2.49% APR for 84 Months - Payment Deferred for 3 Months!

[centex]

40 minutes ago, XxRaVeNxX said:

Yea, I'm not having a car note the same as my mortgage.

You're missing the point that 84 months is fine if you have the funds - and you can simply pay more than the minimum in be done in 60-72 months instead of being constrained to what the bank requires especially if a financial emergency comes up. 

You also can pay for those 'deferred months' 

Just think...once you clear the vehicle, you can THEN be throwing that $1160 each month towards the mortgage nut, which saves EVEN MORE interest. 

 

If one truly has the means to properly afford a $40K vehicle, then they SHOULD be able to not only pay it off in three years but ALSO still have reserves for a year-long fiscal emergency. 

[MarvBear]

9 minutes ago, XxRaVeNxX said:

Well let me ask you this - what's the point of not keeping a vehicle and always having a car payment every 7 years or so? 
Now that is insane to me. 

The automobile industry is deeply indebted to people that think similarly.  That overfinanced consumer is what keeps dealerships plugging along.   I'm so glad am out of the rat race and trying to show consumers ways they can save money.  Now, if you make your bed, you get to lie in it.  And you can't come back grumbling about the Finance department.

[centex]

5 minutes ago, tomforr said:

I have a 36 month loan at 1.9% that I am itching to just pay off 2 months in. I have had 72 month loans in the past and would absolutely never do it again. 

Concur with you...I refused to even go that long on the F-Type.  While it DID get written as a five-year note, it is on pace to be paid inside of three years...I shovel roughly $1700 at it each month.  None of the other four have notes on them (although admittedly, the youngest of any of those four is the 2005 and has been paid in full for more than a decade)...

 

I'm not even sure I would go six years if I made the decision to get the Aston I discussed in a different thread... 

[XxRaVeNxX]

9 minutes ago, tomforr said:

People do long terms for the lower payment, It enables them to purchase more car than they can actually afford. Then they change the grille on the same model 3 years later and that person has to have the new model. It's a never ending cycle but it is extremely common.

I'm following so the majority of people just want the latest & greatest - these are the people who I see with a different vehicle on my timeline every other year. So, I submit - if majority of people are like this - then going this route will ultimately hurt them, when they trade the car in. 

Me - personally I probably will go the 84 month route and just pay more on the minimum - I just like having that lower payment in my back pocket. Meh - I plan to keep it for at least 10+ years...

[tomforr]

5 minutes ago, centex said:

Concur with you...I refused to even go that long on the F-Type.  While it DID get written as a five-year note, it is on pace to be paid inside of three years...I shovel roughly $1700 at it each month.  None of the other four have notes on them (although admittedly, the youngest of any of those four is the 2005 and has been paid in full for more than a decade)...

 

I'm not even sure I would go six years if I made the decision to get the Aston I discussed in a different thread... 

I have just hit a point where if I cannot comfortably pay for it in 3 years it just won't happen. If I have to buy a cheaper car so be it. DW's car is currently leased and written off for business. Next one will be purchased with a 3 year loan (or maybe no loan) in the company name and I'll depreciate it. 

[tomforr]

5 minutes ago, XxRaVeNxX said:

I'm following so the majority of people just want the latest & greatest - these are the people who I see with a different vehicle on my timeline every other year. So, I submit - if majority of people are like this - then going this route will ultimately hurt them, when they trade the car in. 

Me - personally I probably will go the 84 month route and just pay more on the minimum - I just like having that lower payment in my back pocket. Meh - I plan to keep it for at least 10+ years...

I absolutely will catch up eventually. Until then then nothing will change.

[hegemony]

52 minutes ago, cv91915 said:

fwiw, we paid for this house in 64 months from when we bought it.
 

And that's a bit misleading.  It wouldn't have taken nearly that long if we hadn't also paid off the last 70% of our second home during the same timeframe.

 

(We are big fans of living below our means.)

