Author Topic: We're All Expected to Have Car Payments  (Read 24856 times)

Villanelle

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Re: We're All Expected to Have Car Payments
« Reply #50 on: August 18, 2015, 04:36:20 PM »
Maybe I'm dense, but I still don't see why you would come out ahead by leasing a new vehicle.
The downsides, as I can see them:
- you have to pay several K up front (someone above advised "rolling it into the lease", but you're still paying it)
- you have a (relatively) high monthly payment
- you have no asset at the end of the lease to show for that money you've paid
- if you drive it more than their mileage limits, you're liable for potentially heavy penalties
- you're locked into a multi-year contractual obligation from which it's hard to extract yourself
- as you're left with nothing, you'll need to arrange to get yet another vehicle after the 3-4 year term

Am I missing something blatantly obvious here?  Why is leasing better?  I've always believed leasing was just for suckers ...

I think it may be better than buying *for someone who must have a new car every few years*.  Which is, of course, a terrible decision in and of itself and it about as "consumer sucka" as one can get.  For someone who refuses to ever go without that new car smell, and not just wafting from a tree shaped piece of cardboard, leasing is worth considering.  But to me that's a bit like saying that buying a used boat is a great investment.  Sure, compared to buying a new boat it is, but either decision is still buying a boat, which is a terrible financial decision*

*Boats purchased for the purposes of living on them, or in a few other rare situations, possibly exempted.

Caella

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Re: We're All Expected to Have Car Payments
« Reply #51 on: August 25, 2015, 05:43:28 AM »

....

Best rule for car purchases:  If you can't afford to pay cash for it, you can't afford it.

FTFY.

The exception to the rule is a house. Maybe.

Fishindude

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Re: We're All Expected to Have Car Payments
« Reply #52 on: August 27, 2015, 05:37:08 AM »
We swap cars every five years or so, going with something new or late model, under 40,000 miles.
Always pay cash, haven't had a car payment in years.

Guy I went to school with mentioned in conversation ... "I figure you'll always have a car payment".
He's 55 years old and approaching retirement.  In my view at that age everything should be paid off, purchases should be cash, and you should be slamming it away for retirement.

clarkfan1979

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Re: We're All Expected to Have Car Payments
« Reply #53 on: August 29, 2015, 01:29:59 AM »
Robert Cialdini calls this 'social proof'.   Everyone else is doing it so it must be the right thing to do. 

People on this forum do something similar by encouraging everyone to spend mindfully and invest regularly.

Good point, but the examples are a little different. Some people have a car payment because they think it is the norm and want to fit in. People on this forum are going the societal norm, but asking for social acceptance from a small cross section of society.

Robert Cialdini is kind of my idol. I have read most of his published papers in Social Psychology. He has some real good one's.

clarkfan1979

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Re: We're All Expected to Have Car Payments
« Reply #54 on: August 29, 2015, 01:36:15 AM »
One of my professors in undergrad used to be friends with a guy that he worked with at the University. They made about the same money, but his friend would "upgrade his car" every 5 years. However, my prof would get a replacement used car every 10 years. After about 20 years into the relationship, the new car friend kept giving him a hard time about his old car and asked him why he wouldn't buy a new one. They had been friends for a long time, so he basically said that he was worth about a couple millions dollars because he kept his spending low. He would rather have a couple million in the bank that a new car in the driveway. The weird part was that the new car friend got really mad at him for "being rich" because he didn't like rich people. They were no longer friends after the conversation. Kind of sad.

lemanfan

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Re: We're All Expected to Have Car Payments
« Reply #55 on: August 29, 2015, 02:20:47 AM »
The weird part was that the new car friend got really mad at him for "being rich" because he didn't like rich people. They were no longer friends after the conversation. Kind of sad.

That is so weird, but I've seen it happen before.  :/

Emilyngh

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Re: We're All Expected to Have Car Payments
« Reply #56 on: August 29, 2015, 05:08:38 AM »
Ohhh, let's see.

