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731 Posts
You cannot save money by buying a new car.
New car for cheaper payment. Silly?
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8,230 Posts
So does anyone have a 4 cyl Subaru and can you talk about getting on the highway?
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But can I spend less per month? Maybe? I know the answer already but monthly output matters right now.
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20,577 Posts
:cheers:
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10,202 Posts
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.
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6,070 Posts
That sounds like a great deal!
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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.
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731 Posts
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.
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8,230 Posts
I’ll look into it. I’m not afraid of a longer loan though.
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8,230 Posts
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.
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.
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.
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.
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8,230 Posts
The new deal could save me a lot on interest. They have a really low rate going right now.
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1,420 Posts
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.
If it was a Toyota, I would say different, but a Sub with 100k? Yeah, let someone else deal with the potential headaches.
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!
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