64 months? amateur. we paid ours off in 60.  

 

but seriously, we both did it years before the 84 month loan on a turd Dodge Ram would be done.

[cv91915]

20 minutes ago, hegemony said:

64 months? amateur. we paid ours off in 60.  

 

but seriously, we both did it years before the 84 month loan on a turd Dodge Ram would be done.

11 more payments and we get the title to the ottoman.  

[IndyPoolPlayer]

4 hours ago, cv91915 said:

Did I mention that payment is for the entire Super Set?

That's don't matter. She'd still f-king buy it. "LOOK! IT ONLY COSTS $17.99 PER MONTH!!!" that's why she's run up over $10K of credit card debt (thank g-d it's all individual on her and I'm not AU)

[CTSoxFan]

13 hours ago, tomforr said:

People do long terms for the lower payment, It enables them to purchase more car than they can actually afford. Then they change the grille on the same model 3 years later and that person has to have the new model. It's a never ending cycle but it is extremely common.

this exactly.  Those long term loans are to push cars on to people that cannot afford them.  If you need to go 84 months on a loan, you can't afford it.  What usually happens is that the car either has a major mechanical issue they can't afford or they total the car and end up owing more on it than it is worth.

 

That said, choosing to borrow money cheaply to better leverage your resources isn't a bad idea...provided you aren't overextending to do so.  

[cv91915]

15 hours ago, cv91915 said:

I have an 8.5-year-old INFINITI that I bought new.  

 

It currently has ~82,000 miles, ~12,000 of which were put on in the last six years.

 

I've taken very good care of it, but if I'd put an average number of miles on it every year the whole thing would have been in a pile on the floor of the garage about three years ago.

 

 

14 hours ago, XxRaVeNxX said:

I'm following so the majority of people just want the latest & greatest - these are the people who I see with a different vehicle on my timeline every other year. So, I submit - if majority of people are like this - then going this route will ultimately hurt them, when they trade the car in. 

Me - personally I probably will go the 84 month route and just pay more on the minimum - I just like having that lower payment in my back pocket. Meh - I plan to keep it for at least 10+ years...

 

I've done some back-of-the-cocktail-napkin math, and I would probably be ahead - or at very worst almost even - at this point if I had done a series of $500+/month leases. 

 

I'm factoring into the cost of ownership all of the depreciation, maintenance, post-warranty MBI coverage (I'm on my second contract), tires (OMG, tires), other wear items like brakes, etc.  

 

And with leases, over 8.5 years (and for about the same money) I'd be in my third or fourth new car. 

 

You'd lose your mud if you tried using the voice commands in my 2011 Nissanfiniti.

 

[Note, I'm not Canadian but I do have the same glasses]

 

 

I ended up leasing my 750i because the total cost of two leases over six years would be less than buying a CPO, adding MBI coverage, and selling the car six years later.

 

Of course, M will V dramatically based on which vehicle(s) you're considering/comparing. 

[hegemony]

84 month auto buyers should be sure to check out the low payment finder at Conn's

 

[tomforr]

5 hours ago, cv91915 said:

 

 

I've done some back-of-the-cocktail-napkin math, and I would probably be ahead - or at very worst almost even - at this point if I had done a series of $500+/month leases. 

 

I'm factoring into the cost of ownership all of the depreciation, maintenance, post-warranty MBI coverage (I'm on my second contract), tires (OMG, tires), other wear items like brakes, etc.  

 

And with leases, over 8.5 years (and for about the same money) I'd be in my third or fourth new car. 

 

You'd lose your mud if you tried using the voice commands in my 2011 Nissanfiniti.

 

[Note, I'm not Canadian but I do have the same glasses]

 

 

I ended up leasing my 750i because the total cost of two leases over six years would be less than buying a CPO, adding MBI coverage, and selling the car six years later.

 

Of course, M will V dramatically based on which vehicle(s) you're considering/comparing. 