I knew a woman once who was finally very close to having her car paid off....so they bought a new one (with payments) and gave the paid off one (worth like $15k) to their teen.   I tried to convince her that going into more debt for a car for her teen was a bad idea (esp since she was always complaining about their other debt), but she argued with me that they weren't going into debt for the teen, the teen's car would be paid off.   People get so used to having 2 car payments that it's like it somehow financially is exempt from logic.

I also was recently involved in a discussion about leasing where the main argument was that leasing is really not a bad deal if you're going to get  a new car every 3 years anyway...As if that basic assumption was a legit one to begin with....

Also, all of my friends are having their first babies right now, which means they are all buying new Volkswagen station wagons, mini vans, etc.   Of course all financed.   But, they *need* them for the new baby....I don't touch this one.   
« Last Edit: August 29, 2015, 05:10:38 AM by Emilyngh »

tvan

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We're All Expected to Have Car Payments
« Reply #57 on: August 29, 2015, 07:21:51 AM »
Can't you lease a civic for like $99 a month now?  That kid who was on the forum a couple months back made a pretty compelling case for leasing.

Syonyk

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Re: We're All Expected to Have Car Payments
« Reply #58 on: August 29, 2015, 12:41:43 PM »
We upgraded to a Mazda3 when a kid was on the way...

And some of the lease deals for EVs are nice. I know a lot of people who lease a Leaf because the lease is only slightly more than their gas costs and they can charge for free at work.

Most of them don't want to deal with early gen EVs in a few years, and the lease deals are around $200/mo, many of which have been extended beyond the original term

babysnowbyrd

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Re: We're All Expected to Have Car Payments
« Reply #59 on: August 29, 2015, 01:18:05 PM »
Car Payment?  What's a car payment?

...

Best rule for car purchases:  If you can't afford to pay cash for it, you can't afford it.

...But that doesn't mean you SHOULD pay cash for it, you just should be ABLE to.  Big difference.

I bought a 2005 Prius cash. I was going to take the title to the bank for a low interest title loan and put the cash towards CC  debt. Then I started driving for Lyft and Uber. Lien holders don't typically approve of that kind of use, so I decided to just keep things as-is.

JetBlast

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Re: We're All Expected to Have Car Payments
« Reply #60 on: August 29, 2015, 07:35:03 PM »
Maybe I'm dense, but I still don't see why you would come out ahead by leasing a new vehicle.
The downsides, as I can see them:
- you have to pay several K up front (someone above advised "rolling it into the lease", but you're still paying it)
- you have a (relatively) high monthly payment
- you have no asset at the end of the lease to show for that money you've paid
- if you drive it more than their mileage limits, you're liable for potentially heavy penalties
- you're locked into a multi-year contractual obligation from which it's hard to extract yourself
- as you're left with nothing, you'll need to arrange to get yet another vehicle after the 3-4 year term

Am I missing something blatantly obvious here?  Why is leasing better?  I've always believed leasing was just for suckers ...

It's all about what you're comparing it against. If that comparison is against purchasing a new car, the lease can make sense in some cases. If the comparison is lease versus buying with cash and driving until the wheels fall off, then leasing usually doesn't make much sense.

As to your points, lower monthly payments is often part of the appeal for leasing. Since you only pay depreciation plus an interest rate usually close to the same rate as purchasing, you are looking at lower monthly payments over a three year lease than buying on anything shorter than about a six or seven year loan, depending on the residual value at the end of the lease. Also, leases don't always require a large down payment, unless you're looking to make your payments as low as you see in the television ads. They can be just as low as buying.

You're right that you don't have an asset at the end of the lease, but most leases give the option to purchase the vehicle for the residual value at the end of the lease. So if you want, you can keep the car, either paying cash or obtaining used car financing. Also, many leases are actually quite easy to get out of for a fee. I've seen leases that you can break for as little as $150. 

