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castorinho
Oklahoma Fan
13623 posts
Member since Nov 2010
55509 posts

re: How much car debt in your houshold
13k, 2016 Nissan rogue.

Monthly note is...... $350. No kidding.


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30
Ace Midnight
LSU Fan
Between sanity and madness
Member since Dec 2006
65602 posts

re: How much car debt in your houshold
quote:

What is the point of accumulating wealth if you’re not going to enjoy it?


Accumulate wealth first, then enjoy it.

Most buy cars they can't afford "on time" - so they get so used to making car payments of $475, $550, $600 - $1000 a month they "miss" the payment when they pay it off.

Let's say we just go with a moderate payment - $425 a month. Let's say our young person gets a "new" car upon graduation from college at 25 (yeah, buddy, I was on the 8-year plan - wanna fight about it?) and first "real" job as a sort of celebration or reward. And the payment never goes up, the person trades at the end of every term and only upgrades insofar as the payment remains the same.

At 65, that person has a 5-year old, paid for car. Even at 0% interest, has spent $228,000 on the car. Opportunity costs are more like $1 million though.

So, is it worth that much to you? $1 million in retirement?


MSUmtowndawg
Mississippi St. Fan
Jackson, MS
Member since Sep 2010
952 posts

re: How much car debt in your houshold
2013 Nissan Armada Paid for
2015 Jeep Wrangler. owe 17K and hope to have it paid off in 28 months

ETA I bought the Jeep this past may. I dont want yall to think I was one of those 8 year fiance guys haha
This post was edited on 1/11 at 2:26 pm


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hungryone
LSU Fan
river parishes
Member since Sep 2010
7930 posts

re: How much car debt in your houshold
quote:

For me, cars are one of life’s great pleasures.

I commute ~45 miles a day, I get the idea of not driving a beater. I want all the latest conveniences & gadgets. I dunno how I ever drove without a high-def backup camera.

BUT, I’m buying nice and then gettting every bit I can out of it.

Life is full of many pleasures....if you’re in hock to nice cars, you can’t begin to explore the world & find the pleasures that may make you forget about cars. Experiences over things, every time, for me.

A recently retired friend was diagnosed w/prostate cancer a couple years ago. He bought a Tesla. Man, is that a sweet ride. Good for him, I say—he’s worked his entire life, doesn’t know how much more he will have, and the Tesla makes even the trip to the post office an adventure for him. This situation does not describe most people who are in debt over Yukons, F-150s that never haul or tow, or third-row SUVs where the third row gets used 2x a year at most.


deeprig9
Georgia Fan
Member since Sep 2012
31759 posts

re: How much car debt in your houshold
I hate it. From 2005 to 2015 my wife and I had paid off cars.

2015 mine was totalled and in 2016 my wife's finally died.

We have a combined 30k at a combined $740/m for a couple more years and I hate it.

I will celebrate the day they are paid off, which will be right around when kid starts kindergarten and no more $185/w preschool.

Basically a $1500/m cash raise on that day. Drinks will be on me.


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21
The Spleen
Alabama Fan
Member since Dec 2010
22948 posts

re: How much car debt in your houshold
quote:

third-row SUVs where the third row gets used 2x a year at most.




God, the fights the wife and I have had over this the past year. She swears she needs a 3rd row SUV, but can only cite a few times over the past few years she's actually needed one. She can fit 4 kids in her Edge, no problem. She ain't driving to Alaska with them, they can suck it up if space is tight(it's not).


MSUmtowndawg
Mississippi St. Fan
Jackson, MS
Member since Sep 2010
952 posts

re: How much car debt in your houshold
I can admit (on an anonymous message board) Im am dumb for buying the Armada. Basically I did it for a dog. We live away from our family and take the 100 lbs dog when we go home. needed the cargo space for him and the stuff to support 2 kids. No dog, keep the '10 Jeep Grand Cherokee that was paid for... Yep that makes me feel real dumb.

Paid it off early, and drove my truck 15 years before upgrading my vehicle. trying to save face


brian_wilson
LSU Fan
Member since Oct 2016
3239 posts

re: How much car debt in your houshold
$0 - 2014 Nissan Altima

We are buying a new car this year, not sure what. Probably Toyota Highlander or Honda pilot. Maybe Santa Fe XL.

We will pay cash though.


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31
TigrrrDad
Member since Oct 2016
3465 posts

re: How much car debt in your houshold
quote:

Opportunity costs are more like $1 million though.

So, is it worth that much to you? $1 million in retirement?