I get the lease. DW's current Infiniti is on a lease. When it is up next year we will buy something and either finance it short term or the way we are trending we'll just pay cash. I very much get the finance cheap and make money off of market returns crowd but the less monthly payments we have the better we feel. Sometimes the peace of mind is worth it. 

[oldblue]

20 hours ago, centex said:

The point is that you will be upside down almost from the beginning unless you are paying double or triple the contractual nut.  A seven year note, with three months where the interest is allowed to pile up without payments, is the epitome of lunacy...a $40K vehicle ought to be cleared in three years at that rate, and that is if one is dragging it out.  Three years would be about $1160/mo.   

 

And it is insane to pay $4K in interest on a vehicle.  Getting it paid in three years keeps more than half that amount in YOUR pocket...

 

While I agree an 84 month loan is ridiculous, $1160/month is an insane amount of money to spend on a car every month. 3 months of that will buy you a car in cash that'll last for years.

[hegemony]

8 minutes ago, oldblue said:

 

While I agree an 84 month loan is ridiculous, $1160/month is an insane amount of money to spend on a car every month. 3 months of that will buy you a car in cash that'll last for years.

$1160? it is all relative. If $1160 is 2% of your monthly gross I'd say you're doing better than someone with a $500 car payment that is 20% of monthly gross.

 

ETA: or if $1160 means you paid it off in 3 years instead of stretching it out for 8 years of interest... that is better too.

 

Edited May 15, 2020 by hegemony

[oldblue]

Just now, hegemony said:

$1160? it is all relative. If $1160 is 2% of your monthly gross I'd say you're doing better than someone with a $500 car payment that is 20% of monthly gross.

 

If a $1160 was 2% of my monthly gross I'd just a write a check for the car period, don't make near that much but could still write a check for a 40k car and $1160/month for a car is still insane to me.

Edited May 15, 2020 by oldblue

[centex]

19 minutes ago, oldblue said:

 

While I agree an 84 month loan is ridiculous, $1160/month is an insane amount of money to spend on a car every month. 3 months of that will buy you a car in cash that'll last for years.

Conversely, that $3500 vehicle will have no warranty.  There ARE advantages to having something with a warranty.  Sometimes it is just as simple as buying a vehicle that has the features you want...

 

Would I have paid sticker for the F-Type?  Hell no.  When they took more than $30K off, then the fun car becomes one worth getting...whether to take a loan or pay cash depends on whether you can do more with the funds than the loan would cost (among other things).  But there is still no way in hell that I would have dragged it out to six or seven years even at zero percent...that just encourages someone to be upside down (which brings its own set of variables, to include gap).   

[cv91915]

You can't just go by the payment.

 

Some people don't know what they're doing.

 

[oldblue]

9 hours ago, centex said:

Conversely, that $3500 vehicle will have no warranty.  There ARE advantages to having something with a warranty.  Sometimes it is just as simple as buying a vehicle that has the features you want...

 

Would I have paid sticker for the F-Type?  Hell no.  When they took more than $30K off, then the fun car becomes one worth getting...whether to take a loan or pay cash depends on whether you can do more with the funds than the loan would cost (among other things).  But there is still no way in hell that I would have dragged it out to six or seven years even at zero percent...that just encourages someone to be upside down (which brings its own set of variables, to include gap).   

 

Who needs a warranty your saving $1160/month. I picked up an 08 accord at auction for 2k. Turns out it needed a clutch and its easier to pull the motor and trans together, then break it apart in the driveway than try to to do it in place. Nothing I ain't done before but I'm finally at a point where I'm so busy and make more doing what I do, I let the pros handle my vehicle repair for the first time in my life. $1500 down the drain but I'm only at $3500 total instead of the $11600 I'd be at with 26 more payments to go on a vehicle thats going to be worth a couple grand to someone like me soon enough.  At that rate even if this car turns out a to be a complete lemon I can buy another one drop more money in repairs and still be ahead.

