How much do you spend on Payments??

[AutobahnSHO]

I was lusting over BRZ and was shocked at the payment calculators. With 10% down if you want to 5yr finance it's close to $400/month!!  Do people really pay that much for cars???

Right now owe more on cas than ever in my life. But I also have 3.      Not counting gas and insurance, and DON'T ANSWER if it seems too personal, how much do you pay? (or not) Until 2009 we always paid cash for beaters and I didn't have any payments at all.

Toyota = $110/month, we financed $5k at 7%  (Still owe $1900)
Miata= $65/month, I took a personal loan  at 11%
Subaru= $80/month, it's paid for but I put a new motor and install on creditcard.
total= $255/month

[CJ]

$200/mo on the Lexus.  I have a personal loan for it.

[Rich]

0.  Same for the ex il Rustang-o.  Whenever I get back to the US, I'll look for a 3yr old used sporty car (BRZ/Miata/E90/whatever) for less than 20k and pay casharoni.

[dazzleman]

Lots of people spend more than that on monthly payments, I would guess.  For a luxury car, it could be around $1,000 per month.

My philosophy is that if you're going for more than a utilitarian car, and you can't afford to pay cash, you can't afford the car.  But I'm more financially conservative than most.

[giant_mtb]

Lots of people spend more than that on monthly payments, I would guess.  For a luxury car, it could be around $1,000 per month.

My philosophy is that if you're going for more than a utilitarian car, and you can't afford to pay cash, you can't afford the car.  But I'm more financially conservative than most.

I hate the feeling of living on borrowed money.  I don't even like borrowing $5 from people.  I hope I stay that way as long as possible.

[SVT666]

$0 on the Explorer, $520 per month on the Infiniti (shortened payment schedule).

[SVT666]

Lots of people spend more than that on monthly payments, I would guess.  For a luxury car, it could be around $1,000 per month.

My philosophy is that if you're going for more than a utilitarian car, and you can't afford to pay cash, you can't afford the car.  But I'm more financially conservative than most.

That's unrealistic for 90% of the population.

[hotrodalex]

That's unrealistic for 90% of the population.

Not really. No one needs a luxury car.

[giant_mtb]

Not really. No one needs a luxury car.

I think he's saying that the philosophy of "if you don't have the cash, you can't afford it" is unrealistic for 90% of the population.

[dazzleman]

That's unrealistic for 90% of the population.

Not really.  There's nothing wrong with having a car loan for a regular car, but if you want to buy a $60,000 car and can't afford to pay cash, you can't really afford the car.  Not that that will stop most people from getting the car they want.  It will prevent them from building up any wealth, with all the finance charges they're paying for stuff they can't afford.  I understand it's the way everything works in this society, but that doesn't mean it's a good idea, or that it all won't end badly at some point.

[Eye of the Tiger]

Accent's min payment is $230 or something. I usually pay more.

[SVT666]

Not really.  There's nothing wrong with having a car loan for a regular car, but if you want to buy a $60,000 car and can't afford to pay cash, you can't really afford the car.  Not that that will stop most people from getting the car they want.  It will prevent them from building up any wealth, with all the finance charges they're paying for stuff they can't afford.  I understand it's the way everything works in this society, but that doesn't mean it's a good idea, or that it all won't end badly at some point.

I fail to see the difference.  If you need a loan to buy a Fiesta, should you be buying it?

[MrH]

Bought most of the BRZ in cash.  I think my loan was $9k in total when I bought it, over 4 years.  Turns out to be $200/month.   I've basically been looking at my budget every month, and paying extra towards the principle, depending on how much I'm over and under budget on everything else.

[93JC]

$400/mth for a new car loan is not unusual at all. Financially savvy? No, but not unusual.

My payments were $391/mth for 3 yrs. I paid off the loan last year. Most people I know who decided to buy (many lease instead, particularly if they can write it off as a business expense) have 5, 6 or 7 year loans; in that respect mine seemed unusually short.

My insurance is about $85/mth for just about all the bells and whistles and $250 deductibles. I think the only coverage I don't have is glass.

In 2012 I spent about $95/mth on gasoline (~10¢/km, 16¢/mi). I spent about $180 last year on maintenance (tire rotation, oil changes, fluid top-ups, new windshield wipers). So, in all, my average monthly cost since I paid off the car is about $195.

[dazzleman]

I fail to see the difference.  If you need a loan to buy a Fiesta, should you be buying it?

Yes.  But not for a BMW.

[Onslaught]

$360 a month but I pay more then that.

[TBR]

I think that's fine as a generalization, but there are likely some exceptions. For example, in a couple of years if I need to buy a car I am likely to buy a new luxury car for which I can't comfortably write a check. But my income and other living expenses will be such I could likely pay it off in less than a year.

Yes, obviously a BMW luxury item, but to some extent a car is also a necessity so that could change the equation under some circumstances. I am not going to take on a depreciating asset that I don't particularly like because, for whatever reason, I can't wait a year. Better to just make the payments and pay some interest. This is, to some extent, rationalization for a decision I am actually very unlikely to make (based on my mileage last year, I may not get over 5k as long as I have this job and live where I live so really it would be kind of silly to buy a new car at all).