The mileage limits are the worst aspect, but understandable considering extra driving means greater depreciation. You usually have the option to pre buy extra miles up front if you think you will need them for something like $.05 per mile. The penalty if you go over is something like $.10-.15 per mile. If you know there are high chances your life circumstances will change during the lease and may require more driving, that might be a reason to buy instead of lease. These fees for going over mileage usually won't apply if you buy the car at the end of the lease since you make the lender whole by paying residual value.

The only issue with leasing and planning to buy at the end of the lease is that used car interest rates are higher than new, so you'll pay a little more in interest going that route, assuming you didn't save cash to buy with. Neither buying new or leasing is mustachian, but really they're not all that different financially over the long run if you churn through cars like most Americans.

FunkyStickman

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Re: We're All Expected to Have Car Payments
« Reply #61 on: September 10, 2015, 08:45:58 AM »
I will never have another car payment again.

Ever.

FatCat

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Re: We're All Expected to Have Car Payments
« Reply #62 on: September 10, 2015, 09:07:24 AM »
I know some people that think buying a new car as soon as your payment on your current car ends is the best decision because if you don't get another car payment quickly, you'll screw yourself over with lifestyle inflation and become unable to buy a new car.

So if your car payment is $400 and you pay it off. That's like getting a $400 a month raise. So you'll start spending $400 more per month on random things. You'll get used to this level of spending and just see it as normal.  So now once you decide you do need a new car, you can't find the money to afford the payment because lifestyle inflation has made it so you can't afford $400 a month for car payments anymore.

Of course you're not going to save this extra available money or use it to pay down some other debt because nobody does that. You think you'll do it, but you won't.

So buy a new car as soon as you pay off the last one, otherwise lifestyle inflation will make it too difficult to buy a new car later.

Syonyk

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Re: We're All Expected to Have Car Payments
« Reply #63 on: September 10, 2015, 10:57:21 AM »
That's sadly reasonable, if you have no financial discipline and spend everything that comes in. So... probably a really common justification. :(

lemanfan

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Re: We're All Expected to Have Car Payments
« Reply #64 on: September 10, 2015, 11:12:02 AM »
That's sadly reasonable, if you have no financial discipline and spend everything that comes in. So... probably a really common justification. :(

It's for that kind of people that "automated savings" makes a real difference.

EndlessJourney

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Re: We're All Expected to Have Car Payments
« Reply #65 on: September 10, 2015, 02:51:33 PM »
My old boss loved hearing it when his employees bought new cars. He was upfront about it, he told us it "ensured indenturability" ie. we weren't going anywhere soon.

He was absolutely ecstatic whenever he heard one of us was expecting kids!

He was a funny guy, but the edgy kind of humour that made you laugh nervously.

But it highlighted a situation that reflects the reality of professions that pay out salaries far and above the standard cost of living. I remember reading somewhere (can't find it now) that extremely high-paying jobs run the risk of long-term employee retention because it enables the employee to cash out a lot quicker unless they become "indentured" through increasingly higher standards of living.

The car-payment-as-norm is a prime example of this encouraged lifestyle creep. You get a raise and the expectation is that you'll lease a more expensive car because hey, you gotta show for it somehow... *boom* Running to stand still.

JLee

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Re: We're All Expected to Have Car Payments
« Reply #66 on: September 10, 2015, 03:17:03 PM »
I have had a car payment for many years (finally free in three weeks!) and it has been the only thing that friends and family would accept as a valid reason for not buying a truck. My father, my boss, everyone would push for it. Logic reason didn't matter when you could pay in monthly installments. But if I already had a car payment?

"When are you going to buy a truck?"
"I don't need one right now."
"You will though."
"Well maybe in three to five years when I start gearing up my own work."
"Then you should buy it now and get the depreciation out of the way."
"I... Oh! I can't afford another payment."
"Oh right you have a car payment. When is it done?"
"Couple more years."
"Okay. So you'll buy a truck then."
"... sure."

A payment must be replaced with a payment. 13 years of solid monthly payments.

Get the depreciation out of the way? What does that even mean? lol...people...

