New car for cheaper payment. Silly?

Discussion in 'The Okie Corral' started by Budqweiser, Oct 20, 2020.

  1. VoodooMountain

    VoodooMountain

    Messages:
    711
    Likes Received:
    1,128
    Joined:
    Dec 28, 2013
    Location:
    Kansas
    You cannot save money by buying a new car.
     
    Bow Commander, Upgrayedd and kiole like this.
  2. Budqweiser

    Budqweiser

    Messages:
    8,061
    Likes Received:
    13,501
    Joined:
    Jun 29, 2015
    Location:
    St. Louis Mo
    So does anyone have a 4 cyl Subaru and can you talk about getting on the highway?
     

  3. Budqweiser

    Budqweiser

    Messages:
    8,061
    Likes Received:
    13,501
    Joined:
    Jun 29, 2015
    Location:
    St. Louis Mo
    But can I spend less per month? Maybe? I know the answer already but monthly output matters right now.
     
  4. bill123

    bill123

    Messages:
    700
    Likes Received:
    390
    Joined:
    May 24, 2004
    What about financing it for four years ?
     
  5. Joshhtn

    Joshhtn The eBay Guy

    Messages:
    20,194
    Likes Received:
    42,056
    Joined:
    Mar 31, 2009
    Location:
    Middle Tennessee
    :cheers:
     
  6. TheDreadnought

    TheDreadnought

    Messages:
    9,749
    Likes Received:
    18,567
    Joined:
    Dec 15, 2014
    Do it.

    Use the leftover money to pay off the loan faster, invest it, or whatever you want.

    You could get another couple years out of your current car, but maybe then you won’t get such a great offer. Right now they are desperate to sell cars.

    Some guys treat having a paid off car like it’s some kind of savings account. Instead of a depreciating asset that gets less valuable every time you start it up.

    Save yourself the cash flow.
     
  7. ked

    ked

    Messages:
    5,975
    Likes Received:
    6,718
    Joined:
    Feb 12, 2007
    Location:
    Memphis, Tn
    That sounds like a great deal!
     
    Haldor likes this.
  8. TheDreadnought

    TheDreadnought

    Messages:
    9,749
    Likes Received:
    18,567
    Joined:
    Dec 15, 2014
    So paying a big chunk of cash up front for a car means you have more in savings? Lol

    Meanwhile, interest rates are so low they’re practically giving away money for free. All that cash could be growing for you, and instead you’re paying it up front for a depreciating asset.

    Some people don’t like debt, I get it. But even if you have the cash.... sometimes ESPECIALLY if you have the cash, you’re better off financing.
     
    SouthVA and Detectorist like this.
  9. fg17

    fg17

    Messages:
    7,026
    Likes Received:
    6,528
    Joined:
    Oct 25, 2012
    Depends on how many miles you drive a year. 120k is not that many miles these days.
     
  10. VoodooMountain

    VoodooMountain

    Messages:
    711
    Likes Received:
    1,128
    Joined:
    Dec 28, 2013
    Location:
    Kansas
    I don't know much you would be saving per month but if things are tight sell the subaru and get a used camry or corolla. Even if you are upside down paying off the difference is better than 25-35k for a new car. Roll THAT monthly savings into your account and save or invest. My thoughts anyway.

    Buying cars is a trap! And I've fallen for it! Lol. I always want something newer and faster but it's slippery.

    I could have bought a new mustang gt for a lower monthly payment but I went used. Saved 15k on the car.
     
  11. Budqweiser

    Budqweiser

    Messages:
    8,061
    Likes Received:
    13,501
    Joined:
    Jun 29, 2015
    Location:
    St. Louis Mo
    I’ll look into it. I’m not afraid of a longer loan though.
     
    Butch_Coolidge likes this.
  12. fg17

    fg17

    Messages:
    7,026
    Likes Received:
    6,528
    Joined:
    Oct 25, 2012
    Depends on how many miles you drive a year. 120k is not that many miles these days. Or if the debt doesn't bother you and you really want it, go for it.
     
