Anonymous wrote:

Anonymous wrote:Serious and not snarky question - why do you not have more money saved to put against the car, either outright or a downpayment? You are essentially financing the entire car.

If your finances are that tight and you don’t have the ability to save more, then you probably should be looking at a used car. $25k is the price of a modest new car, but it still sounds like more than you can afford. It’s one thing to take them up on 0% financing for about half that amount, but not the whole thing.

I love it when out of touch rich people respond. We didn't have money saved up because our 10 year old car died earlier than we expected it to (it was very well maintained but at this point, repairs would have cost more than the car was worth) and with two kids in daycare and a mortgage, we are not saving much outside of retirement and 529s. We intend to drive this car for at least 10-12 years so buying new made more sense than buying used.

So where is the extra $400 a month coming from? Point is the same.

Anonymous wrote:I've been fortunate enough to never have to take out a car loan. I drive a small sedan that I bought last year for $16k in cash.

Most people nationwide can't afford to do that and have car loans. All the people on this board who buy cars in cash are not your average people.

You have been dumb enough to never take out cheap loans to build wealth.
Savvy investors take other people money to make money.
If you can finance a car at 3% but decide to dump all your cash into it, you are not a savvy investor.
A savvy investor will take the 3% loan and invest the cash in a venture that produces a higher ROI.
That's what banks do. The take your deposits and give a laughable 0.5% (that's free money to them), and lend it to others for a higher rate.
All your people who buy cars in cash are dumb investors.

Anonymous wrote:You are really facing two separate issues. First, can you afford the car. Second, how do you finance it (cash or loan). The answer to the second is easy: 0% interest means you should finance unless free cash burns a hole in your pocket. The first issue needs to be answered by you. Is a new car a better choice than used? That depends on your needs and financial position.
My last car was purchased new for 16K about 4 years ago. Took a 5 year loan at 1.9% but could have paid cash. Payment is $273 per month. It's on autopsy and I ignore it.

Excellent autocorrect

I've been fortunate enough to never have to take out a car loan. I drive a small sedan that I bought last year for $16k in cash.

Most people nationwide can't afford to do that and have car loans. All the people on this board who buy cars in cash are not your average people.

You are really facing two separate issues. First, can you afford the car. Second, how do you finance it (cash or loan). The answer to the second is easy: 0% interest means you should finance unless free cash burns a hole in your pocket. The first issue needs to be answered by you. Is a new car a better choice than used? That depends on your needs and financial position.
My last car was purchased new for 16K about 4 years ago. Took a 5 year loan at 1.9% but could have paid cash. Payment is $273 per month. It's on autopsy and I ignore it.

Was a 16k car 4 years ago, monthly payments are $260. I think it had 50k miles or so on it.

Anonymous wrote:

Anonymous wrote:Serious and not snarky question - why do you not have more money saved to put against the car, either outright or a downpayment? You are essentially financing the entire car.

If your finances are that tight and you don’t have the ability to save more, then you probably should be looking at a used car. $25k is the price of a modest new car, but it still sounds like more than you can afford. It’s one thing to take them up on 0% financing for about half that amount, but not the whole thing.

I love it when out of touch rich people respond. We didn't have money saved up because our 10 year old car died earlier than we expected it to (it was very well maintained but at this point, repairs would have cost more than the car was worth) and with two kids in daycare and a mortgage, we are not saving much outside of retirement and 529s. We intend to drive this car for at least 10-12 years so buying new made more sense than buying used.

We aren't rich. Our car is going to die soon. Several lights on and after 14 years, I refuse to fix it any more after just putting in thousands into it. We knew this was an issue and are saving/can pay cash. I would not buy a used car as they don't have all the newer safety features. If you can afford it, go for it, but I'd be concerned if you are not very comfortable with two kids in day care and a mortgage. We have no child care costs.

$400 is fine for a payment tif you can afford it. We're getting ready to buy a new car. Will be between $35-50K. We have the cash (not wealthy but really want the car) otherwise I would not do it. We drive ours till its not financially reasonable to.

That is a ridiculous post. It is highly unlikely that the 10-12 cost of ownership of new cars is less than that of used. Not having savings is not a reason to by new. Perhaps people get rich by not being "out of touch" on basic financial issues.

Anonymous wrote:Serious and not snarky question - why do you not have more money saved to put against the car, either outright or a downpayment? You are essentially financing the entire car.

If your finances are that tight and you don’t have the ability to save more, then you probably should be looking at a used car. $25k is the price of a modest new car, but it still sounds like more than you can afford. It’s one thing to take them up on 0% financing for about half that amount, but not the whole thing.

I love it when out of touch rich people respond. We didn't have money saved up because our 10 year old car died earlier than we expected it to (it was very well maintained but at this point, repairs would have cost more than the car was worth) and with two kids in daycare and a mortgage, we are not saving much outside of retirement and 529s. We intend to drive this car for at least 10-12 years so buying new made more sense than buying used.

Hm - I had a $385/month payment for a $27K car (we put $1K down) at 1.9%. I paid it off a year early by paying $400/month.

$286 a month. Last car was $190 a month.

Anonymous wrote:Your payment is fine OP unless you can't afford it.

I have a hard time believing all these posters who claim they paid $20K+ in cash for a car. But then again, you can lie on the internet and it's apparently ok.

I don't like debts, I don't like monthly payments, I wouldn't be putting car money into the market or munis and 1% lost on the money paid for the car upfront is worth to me not to think about it.

I would never have a car payment for 5 years. I think you cannot afford this car. Save for a bigger down payment.

Your payment is fine OP unless you can't afford it.

I have a hard time believing all these posters who claim they paid $20K+ in cash for a car. But then again, you can lie on the internet and it's apparently ok.