Chris22

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Re: We're All Expected to Have Car Payments
« Reply #67 on: September 10, 2015, 03:48:03 PM »
My old boss loved hearing it when his employees bought new cars. He was upfront about it, he told us it "ensured indenturability" ie. we weren't going anywhere soon.

He was absolutely ecstatic whenever he heard one of us was expecting kids!

He was a funny guy, but the edgy kind of humour that made you laugh nervously.

But it highlighted a situation that reflects the reality of professions that pay out salaries far and above the standard cost of living. I remember reading somewhere (can't find it now) that extremely high-paying jobs run the risk of long-term employee retention because it enables the employee to cash out a lot quicker unless they become "indentured" through increasingly higher standards of living.

Which is, of course, silly because everyone knows, and it can be proven, that you can make far more money jumping around employer to employer than you can staying the course at one employer.  So if I want to support a consumeristic lifestyle, it's actually to my advantage to change jobs and employers every couple years, not sit in one role and hope for that 2-3% raise annually.  The number of people job-hopping to make more money far exceeds the number of people retiring early because they didn't buy a new car.

Urchina

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Re: We're All Expected to Have Car Payments
« Reply #68 on: September 15, 2015, 10:08:16 PM »
I have a co-worker who was obnoxiously aggressive about my 20-year-old car (when I still had it... sniff). I'd get daily crap from her about how it was so old, so beat up, when was I going to buy a new car? What type was I going to get? I'd just smile and keep moving.

One day I got a promotion and a raise, and during the coffee break congratulations from my co-workers this woman asks, loudly and pointedly, if I won't finally get a new car and not drive that old thing anymore. I've finally had enough of politely deflecting this question and tell her the math behind my decision: Every month I drive this old, comfortable, reliable, meets-my-needs-perfectly car, I save $500, since I'm not making a car payment and my insurance is amazingly low. I'm saving at least $6000 a year. I'm using the money to max out my ROTH retirement account and prepay the mortgage on our condo.

She just stared at me, then looked out at the parking lot and her (brand-new) SUV and said "Oh."

I never heard a word about it from anyone again. Until this year, when a new friend took at look at our 12-year-old Accord and 10-year-old Odyssey and said "Thank God you drive old cars, too." I nearly choked with laughing so hard, because to me these cars are the nicest and newest I've ever owned. ;)


HairyUpperLip

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Re: We're All Expected to Have Car Payments
« Reply #69 on: September 16, 2015, 07:25:55 AM »
I have a co-worker who was obnoxiously aggressive about my 20-year-old car (when I still had it... sniff). I'd get daily crap from her about how it was so old, so beat up, when was I going to buy a new car? What type was I going to get? I'd just smile and keep moving.

One day I got a promotion and a raise, and during the coffee break congratulations from my co-workers this woman asks, loudly and pointedly, if I won't finally get a new car and not drive that old thing anymore. I've finally had enough of politely deflecting this question and tell her the math behind my decision: Every month I drive this old, comfortable, reliable, meets-my-needs-perfectly car, I save $500, since I'm not making a car payment and my insurance is amazingly low. I'm saving at least $6000 a year. I'm using the money to max out my ROTH retirement account and prepay the mortgage on our condo.

She just stared at me, then looked out at the parking lot and her (brand-new) SUV and said "Oh."

I never heard a word about it from anyone again. Until this year, when a new friend took at look at our 12-year-old Accord and 10-year-old Odyssey and said "Thank God you drive old cars, too." I nearly choked with laughing so hard, because to me these cars are the nicest and newest I've ever owned. ;)

lol - thats pretty awesome.

jinga nation

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Re: We're All Expected to Have Car Payments
« Reply #70 on: September 16, 2015, 08:32:33 AM »
Don't know how true this is but, hearing from neighbors and co-workers, I think most American households have a budget line item for car purchase/lease payment. If the car is paid off, they go WTF and don't know what to do, mind-blown! If they don't trade-in or lease a new model, they'll use that dollar amount to finance more material crap.

