Does the basement living luxury car owner really exist?
Thread Starter
Lexus Fanatic
Joined: Nov 2011
Posts: 35,480
Likes: 384
From: ON/NY
True, but I also don't believe in dropping a lump sum on a car. I think it's better to keep cash in the bank and pay over time, especially if you have a 0% APR. Dropping 20, 30, 40 thousand dollars in cash on a car is dumb unless you're fairly well off and that doesn't do anything to your finances. Better to hang onto it and pay it down over time in case you really need it for something important.
Advanced
Joined: Jun 2014
Posts: 746
Likes: 83
From: MA
Not really. If I took out a 36 month auto loan and an 84 month auto loan for the same amount, you would be paying less principal monthly on the 84 month loan, hence greater chance of being underwater.
Instructor
Joined: Apr 2016
Posts: 794
Likes: 3
From: CA
There are times that I do not want 0%. For example, how many 0% for 15 to 18 mo. credit cards do we want? I took 2 recently for the premiums, one was $400, the other $200. One has no rewards so it went into a file (Key Bank). The other, I did use for airline tix and earned 1.5%, because I don't feel like paying for that say now, when the trip isn't until the end of May. The balance which was around $900 does bother me, as I don't like to owe. But it's 0% so I cut myself some slack. The issue is the $900 balance could easily go to $24000, and 15 mos. from now I have my thumb you know the expression. I would have to take it out of savings and maybe I wouldn't have spent the money if not for the 0%. As a general rule, yes I want to use someone else's money for free. But I don't want that 0% offer dangled in my face, to get me to spend on what I would not otherwise.
To your point, if I could get a great price on a new 992, 0% for 30 years, and, I could actually afford the car, by all means. But not if I cannot afford the car--this depends on my job, at least for me.
edit one factor I would use--the amount it depreciates the second I drive off? It should not bother me, that's my test.
To your point, if I could get a great price on a new 992, 0% for 30 years, and, I could actually afford the car, by all means. But not if I cannot afford the car--this depends on my job, at least for me.
edit one factor I would use--the amount it depreciates the second I drive off? It should not bother me, that's my test.
Lexus Fanatic
Joined: Oct 2003
Posts: 94,511
Likes: 261
From: Virginia/D.C. suburbs
Again, IMHO, those with only 50K in their bank account should be looking at something maybe costing half of that...between 20 and 30K (maybe a nice little Corolla, like you and your husband drive). The amount one gets in trade for their old vehicle (or what they can sell it for on the used-car market) also affects the price, of course.
I'm not trying to tell others how to send their money (that's their business)...just pointing out, though, that biting off more than one can chew is notorious for getting a LOT of people in trouble. The amount of credit-debt in the U.S., today, is enormous enough to boggle the mind.
Last edited by mmarshall; May 1, 2019 at 04:59 PM.
Lexus Fanatic
Joined: May 2003
Posts: 7,864
Likes: 0
From: Massachusetts
This "spender versus saver" theme seems to make a regular appearance on this board, and I'm always interested in the comments. My opinion is that this is a classic Darwinian natural-selection kind of thing. Grasshopper and ant kind of thing.
I do feel a bit sorry for the folks who one day will have nothing much to live on but memories of when they were on top of the world. Others will enjoy their retirements in their waterfront condos. Which was the life well-lived? Depends on the person, I guess.
I do feel a bit sorry for the folks who one day will have nothing much to live on but memories of when they were on top of the world. Others will enjoy their retirements in their waterfront condos. Which was the life well-lived? Depends on the person, I guess.
Lexus Fanatic
Joined: May 2003
Posts: 7,864
Likes: 0
From: Massachusetts
On the flip side, there's nothing more satisfying than driving a new car. Yes, the beater provides a careless ownership experience until the next repair bill, but it's not satisfying by most definitions. I'll admit the one main issue with owning new, is the worry of damaging it. While that adds a small level of stress, piece of mind puts you in positive territory.
Lexus Test Driver
Joined: Apr 2012
Posts: 6,275
Likes: 483
From: Long Island
having a new cars every few years also keeps you out of the technological dark ages and has the benefit of having no unforeseen costs
I'm waiting for the 240 month (20 year) loans to start popping-up so I can finally budget-in a super car!
In all seriousness I think it's great for buyers who are looking for budget-friendly options.
If you strip away the item and replace it with any other high dollar purchase, let's say a home, wouldn't the idea be the same? In reviewing historic trends, I understand home loans used to be around 15 - 20 years on average. Now, 30 years is the norm.
By-the-way, is there any data to show % of buyers who take on these longer term loans? I think that would be interesting to see!
In all seriousness I think it's great for buyers who are looking for budget-friendly options.
If you strip away the item and replace it with any other high dollar purchase, let's say a home, wouldn't the idea be the same? In reviewing historic trends, I understand home loans used to be around 15 - 20 years on average. Now, 30 years is the norm.
By-the-way, is there any data to show % of buyers who take on these longer term loans? I think that would be interesting to see!
Last edited by OG Member; May 2, 2019 at 04:42 AM.
Thread Starter
Lexus Fanatic
Joined: Nov 2011
Posts: 35,480
Likes: 384
From: ON/NY
I don’t get why anyone would want to beat up on any car.
CL Community Team
Joined: Feb 2007
Posts: 9,383
Likes: 620
From: IL