SHOULD I DO IT!?NEW THREAD TOPIC !
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From: mount airy
Originally Posted by dombey,Jan 4 2007, 05:50 AM
from a purely financial standpoint, paying cash for anything is generally considered the worst possible method of purchase, unless you have terrible credit & can't borrow at decent rates.
You can say the word 'generally' all you want, but that doesn't make the rest of your statement true ('worst possible method').
There are times where not paying cash is the worst possible method. (ie going out to dinner and not pay cash (ie. take a loan for it
) When I say take out a loan I mean when people have credit card balances (paying interest charges and they they use their credit for more spending).NOTE: here I am not talking about actual cash, I am talking about using a credit card but pay it off each month.
You can't exactly put a $50K car on a credit card. So in that case paying cash is not the worst possible method.
As Chris said, whats the point of paying 5.5% for a loan when you could use cash (savings) and in effect lock in that 5% is would be like tax-free 5.5% or 7% (after tax rate).
Chris said, he's not like taking money out of a retirement account (or under-funding his retirement) to pay for a car, but if you have a reserve account in cash and you can use that and still have a fall back emergency plan such as a home equity line of credit, then I think paying cash in full or mostly cash is fine.
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From: Arlington Heights, IL
Really, it's all academic because buying a new car (or any new highly-depreciating asset) is dumb. We should all be rolling around in $2k Accords that don't depreciate, or $20k 1987 911s or $10k MB SLs that are starting to appreciate. You can present examples of why buying (or leasing, with specific exceptions) with ANY method is a bad idea, mainly because they all are. That didn't stop me from financing my car for 5 years (at 3.5%) however, because I WANTED it, and I save in other areas so I can splurge a little more on what I want to drive.
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From: MIAMI
Originally Posted by Chris Stack,Jan 3 2007, 11:50 PM
I know. That's why the CPA and an MBA are in the plans for the next 5-7 years.
I don't expect to earn tons of coin just becase I went to a good college, but I do expect to do a little better than Captain English here with his krauted-out AMG.
I don't expect to earn tons of coin just becase I went to a good college, but I do expect to do a little better than Captain English here with his krauted-out AMG.
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From: mount airy
to the point of this thread, should he trade in a $60K car to buy a $40K car and in some way feel he's paying less money?
Lets assume his first car has lost $12K in value in one year and his new car will lose $8K in the next year, that means he's out $20K for 2 years for once a week drive (ie. 100 days) meaning $200 (depreciation) each day he drives the car on top of gas and insurance and not to mention interest on the loan. Interest on $50K is about $2500/year (call it another $50/week).
Lets assume his first car has lost $12K in value in one year and his new car will lose $8K in the next year, that means he's out $20K for 2 years for once a week drive (ie. 100 days) meaning $200 (depreciation) each day he drives the car on top of gas and insurance and not to mention interest on the loan. Interest on $50K is about $2500/year (call it another $50/week).
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From: MIAMI
Originally Posted by Triple-H,Jan 4 2007, 09:33 AM
The irony is, for someone like me getting rid of that Mercedes and picking up that BMW is an upgrade, not a downgrade...
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From: MIAMI
Originally Posted by rai,Jan 4 2007, 10:56 AM
to the point of this thread, should he trade in a $60K car to buy a $40K car and in some way feel he's paying less money?
I don't know where to start. But lets assume his first car has lost $12K in value in one year and his new car will lose $8K in the next year, that means he's out $20K for 2 years for once a week drive (ie. 100 days) meaning $200 (depreciation) each day he drives the car on top of gas and insurance and not to mention interest on the loan. Interest on $50K is about $2500/year (call it another $50/week).
My advice is sell the AMG and don't get a 335i and save the payments
I don't know where to start. But lets assume his first car has lost $12K in value in one year and his new car will lose $8K in the next year, that means he's out $20K for 2 years for once a week drive (ie. 100 days) meaning $200 (depreciation) each day he drives the car on top of gas and insurance and not to mention interest on the loan. Interest on $50K is about $2500/year (call it another $50/week).
My advice is sell the AMG and don't get a 335i and save the payments
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Originally Posted by SpoonS,Jan 4 2007, 07:51 AM
I MAKE GOOD MONEY I HAVE 401K ALSO THAT I DUMP A SHIT LOAD OF MONEY IN EVERY MONTH AND HEY IF I WANNA SPEND 3K A MONTH ON CARS THATS MY PROBLEM NOT YOURS I SPEND IT BECAUSE I HAVE IT AND THEN SOME ...........
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IMHO, people who want to spend 80% of their income on cars is fine.
That's not my spending breakdown, but who am I to judge?
Some people spend 20% of their income on alcohol and "partying" and I think that's silly, but diff'rent strokes, eh?
I'm sure some of my co-workers think it's silly that we have an extra car, but hey... freedom of choice is what makes this country what it is.
I thought the "Captain English" comment was a little unwarranted as well.
That's not my spending breakdown, but who am I to judge?
Some people spend 20% of their income on alcohol and "partying" and I think that's silly, but diff'rent strokes, eh?
I'm sure some of my co-workers think it's silly that we have an extra car, but hey... freedom of choice is what makes this country what it is.
I thought the "Captain English" comment was a little unwarranted as well.