So, in a way, the monthly vehicle payment prevents them from buying more crap. Now do you Mustachians get it? /sarcasm.

solon

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Re: We're All Expected to Have Car Payments
« Reply #71 on: September 16, 2015, 08:41:51 AM »
After my car loan was paid off, I kept making the same monthly payment to myself. I used that money for repairs and eventual replacement. So, in that sense, I have always had a car payment. I expect I always will have this kind of car payment, even though I will never have to borrow money for a car again.

So, whenever I hear somebody talking about "always having a car payment," I can legitimately nod my head in agreement.

ketchup

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Re: We're All Expected to Have Car Payments
« Reply #72 on: September 16, 2015, 08:44:26 AM »
A friend of a friend was at our house a few months ago and mentioned her "old" van that she had just gotten rid of.  Foolishly, I asked what year it was.  2007.  So old.  Then she grumbled about the payments on her shiny 2015 car.

I just glanced at our 1992 and 1999 parked in our driveway and smiled. 

"Car payment" is just when you give the seller the amount of money in exchange for a car, right?  "Paying" for your "car" the same way you pay for a gallon of milk and a bag of potatoes, right?  It's not part of my monthly spending, because I don't buy a car every month.  I do have "milk payments" and "potato payments" though, I suppose.

Syonyk

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Re: We're All Expected to Have Car Payments
« Reply #73 on: September 16, 2015, 09:54:59 AM »
In college I used to joke that I didn't have a car payment - I had parts payments.

I drive some truly cheap cars - one was literally pulled from the junkyard, another intercepted on its way ("Hey, the scrap yard offered me $125, beat that and it's yours." "I'll be right over with $150!").

They usually needed a lot of work and parts, but if I didn't have the money, nobody would come take it. And usually after 6 months and a couple hundred dollars in parts they were just fine.

FunkyStickman

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Re: We're All Expected to Have Car Payments
« Reply #74 on: September 16, 2015, 06:30:34 PM »
Interesting week for me... my car's crank sensor died Monday, and yesterday my wife's van had a locked up brake caliper (I just did a full brake job on it). I rode my bike to work.

Told my boss I was leaving work a bit early to go to the car parts store, and he said "you should think about buying a more reliable vehicle."

I said "Yeah... you're right... I could use another bike."

birdman2003

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Re: We're All Expected to Have Car Payments
« Reply #75 on: September 17, 2015, 10:30:20 AM »
Interesting week for me... my car's crank sensor died Monday, and yesterday my wife's van had a locked up brake caliper (I just did a full brake job on it). I rode my bike to work.

Told my boss I was leaving work a bit early to go to the car parts store, and he said "you should think about buying a more reliable vehicle."

I said "Yeah... you're right... I could use another bike."

:-D

bb11

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Re: We're All Expected to Have Car Payments
« Reply #76 on: September 17, 2015, 11:14:29 AM »
Interesting week for me... my car's crank sensor died Monday, and yesterday my wife's van had a locked up brake caliper (I just did a full brake job on it). I rode my bike to work.

Told my boss I was leaving work a bit early to go to the car parts store, and he said "you should think about buying a more reliable vehicle."

I said "Yeah... you're right... I could use another bike."

Brilliant!

goldensam

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Re: We're All Expected to Have Car Payments
« Reply #77 on: September 20, 2015, 02:55:53 PM »
The day I turned 16, my mom and grandparents took me to a few car dealerships to pick out a car for me to buy. Of course, I had no savings, but I did have a hostess job at a chain restaurant, so they were taking out a loan that I would be responsible for paying. 16 with a car payment! So at 16 years 1 month old, I had a monthly car payment of approximately $225 for 5 years. It wasn't even a great car. I eventually could not make the payments and my grandparents sold the car to another relative.

The summer after my freshman year of college, at this point approximately $13k in student loan debt, my grandparents took me to look at new Jeep Wranglers. They were "only" $15k (I think)! They said everyone has a car payment, may as well get started now and look how cool it is! Sigh. Thankfully, I did not buy it. The next day my grandma told me I should go spend some money on myself, because I just "saved" $15k. I should mention that my grandparents are pushing 70, still can't retire, but damn it, they always have a nice car!

