Car Payments

dockmurgw said:
And then there's the...Drum Roll...50-year mortgage.
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At 69 years old if I can get an outrageously expensive big old bayou side house with a $350 per month payment at 10% interest and a 50 year payout who am I to complain :D Just tell the kids to keep my death under wraps, move in and pick up the payments or call the bank and tell them to come and get it. Duhhhh
 
I have a simple rule about buying anything. If I can't afford to pay cash for it I don't buy it. I prefer to collect interest rather than pay it. After living a bit below my income for over thirty years I find that I can now pay cash for any thing I want. Easy credit encourages people to live as large as they can on their income. As long as they can make the payments they think they can afford just about anything. Owning something free and clear never enters their minds. Many trade cars when they owe more on their present car than the trade in value. Their lack of understanding about money matters make them think their debt on one vehicle is erased when they trade. Duh. Most buyers depend on dealer arranged financing of a new car and ignore "trivial" details such as interest rate. Just the world we live in today.
 
I own a 2018 F-150 FX4, and my wife has a 2021 Chevy Equinox. We purchased the F-150 used and paid cash for it, while the Equinox was bought new, also paid for in cash. Additionally, I inherited a 2007 Toyota Yaris after my mother's passing.

I avoid payment plans; I had them about 30 years ago and despised each one.

Once I was free from the last payment plan, I resolved that if I couldn't afford to pay for something outright, I wouldn't acquire it. Similarly, if I couldn't save enough to purchase it, making the payments would likely be a challenge as well.
 
Financial advice from someone who filed bankruptcy (Ramsey) rates right up there with marital advice from a divorcee. But he's making millions off his groupies so who am I to judge.
 
03hemi said:
Bingo, my father made great money but blew every penny and died a broke man, my wife's father saved every cent he made but died a broke man because he didn't understand investing diversively, so we received zero fiduciary growth advice, Dave was the man that thought us that. We, on the other hand have educated our 3 now grown children from an early age on this and they're already investing their money, paying themselves first.
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Well we're batting .500 on that. The son and his wife get it, and have it. The daughter and her husband, not so much. They aren't a disaster but they aren't exactly on-plan either.
 
dockmurgw said:
Financial advice from someone who filed bankruptcy (Ramsey) rates right up there with marital advice from a divorcee. But he's making millions off his groupies so who am I to judge.
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He's always been upfront about that. It's his personal journey to financial wisdom. He was over leveraged to real estate and the banks called his loans. That was in 1988.

But he takes the "no debt" mantra a little too far for me. But that's not a bad thing.
 
As I’ve seen many time on Shark Tank, better to have 50+% of millions as opposed to 100% of nothing. People giving away portions of their inventions for a smaller slice of a much bigger pie. Who cares if someone makes money off you if you do also?
 
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Mike said:
Who cares about credit score????? When you have no debt?
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We paid cash for everything for years.
That worked out fine till I tried to rent a car.
No Go.
Wouldn't rent to me since I didn't have a credit card.
I had what they called it "ghost credit".
Didn't show up on any credit reports.
Wife and I got a credit card for the first time in our lives because of this.
The system is stacked against you from the start. :(
 
Rat458 said:
We paid cash for everything for years.
That worked out fine till I tried to rent a car.
No Go.
Wouldn't rent to me since I didn't have a credit card.
I had what they called it "ghost credit".
Didn't show up on any credit reports.
Wife and I got a credit card for the first time in our lives because of this.
The system is stacked against you from the start. :(
Click to expand...

I found the hard way you and your wife each a need a different credit card. When we only had one card it was scammed and we weren't notified right away. Found out on a trip that it could not be used.

However, as for credit cards in general, whether you use them little or a lot, one for each spouse is more than enough if you don't carry a balance over from one month to the next.
 
I have been in the auto industry since 1974. The second biggest investment used to be a new vehicle. Today for most it’s now #1 because they will never be able to buy a home.
 
rockquarry said:
I found the hard way you and your wife each a need a different credit card. When we only had one card it was scammed and we weren't notified right away. Found out on a trip that it could not be used.

However, as for credit cards in general, whether you use them little or a lot, one for each spouse is more than enough if you don't carry a balance over from one month to the next.
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Yes.
We did get different cards from different companies.
And the timing worked out to our favor as we were forced to buy a house shortly after.
 
glenwolde said:
He's always been upfront about that. It's his personal journey to financial wisdom. He was over leveraged to real estate and the banks called his loans. That was in 1988.

But he takes the "no debt" mantra a little too far for me. But that's not a bad thing.
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100% debt free is the only way to be, but...
let's say you have a house mortgage at 3%~ so why would you pay off the house when you can easily earn 18%~ or more on your investments? It's free money, so to speak. You're actually losing money by paying it off, however, it doesn't give you one thing.
Peace of Mind, how valuable is that?
In our case, peace of mind was more valuable to us than the difference we could make on that money, but we're already heavily invested in other various return vehicles. Not to mention, you actually have to invest that difference if you don't pay the house off and most don't put it to work, they buy a new car or find some other way to blow it, so they're really not ahead either.
 
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I bought my 2003 F-150 when it was almost 10 years old. It's a Lariat 4x4 FX4 with the 5.4 engine. It was about $9,000 (cash) at the time, with low miles for the year. It currently has about 170,000 miles on it and is starting to rust in the rocker panels.

I just this Fall bought a 2015 F-150 Lariat FX4 (5.0 Coyote) with low miles for the year (86,000), same package and all, and it was $25,500! (cash)

I'm hoping this is my last truck and it will last me the rest of my driving days. I haven't had a cay payment since I divorced my first wife 25 years ago. Like someone else said before, "Insurance" payments make up the difference.

I just don't see how so many young folks can keep up payments & Ins on new cars today. Not to mention housing! My house & 5 acres is paid off & I don't owe nobody nuthin! Praise the Lord!
 
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