fee's and interest.
 

c4n

Full throttle
FASTLANE INSIDER
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
265%
May 30, 2017
379
1,003
My sister (hardcore sidewalker) once bought a car that was valued at $900.

She paid $4,300 for the car after all the various fee's and interest.

Did she know it was valued at $900 at the time of purchase or was that a later valuation? Because this sounds like pure fraud to me.

Got a brother who is a level 53 sidewalker myself. At the age of 37 he is 100x his monthly salary in debt; he doesn't own any real estate (just a car) and high education is free in our country. Guess what he will be getting for Christmas? (hint)
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

MidwestLandlord

Legendary Contributor
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
759%
Dec 6, 2016
1,479
11,226
Did she know it was valued at $900 at the time of purchase or was that a later valuation? Because this sounds like pure fraud to me.

Yes, she knew that's what it was worth at the time of purchase. I told her what it booked for, she didn't care. (she told me to go F myself actually haha)

It was one of those "buy here, pay here" places. She made a payment every week. They charged her a $25 fee to process her check lol (no fee if you paid cash)
 

MJ DeMarco

I followed the science; all I found was money.
Staff member
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
445%
Jul 23, 2007
38,076
169,488
Utah
Congrats, not sure how I missed it!
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

fortu1992

Contributor
Read Fastlane!
Read Unscripted!
User Power
Value/Post Ratio
107%
Mar 24, 2017
59
63
31
Mileto VV Italy
4 years ago, I was relatively fresh out of college and moving up in the corporate world. Of course, my scripted self said "go out and buy a new vehicle. you're making more money now". I did, and like an idiot I accepted 13% interest on a drawn out 6 year loan, plus a $360/month insurance payment at first. In the end, on a $20K vehicle, I would be paying about $30k. Screwed up my credit after missing payments, ended up a bit depressed over the overwhelming responsibilities, and wasted months smoking weed and sulking over it. Seriously, the trap is real lol.

Anyway, today after 5 months in business, I got to say "F*ck YOU" and pay off the remaining balance in cash. Feels good to not be a sucker anymore.

the same thing happened to my father we just have to learn from mistakes
 

Niptuck MD

plutocrat-in-training
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
164%
Aug 31, 2016
1,421
2,330
NORWAY - POLAND - WEST EUROPE
So much hate for auto loans. Just refi if the rate is too high, stretch it out as a long as they will let you, buy at the bottom end of the depreciation curve, and trade it out every 12-24 months before 50k/miles. Limited downside due to position in depreciation curve and limited cash in a depreciating asset while maintaining resale value below that threshold.

But happy for you! Breaking free from the shackles of debt is extremely liberating.


this is not a bad idea; because the newer vehicles aint worth a damn after 50K and with all the electronics and such (which are the leading causes of repair and most coincidentally the highest $$$ to fix/troubleshoot) if you dont know anyone in service departments etc it could get cumbersome....
 

B. Cole

In thine hand is power and might.
FASTLANE INSIDER
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
328%
Mar 5, 2017
595
1,953
42
East Coast
Made me laugh @MidwestLandlord and @c4n - I gave my sidewalker sister and her ditchbank husband (works part time at a bar so he can spend his paycheck there when his shift ends) my copy of TMF a couple months back. Haven’t heard from them in awhile, hope they use it. I’m instilling as much good advice in my nephew (their son) as possible.


Congrats @TreyAllDay, 30K on a car that is now maybe worth less than half is a terrible deal, I finished my auto loans about 2 years ago too. Money could have went a long way towards a business. Cars are necessary, but enslaving if bought irresponsibly.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

mike24601

Consumption Bear
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
267%
Apr 8, 2017
195
521
Illinois
Made me laugh @MidwestLandlord and @c4n - I gave my sidewalker sister and her ditchbank husband (works part time at a bar so he can spend his paycheck there when his shift ends) my copy of TMF a couple months back. Haven’t heard from them in awhile, hope they use it. I’m instilling as much good advice in my nephew (their son) as possible.

Just wait till Christmas when you see them again. "Thanks for giving us that book, we really took it to heart and got signed up for Amway so we can be entrepreneurs!"
 

socaldude

Saturn Sedan and PT Cruiser enthusiast.
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
212%
Jan 10, 2012
2,380
5,043
San Diego, CA
What are you talking about? Car loans are good for the economy.-U.S government :rofl:

A brand new car now is more valuable than a new car tomorrow(time value of cars).
:rofl:

I mean, I can afford the monthly payment. :rofl:
 
Last edited:

socaldude

Saturn Sedan and PT Cruiser enthusiast.
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
212%
Jan 10, 2012
2,380
5,043
San Diego, CA
I mean other than a mortgage I can't really think of why anybody would want a payment.

Unless you had some kind of tax benefit in your business cause you leased etc.

I mean now and days people have a freaking payment on the latest smartphone. WTF?

And if you don't pay your credit card in full you are technically paying for groceries and gas and other expenses on a high interest payment plan. :wideyed:
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

MidwestLandlord

Legendary Contributor
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Speedway Pass
User Power
Value/Post Ratio
759%
Dec 6, 2016
1,479
11,226
I mean other than a mortgage I can't really think of why anybody would want a payment.

There's an argument to be made for opportunity costs (especially on very expensive rides), but overall yeah, it doesn't make sense.

I once financed a car because it was cheaper to finance than it was to pay cash. The sales manager flat told me they got a kickback from the bank for financing, so they cut me a better deal if I took a loan. I just payed it off in full at the first payment lol.

(I probably could of got a better deal with cash somewhere else, but I was on a trip and blew up the motor in my truck. I bought a new one the same day. It sucked)
 

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

Latest Posts

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top