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If I can't buy a used car outright, I can't afford it in my mind. All my cars bought outright
I bought my 2013 GS 350 AWD in 2018 and wrote a check without a loan or lien.
I haven't financed a car since we bought my wife's 2003 Honda Pilot EX and that was only because they gave us a discount for financing instead of paying for it.
Since then, I haven't had a car payment. Wow, that's almost 20 years.
Funny story about the Pilot financing. They told us there was no early payment penalty but when we went to pay it off at the end of year 2 they told us there was a $150 penalty because they didn't earn enough interest at only half the loan period. So, I paid everything but $12 and set it for $1 a month auto pay from my bank to get us to the period where the $150 went away. Each month they mailed us a statement saying how much we paid and the new balance. They were spending more than $1 to do that each month. It only took them 1 month to decide they would waive the $150 fee and let us pay it off. LOL
I bought my 2013 GS 350 AWD in 2018 and wrote a check without a loan or lien.
I haven't financed a car since we bought my wife's 2003 Honda Pilot EX and that was only because they gave us a discount for financing instead of paying for it.
Since then, I haven't had a car payment. Wow, that's almost 20 years.
Funny story about the Pilot financing. They told us there was no early payment penalty but when we went to pay it off at the end of year 2 they told us there was a $150 penalty because they didn't earn enough interest at only half the loan period. So, I paid everything but $12 and set it for $1 a month auto pay from my bank to get us to the period where the $150 went away. Each month they mailed us a statement saying how much we paid and the new balance. They were spending more than $1 to do that each month. It only took them 1 month to decide they would waive the $150 fee and let us pay it off. LOL
If I can't buy a used car outright, I can't afford it in my mind. All my cars bought outright
It's more expensive overall to finance a car for me since NYC full coverage insurance is typically double. So if you finance a car for 5years, and its an extra $1000 a year to full cover the car, you're in for an extra $5,000 to finance on top of any interest you're paying over the term. I've never financed any of my cars either because of this. You end up paying a $5k to $10k premium to finance/insure the car.
Originally Posted by Knucklebus
Funny story about the Pilot financing. They told us there was no early payment penalty but when we went to pay it off at the end of year 2 they told us there was a $150 penalty because they didn't earn enough interest at only half the loan period. So, I paid everything but $12 and set it for $1 a month auto pay from my bank to get us to the period where the $150 went away. Each month they mailed us a statement saying how much we paid and the new balance. They were spending more than $1 to do that each month. It only took them 1 month to decide they would waive the $150 fee and let us pay it off. LOL
Thats an awesome story...the dealers are always so slimy when it comes to those little details - glad you worked them!
Originally Posted by bclexus
Just write a check. I've never financed a vehicle or a house, and own real estate in Texas, Florida and North Carolina.
My co-worker always leases his cars. He's leased a Nissan Altima for 199/mo for 36months (zero down) for the last 15yrs, getting a new one every three years at that same rate. He currently has a 2019 Altima, lease expiring in 2 months. The negotiated buy-out price is something like $17k. Because the market is so inflated, a similar 2019 Altima would go for like $24k...and a similar lease deal doesn't exist because of the scarcity of new vehicle inventory.
He said this will be the first time he plans to outright purchase a car. Everyone's situation is different of course but sometimes the market dictates a common-sense, no brainer option.
I’m not a new car guy. Haven’t had a payment since I paid off my 98’ GS 20 years ago. No payment feels wonderful. As soon as this market settles down I’ll probably start looking for a 2016+ GS and get rid of my 13’.
You must be rolling in the dough.. My GS was also 0% interest for 60 months. So why would I take $53K out of my bank account for no reason..
Yeah.. I would never throw a big chunk of cash at a car if the interest rate was 3%<
But 0%? Definitely not. I’d put that money away and/or invest it. Don’t know what the fuss about car payments is if you’re financially disciplined. Ask any financial advisor (except Dave Ramsey he hates debt, but that’s because majority of people are irresponsible) and they’ll tell you the same.
Also, inflation is a thing. With a 0% interest rate you'd come out ahead over time.
It's more expensive overall to finance a car for me since NYC full coverage insurance is typically double. So if you finance a car for 5years, and its an extra $1000 a year to full cover the car, you're in for an extra $5,000 to finance on top of any interest you're paying over the term. I've never financed any of my cars either because of this. You end up paying a $5k to $10k premium to finance/insure the car.
This sounds.. wrong. Who is your insurer? The cost should be the same whether the car is financed or owned outright.
I would also hope that cars like the 4GS have full coverage.
This sounds.. wrong. Who is your insurer? The cost should be the same whether the car is financed or owned outright.
I would also hope that cars like the 4GS have full coverage.
If you own your car outright, you don't need to carry full coverage. If you are financing it, the bank requires full coverage. I personally carry only liability coverage on my car (owned outright since i bought it).
