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Discussion Starter #42
So does anyone have a 4 cyl Subaru and can you talk about getting on the highway?
 

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It would be trading a 2015 Outback for possibly a new Forrester premium.
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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And in the mean time you will have savings so you can deal with a financial emergency
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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Depends on how many miles you drive a year. 120k is not that many miles these days.
 

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But can I spend less per month? Maybe? I know the answer already but monthly output matters right now.
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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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.
 

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Discussion Starter #53
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.
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.
 

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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.
 

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Thanks for the replies. I’m toying with the idea. My dealership is ready to make great deals recently. I think they are hurting for business.
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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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...
 

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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.
 

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So does anyone have a 4 cyl Subaru and can you talk about getting on the highway?
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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