This is just to get descriptive data from our group here. The other day I read that about 33% of US single family homes are paid off, which got me thinking about our cars. How many of us have no car payment, and those that do, how much is it. Do not include insurance, fuel, maintenance. Just monthly payment including leases. Not judging here, just wondering for the poll.
Personal note: In my car group of friends, we keep thinking $300 is a good monthly payment that number has been the same for years and years. As we age, $300 isnt going to cover much. And now the average auto transaction price is something like $33,000.
$420 for the TLX, $250 for the MKX but I think the MKX is almost paid off
I think I'm going to wait until the TLX is paid off before buying another car. Will probably change out the whole fleet. Payment on the G37 was def under $300, man that track day was so stupid:banghead:
For those with payments, assuming that the interest rates are close, do you prefer a longer term, or a short one to just get it paid.
Although I said 0 earlier, I am slightly tempted to get into a different truck.
The credit union is doing 2.5% on a personal loan for 24 months, or 2.3% for a 60 month term on a traditional auto loan.
I have the cash on hand to buy it outright with no issues, but there is a off chance the my SO will get laid off when the dust settles from CV, so I want to stay more liquid than usual.
For those with payments, assuming that the interest rates are close, do you prefer a longer term, or a short one to just get it paid.
Although I said 0 earlier, I am slightly tempted to get into a different truck.
The credit union is doing 2.5% on a personal loan for 24 months, or 2.3% for a 60 month term on a traditional auto loan.
I have the cash on hand to buy it outright with no issues, but there is a off chance the my SO will get laid off when the dust settles from CV, so I want to stay more liquid than usual.
I tend to want to just get them paid off. I closed out the loan on the Miata within a year of buying it. My wife's car is killing me, though. We don't have much left on it and I was to just pay it off. But the interest rate is 0.9%, so it's smarter to just let it go. As a compromise, we are paying a bit more on the payment and it'll be done in April 2021.
In your situation, a 2.3% auto loan could be really useful, especially for the length of the 60 months. You can figure out what happens with your SO and then pay off the loan early if you want to. I believe that having money buys 'freedom of choice' so you aren't backed into a bad situation. Staying more liquid in uncertain times is a great idea.
Normally our car payment would be around $400. Dieselgate messed up our repalcement schedule so we currently have 2 2018 Honda's that were each financed over three years so we are paying $850 for both, but in 1.5 years they will be paid off and we will keep each one for 10 years or so.
Two car family here, one is paid off, the R was a lease but will be paid off in November bought new. Hopefully slide through no car payments for 2 yrs, while plowing through the last of our mortgage, at which point we will buy something stupid on 4 wheels :laugh:
some do, but for those that have poor credit, it's not a good idea. our HELOC is $70k. We could probably redo it based off our new loan and LTV and probably double it. Then I can buy a Raptor and a boat. :laugh:
The method in which you can manipulate a car payment makes this an almost impossible comparison. I can put a sh*t ton down to have a small car payment, or I can have a relatively short term with a big car payment. They're all financial gymnastics to simply make me "feel good" in my head of this "car payment", or to minimize the "finance charge" of a finance rate.
The real monthly payment, is the amount you're forecasting your depreciating asset to lose in value. I care little about car payment and more about what that car is actually costing me between fuel, maintenance, and residual value. This is why if you can get past the "payment", more "special cars" are typically not expensive to own because they hold their value so well. ESPECIALLY when you find lightly used examples.
All that said, it is interesting that even as a "car person", because I had so many used cars or cheaper cars, its hard for me to swallow the pill of these more expensive payments now. Theres this number in my head that does or doesn't feel right and dammit its hard to get past.
That's what I said earlier. To really budget for a car, you need to look at total cost of ownership during your anticipated holding period for the car. Buying a guaranteed depreciation special (German luxury sedan) is a different proposition from buying a near-guaranteed value holder (4-runner) even if the cash price is the same. Trading a car after a year is usually more expensive than holding onto it for a decade.
I wouldn't argue everyone should pay cash, but I WOULD argue that everyone should spend in such a way that the monthly payments are not your prime consideration.
Buying new 911s, even GT cars, is a sure way to lose money. Buying very late model, low mileage, CPO 911s with the right combo of options, color, and price...you can drive it for around a year for very little....most of the time. This isn't as easy as it sounds, and takes work/time/dedication to understanding the market very well, and being able to resale the car successfully yourself once you're done with it.
Yup. My buddy had a Cayenne 6MT that after years of 2nd-ownership he actually made $2k or so on it(BAT sale FTW). He's a car nut, and prefers MT dailies.
My monthly has increased with each purchase. Thank you weak dollar and inflation. Most recent was a 16 Golf R. Paid off now, but monthly was $653. Next will be a vehicle for the wife. Probably $600 to $700 a month. If I ever buy a new car again for myself, and have to finance it, I’d expect $1200 to $1500 a month. It will be cool.
The above example is why the payment number doesn't matter.
Know matter how good a deal you got, that car costs more than $25k.
The payment on my 981 boxster is $698, no money down, 2.99% 60 months.
Jeep is paid. It was $505. 6 years ago I had the cayman s and jeep payment at the same time.
That was expensive.
I might trade in the jeep and get a model 3 performance. Can't figure that one out.
Why get a new car that sits in a garage for weeks at a time. I've only added 800 miles on the boxster this year.
1100 on the jeep and that's the vacation vehicle.
Her 430i gran coupe is $600 with tax included, it's a lease with 18 months left.
I don’t have a car payment now but I did until a few months ago for my wife’s Golf SportWagen, it was under $300. We tend to keep cars for 10 yrs so we should be payment free for another 5-6 yrs at which point we’ll spring for something newer. I don’t mind a reasonable car payment every few yrs, it’s just an operating cost of living, like everything else.
I have a mental limit of $500 a month. Doesnt matter how much I make. I work in Silicon Valley, have a high paying Silicon Valley job with a $1500 month mortgage. My co-workers pay $6-8k a month on their houses.
So now, I drive a F-Type R. Probably can pay it off this year but I like having similar payments to my co-workers who drive Mazda3s.
A long time ago, my highest payment for a car was $700 and that was for a Range Rover Sport after dropping $40k down payment.
I might not live another 10 years. I have some health issues that plagued my dad and I am not gonna go out like him. Enjoy what I can so money on cars isn't even a concern. I don't care about depreciation. Smiles per mile.
Then there is the utility factor of making car payments. Reliably getting to work and running errands.
I lease my commuter if the job pays for it. But I dont have that perk anymore.
My leases are usually under $300 so that means some crazy incentivized EV car. My last commuter was a Jetta which I actually financed instead of leasing because I got it down to $202 with tax & license. Sold the Jetta so I need another car. Will probably get a Stelvio. Either lease or buy but my limit is $300 for that.
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