Price of rolling tight

[L8 APEX]

I was thinking the other day who out there drives a nice vehicle without a payment. Besides car thiefs and millionares of course. I am thinking most of us would have to save up for 5-10 years to have enough cash to go buy a $30-40K dollar vehicle. Otherwise we spend 4-6 years paying it off 500+ bucks a month. Housing and cars seem to be the largest expenses in our lives. It is unfortunate that the cars depreciate so quickly. After 5 years of making those payments your residual equity is rather depressing. I have also come to the conclusion that vehciles are a means of expression and that is why we spend so much on them. There are several days when I drove my L's I said to myself the $$$ was well worth it. I know a few wealthy folks that never pay for a car upfront. They all finance it at a good rate and keep their cash in investments and other areas. There sure are a lot of ways to do things. I am just trying to figure out the best way to win the game. Obviously 'the man' wants us to inccur debtedness, work, pay interest and taxes to keep the big machine turning. Must rage against the machine..
Post your view.

[Lyfisin]

None of those choices worked for me.

I usually manage to scrape up some $$ for cash down and finance the rest. I hold on to the cars until they have enough value where I can trade them in and get a little cash back at least. It's been a really horrible way to do it.

I keep thinking whatever car we get is going to be the one we're going to keep until it's paid off, but it just never seems to happen. In my defense, the Lightning is actually the first car I've bought for me. All of the others were purchased because they were the right car at the time based on price or need.

So my click would be, "I finance most of it and stay right side up."

[SILVER2000SVT]

My goal is to save until I can buy the car I want outright. The Lightning is the first vehicle I financed, but even then I made a down payment of about 2/3 and paid the rest off in 2 years. The only reason I did that is that I had wrecked my previous truck and didn't have a good job at the time so I wanted to keep a little of the insurance payoff in the bank. On my previous vehicles I only bought the amount of vehicle I could afford at the time which is the smartest thing. I'm always trying to keep my debt a low as possible because you never know what's going to happen. Not everybody has this option, but it's the safest way financially, and patience is always your friend if you have the choice.

[Sixpipes]

I finance at a low rate, but like Brook said, I typically hold on to a vehicle until I build equity before I do anything with it. :cool:

[L-Fever]

I finance at a low rate, but like Brook said, I typically hold on to a vehicle until I build equity before I do anything with it. :cool:

Same here.

[whitelightning'02]

I finance at a low rate, but like Brook said, I typically hold on to a vehicle until I build equity before I do anything with it. :cool:

Me Too..... I typically drive the same vehicle 10 years minimum.

:beer:

[Silver_2000]

I paid cash for my 2000 - It was nice not having a payment - In that sense I was able to use that monthly amount in other ways. Also provided security should any job issues crop up.

Having invested at least another 10-13k in the truck and selling it 5 years later for 16k or so - its a realization that driving new cars is expensive ...

BUT the lightning is the most fun vehicle I have ever driven and I enjoy not having to worry about my 2004 every time I hit the gas...

Doug

[Wht95Lightning]

The last few vehicles I have purchased were financed for 24-36 months with a fat downpayment.
My L was paid off in 97 and I paid off my work truck in 7 months. Still making payments on the wifes xterra. :hammer:

[L8 APEX]

Thanks for the replys folks. I think my last option was not clear enough. I meant that for folks that could pay cash for a car but chose the finance to reserve cash on hand for more lucrative investing etc. Not jsut those that qualify for low APR finance with small downs. It doesn't matter though the discussion is great. Cars are getting more expensive and creative financing keeps a lot of folks in more car than they should buy in the first place. I liken buying a Corvette to paying off half of a house in a term of five years. Most of us finance a home for 15-30 years. Imagine if we paid as aggresively on our homes as we did our cars. I just see financing as the way of charging you extra for not having enough money to buy what you want. The alternate is living within your means which is less blingy.

[True Blue Aggie]

So Terry, what have you done in the past to afford the toys you owned?

Was work that good for you at the time, or were you able to come up with creative financing?

[L8 APEX]

I was very focused in what I wanted to do. I had cheap living expenses at home and made a lot of overtime money riding the construction and .com boom from 97-01. I also had a free company vehicle and gas card that was nice. I made a lot of money and spent it all having fun plus some. It was a lot of fun but it came to an end. Now I am trying to develop a way to get what I want without going into great debt. Lessons learned and trying to do things smarter:twitch: .