 

On the other hand I have no idea what an f-type is and the only feature I care about is getting from point a to b and back again.

Edited May 16, 2020 by oldblue

[IndyPoolPlayer]

1 hour ago, oldblue said:

On the other hand I have no idea what an f-type is and the only feature I care about is getting from point a to b and back again.

She's referring to a Jaguar.

 

[oldblue]

Ha that things hideous, guess its just the paint job but meh I'd rather have a cheap house on some acreage than that thing with a better paint job.

[centex]

On 5/16/2020 at 7:10 AM, oldblue said:

 

Who needs a warranty your saving $1160/month. I picked up an 08 accord at auction for 2k. Turns out it needed a clutch and its easier to pull the motor and trans together, then break it apart in the driveway than try to to do it in place. Nothing I ain't done before but I'm finally at a point where I'm so busy and make more doing what I do, I let the pros handle my vehicle repair for the first time in my life. $1500 down the drain but I'm only at $3500 total instead of the $11600 I'd be at with 26 more payments to go on a vehicle thats going to be worth a couple grand to someone like me soon enough.  At that rate even if this car turns out a to be a complete lemon I can buy another one drop more money in repairs and still be ahead.

 

On the other hand I have no idea what an f-type is and the only feature I care about is getting from point a to b and back again.

For some of us, the vehicles are about the driving experience, not JUST going point A to point B.  The one I have with a small note remaining is the only one of the five that HAS a note outstanding.  Prior to that, there had been no notes since 2005.  Paid cash on the X-Type (manual tranny) and cash on the other X-Type (also manual).  I buy vehicles for a certain fun factor...and even a four-door sedan CAN be fun with the right transmission and AWD.  

 

And yeah, it is a Jag but not that gawdawful paint scheme that Indy linked.  Mine is the coupe, done in the Ultimate Black and, more importantly, equipped with three pedals.  No clutch, no purchase...the availability of a clutch is why I was considering the Aston just before the nonsensical lockdowns.  Hey, it's cheaper than the Diamond DA-40 I had considered adding...I decided to wet lease instead of owning and paying for a hanger.

 

[CTSoxFan]

On 5/16/2020 at 7:10 AM, oldblue said:

 

Who needs a warranty your saving $1160/month. I picked up an 08 accord at auction for 2k. Turns out it needed a clutch and its easier to pull the motor and trans together, then break it apart in the driveway than try to to do it in place. Nothing I ain't done before but I'm finally at a point where I'm so busy and make more doing what I do, I let the pros handle my vehicle repair for the first time in my life. $1500 down the drain but I'm only at $3500 total instead of the $11600 I'd be at with 26 more payments to go on a vehicle thats going to be worth a couple grand to someone like me soon enough.  At that rate even if this car turns out a to be a complete lemon I can buy another one drop more money in repairs and still be ahead.

 

On the other hand I have no idea what an f-type is and the only feature I care about is getting from point a to b and back again.

We had this same argument in another thread about 6 months ago.  You see a car as a tool to get from A to B, others don't and appreciate a new/nicer car for various reasons.  I am with Centex on this one (and I believe she and I were making the same argument in that prior thread).  End of the day it all comes down to what you find important and what you want to spend your money on.

 

 

[MarvBear]

LOL 😆  this just now struck me.   I must be getting really slow on the uptake.  An 84 month loan with a 90 day payment skip is actually an 87 month loan.

 

Your money, spend how you wish.  And the best of luck to you.

[cv91915]

On 5/14/2020 at 2:08 PM, XxRaVeNxX said:

Yea, I'm not having a car note the same as my mortgage.

I could make 300 mortgage payments and still have money left, compared to just one lease payment on my car.

 

Actually, no I couldn't, because the mortgage would be fully repaid before I got to the 300th payment.

 

My car lease payment is higher than my entire mortgage balance.

 

 

Edited May 18, 2020 by cv91915