Originally Posted by Endless619
Negative, new guy on the forum.
We are getting a lot of you kids these days. lol
I have owned 10+ cars since 1990 and can tell you from 23 years of experience that buying a car thats $1200 a month is plain stupid. Sorry its true. I don't care what percent you have, it is just not a smart move for everyone. I can go on all day long.
Some folks on here make $2500-$3000 a month take home and are leasing an M3 at $800-$1200 a month. Is that smart to you? Where is his room for living expenses, rent, mortgage, savings, gas, food etc.? He has none = not a smart move. Look I am going by what I have read on what some folks make on here. It all depends on what you make, period. Saving doesn't take decades either there buddy. Again back to what you make.
Living in the Bay Area I paid $2500 a month for rent while I was temporarily there. If I am taking home $3000 a month where can I afford the $1200 a month payment? Does that make any sense?
BTW I put down over half or 75% when I buy a car, sometimes I pay cash. So for me and my situation if I am paying $1200 a month on a car it better be a damn 458 Italia not some 3 series BMW.
I paid $50k cash 2 years ago for my X5. Done. I put down half on my M3. Done. No $1***.** car payment.
Missing the point.
And implying it's wrong because I'm new to the forums is definition of ad hom but w/e.
I was replying to the post by saying what he said made no sense. To spend 1200 on a car means you probably aren't taking home 3k/mo. But the post I quoted made no mention of monthly take home. Only that in a vacuum no matter the income 1200/mo is stupid. My point is that premise of putting 75% down is not just to be taken as the smart move just because you'll save 6k in finance charges. It's all about opportunity cost.
How is a 3% or less loan bad? Ever? Mortgages are 4 or more. Student loans are now 6.8 for undergrad, they were 3.4 before. If you invest you should be able to get 6 on a conservative basis. Why then is it smart to save 70k and dump it in a car instead of investing it month by month and just paying monthly? You lose 3% apr but you gain 6%.
I never said spending 75% of your monthly income on a car is smart. But you are acting like that's all I said in my entire post. I said that spending 1200/mo on a car should imply the person has everything else taken care of. I guess I should have been explicit and said not only mortgage, but other loans and retirement as well. That's probably someone making around 10k per month take home (before taxes).
Congrats on not having a car payment. But you could have made more investing it and paying monthly I'd wager. 6k finance charges over 6 years on a 70k payment is nothing.