My 4GS is over 10 years old at this point - carrying full coverage doesn't make financial sense in my neck of the woods. My insurance policy protects other people's property in the event I'm at fault for the damage...if my car is damaged, that's on me to pay to fix it. This website is in line with the quotes i've shopped around many times: https://www.valuepenguin.com/best-ch...rance-new-york
Based on the data, Progressive is around $732/yr for just liability coverage in NY. If you want full coverage, Progressive is cheapest at $1335/yr. But there are many factors of course impacting individual quotes - but this gives you an idea of the difference. Thus, if you finance your car and need full insurance coverage (as all banks/firms expect), you will pay at least $600 more per year in insurance coverage over the course of your loan if you live in NY.
If you own your car outright, you don't need to carry full coverage. If you are financing it, the bank requires full coverage. I personally carry only liability coverage on my car (owned outright since i bought it).
My 4GS is over 10 years old at this point - carrying full coverage doesn't make financial sense in my neck of the woods. My insurance policy protects other people's property in the event I'm at fault for the damage...if my car is damaged, that's on me to pay to fix it. This website is in line with the quotes i've shopped around many times: https://www.valuepenguin.com/best-ch...rance-new-york
Based on the data, Progressive is around $732/yr for just liability coverage in NY. If you want full coverage, Progressive is cheapest at $1335/yr. But there are many factors of course impacting individual quotes - but this gives you an idea of the difference. Thus, if you finance your car and need full insurance coverage (as all banks/firms expect), you will pay at least $600 more per year in insurance coverage over the course of your loan if you live in NY.
Thanks for the clarification, everything you said sounds right.
So have you had liability since the day you bought it?
Age aside, your GS is still a $20K+ car.
So at $600 more a year if you’ve had liability since day 1 you’ve saved $6K. Not sure if I would take that risk, but Sir, you sound like an excellent driver.
Okay this is good clarification, thank you, everything you said sounds right.
So have you had liability only since the day you bought it?
Age aside, your GS is still a $20K+ car right? So if you totaled your car.. you would be okay with eating the value? Sheesh. High risk high reward, I guess?
So at $600 more a year if you’ve had liability since day you’ve saved $6K. Not sure if I would take that risk, but Sir, you sound like an excellent driver.
I also only have liability, state minimums, and only pay $38.24 a month($458.82 a year) with GEICO. The liability insurance has gone up in my area, last year was $100 less. Anything happens to my car I happily pay out of pocket. I've never payed for coverage and bank all the insurance savings last 16 years.
I guess it depends on how much you drive but this little low speed hit cost over $5k to fix properly plus $2k for a rental car. I bought mine in cash but still carry full coverage. Depends where you live too I guess. In Florida...I trust no one on the road.
I guess it depends on how much you drive but this little low speed hit cost over $5k to fix properly plus $2k for a rental car. I bought mine in cash but still carry full coverage. Depends where you live too I guess. In Florida...I trust no one on the road.
I drive 10-15k miles a year. 16 years of driving and my car was only hit once and that was in a parking lot. It was the GS and to repair the hood, paint the hood, blend both fenders, upgrade to f-sport bumper/paint it, all cost $1800. Not including the f-sport bumper/paint, just repairing the damage was $871.82. If you don't tailgate(at least 3-4 car gap on highway) and a good driver, accidents are random, but rare. One time in 16 years is not a big deal for me.
I run my own online drop shipping business from home, no need for rental, wife has a car too. I've also been pulled over 3 times and only gotten a ticket once in 16 years.
I drive 10-15k miles a year. 16 years of driving and my car was only hit once and that was in a parking lot. It was the GS and to repair the hood, paint the hood, blend both fenders, upgrade to f-sport bumper/paint it, all cost $1800. Not including the f-sport bumper/paint, just repairing the damage was $871.82. If you don't tailgate(at least 3-4 car gap on highway) and a good driver, accidents are random, but rare. One time in 16 years is not a big deal for me.
I run my own online drop shipping business from home, no need for rental, wife has a car too. I've also been pulled over 3 times and only gotten a ticket once in 16 years.
Yeah both times I was hit I was stopped and hit from behind, not much I can do to prevent that. I don't know how you can work from home lol. I did it for 6 months during covid and didn't like it much. I like the office life. I know a lot of people like it though.
Yeah both times I was hit I was stopped and hit from behind, not much I can do to prevent that. I don't know how you can work from home lol. I did it for 6 months during covid and didn't like it much. I like the office life. I know a lot of people like it though.
Ive been working from home for 12 years. I only work 3-4 hours a day now, so free time to do whatever I want, basically a semi retired life.
06-02-22, 01:44 PM
he hates debt, but that’s because majority of people are irresponsible) and they’ll tell you the same.