With the exception of a few years in college where I drove a total beater, I had a car payment until I was 30. I paid off my 2010 Honda last fall and plan on keeping it as long as it makes sense.

abhe8

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Re: We're All Expected to Have Car Payments
« Reply #78 on: September 20, 2015, 03:50:13 PM »
Wow. That is all I can say. I've never had a car payment. And always driven old cars. All family on both sides make loading comments about how we rely need to get something "safe" for our kids sake. I just roll my eyes. We have NEVER broken down on the side of the road. The cars are 10 and 12 years old, so not ancient, and very well maintained.

tallen

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Re: We're All Expected to Have Car Payments
« Reply #79 on: September 20, 2015, 05:06:07 PM »
a couple years ago I bought a car on payments because I was trying to boost my credit score, paid it off in 8 months (had a 4 yr term) and it did help my credit score :) Only bought one other car on credit ever (a 68 camaro I fell in love with in my early 20's), and I'm 42.

But get this, I've got a friend who would trade in his car as soon as it was paid off, every time. His last car was almost paid off and I started telling him what a good reliable car it is and he needs to keep it instead of trading it in (instead of telling him how stupid it was financially, I knew he wouldn't listen to that). Well, he took my advice, kind of. Instead of trading it in he paid it off and went straight to the title loan place to get money to buy his and hers scooters *palmface*

TheGrimSqueaker

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Re: We're All Expected to Have Car Payments
« Reply #80 on: September 20, 2015, 08:24:41 PM »
Well, he took my advice, kind of. Instead of trading it in he paid it off and went straight to the title loan place to get money to buy his and hers scooters *palmface*

You win the thread. Not many forms of debt are as hideous as a title loan. Talk about jumping out of the financial frying pan, and into the fire. For a depreciating asset, no less.

Making Cookies

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Re: We're All Expected to Have Car Payments
« Reply #81 on: September 21, 2015, 10:42:45 AM »
Wow. That is all I can say. I've never had a car payment. And always driven old cars. All family on both sides make loading comments about how we rely need to get something "safe" for our kids sake. I just roll my eyes. We have NEVER broken down on the side of the road. The cars are 10 and 12 years old, so not ancient, and very well maintained.

You nailed. We have a second car for the times with car #1 needs TLC which isn't very often. Neither are worth much, both are presentable and reliable and cost peanuts to insure and repair. I fix my own.

My wife told me of recently listening to her sister with perpetually strained finances discuss trading in her five or six year old car for a new car. WTF - is the itch to have a new car (loan) that strong in some people? Frankly - I don't worry about it anymore. Their loan, their cross to bear. I don't lose sleep over other people's choices.

I have considered printing out some MMM business cards to pass out silently when I hear someone say something goofy like they don't have enough debt in their lives and want more. A logo, some text, the web address. Give it to them and walk away. Make sure FREE is there. No cost. Of course FREE probably just makes people think it's a scam with a hidden membership fee.
« Last Edit: September 21, 2015, 10:45:56 AM by Joe Average »

driftxsequence

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Re: We're All Expected to Have Car Payments
« Reply #82 on: September 21, 2015, 11:39:14 AM »
My in-laws had 2006ish Ford Explorer. Low miles for its age, maybe 40k miles? They sold it a month after our daughter was born to make sure she was safe for the 1 or 2 times a month she is picked up from daycare. Meanwhile I daily drive a car with no airbags, and my wife is in a notoriously poor safety standard MK4 VW Golf. 50 MPG and $2 diesel sure is great right now though. :)

Syonyk

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Re: We're All Expected to Have Car Payments
« Reply #83 on: September 21, 2015, 12:10:50 PM »
My wife told me of recently listening to her sister with perpetually strained finances discuss trading in her five or six year old car for a new car. WTF - is the itch to have a new car (loan) that strong in some people? Frankly - I don't worry about it anymore. Their loan, their cross to bear. I don't lose sleep over other people's choices.

