Auto loan argument (Long)

Best idea is to not finance anything, EVER! So I say buy two cheap cars (at the very least one of them) with cash if possible and once they are paid off save for a new car that way you can put down as much $ as possible or just outright buy it.
 
Let's add this:
- The guy's wife's credit was over 800 when last checked.
- The guys credit was in the mid 700's.
- The husband wants to get the wife a new, reliable yet "economic" (4 door compact car) vehicle to transport the kids. He would settle for a used vehicle but has to have a measure of reliability as he has a 80 mile round trip commute to work. To obtain the level of reliability he finds acceptable you would need more cash outlay than he currently has available.
- Not sure, but it could be that the wife does have an income, just not one "on the books".
 
Detroitmuscle said:
Best idea is to not finance anything, EVER! So I say buy two cheap cars (at the very least one of them) with cash if possible and once they are paid off save for a new car that way you can put down as much $ as possible or just outright buy it.
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Agreed but that is not an option for them at this time.
 
02 Silver Z said:
- The husband wants to get the wife a new, reliable yet "economic" (4 door compact car).
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There is no such thing as 'economic new car'

Let's talk about depreciation and is this guys wife going to settle for driving this thing in 4 years when it's old and 'not reliable' anymore?
 
I built my car on Platinum cards that my wife didn't (at the time) know about. To the tune of about $35k. I'm still in the hole a solid $20k and haven't raced / fixed my car in 2 years. I wouldnt recommend that credit card thing to anyone! It was all good when you could just keep jockeying balances to no interest cards, but those don't come around like they used to. And I NEVER did the cash advance thing!
 
Well, I have impeccable credit, but just got turned down because I don't have enough trade lines. What makes them think that just because you have more credit cards, you are going to have a better ability to pay them the loan? Also, I have the money to cover the loan...I just don't understand banks and that's probably part of the reason we are in the position we are in America.
 
Syclone#1992 said:
Well, I have impeccable credit, but just got turned down because I don't have enough trade lines. What makes them think that just because you have more credit cards, you are going to have a better ability to pay them the loan? Also, I have the money to cover the loan...I just don't understand banks and that's probably part of the reason we are in the position we are in America.
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The problem we have in America is people like Raj. He buys everything on credit cards and cash advances. He is the problem. Native Americans!

:raj:
 
Like so many others, they were living beyond there means and realized it was a mistake. But regardless, they need vehicles and don't have cash to pay for them.
 
All kidding aside, I do believe in leasing vehicles. I've leased new cars for my wife since 2000, and will continue to always lease new cars for her for the foreseeable future. If you don't drive a lot of miles, and you like the reliability of a new car, the security of a warranty, and the pleasure of driving new stuff, I believe it to be the smart way to go. If you buy a car, you're basically lucky to break even if you want to sell it in a few years. With a lease car, you're never upside down, you just trade it in when you're done with it. I've run the calculator every time, and it's always less money than buying the car. That might change in the future, but so far it's made the most sense to lease.
 
Fryguy302 said:
All kidding aside, I do believe in leasing vehicles. I've leased new cars for my wife since 2000, and will continue to always lease new cars for her for the foreseeable future. If you don't drive a lot of miles, and you like the reliability of a new car, the security of a warranty, and the pleasure of driving new stuff, I believe it to be the smart way to go. If you buy a car, you're basically lucky to break even if you want to sell it in a few years. With a lease car, you're never upside down, you just trade it in when you're done with it. I've run the calculator every time, and it's always less money than buying the car. That might change in the future, but so far it's made the most sense to lease.
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I couldnt agree more. Leasing, especially for a women, has always been the "best" way. Payments were always cheaper (although that doesn't seem to be true anymore) and not to mention it keeps them happy to be in a new vehicle. (A happy wife = a husband who gets laid!) In their case, the one the husband plans on buying he will keep for a LONG time. Even if time get better and he decides to buy something nicer down the road, he will keep this one for work, etc.
 
Fryguy302 said:
All kidding aside, I do believe in leasing vehicles. I've leased new cars for my wife since 2000, and will continue to always lease new cars for her for the foreseeable future. If you don't drive a lot of miles, and you like the reliability of a new car, the security of a warranty, and the pleasure of driving new stuff, I believe it to be the smart way to go. If you buy a car, you're basically lucky to break even if you want to sell it in a few years. With a lease car, you're never upside down, you just trade it in when you're done with it. I've run the calculator every time, and it's always less money than buying the car. That might change in the future, but so far it's made the most sense to lease.
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Half the problem your having is buying it new, buy something a year or two old with a warranty and you'll "break even" a lease will never break even you pay for 3 years or w/e and get nothing in return. A purchase at least recoupes some of the $
 
Detroitmuscle said:
Half the problem your having is buying it new, buy something a year or two old with a warranty and you'll "break even" a lease will never break even you pay for 3 years or w/e and get nothing in return. A purchase at least recoupes some of the $
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Blah Blah Blah!

I've heard the "you get nothing in after a lease" so many times. Do you really know the break even point of a purchased vehicle? It's on average about 4-4 1/2yrs. Buying a pre-owned car that already has miles and use? Unless time is standing still that car is going to drop in value just like anything else.

I'd rather have my wife in something that only requires an oil change, windshield fluid and fuel then something I'm going to start having to maintain with brakes, tires etc.
 
Fusion SE with the Sun & Sync package (give her a moonroof for style and sync for cell phone safety). 5 star crash rating, great fuel economy and room for 5. Very decently price on a lease or purchase.
 
Detroitmuscle said:
Half the problem your having is buying it new, buy something a year or two old with a warranty and you'll "break even" a lease will never break even you pay for 3 years or w/e and get nothing in return. A purchase at least recoupes some of the $
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Actually if you run the calculator, you'll find that your logic is flawed. The difference in the monthly payment eats up any equity you'd have. At least it's been that way on every one I've looked at since 2000.
 
Fryguy302 said:
Actually if you run the calculator, you'll find that your logic is flawed. The difference in the monthly payment eats up any equity you'd have. At least it's been that way on every one I've looked at since 2000.
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Don't forget after the 3rd year most cars are going to need more maintenance.
 
91trunk said:
Don't forget after the 3rd year most cars are going to need more maintenance.
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Yep, plus the bumper to bumper warranty runs out. With leasing, I never have to worry about her car, she always gets to have a new car, and I'm never upside down. Works great for me.
 
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