[my2002lightning]

I went the very-low percentage rate route with a modest down pmt. on the L and kept the cash in the bank as I knew I would need "float".

A good friend of mine is one of the most financially shrewd people I know - he's worth approx. $6 mill. http://www.talonclub.com/forum/images/smilies/cool.gif He's ridden in the L with me to the TMS races before and loves it.

He's admonished me more than once that my daily-driver should be almost a beater and PAID for and my L should be my garage queen and, preferrably paid for, as well. He pays cash for EVERYTHING - his place in Turtle Creek, Boynton Beach, FL. and Maui, as well as his Z3 and Yellow/White Mini Cooper.

Basically, my L should be my luxury vehicle - which makes sense, I suppose.http://www.talonclub.com/forum/images/smilies/cool.gif

My only possible "regret" about the L would be holding out for a brand-new Sonic-Blue '03 L and retro-swapping the '02 rims. http://www.talonclub.com/forum/images/smilies/bows.gif

I'd buy the L all over again, though. http://www.talonclub.com/forum/images/smilies/smile.gif

[sonicbluetommy]

This is only my 2nd vehicle to have payments (but the 1st was payed off in 9 months-financed for 36mo), and my 1st new vehicle. I get a vehicle reimburstment from my work based on a 2004 Taurus so I get to drive the vehicle i want and it only costs me about an extra 100 a month out of my pocket. I put down about 25% so I wouldn't end upside down on it and kept most of my cash in the stock market which did way better than the 6.75% my truck is financed at.

I agree with Terry, my truck is a statement about who I am and how I choose to spend my money on fun. And my truck is a blast for me to drive. A day doesnt go by that I dont drive it and think how much I LOVE my truck and driving it. I dont recall having that feeling about my mustangs (even though I enjoyed both of them).

[Lyfisin]

He pays cash for EVERYTHING

Not so hard to do when you are worth 6 million, although I'm sure there are a lot of people with that kind of cash that still finance stuff.

Up until 2000, all of the cars I've purchased pretty much strapped me. When I put the down on the car, I didn't have any extra spendable cash, whether it was my Hyundai Excel or 1999 Explorer.

While I could put money towards stuff like my house and car to pay them off sooner, instead I chose to calculate the value that I would put toward those items and put it into investments instead.

[dboat]

Not sure how to vote on this one.
I traded one vehicle, sold another to apply towards the L and paid the rest with cash. The Acura I was going to put on the AX card for the points, then got the dealer to give me the CC discount off of the price, so I paid cash for it too. The Suzuki was paid over 24 mos, the payments were hurtful, but the interest almost nonexistent. I prefer to pay cash, because I like having them paid off. I do keep a certain amount of cash in the bank and have the rest in mostly retirement funds, so I dont get tempted to spend it.
One of the reasons that we can do it is because, being older my needs are not what they were when I was 20,30 or even 40.
If I were to buy a new vehicle and they offered the 0% financing, I would use it, but I never finance a vehicle over 36 mos. If I cant afford it over 36 mos, then I dont need it. One other avenue is to use home equity line of credit to buy your car so that the interest is tax dedcutible. (at least I think it is).
Dana

[Shiner1]

I worked lots of overtime and saved every extra penny that came my way (b-day/x-mas money) and did without (for myself) for a couple of years so that I could pay cash for my '03. At the time it made sense to pay cash and not have to make a $450-$500 a month payment. That money could be used else where. As it turns out my wife's business didn't recover from the summer as quickly as we had hoped and I sold the L to put back in the biz. In retrospect had I saved my cash for later and made payments on the L, I'd prolly still have it. I'll know better next time.

[L8 APEX]

I couldn't ask for more helpful input guys. There is truely a wealth of knowledge here:bows . I see Dana's point with old age and being setup, that is where I want to be. I want the homestead and retirement paid for my 40 if possible. I never thought about not buying anything over 36 months. These days folks accept a 60-72 month buy of $5-600 a month as normal. I just need to continue my course and live small until I can really afford the stuff I want with cash not credit...

[WA 2 FST]

0% financing... to me this is a no-brainer, unless you just do not want the hassle of writing a check every month. They are basically giving you money (by letting you keep more of yours and investing it). This is what I did with my Z06.