That's just what you do.  You always have to have a car payment - when you pay one off, time to upgrade.  I mean, have you seen the new model year's features?

$2 diesel sure is great right now though. :)

Where on earth are you finding $2 diesel? :D

HairyUpperLip

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Re: We're All Expected to Have Car Payments
« Reply #84 on: September 21, 2015, 12:21:21 PM »
My wife told me of recently listening to her sister with perpetually strained finances discuss trading in her five or six year old car for a new car. WTF - is the itch to have a new car (loan) that strong in some people? Frankly - I don't worry about it anymore. Their loan, their cross to bear. I don't lose sleep over other people's choices.

That's just what you do.  You always have to have a car payment - when you pay one off, time to upgrade.  I mean, have you seen the new model year's features?


I heard they added an extra cupholder for this years model. I'll take two please!

Syonyk

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Re: We're All Expected to Have Car Payments
« Reply #85 on: September 21, 2015, 12:30:17 PM »
I heard they added an extra cupholder for this years model. I'll take two please!

Woah... extra cupholders are awesome, but only if they are big enough for my 128oz Insane Gulp soda.

driftxsequence

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Re: We're All Expected to Have Car Payments
« Reply #86 on: September 21, 2015, 12:57:29 PM »


Where on earth are you finding $2 diesel? :D
[/quote]

$2.40 right now, oops. It's been a good MONTH since we've had to fill up! Cherry hill NJ is $1.77/Gal. It's cheaper for me to drive over to jersey, fill up, AND pay the $5 toll coming back. Not including my time, or wear and tear on the car.

LiveLean

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Re: We're All Expected to Have Car Payments
« Reply #87 on: September 21, 2015, 03:13:32 PM »
My next-door neighbors on either side, as well as two doors down, have leased the entire roster of clown cars over the last 15 years: Hummer, Benz, Lexus SUV, Audi, BMW, big trucks of all models. We keep our boring modest US cars forever. They probably have higher incomes than we do. They almost certainly have lower net worths. This isn't brain surgery, is it?

Making Cookies

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Re: We're All Expected to Have Car Payments
« Reply #88 on: September 21, 2015, 04:02:19 PM »
My in-laws had 2006ish Ford Explorer. Low miles for its age, maybe 40k miles? They sold it a month after our daughter was born to make sure she was safe for the 1 or 2 times a month she is picked up from daycare. Meanwhile I daily drive a car with no airbags, and my wife is in a notoriously poor safety standard MK4 VW Golf. 50 MPG and $2 diesel sure is great right now though. :)

Well you know about those Ford Exploders - they sometimes just roll over sitting in their driveways...

My retired mother upgraded from a five passenger SUV to an eight passenger SUV just as my sibling left the state with family in tow for a new job. We live on the other side of the state so Mom isn't hauling us either. She has all that seating just in case she were to have all the grandkids at once which never happened before my sibling left the state and certain won't happen now. She is one of those people who honestly could get by just fine with a Miata or Smart Car.

Tjat

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Re: We're All Expected to Have Car Payments
« Reply #89 on: September 24, 2015, 06:47:56 PM »
I have an estranged Aunt and Uncle that took out credit cards to buy his & her compact VW Cabrio convertibles. They are both obese so they each needed their own, so everywhere they went, they drove their cars separately. I was 12 at the time and couldn't stop laughing when they tootled up to the house. Eventually they lost the cars to a title loan they had to take out so they could go on their annual trip to Disney World

« Last Edit: September 24, 2015, 06:51:13 PM by Tjat »

babysnowbyrd

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Re: We're All Expected to Have Car Payments
« Reply #90 on: September 24, 2015, 09:49:21 PM »
^^^^

Just. Wow. Comically sad. I'd laugh to if faced with such a picture. Then shake my head sadly as I go back inside my house to look for something I can sell to pay off debts faster.