If you can save enough for retirement in addition to paying the car notes, then yes, it is worth it. How do you know you'll even be alive at 65 to enjoy that million? And if you are, how do you know you'll be healthy enough to actually enjoy all that money you saved? My father never carried any debt - he always bought a new Cadillac or Lincoln every year or two, but he always waited until he could pay in cash. Same for boats, RVs, etc. - never had a note. Here's what changed my perspective on life - my first year out of school, I was working for a boss that made $400K/yr. (in the early 1990s), had a beautiful house, a weekend home on 180 acres with a pond full of 5 lb. bass, beautiful wife and family, etc. When he was 42 years old, he was hit head on by a carload of drunk teenagers and died instantly. Had another friend making a few hundred thousand a year who was the biggest health nut I knew, and he died of throat cancer in his 50s.

You have to live every day like it's your last. You can't take it with you, and you never know when your time is up. That philosophy worked out well for me too - I had to retire at age 44 due to back and neck problems and surgery that made things worse. I was at my peak in earnings at the time but suddenly couldn't do any of the things I enjoyed. At that age I was still racing motocross and roadracing (and had notes on my dirt bikes and street bikes because when I wanted one, I bought one). Now I can't even enjoy fishing or golf, much less extreme sports. If I had not enjoyed those things while I could, I would have missed out on some of the best moments of my life.

As I said, cars are one of life's great pleasures for me. And especially with interest rates as low as they are, there is no reason not to buy a car you can enjoy as long as you can afford it. I'm not saying if your choice is a car note or a retirement plan, choose the car - but if you can afford a note and still meet your other financial responsibilities, there's no reason not to. Some people are perfectly happy driving a 5 year old Accord - personally, I much prefer a Vette or a 911 - even if it means a car note. I will always consider around $1,500-1,800/month of my income to be allocated to car notes.
This post was edited on 1/11 at 2:57 pm


nobigdeal69
LSU Fan
baton rouge
Member since Nov 2009
1072 posts

re: How much car debt in your houshold
$0
2008 G35
2011 Hyundai Tucson


Just a matter of time until this run ends


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lynxcat
Rutgers Fan
Member since Jan 2008
19864 posts

re: How much car debt in your houshold
If the car note bothers you even in the slightest, then you own too much car.

I drive a nice car but it would be the first thing to go if financial times got hard. It is the definition of a luxury but I don't think twice about the note.

With that said, I will pay off the note this year and it'll be nice to not have a car note. I will probably keep it for another 2-3 years and then get a new one (or buy a pre-owned) when the car is 7-8 years old.


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31
TigrrrDad
Member since Oct 2016
3465 posts

re: How much car debt in your houshold
I don’t see why so many view car notes as evil. I pay a monthly bill to watch cable television. I pay a monthly bill for cell phone service. I pay a monthly bill for electricity. Why shouldn’t I pay a monthly bill to enjoy a nice new car? It’s not much of a debt because the value of the car is generally around what is owed on it - so it’s no different than paying for any other service.


The Spleen
Alabama Fan
Member since Dec 2010
22948 posts

re: How much car debt in your houshold
quote:

I don’t see why so many view car notes as evil.



I only do when the note creeps towards $500+ per month. No thank you. About $300 is my limit.


kywildcatfanone
Kentucky Fan
Wildcat Country!
Member since Oct 2012
56830 posts

re: How much car debt in your houshold
2016 F150 $0
2016 Highlander $0
2018 Accord $15000


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weagle99
Valparaiso Fan
Member since Nov 2011
28397 posts

re: How much car debt in your houshold
$0

2016 GMC Sierra


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feverish
Member since Oct 2014
337 posts

re: How much car debt in your houshold
My Bugatti is paid for


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13
Brummy
LSU Fan
Baton Rouge, LA
Member since Oct 2009
2519 posts

re: How much car debt in your houshold
$0

Just paid off my wife's '13 Pathfinder a couple weeks ago with my year-end bonus - that had been $435/month (36 month, 3.09%). I've got a '10 F-150 that's in good shape with about 70k miles that I paid for in cash - I'll probably drive it as long as I can stand it.


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HailToTheChiz
Auburn Fan
Back in Auburn
Member since Aug 2010
28967 posts

re: How much car debt in your houshold
quote:

$0

18 ram 3500
18 Infiniti qx80


baw


3morereps
Illinois Fan
The Gym
Member since Jun 2015
4745 posts

re: How much car debt in your houshold
Think of it this way, cars lose 2/3 of their value in 5 years approximately. How would you feel if you invested $30,000 in a mutual fund, and in 5 years it was worth $10,000?

Perpetual car payments prevent the middle class from getting out of the middle class. After mine are paid off i am done taking out notes on cars


Chad504boy
New Orleans Saints Fan
Member since Feb 2005
128221 posts

re: How much car debt in your houshold
quote:

$0

18 ram 3500
18 Infiniti qx80


quote:


baw


seems like he sucks at finance negotiations.


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