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Paying For A Car

Discussion in 'BlackHat Lounge' started by john.morrison, Jun 25, 2009.

  1. john.morrison

    john.morrison BANNED BANNED

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    Hey,
    I need some advice on how to pay for my car, and any tips would be appreciated.

    Currently, for my car I can invest about $300 USD per month. So, what are my options here. I am interested in purchasing a Honda Civic 2009 Brand-new, and I will get my family to help me out as well until my income hits the point where they won't have to at all.

    So, if you were in my situation, what kind of payment plan would you choose, and how would you basically arrange a payment plan that you can get a new car, and the $300 will come handy as well?

    FYI, my pop's is one of those old types, doesn't like to spend money for a good cause XD
     
  2. $Money-Maker$

    $Money-Maker$ BANNED BANNED

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    why just get a bentley? neh im just kiddin.

    get a 2 year plan. and $300 a month is too high for honda civic..

    you can get bmw w/ $300 a month but not 2009 though
     
  3. heiny

    heiny Regular Member

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    You basically pay the depreciating factor + more for it. Wow I wouldn't wanna buy a car and pay it off in installments. When are you done fully paying for it - in 5 year-ish?
     
  4. turner

    turner Registered Member

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    Don't you know anyone who knows someone who goes bambooing?

    why not BUY wot you can afford, like your dad does.
     
  5. justone

    justone Elite Member

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    You sound rather broke, why take your family into your debts when you can avoid that ?

    Get a used car in good condition you can afford, you can even have warranty and all on it if you buy it from a larger dealer.
    That way you can afford it on your own and save 50% of the bucks.
     
  6. 4alllifestyles

    4alllifestyles Junior Member

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    There are a couple facts about automobiles that you need to keep in mind....

    1) A Car is an EXPENSE NOT AN INVESTMENT.
    2) The first 24 months will see any cars value decrease by 20% or more.
    3) Normal lifetime for a US built car is 175,000 miles.


    Keeping this in mind why not find a good used car with about 20-24000 miles on it and let the sucker who was stupid enough to buy it new take the depreciation hit?

    Oh sure, you can go for cool, or whatever. But when you get down to it a car/truck has a job to do and that's what really counts. Take your time, hit the various dealers used ads and see what's out there so you can recognize a good deal. And readjust your priorities. A car is a tool to get you from one place to another and carry stuff.

    Oh, and if you can't pay for it in 36 months you can't afford it. Personally, I prefer to just write the check and not pay banks interest. I'd rather keep that money for myself.
     
  7. creep

    creep Registered Member

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    I have a friend that boght that same car from a dealer but the car had mileague on it because the previous owner didn't had the money to pay for it.
    He bought the car because it sounded cheap when combined with a 7 year payment plan.
    Afterwards i did the math for him and he just discovered that he will be paying more than for a NEW model ...like 6K more
    I feel sorry for him now.
     
  8. Moneymaka

    Moneymaka Junior Member

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    1)A car is an investment, not an expense.
    2) A brand new car's value will decrease the moment you bought + start the car. Ofcourse within 24 months it will decrease a lot more.
    3)Agreed


    You should really buy a used car.
    It's soooo much cheaper and if you buy a good one, you'll hardly notice any difference.
     
  9. Moneymaka

    Moneymaka Junior Member

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    Not trying to go offtopic here, but saying a car is an expense is like saying the machinery you bought for your factory are also expenses.
    The machinery need fixing and they also decrease in value, but it's clearly not an expense, but an investment.
     
  10. darkmobius

    darkmobius Regular Member

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    but what kind of investment is this? the car doesn't gain more value, unless you consider losing money a smart investment. I will just categorize it as a necessity, at least for me.
     
  11. bizzybee76

    bizzybee76 Junior Member

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    Just do the Dave Ramsay Car Plan.

    Pay YOURSELF $300 a month for a year...take your $3600 and buy a cheap car. Then, since you were planning on paying $300 a month for 4-5 years, KEEP paying yourself $300 a month.

    In 3 years, go trade in your 3600 car, and use your $10,800 and buy a nicer car.

    So, maybe 4 years from now you could afford a $500 car payment. Pay yourself the $500 a month for 5 years. And at the end go pay cash for a $30,000 car. And so on and so on.

    You'll never pay a penny of interest. If you lose your job or income stream your car won't be repoed. And you will OWN your car. A much better feeling than financing it.
     
  12. Moneymaka

    Moneymaka Junior Member

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    A car doesn't gain more value, neither do the machinery.
    From a business point of view, they both help you to gain money.

    "the car doesn't gain more value, unless you consider losing money a smart investment"
    So if a company like FedEx decides to buy more cars to deliver more packages, you would consider that a dumb investment as it would lose them money?
     
  13. 7878

    7878 Executive VIP Premium Member

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    A car is a depreciating asset, not an investment. ;)

    Honestly...and don't take this the wrong way....it sounds like the OP has no clue how to negotiate a car deal. Please do yourself a favor and read up on buying a car before you walk through that dealership door.

    And never finance through the dealer!

    ps... I've been an F&I manager in 2 very busy dealerships for the last 9 years, and I sold cars for 3 years prior to that. Take it from me, if go to buy unprepared, you will get your head ripped off. :D
     
  14. bhdude688

    bhdude688 Power Member

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    I would suggest not buying a car until you have money in the bank. There are benefits to buying it outright and benefits to taking the loan.

    Paying cash means you pay no interest, plus have much better bargaining potential at a dealer. Taking a loan gives you more financial flexibility. I really don't like the idea of handing out 20 or 30000+ in cash (unless of course you have a lot of money). I'd rather keep it in my bank and earn my own interest and have it as a safety net.

    When you go to bargain, do not bargain on a monthly price. Barter with the total sales price. Tell them what you want to pay, they shouldn't accept it or your price was too high. Walk out. Come back and show a little interest, but not overly excited. Be prepared to walk out again. If the MSRP is 30000, I wouldn't pay over 25000. Deals from two of our cars: MSRP 33000, sale price of 24000. Asking price of 17000 (used), sale price of 9900. Don't bend for them.