I realize people justify car payments because of low interest rates, but

Nov 19, 2021
10:32:28am

Archaea Intervention Needed

I hate payments, so I have avoided them for the last 13 years. It may not be the smartest financial choice, but it does give one freedom.

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Archaea

Bio page: Archaea
Joined: Mar 28, 2001
Last login: May 6, 2024
Total posts: 93,824 (3,092 FO)

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Messages

Author

Time

<< Deleted >>

materialized

11/19/21 10:23am

Yes, and thanks to inflation, it is a great deal!

RH84025

11/19/21 10:25am

Does your income increase with inflation? If not, you are still paying interest.

TailgateU

11/19/21 10:41am

Inflation bleeds into the stock market and I get a better return on that money

RH84025

11/19/21 10:44am

That approach fails to account for risk. The market will correct.

TailgateU

11/19/21 12:25pm

So you don't think a person can invest money and make more thatn 1.7% in

RH84025

11/19/21 1:31pm

Yes. I like the warranty it comes with. And it's not a ton of debt.

paulb

11/19/21 10:25am

Yes but only because we downsized last week from our vehicle of 15 years.

BYUforlife

11/19/21 10:26am

And it is a hybrid so I am already seeing savings in fuel cost.

BYUforlife

11/19/21 10:26am

Love our hybrid. Sometimes we get 54+ mpg.

paulb

11/19/21 10:27am

I sometimes get 99+ in my eco diesel. It’s usually downhill.

blueaussie

11/19/21 10:30am

Lol. I guess if I'm only counting when I'm in electric mode I get 99+ too 🙂

paulb

11/19/21 10:34am

Put your car in neutral and turn it off when going downhill. NO COST!

Ted Lasso

11/19/21 10:37am

Most hybrids do that for you, and charge the battery while doing it.

paulb

11/19/21 10:41am

4 paid off (including cheap/kids cars) and 2 payments

byu1

11/19/21 10:26am

Step one, get a 0% to 4% percent car loan. Step two invest the money you would have spent paying it off. Profit.

EternalOptimism

11/19/21 10:26am

My wife just asked me last week about paying off the one car loan we have. It's less than 10K. Interest is so low that

Pete

11/19/21 10:31am

Also, it is especially bad to pay off older loans as most of the interest has already been payed.

EternalOptimism

11/19/21 10:33am

Yep in fact I took out the most possible. I got a 6 year rate at 1.87%

cougarfann888

11/19/21 10:28am

Love it. Nice rate!

EternalOptimism

11/19/21 10:30am

Bought a car for my daughter a few months ago and my bank gave me a loan at 1.79%. Not going to say no to that

Clark Addison

11/19/21 10:30am

I realize people justify car payments because of low interest rates, but

Archaea

11/19/21 10:32am

I don't blame you. I usually end up paying them off early for the same reason

Clark Addison

11/19/21 10:33am

I'm aware of what financial wizards advise, so I'm not one of those guys, but

Archaea

11/19/21 10:35am

I do the same thing. But when I do buy a new one car I still finance it.

cougarfann888

11/19/21 10:37am

I buy only used cars with low mileage.

Archaea

11/19/21 10:44am

Well, to be fair eventually you might have a nest egg. Then the "payments" just go from one account to the other account

EternalOptimism

11/19/21 10:39am

You're probably right but I don't spend much on a car.

Archaea

11/19/21 10:43am

Honestly, for most people, it's a safer method. Job security, disasters, and I hate to say it but divorce makes things

EternalOptimism

11/19/21 10:35am

Bought my last with a loan to close the best deal. Held it for 4 mo and then paid it off for the same reason.

kccougar

11/19/21 10:35am

It's a fine line. My wife very much likes the peace of mind not making the payments. Right now we have our loan but

Pete

11/19/21 10:39am

No, my newest car is 2012

mncstr

11/19/21 10:59am

I think it needs to be acknowledged that one size does not

CougaRR4L

11/19/21 11:21am

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