Current payment is $0. I borrowed maybe $2k from my parents when I bought the Prelude. Paid it off within 3 months IIRC.

[VTEC_Inside]

$0 and I like it that way.

Nothing new has been tempting enough for me to start making payments again.

[MrH]

I think that's fine as a generalization, but there are likely some exceptions. For example, in a couple of years if I need to buy a car I am likely to buy a new luxury car for which I can't comfortably write a check. But my income and other living expenses will be such I could likely pay it off in less than a year.

Yes, obviously a BMW luxury item, but to some extent a car is also a necessity so that could change the equation under some circumstances. I am not going to take on a depreciating asset that I don't particularly like because, for whatever reason, I can't wait a year. Better to just make the payments and pay some interest. This is, to some extent, rationalization for a decision I am actually very unlikely to make (based on my mileage last year, I may not get over 5k as long as I have this job and live where I live so really it would be kind of silly to buy a new car at all).

Current payment is $0. I borrowed maybe $2k from my parents when I bought the Prelude. Paid it off within 3 months IIRC.

+1

Kind of my rationale with the BRZ.  I could have bought the whole thing, but having the cash available was worth the small cost of financing for the time being.

[CJ]

I had to take out a loan for a car so I could have reliable transportation.  It was a necessity, but I wanted some luxury features.  I bought the Lexus for its Toyota reliability and build quality, not because it's a fun car.  It's dull as shit.

[dazzleman]

+1

Kind of my rationale with the BRZ.  I could have bought the whole thing, but having the cash available was worth the small cost of financing for the time being.

In that case, financing was a choice, not a necessity.  Big difference.

[2o6]

$122 a month on the Yaris at 5.9%.



I pay $150, because I want it done early. When I get some spare cash, it's going into the loan.


What sucks is, my car insurance is $203 a month.

[AutobahnSHO]

My philosophy is that if you're going for more than a utilitarian car, and you can't afford to pay cash, you can't afford the car.

That's unrealistic for 90% of the population.

I agree with Daz.  There are plenty of cars you can pickup for under $5k and if you do it right you can pay cash for them. My budget used to be $3k and always paid cash but we splurged on the van to get something newer/ bigger. (it was $9k, 5yrs old, 122k miles, dealer did t-belt and other maintenance before we took it home.)

Thing is, I see young people at work buying brand-new cars. It just doesn't make sense to sink into that much payment, especially when their salaries are half what I make. Sure Soldiers have the most guaranteed job security in the world (for now), but who knows what life will bring 5yrs down the road??? 

Even a very slightly used car would be a much better purchase. I would LOVE to have a brand brand new car someday but just can't rationalize it. Even if it were the perfect car and I was going to keep it forever. The new vs. used depreciation hit is CRAZY!

[Onslaught]

It probably would be better to not spend money on cars and save. But then I'll just have lots of money when I'm old and shitting my paints in a bed. And if I even have a brain left by that time to look back on my life I'd probably think about how I didn't buy the things I wanted. All so I could have all that money that's doing nothing for me as I piss my pants.

[SVT666]

I think you misunderstood SHO.

[2o6]

It's all how your priorities are.



I *can* afford a new car, and before I bought the Yaris I considered it. It would not have been financially smart, and I wouldn't have much money for other things, but I could make the payment easily.



Some things aren't cut and dry; with the downpayment I put on my Yaris (I didn't put money down; I took out a smaller loan), I could have gone to VW's sign and drive event and leased a VW Jetta at almost 0% financing. Monthly payment would be less than $200, and the lease buyout would *only* be 9K ish. Actually, shows I wouldn't have had to put anything down.


Granted, I would have a basic 2.slow Jetta with no options, and it's highly unlikely I'd be able to recoop the costs in residual value come time the lease buyout and I'd have a Jetta 2.slow for the next 10 years, but it'd still be a NEW car.

[AutobahnSHO]

It probably would be better to not spend money on cars and save. But then I'll just have lots of money when I'm old and shitting my paints in a bed. And if I even have a brain left by that time to look back on my life I'd probably think about how I didn't buy the things I wanted. All so I could have all that money that's doing nothing for me as I piss my pants.

My wife would just spend it on nothing, so,  "oh well!"

(I know EXACTLY why they find these old couples that have thousands in cash under the mattress. HE was hiding it from HER.)

[MrH]

Not to get personal, sounds like you and your wife need to get on the same page financially though.

[Onslaught]

My wife would just spend it on nothing, so,  "oh well!"

(I know EXACTLY why they find these old couples that have thousands in cash under the mattress. HE was hiding it from HER.)

I hear you. It's why I can't have a wife. That money is for me and my toys!!!!!

[AutobahnSHO]

I think you misunderstood SHO.

No, I think most Americans COULD pay cash on cheaper cars. That so many don't is part of our massive debt problem.

I'm part of it right now. My car spending wasn't totally reckless, but I don't have emergency savings and no retirement or house savings either.   BUT I can pick which car to take to work tomorrow morning.