$9425 closer to being DEBT FREE!

[RobertK]

Whoo hooo...

For those of you who know me were aware that I am getting married soon and in the process me and my fiance' have decided to dump debt completely.

Well this weekend we were able to sell her 2003 Corolla to Carmax for $9600! Payoff was $9425 so they cut us a check for the difference and we said goodbye car payment!

Now all we have left is 2 small student loans and my stupid ass 02 Galant loan. Hopefully I should be able to sell it to Carmax after this summer and in 18-24 months be completely debt free! And from then on no more new debt except for maybe a mortgage and that's IT!

[FredK]

Congratulations! It's hard to get out of debt with so many factors working against you--high rates, bad terms on debt consolidation, etc. Sometimes you just have to make some sacrifices, like reducing car expenses. Well hopefully you can stick to your schedule and get out of debt!

[RobertK]

The trick is now there is no more back up car. Just the E30 and Galant. I need to find another cheap yet decent E30 within the next few months so Tara will have something to drive when I ditch the Galant.

Since the student loans are currently deferred once both cars are gone I think we're going to try throwing $1000+ a month at them.

[marakka]

Yeah.... car loans are stupid.

So are mortgages.

So are credit cards.


I can understand paying off student loans and getting out from under massive credit card bills, but a car loan? What are you going to do? Drive a beater until you can save up enough to buy a new car? The extra $1200 I'll end up paying on my loan is worth it to me to have the ability to drive a new car and not have to worry about it. But thats just my opinion.

[nando]

having no car payment owns. rather than spending $400 a month + insurance on a car that everyone and their mother has, I pay $600 a year for insurance and spend the rest on mods and repairs, and still have money left to save..

[Dave]

having no car payment owns. rather than spending $400 a month + insurance on a car that everyone and their mother has, I pay $600 a year for insurance and spend the rest on mods and repairs, and still have money left to save..

Indeed. I haven't had a car loan in years. My lack of car loans helps foot my mortgage on my vacation house. I put very few miles on my daily driver and will probably have it for several years to come. Likewise, my wife is used to the Sienna and realizes that I'll make it last to 200k whether she likes it or not.

[mikeedler]

well, you dont have a wife then that would cut you off if she had to ride in an old ass E30. Its also a nice piece of mind when i am driving across europe to know i am in an almost still new car. Some days, it is just better to be riding in a new car- but most i do prefer to ride in the E30.
car and house loans are a way of life after you move out from mommy and daddy's house.
and if you do things right, i only payabout 600 a month for my new then E46 touring, and paying off the house.
and my insurance full coverage on my new car is REALLY half of what i pay on the E30 with just liability.

[Charlie]

having no car payment owns. rather than spending $400 a month + insurance on a car that everyone and their mother has, I pay $600 a year for insurance and spend the rest on mods and repairs, and still have money left to save..

I'd say it depends. I don't see the harm in floating a small financing plan for a vehicle that you can realistically afford to avoid cleaning out your savings. Especially if you're in a "one car" environment, floating a payment plan to have something newer and reliable beats the hell out of a cash beater that you can't count on.

I'm not talking about some of these geniuses at places like bimmerforums that finance a 46k car when they make 30k a year, but if you're in a situation where you need one vehicle, financing a 12k off lease car or something isn't a kiss of death.

-Charlie

[RobertK]

I can understand paying off student loans and getting out from under massive credit card bills, but a car loan? What are you going to do? Drive a beater until you can save up enough to buy a new car? The extra $1200 I'll end up paying on my loan is worth it to me to have the ability to drive a new car and not have to worry about it. But thats just my opinion.

You wouldn't believe how easy it is to buy stuff when you have no payments..

And I would never buy a new car they're a horrible investment. A new car loses 60% of it's value in the first 4 years it's driven. I would rather save up my money and purchase a car that's 4 years old.

Especially if you're in a "one car" environment, floating a payment plan to have something newer and reliable beats the hell out of a cash beater that you can't count on.

I've drive plenty of reliable $3k-$4k cars. Just because you pay cash doesn't make it a beater. Though, if you have the cash saved up a car off of a 3 or 4 year lease can be a great buy.

[Dave]

I'm not talking about some of these geniuses at places like bimmerforums that finance a 46k car when they make 30k a year, but if you're in a situation where you need one vehicle, financing a 12k off lease car or something isn't a kiss of death.

-Charlie

Well, if you are not in a position to set aside a little every month until you get a few grand together, and you have to have reliable transport, then this can work okay.

unfortunately, the American way for for too many is to take that 5 or 6k and use it as a downpayment on a new 35k+ vehicle that they really can't afford.

If you go and wisely choose a cheaper car that is reliable and that you can maintain, (i.e, a civic or corolla) a loan isn't too bad.

BUT, whatever you do, don't buy a new car. you lose so much there - especially if you are financing.

[Charlie]

I have never understood the "car as an investment" mentality. Cars are not a "bad" investment, they're not an investment period. They're a convienence. Are pants considered an investment? Is food an investment?

I've never been phased by the "it loses x amount of value in its first 4 years" argument, since I always plan on keeping most of my vehicles for at least 10 years. I'm up to 9 on the e30, and frankly never plan on selling it. The Ti's got 5+ years on it now in my hands, and now I'm looking at a larger truck/van, if I buy new or a year or two old, I'm gonna hold on to it for 15 years.

-Charlie

[RobertK]

I have never understood the "car as an investment" mentality. Cars are not a "bad" investment, they're not an investment period. They're a convienence. Are pants considered an investment? Is food an investment?

I've never been phased by the "it loses x amount of value in its first 4 years" argument, since I always plan on keeping most of my vehicles for at least 10 years. I'm up to 9 on the e30, and frankly never plan on selling it. The Ti's got 5+ years on it now in my hands, and now I'm looking at a larger truck/van, if I buy new or a year or two old, I'm gonna hold on to it for 15 years.

-Charlie

Because I can get the same convience out of a car that is four years used that I can with a new car and I don't have to lose 60% of my money and chances are it will last just as long. It's just smarter math.

[Dave]

Right. Its going to lose value, so just get in after the bigger part of the depreciation curve kicks in.

My '01 IS300 stickered at 36k new. I got it a 2+ years old for less than 20k. It is book valued at about 16.5k now. So, in 2-1/2 years, it has cost me about 3k in depreciation. 1500 a year. i figure I will have it at least 8-10 more years at the rate I am (not) putting miles on it. So if I keep it ten years, it will depreciate the same amount over 10 what it did in the first two.

[RobertK]

Some of the outregeous depreciation you can account to the cost of labor unions added to sticker price. I've been told that is why new domestic car values sink like a rock once driven off the lot when compared to Japanese makes.

But still.. 16k depreciation in 2-3 years is horrable for a Lexus.

[Dave]

Some of the outregeous depreciation you can account to the cost of labor unions added to sticker price. I've been told that is why new domestic car values sink like a rock once driven off the lot when compared to Japanese makes.

But still.. 16k depreciation in 2-3 years is horrable for a Lexus.

Well, I got a sweetheart deal. Most were going for 25k+ or so at the time, but it was not the hottest color (dark green metallic) and had been on the dealer's lot over 60 days. There were none to be found within 4k of what I paid within 200 miles of me. Right place at the right time.