Dicey

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Re: We're All Expected to Have Car Payments
« Reply #91 on: September 24, 2015, 11:05:29 PM »
Leasing gets a bum rap because of what it's compared to.  There's no question that the buy and hold for a long time way of buying a car is superior in a financial sense.  But if you want to drive a new car every 2-3 years, leasing is generally favorable financially versus buying a car in cash and selling it every 2-3 years, or financing it and trading it in over the same period.  For plenty of high-income people, spending $400-500/mo in perpetuity is a small portion of their monthly take and it guarantees an up to date car at a fixed cost (car is under warranty, etc).  Not financially "smart" but not exactly disastrous either.
Yeah, but those types aren't exactly the MMM target audience. There are plenty of high income and high net worth folks around here who understand that buying obtaining a new car and "selling it every 2-3 years" is just plain dumb-ass.

HairyUpperLip

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Re: We're All Expected to Have Car Payments
« Reply #92 on: September 25, 2015, 08:00:20 AM »
Leasing gets a bum rap because of what it's compared to.  There's no question that the buy and hold for a long time way of buying a car is superior in a financial sense.  But if you want to drive a new car every 2-3 years, leasing is generally favorable financially versus buying a car in cash and selling it every 2-3 years, or financing it and trading it in over the same period.  For plenty of high-income people, spending $400-500/mo in perpetuity is a small portion of their monthly take and it guarantees an up to date car at a fixed cost (car is under warranty, etc).  Not financially "smart" but not exactly disastrous either.
Yeah, but those types aren't exactly the MMM target audience. There are plenty of high income and high net worth folks around here who understand that buying obtaining a new car and "selling it every 2-3 years" is just plain dumb-ass.

Chris already early retired from the forum.

hehehehehehehehe @ my own joke.

gooki

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Re: We're All Expected to Have Car Payments
« Reply #93 on: September 27, 2015, 02:20:35 PM »
Leasing is primarily for business so they can write of the cost as an expense. It keeps the accounting simple, and can be fairly cost efficient when they believe there is a need for the frontline staff to be seen in late model cars.

Why individuals take on leases when they do not get the tax benefit is beyond me.

maco

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Re: We're All Expected to Have Car Payments
« Reply #94 on: September 29, 2015, 01:22:23 PM »
Yes, it's definitely the norm to have a car payment. Absurd, but the norm nonetheless.

I've face similar attitudes from people. One old boss, who oscillated from a reasonable Pontiac to an new Expedition to a new Corvette to a new Cadillac in the time we worked together, was shocked that I drove the same car the whole time and that I still drove the Corolla I'd driven in grad school. His comment was "Really? I thought you would have upgraded by now." And what can you say to that? Can't really tell the guy he's a moron right to his face. Cause he's the boss.
What to say to that:


wide-eyed innocent blink "Why?"
« Last Edit: September 29, 2015, 01:43:20 PM by maco »

Frugal D

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Re: We're All Expected to Have Car Payments
« Reply #95 on: September 29, 2015, 01:31:31 PM »
Advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don't need.

jinga nation

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Re: We're All Expected to Have Car Payments
« Reply #96 on: September 29, 2015, 02:13:41 PM »
Advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don't need.

My homebrew solution is to record TV shows on my HTPC, software strips off commercials, hence a sitcom is 20-21 mins instead of 30. Now you can watch 3 episodes in an hour instead of 2. Efficiency!
No cable/satellite package, using an antenna, getting national networks in HD and several PBS stations, CW, etc. I'm a PBS freak, my wife will watch selected sitcoms and dramas. Otherwise get Netflix or Hulu account, she'll binge-watch a series like Orange is the New Black, and then cancel account. There's good stuff on Crackle with minimum ads.
Use Ghostery browser on your smartphone, and the Ghostery add-in on your desktop browser. All these changes minimize ads reaching family eyeballs. Ghostery will show you how much third-party tracking that occurs when you're on the web. They collect YOUR data for free and deliver ads to you to buy shit you don't need, sometimes with money you don't have (on credit instead), and then you wonder why you're that hamster getting old and tired on the spinning wheel.
Escape the vortex by reducing the advertising reaching your eyes (and ears).