  13. Budqweiser

    Budqweiser

    Messages:
    8,061
    Likes Received:
    13,501
    Joined:
    Jun 29, 2015
    Location:
    St. Louis Mo
    It’s not a trap. If I want it I’ll buy it. Just like anything else. I just haven’t decided yet if I can deal with a 4cyl. I don’t drive fast or anything so I can probably enjoy the better mileage. I would definitely enjoy a smaller monthly payment.
     
  14. kiole

    kiole

    Messages:
    11,451
    Likes Received:
    11,523
    Joined:
    Feb 16, 2008
    It’s a bad financial choice you’re essentially renting a car and if that’s your normal behavior it maybe better to lease.

    That said if you’re going to do it, make sure you check carvana, vroom and carmax for offers for your car. The dealer isn’t making good deals, they aren’t reaching out to you because they have a good deal. They see an opportunity to make lots of money.

    Negotiate your purchase price and use true car if you can’t negotiate. Then email multiple dealers until they stop responding with lower prices. Then ask them for a price on your trade in and compare to vroom carvana and carmax. Also source your own financing and make the dealer beat it.

    Then best move is to finance a car for 48 months max unless very low interest. The OTD price should be no more than 50% of annual salary (if you make 30k a year your car should cost no more then $15000). Then you should pay it off and keep making those payments into an account to pay cash for the next car. However that’s not reality for most people so at least minimize the burn from the dealer and be smart.
     
    Last edited: Oct 20, 2020
  15. Tvov

    Tvov

    Messages:
    9,890
    Likes Received:
    7,394
    Joined:
    Sep 30, 2000
    Location:
    CT,USA
    Are you sure that is not just a sales pitch? Around me, dealerships can't keep anything on the lot, and won't make a deal basically at all.

    Especially for USED vehicles! I just helped my daughter buy a 7 year old Hyundai. We lost out on two other cars because we weren't fast enough with a down payment - even when we went to look at one the next morning, like 15 hours after seeing it online. For the third car I called and did a credit card over the phone for a down payment without seeing the car. While we were at the dealership, the place was really busy. Phones ringing, customers walking in. Our salesman said in the last about 10 years, he never remembers it being this busy. This was my very strong impression, I don't know what is going on in other parts of the country.
     
    mj9mm likes this.
  16. Gino

    Gino Millennium Member

    Messages:
    1,490
    Likes Received:
    2,732
    Joined:
    May 30, 1999
    Location:
    Clermont, FL USA
    Google Dave Ramsey and listen to some of his youtube videos. Spend a couple of hours and listen to what the guy suggests. Could change your life...
     
    light-switch likes this.
  17. LEO/Dad

    LEO/Dad Navy Veteran

    Messages:
    5,262
    Likes Received:
    3,374
    Joined:
    Aug 16, 2009
    Location:
    Illinois
    To me, it is all about Interest paid.
     
  18. Budqweiser

    Budqweiser

    Messages:
    8,061
    Likes Received:
    13,501
    Joined:
    Jun 29, 2015
    Location:
    St. Louis Mo
    The new deal could save me a lot on interest. They have a really low rate going right now.
     
    LEO/Dad likes this.
  19. ThatGuyYouKnow

    ThatGuyYouKnow Custom Title Goes Here

    Messages:
    1,124
    Likes Received:
    1,543
    Joined:
    Sep 25, 2020
    Location:
    Location Goes Here
    If you can afford the payments and you get a car you trust out of it, I say, go for it.

    If it was a Toyota, I would say different, but a Sub with 100k? Yeah, let someone else deal with the potential headaches.
     
  20. Upgrayedd

    Upgrayedd

    Messages:
    6,622
    Likes Received:
    19,587
    Joined:
    Jul 5, 2006
    Location:
    Ohio
    I have a 2012 impreza with the 2.0 flat four. It's fine getting on the highway. However, it's paid off, and that's the best kind of car. Only a sucker would think saving a few bucks a month by taking on years of new payments is a good idea. Buy it if you want, but be honest with yourself!
     
    Last edited: Oct 20, 2020
  21. e150gt

    e150gt

    Messages:
    329
    Likes Received:
    487
    Joined:
    Jun 15, 2010
    Location:
    San Antonio, TX
    2 more payments on my Mazda. I'm so excited to get rid of that payment. It gets old.
     
    lesgeaux and Tvov like this.