- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Article: "Record number of car buyers 'upside down' on trade-ins"
Posted on 11/28/16 at 10:10 am to Ace Midnight
Posted on 11/28/16 at 10:10 am to Ace Midnight
quote:
No it doesn't. Getting the most efficient per mile transportation and buying mutual funds with the difference makes FAR, FAR more sense than lighting depreciation money on fire.
But, hey, you're already convinced you can get wealthy buying cars. Go for it and do great things.
ok oh wise one please explain how laying down 10k cash is smarter than borrowing 10k @2% and investing the 10k in cash you were going to use and make 6%? please do
the answer is its not. The vehicle is depreciating either way and at the same rate. Difference is you would be making the difference in the % borrowed at and the % you are making from the investment.
no matter the amount its the smart play finicially if you don't factor in human emotion.
and yea I believe i can build wealth buying cars, since thats exactly what I said.
Bottom line is you and most others that say pay cash are wrong for those that can borrow at crazy low rates and understand how to invest wisely.
just like its not smart to pay off a house if you are locked into some of the crazy low rates they are offering now a days.
pretty simple 3% interest plus tax deduction is less than 6% returns. the assest doesn't matter as we are talking about the same assett in both cases.
1
Posted on 11/28/16 at 10:10 am to bigrob385series
Actually, leasing is a way to get around some of the income and asset triggers on government benefits. Leasing a car rather than buying means that one does not own it. Their assets don't go up, their cash reserves go down as they pay the lease, and they can keep their benefits.
Posted on 11/28/16 at 10:12 am to GetCocky11
quote:
Get a secured credit card with like a $300-$500 limit, pay one bill a month on it, then pay off the secured credit card in full each month. Eventually, the bank will turn it into a regular credit card. Really good way to build credit at a young age.
My secured card was never "transformed" into a regular credit card. I still have my oldest credit card that only has $750 credit limit. Super annoying.
Posted on 11/28/16 at 10:20 am to baobabtiger
Just General Reply:
Lost in this is the reality of why we are working for money. We also have to be able to enjoy life. Sometimes that means spending resources on things that do not return monetary value. Vacations, etc.
However, if your goal is to maximize financial return, buying a vehicle, in most cases, is not going to achieve that goal.
But we each must make our own decision about why we are working. Sometimes it makes sense to spend money just for enjoyment the purchase brings us. There is no one right answer.
However, once the "enjoyment" factor takes over and we start making purchases we cant afford that is when it hits the fan.
I purchased a nicer truck than my son needed to get to school, date, go hunting in etc. However, I wanted him to have the truck he always wanted. Made me feel good and there is value in that. But I didnt go buy him something I could not afford in hopes of having an even better feeling.
All about your goals and common sense.
Lost in this is the reality of why we are working for money. We also have to be able to enjoy life. Sometimes that means spending resources on things that do not return monetary value. Vacations, etc.
However, if your goal is to maximize financial return, buying a vehicle, in most cases, is not going to achieve that goal.
But we each must make our own decision about why we are working. Sometimes it makes sense to spend money just for enjoyment the purchase brings us. There is no one right answer.
However, once the "enjoyment" factor takes over and we start making purchases we cant afford that is when it hits the fan.
I purchased a nicer truck than my son needed to get to school, date, go hunting in etc. However, I wanted him to have the truck he always wanted. Made me feel good and there is value in that. But I didnt go buy him something I could not afford in hopes of having an even better feeling.
All about your goals and common sense.
Posted on 11/28/16 at 10:23 am to GetCocky11
Cellphone companies desensitized us to being upside down on luxury items. Everyone gets a phone that basically loses all of its value the minute you open the box.
Then when the new one comes out you have to pay extremely large amounts to get out from under the old phone and in to a new phone.
Then when the new one comes out you have to pay extremely large amounts to get out from under the old phone and in to a new phone.
Posted on 11/28/16 at 10:23 am to Hawgeye
quote:
If someone only has $2k they don't need to buy a car.
I wish I lived in your fantasy world where a car isn't a borderline necessity. Yes you can make it work without one, but most young professionals starting out do not have more than 2k just sitting around.