The '04 L was a Year 1 tax write-off for me given the '03-04 small business tax deduction law. Paying interest on the truck takes $$ out of my pocket that I am saving with the write-off. So I wrote them a check.

As with anything else (houses are no different), selling the vehicle within a short time after purchase (assuming you bought a new vehicle) will put you in a hole...it doesn't matter if its paid for or not. In fact, oftentimes its better if you didn't invest a lot in it, if you turn it over that quickly. I tend to keep my vehicles for awhile.

The one exception was the '98 Saleen S351 I had. I didn't put down much at all on that (bought it used anyway), and sold it for $4+k more than I paid. I saved myself $$ by not putting a lot of equity into it right away, and only paid interest on it for 6 months (which amounted to very, very little). Made a profit with a very small investment. Granted, I don't think this is the norm with cars (only car I can honestly say I made some $$ on resale).

I'm not telling you anything you don't already know. I guess my point is that there is no one _right_ way to do it. Sure, its great to have no payment. It's also great to have $$ being invested at a higher interest rate than you are paying. Another way to look at it is the one LARGE payment you made when you paid cash upon the initial purchase. I've done it both ways, and its worked ok whichever way I went.

[wesman]

I've done a combo of the three. I put a small downpayment on my 350, but I am still several k on top as far as value of the vehicle and what I owe. I paid cash for every vehicle I have bought the last 3 years save the black '04 350Z that I bought and financed with the sole intention of flipping it. I made $5k+ profit on it plus 30k credit toward taxes on the Viper when I did an in&out.

With the low interest rates that are available now, it's a no brainer IMO to take advantage of it....especially the 0%. I don't see the purpose of dropping your cash if they are letting you borrow their money for free, but most of the vehicles I've purchased have been used so i couldn't take advantage of it.

I think it all depends on the individuals situation and what their goals are.

--wes

[jim woods]

I usually put down about 5000 cash or trade then get 60 months @ zero percent.During my twienties I spent tons of cash to mod sportbikes and sport cars.All my income revolved around fixing up my ride.But as I turn 35 now, I have no interest in mods and speed. My L is all stock. I would like it to be faster, look better ect. but just do not have the motivation to spend money on it. I must be getting older, because all I could think about this winter is how I am going to plant palm tress,tropical plants, in the backyard swimming pool area come spring.Jezzz, I do not know if this is a good thing :confused:

[Moonshine]

As Wes pointed out, there's no one single way to do it right, but several options that may vary depending upon individual circumstances. In reading this thread, don't forget that you're hearing from the group who still has their L's (or another, newer one). Remember all those folks who joined the board, bought a L, and then within 6 months-1 year, were saying they had to sell? Obviously, however they did it didn't work out in the long run.

[Mark #2]

How many are still here with G2 trucks since 2000? Sign in please.:cool:

[Silver_2000]

How many are still here with G2 trucks since 2000? Sign in please.:cool:

?????????????????

Bought #1 Feb of 2000 -
Bought # 2 Dec 2004 -

Is that what you were looking for ?

[WA 2 FST]

Since August of '99. :)

[Alpine]

Bought my 2000 in Feb. 2001, truck was built in June of 2000. Eleven more payments and its all mine.knana

[my2002lightning]

The '02 L was bought brand-new 2/27/03. http://www.talonclub.com/forum/images/smilies/smile.gif

[Sixpipes]

How many are still here with G2 trucks since 2000? Sign in please.:cool:

99 bought in May 1999 and it's not going anywhere. :cool:

[Lyfisin]

/sign

02 bought in 02.

[Mark #2]

?????????????????

Bought #1 Feb of 2000 -
Bought # 2 Dec 2004 -

Is that what you were looking for ?

Yeah, I was thinking that I could name about 12 that have been around for 4-5 years.

[Moonshine]

How many are still here with G2 trucks since 2000? Sign in please.:cool:


'00 bought new Mar 6, 2000.

[dboat]

02 bought 2/02

[Tex Arcana]

Here's what you do: you go to Dana's neighborhood, steal 'em blind, fence the stuff, and go buy a new L outright!! :d

[dboat]

Here's what you do: you go to Dana's neighborhood, steal 'em blind, fence the stuff, and go buy a new L outright!! :d

and there is some good stuff in the neighborhood too.. :evil