What could you do with your financial situation if you had no car payments? Seems like most people either lease (fleece) or finance a car all their lives. Would paying cash for a 2-3 year old car help you avoid the cost of being upside down on the value of a car? Wouldnt it be better to buy the 2 year old car and let someone else take the initial hit on value? New car smell can be purchased in a can. What do you think?
2006-11-17 04:50:38 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
ABSOLUTELY believe that no one needs a car payment. People simply think they deserve a nice new car and the looks they get from others while having that new car. Rather than feel they deserve to be financially independent.
I don't want car payments!! We laugh at those purchasing new cars and driving them off the lot!! These people really have no clue what they are doing financially. We have aquaintences who are upside down in payments but could we tell them what they were headed for ? NO... they like the feeling of a new car AND the looks they get. They don't realize that alot of the looks are of laughter and pity. Oh well at least they give us a good laugh.
Leasing is even more of a joke! I can't believe the morons who fall for this little plan. Just another thing we get a kick out of.
Life is full of choices, we all, whether rich or poor, get to make the same decisions everyday. Many just make the WRONG ones when it comes to their finances. If they are happy though, that is all that matters! These are also the people that will claim "money isn't everything". ha ha ha ha...
2006-11-17 08:36:55 · answer #1 · answered by Kitty 6 · 0⤊ 0⤋
Paying cash for the car would be extremely beneficial to the buyer. People have car payements because they cannot afford the initial price of a car. It is much smarter to let others take the initial hit of the value cars instantly lose value as you drive it off the lot. Those who leese cars like to have a new car every 2-3 years and don't care about making payments. I myself save up for a good size down payment and then take out a loan for the rest and in a couple of years the car is mine and then I can sell it and whatever I sell it for will be straight profit.
2006-11-17 04:56:55 · answer #2 · answered by spare_e02 1 · 0⤊ 0⤋
YES, buying a car 3 years old is much much smarter, these day with folks with 350++72 month car payments for a new car then get sick of it and wants a newer better car ending up 4k upside down on there orginall car loan in 2 years. Ouch see that all the time. The math is easy, you will loose money buying a new car. Everyone Whats a new car but do we need one.
2006-11-17 06:29:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I think this is a rhetorical question that you already know the answer to.
Second, your really asking two quesitons:
Is it better to pay outright, lease, or pay on time
and
Is it better to buy a new car that will depreciate, or better to buy a newer car that has alread depreciated.
If you are looking at a purely logical position, then buying a three year old car with a warranty is for sure better than buying a newer car - financed or not.
Paying for anything outright is almost always better than paying on time, but it really depends on the interest rates. If the car interest rate is less than you can get with an investment, and you REALLY invest the money, it is better to buy on time.
But buyng cars is not logical for most people, seen as an extention of themselves, many people like thier car to fit their persona, whatever that is and however they might interpret that.
2006-11-17 04:57:03 · answer #4 · answered by jfer 6 · 0⤊ 0⤋
If you want a car then you have to pay for it. If you buy a car on credit you pay monthly. If you pay cash and then save monthly to pay cash for the next one you are still making a car payment. The only way to beat this trap is to live close to work, home shopping and rent a car if you want to go somewhere that is not close by.
2006-11-17 05:13:47 · answer #5 · answered by waggy_33 6 · 0⤊ 0⤋
It is almost always financially smarter to purchase a 2-3 year old car that has already depreciated a substantial amount.
2006-11-17 05:40:25 · answer #6 · answered by DebtWillEatYouAlive 2 · 0⤊ 0⤋
You have answered your own question. In the US in 2006 we are so used to car and credit card loans is has become strange NOT to be in debt. My wife and I are very tight with a buck. I am sure that most people do not believe me when I tell them that we have no car loans or credit card balances (home mortgage only). Unfortunately, it has gotten to the point that we ARE the weird ones.
2006-11-17 07:16:27 · answer #7 · answered by Adoptive Father 6 · 0⤊ 0⤋
i agree, i dont have car payments, but i think most have gotten so use to the concept of credit and car payments, that the concept of saving money to make a major purchase like a car, doesnt enter their minds,,,,,
2006-11-17 04:54:37 · answer #8 · answered by dlin333 7 · 0⤊ 0⤋