Posted on 11/28/16 at 10:24 am to GetCocky11
Yea when your household income (both spouses) is only $150k and you live in a $400k home you really can't afford that brand new Tahoe every year......but everybody's driving them!! New Tahoes, new Suburbans.....fricking outrageous prices on these but you'd swear they're giving those frickers away by the amount you see everyday. You wonder how these people do it, and it's because they're financing them for 7 years at $1000/month because they were $15K upside down on their last Tahoe. These are vehicles that are going to go to shite in 5-6 years but who cares because these people will be two new Tahoes ahead by then!!
Posted on 11/28/16 at 10:25 am to Jcorye1
If you live in the Southeast, chances are a car is a necessity. Your work is going to be more than a few miles down the road, and public transportation either doesn't exist or only is available for certain neighborhoods.
Posted on 11/28/16 at 10:37 am to DaTroof
quote:
ea when your household income (both spouses) is only $150k and you live in a $400k home you really can't afford that brand new Tahoe every year......but everybody's driving them!! New Tahoes, new Suburbans.....fricking outrageous prices on these but you'd swear they're giving those frickers away by the amount you see everyday. You wonder how these people do it, and it's because they're financing them for 7 years at $1000/month because they were $15K upside down on their last Tahoe. These are vehicles that are going to go to shite in 5-6 years but who cares because these people will be two new Tahoes ahead by then!!
This is why, to some degree, American capitalism feels like a fantasy world. Everything is built on a pile of credit. How much of our worth, how many jobs, how much quality of life would disappear without such rampant credit?
If everyone bought wisely and was smart with their money, a huge chunk of our economy would evaporate.
Posted on 11/28/16 at 10:52 am to LSUfan20005
quote:
If everyone bought wisely and was smart with their money, a huge chunk of our economy would evaporate.
Who is the decider of what is smart and wise with money? Are we allowed to have hobbies in this fantasy world?
Posted on 11/28/16 at 10:55 am to Mir
quote:
Never buy a vehicle that you can't pay for with cash.
Until it gets total and you lose all that cash.
Posted on 11/28/16 at 10:56 am to LSU_Saints_Hornets
quote:
Until it gets total and you lose all that cash.
Ummm...insurance?
Posted on 11/28/16 at 10:56 am to stout
lol never ever had a car note always buy older model reliable cars lol
Posted on 11/28/16 at 11:02 am to stout
quote:
Ummm...insurance?
Most insurance policies do not have new car replacement. Depreciation will kick your arse.
Posted on 11/28/16 at 11:05 am to Bullfrog
quote:
Why would anyone buy a car as an investment?
To make money. I haven't bought a vehicle I haven't made money on in the last 15 years, but one. And, I don't restore them, I just wait for the market. You need to be able to turn a wrench or two, though.
Posted on 11/28/16 at 11:07 am to member12
quote:
CAFE regulations forced manufacturers to add thousands of dollars in light materials and fuel saving technology to the price of any given car and consumers can't opt out of them. We can do without that.
I hope Trump fixes this. It's why I refuse to buy a new-ish diesel truck.
Posted on 11/28/16 at 11:21 am to GetCocky11
Because people are buying crap they can't afford.
Posted on 11/28/16 at 11:24 am to TIGRLEE
quote:
This is what happens when you buy cars you can't afford with no money down and 9 years to pay for them with double digit interest rates.
Vehicles are worst investment a human can make.
Yep.
Posted on 11/28/16 at 11:24 am to SirWinston
quote:
"Easy credit" has GOT to be a myth. I'm in top 5% of earners and have great credit and I get harassed to death every fricking time I want to make a move financially. Where the frick are these "easy lenders" that I keep hearing about?
Easy credit = historically low interest rates. It doesn't necessarily mean the application process is painless.
Posted on 11/28/16 at 11:28 am to UF
Can anyone fill me in on the regulations or rules regarding diesel and why they seem to retain value so well? I've seen it mentioned but I don't know anything about the regulations causing the market price to remain so high
Page 7 of 12
Popular
Back to top
Follow TigerDroppings for LSU Football News