Budley Doright
Well-Known Member
When I say come up with the cash I mean access to cheaper money from their bank, In my case about half the cost of a dealer financed loan.
Our Next Housing Bubble Is Here..
- Thread starter schuylaar
- Start date
Fogdog
Well-Known Member
When does it make good financial sense to borrow money to buy a new car?
Budley Doright
Well-Known Member
Never as stated in my first post but it’s easy so people do it. I actually don’t think it’s a great ideal to buy a new car at all lol.
ANC
Well-Known Member
when you are short like $1000 and can pay it off in 3 months...and it is an old already depreciated car.
Budley Doright
Well-Known Member
Lucky Luke
Well-Known Member
When the 1% pa comparable interest rate is lower than what my net bank saver is..
But in most cases purchasing a car is nearly always a bad financial decision.
Budley Doright
Well-Known Member
Just look a what happened to Tracy Morgan and that car was a pre owned lol.
Fogdog
Well-Known Member
Compared to buying a used car, depreciation on a new car the moment it is driven off the lot wipes out any benefit in low interest rates. Then again, buying a new car isn't a financial decision for most. Once one decides they want a new car then I guess shopping for the best interest rate and price makes sense.
Fogdog
Well-Known Member
We are talking about buying a car on credit. In that case is this a good decision financially or emotionally?
Budley Doright
Well-Known Member
Not sure what the borrowing situation is there but here it’s far easier to get approval from a dealer so the people are trapped into either a long term loan on a new car or a high interest rate used car. I just spent 3 months looking for a decent used car for mostly the girlfriend to use as our 2003 caravan fell apart lol. She’s now driving a 2008 323i with 100k (60,000) and never winter driven by a 83 year old that lost his licence lol. Paid $4600 and hoping to get 5 years out of it before it gets to expensive to keep.
UncleBuck
Well-Known Member
I just sold my 88 pickup and 02 Jetta and bought a 92 pickup instead. Paid 1400 for it, which is a steal. Turned around and listed it for 4000 just to see if I got any bites and got swarmed. I’m keeping it though, it’s a good work truck
I sold the 88 pickup for 1200 because it didn’t pass emissions even though it ran great. The guy o sold it to turned around and sold it for 2200 the next week
Now I’m shopping around for corollas under 1000 just so I can have something to drive whenever I decide to do improvements to the truck. It’ll need new leaf springs soon, I should fix the power steering, I’m sure some engine work is in its future too
The point here is to only ever buy toyotas
I sold the 88 pickup for 1200 because it didn’t pass emissions even though it ran great. The guy o sold it to turned around and sold it for 2200 the next week
Now I’m shopping around for corollas under 1000 just so I can have something to drive whenever I decide to do improvements to the truck. It’ll need new leaf springs soon, I should fix the power steering, I’m sure some engine work is in its future too
The point here is to only ever buy toyotas
Unclebaldrick
Well-Known Member
The OP does not understand what a bubble is. Car loans are not, and cannot be a bubble because the prices of cars is not being driven up by the lending practice. She may argue that, but she is stupid so who cares? This is just plain gouging and has been happening for decades.
The NYT did a piece a couple weeks ago on an actual bubble - that of NYC taxi medallions. Through manipulation by people like Cohen, the market was driven up ridiculously so that it went over $1,000,000 each. Lenders were steering taxi-drivers into ridiculous predatory loans with massive balloon payments or interest only clauses - or worse. The drivers were told that they were really investing\speculating on the value of the medallions themselves so, when they needed cash they could refinance as the value of the medallions never dropped.
The lenders and medallion speculators did this in part because they saw the handwriting on the wall with Uber, etc. so they needed a way to pump and dump their stock. To this end, they found thousands of willing participants in hard working immigrants who rarely understood the nature of the loans. So once they got out, the price of a medallion went from a million to about $400,000 allowing the lender to take all the drivers assets, home, savings, etc. Those that have not been forced out yet have to do hazardous and unpleasant work and only get to keep about 15% of their earnings. There is a special place in hell for people who enslave others that way (right, @ttystikk?)
This is what a bubble is @schuylaar , hence the name.
Sorry you need a new car/home. Just take out an equity loan on one of your several gated community homes. Much cheaper.
The NYT did a piece a couple weeks ago on an actual bubble - that of NYC taxi medallions. Through manipulation by people like Cohen, the market was driven up ridiculously so that it went over $1,000,000 each. Lenders were steering taxi-drivers into ridiculous predatory loans with massive balloon payments or interest only clauses - or worse. The drivers were told that they were really investing\speculating on the value of the medallions themselves so, when they needed cash they could refinance as the value of the medallions never dropped.
The lenders and medallion speculators did this in part because they saw the handwriting on the wall with Uber, etc. so they needed a way to pump and dump their stock. To this end, they found thousands of willing participants in hard working immigrants who rarely understood the nature of the loans. So once they got out, the price of a medallion went from a million to about $400,000 allowing the lender to take all the drivers assets, home, savings, etc. Those that have not been forced out yet have to do hazardous and unpleasant work and only get to keep about 15% of their earnings. There is a special place in hell for people who enslave others that way (right, @ttystikk?)
This is what a bubble is @schuylaar , hence the name.
Sorry you need a new car/home. Just take out an equity loan on one of your several gated community homes. Much cheaper.
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Budley Doright
Well-Known Member
By the time they get to the 15 year mark here your lucky if there’s a body left on anything due to salt. I looked at Toyota’s but to rich for my blood here lol. 10 year old Toyota camray’s are $8000+ with under 150K
UncleBuck
Well-Known Member
I’m looking at the 25-30 year old ones. Gotta look until you find one with receipts for a somewhat recent timing belt/clutch replacement, then you know you’ve got a cheap runner that will go for a while with very inexpensive maintenanceBy the time they get to the 15 year mark here your lucky if there’s a body left on anything due to salt. I looked at Toyota’s but to rich for my blood here lol. 10 year old Toyota camray’s are $8000+ with under 150K
Budley Doright
Well-Known Member
Yup the timing chain seems to be an issue with all the 10 year old cars now, WTF is that about
. I had the BMW checked via timing fault codes and it had none, fingers crossed, I didn’t go looking for a beemer but couldn’t say no.I own a 2007 Silverado HD and drive a F150 company truck that is basically my truck to use as my own.
tangerinegreen555
Well-Known Member
I bought a leftover 2017 Mustang.
It was dramatically discounted and I got them down $1100 more. I can get a 4% loan at my credit union for a new car but they wouldn't accept a 2017 as a new car so Ford financed it in a heartbeat.
I always wanted a convertible so I got one.
It's a car you can only drive about 75 days a year, a luxury like a boat. A retirement toy.
Financial sense doesn't really apply. Lol.
But I don't have any other payments so I splurged. I love fresh air at 65 mph.
