Did you not realize debt is dumb, cash is king and the paid off home mortgage has taken the place of the BMW as the status symbol of choice?
Average auto loan now over $30k
- Thread starter Goothrey
- Start date
Did you not realize debt is dumb, cash is king and the paid off home mortgage has taken the place of the BMW as the status symbol of choice?
I had the exact same thing typed out in my post and decided to delete it.
You are right - different ways and different priorities. For me, cars are just a tool to get from point A to point B so I try to keep car values under 15% (highest I have been at is 18% after a new purchase and lowest was about 3% in our first few years out of college) of my income because the depreciation is just plain stupid and I don't care what I drive. Other people place a higher value on them which is just fine.
Did you not realize debt is dumb, cash is king and the paid off home mortgage has taken the place of the BMW as the status symbol of choice?
Thanks Dave.
It would be really interesting to know the age and net worth of everyone posting in this thread.
Well I think calculating Trumps net worth would be slightly more complicated than someone's on CF.
The second Mrs. KnappShack came into the marriage with a car loan. I was shocked at the payment.
Well...she had a car, but wanted better gas mileage. She traded even though she was upside down on car #1. Then she didn't like car #2 and traded this.
Somehow the helpful Toyota dealer was able to get her into car #3 when she was horribly upside down on 1 and 2. 10% rate and a few years later she's still upside down on all 3. It's good times.
Well...she had a car, but wanted better gas mileage. She traded even though she was upside down on car #1. Then she didn't like car #2 and traded this.
Somehow the helpful Toyota dealer was able to get her into car #3 when she was horribly upside down on 1 and 2. 10% rate and a few years later she's still upside down on all 3. It's good times.
I got about $60 bucks in the bank and a signed Ricky Stanzi football. I think I'm probably pretty qualified to give financial advice.
I am not exactly where I thought / wanted to be by my thirties. However, I have not made enough money to really push these goals and have probably taken way too much risk with some of my investments. My net worth is still under possibly well under $100k ( i haven't done the addition since Jan) although working our way to pay off the rest of our debt. I will be a millionaire by 60 if I live long enough.
Since everybody likes to dis Dave here you may and well listen to an hour of the show. Mon May 30 Hour 2 if it doesn't open right to that hour. This is a millionaire hour that he has people on to tell people how they became millionaires. It gets boring after awhile but there is ONE clear them, many of the people have only bought ONE new car in their life.
Since everybody likes to dis Dave here you may and well listen to an hour of the show. Mon May 30 Hour 2 if it doesn't open right to that hour. This is a millionaire hour that he has people on to tell people how they became millionaires. It gets boring after awhile but there is ONE clear them, many of the people have only bought ONE new car in their life.
CycloneErik
Well-Known Member
i've got a handy spreadsheet updated every month for that
if i could only remember my birthday.
I haven't either. My last loan for was $4,000 ($13K car). It was a one year loan that I paid off in seven months. The banker said with loan fees it cost me $127. That was in 2004. Bought three cars since (both for the wife and I), with the most expensive being $19K for a four year old SUV. Still have all three. The other two are a 2000 car and a '99 pickup. The SUV is now worth less than half of what we paid, but I bought the other two private party and can probably still get close to what I paid for them. I don't put many miles on vehicles and I take pretty good care of them.
I agree that many of these auto loans are ridiculous, but I also wish I had a nicer vehicle. I'm just too cheap to pony up for one.
Quite a few years ago I was working for a medium sized bank and we wrote lending software for autos when a lot of that stuff when in its' infancy. It would pull credit reports, merge that with the credit application, then bump it up against a mess of rules, matrices and pathways to spit out an approve or decline (a small portion fell into the middle; that continued to go to underwriters for manual review).
When we launched the app we monitored the incoming applications to make sure it was doing everything it was supposed to do. It was eye opening. 580 credit score, no down payment, no collateral and a $25K income? You absolutely should buy a $64K pickup! 84 months? You bet! There didn't see to be much rhyme or reason as to why people bought the cars they were.
When we launched the app we monitored the incoming applications to make sure it was doing everything it was supposed to do. It was eye opening. 580 credit score, no down payment, no collateral and a $25K income? You absolutely should buy a $64K pickup! 84 months? You bet! There didn't see to be much rhyme or reason as to why people bought the cars they were.