Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    




Buying Vehicles

Reply to topic
Money Talk > Personal Finance

Author Thread
josht
Contributing Member


Cash: $ 8.00

Posts: 39
Joined: 23 Dec 2010
Location: Boise, ID
Buying Vehicles  Reply with quote  

Do you pay cash for your vehicles, lease, or do you finance your vehicles through a bank?
Post Fri Dec 24, 2010 11:23 pm
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 735.25

Posts: 3575
Joined: 21 May 2006
Location: arizona
 Reply with quote  

We finance ours, we get a loan for 100% of the vehicle, then sell our old car privately.

We keep a taxable SP500 Index Fund, it grows tax-deferred until we sell some of it. If we sold $33k out of the fund we would use $3k to pay the capital gains tax on our profit and $30k to pay cash for the car.

Instead, we leave our $33k in the fund, and finance the car. Plus we sell the old one for about $4k or $5k and put that with the $33k. The goal is to double the $37,000 in 6 years to $74,000 (an 11% return). And over the past 35 yrs that has been about the average.

We drive them close to 200,000 miles so they are pretty well 'used' when we sell them.

We avoid leases, that is the most expensive type of ownership, you are continually paying the depreciation on a near-new car - using only the top 60,000 miles, and then turning it over to the second owner. Plus, we put regularly drive more than 12,000 miles a year so the over-mileage fines would be expensive.
Post Fri Dec 24, 2010 11:54 pm
 View user's profile Send private message
GotCommonCents
Contributing Member


Cash: $ 6.20

Posts: 31
Joined: 29 Mar 2011
Location: North Carolina
 Reply with quote  

That's extremely risky. You must ask yourself, where would you be if the fund goes down and you lose your job?

My recommendation would be to pay cash for the car. Make sure the total value of all your cars is less than 50% of your take home income. Also, I would suggest buying a slightly used car so you do not take as great of a hit on the loss of value.
Post Wed Mar 30, 2011 2:13 pm
 View user's profile Send private message
littleroc02us
Moderator


Cash: $ 383.10

Posts: 1885
Joined: 09 Feb 2009

 Reply with quote  

We save up money and pay cash for used vehicles that already have depreciated for 3 years, they are all usually low milaege and in great condition.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Wed Mar 30, 2011 3:41 pm
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 735.25

Posts: 3575
Joined: 21 May 2006
Location: arizona
 Reply with quote  

quote:
That's extremely risky.


Well, 'extremely risky' certainly is scary. But how about doing a risk anaylsis, quantifying the risk, evaluating it against other known investments, and looking at risk mitigating measures? Then we could have a useful debate about an investment. The "sky might fall" doesn't add much light?
Post Wed Mar 30, 2011 5:40 pm
 View user's profile Send private message
RichS
Full Member


Cash: $ 19.10

Posts: 95
Joined: 02 Feb 2011
Location: Seattle
 Reply with quote  

That's a tough question to answer because it depends on your own personal situation. If you don't have a down payment maybe you want to lease. If you do have a down payment but don't like car payments maybe you want to buy cash. And so on.

I don't think there is any right way or wrong way only what's the best way for your situation. Very Happy
Post Wed Mar 30, 2011 8:24 pm
 View user's profile Send private message
littleroc02us
Moderator


Cash: $ 383.10

Posts: 1885
Joined: 09 Feb 2009

 Reply with quote  

IMO

leasing a car= stupidity, because you are renting a vehicle with payments because you can't afford it.

Financing a car=stupidity, because you can't afford the car or you planning on using the money you would have used to invest in something that may lose money.

Cash for a used car=Smart, because you have no debt and you can buy something cheap if that's all you can afford.

I'm just more of a lower risk type guy. Others like to gamble more.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Thu Mar 31, 2011 2:48 pm
 View user's profile Send private message
Maxmad
New Member


Cash: $ 1.30

Posts: 6
Joined: 31 Mar 2011

 Reply with quote  

I do both.
Post Thu Mar 31, 2011 11:02 pm
 View user's profile Send private message
siymenthomas
New Member


Cash: $ 1.00

Posts: 5
Joined: 18 Nov 2011

 Reply with quote  

If you are planning to buy a vehicle then you should know how to drive it. In today time the demand of vehicle is increasing day by day. Another thing is that you should know the traffic rules before driving the vehicle.
Post Fri Nov 18, 2011 10:51 am
 View user's profile Send private message Send e-mail
Dos
Member


Cash: $ 1.80

Posts: 23
Joined: 05 Nov 2011
Location: Here
 Reply with quote  

Though i get my current car thru bank financing i prefer paying it in cash if i have enough money.
Post Fri Nov 18, 2011 11:28 pm
 View user's profile Send private message
littleroc02us
Moderator


Cash: $ 383.10

Posts: 1885
Joined: 09 Feb 2009

 Reply with quote  

I'm currently saving up to buy a used car with cash and as always it feels great to pay for it immediately and have no bills come in the mail. I guess if you enjoy paying bills and having debt do something else.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Mon Nov 21, 2011 2:31 pm
 View user's profile Send private message
nature
New Member


Cash: $ 1.40

Posts: 7
Joined: 09 Jun 2010
Location: virginia
 Reply with quote  

It depend actually, when I have adequate finance, i dont go for loan.
Post Tue Nov 22, 2011 2:43 pm
 View user's profile Send private message
ting231
Contributing Member


Cash: $ 8.00

Posts: 36
Joined: 22 Nov 2011
Location: LA
 Reply with quote  

no.i can not do that
Post Tue Nov 22, 2011 2:48 pm
 View user's profile Send private message
kelseyahunt
New Member


Cash: $ 0.65

Posts: 3
Joined: 26 Nov 2011
Location: USA
 Reply with quote  

quote:
Originally posted by littleroc02us
IMO

leasing a car= stupidity, because you are renting a vehicle with payments because you can't afford it.

Financing a car=stupidity, because you can't afford the car or you planning on using the money you would have used to invest in something that may lose money.

Cash for a used car=Smart, because you have no debt and you can buy something cheap if that's all you can afford.

I'm just more of a lower risk type guy. Others like to gamble more.


I think littleroc20us is of a more "rich" mindset than most <--- I agree with him.
Post Sat Nov 26, 2011 2:16 am
 View user's profile Send private message
randykk3
Member


Cash: $ 2.00

Posts: 10
Joined: 20 Feb 2012

 Reply with quote  

I just love to purchase vehicles of Honda
Its providing best facilities in all over the world and spare parts also available everywhere
Post Tue Feb 21, 2012 3:19 am
 View user's profile Send private message

Goto page 1, 2, 3  Next
Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      





Money Talk © 2003-2016