Vehicle payment

[KARNUT]

38 minutes ago, 1454 said:

I'm not sure I understand this comment. I could have paid for my truck in cash when I bought it, but I chose to finance because of the rates. 2.xx at the time. Sure, there is finance costs, but i made significantly more on that 60k than I paid so far in finance charges. Claiming that people "can't afford" something because they choose to finance is incorrect. Can some, sure. The current payments don't even come close to exceeding a single digit percentage of my income.

Sure you understand. The comment was the length of the loan and interest  compounding. My first car in 1973 the loan length was 3 years. 

[CamGTP]

Not sure how it's so incorrect? These banks keep allowing longer term loans to lower peoples payments because many can not afford to buy the car on a 5 year loan. And if they can't get good financing because of their bad credit score, that is why they choose to do these really long loans and still barely can afford to drive it. Auto repo's are going to be going up that's for sure.

[1454]

18 hours ago, CamGTP said:

Not sure how it's so incorrect? These banks keep allowing longer term loans to lower peoples payments because many can not afford to buy the car on a 5 year loan. And if they can't get good financing because of their bad credit score, that is why they choose to do these really long loans and still barely can afford to drive it. Auto repo's are going to be going up that's for sure.

Sure, a portion of the longer term loans are going belly-up. I think default rates on those are like 5% right now. I'm not saying 95% of those with "loans" can "afford" them, but I take offense to the claim that "taking a longer term loan" means "you can't afford it". Again, I did the math and it made sense to take it. Does everyone, no. But I don't like generalizations because they are usually wrong. 

[1454]

23 hours ago, KARNUT said:

Sure you understand. The comment was the length of the loan and interest  compounding. My first car in 1973 the loan length was 3 years. 

Ok, understanding might not have been the best word choice. But generalizing is incorrect. How things were in 73, isn't how things are now. Will they return to that, I have no idea. As of the current state of things, they aren't. Compound interest is relative to what the opportunity cost is. If one can make more off of that capital than they pay in interest, it is more prudent to carry the interest and bank the difference. This is how 90% of real estate magnates operate. I guess they couldn't afford a "72 month loan" either. 

[KARNUT]

17 minutes ago, 1454 said:

Ok, understanding might not have been the best word choice. But generalizing is incorrect. How things were in 73, isn't how things are now. Will they return to that, I have no idea. As of the current state of things, they aren't. Compound interest is relative to what the opportunity cost is. If one can make more off of that capital than they pay in interest, it is more prudent to carry the interest and bank the difference. This is how 90% of real estate magnates operate. I guess they couldn't afford a "72 month loan" either. 

I actually mentioned that in earlier posts. I would finance for under I was earning in interest. Cash isn’t always king. The statement about the term of loan in my youth was more about the cost of a vehicle a person could afford. And the length of those loans. Verses the vehicle some people buy these days and the length of the loans people take out to buy vehicles that don’t actually fit their budget. They buy more vehicle than they can afford. You can still finance an affordable vehicle for 3 years most likely get a very low interest rate. People generally aren’t doing that. 

[Grumpy Bear]

What TYPE of interest matters. Terms matter. Front loaded amortized like a home load or simple interest. 

[Grumpy Bear]

On 8/9/2024 at 10:32 AM, KARNUT said:

What is your comfort zone in regards to your vehicle payment? How often do you trade in? If you’re upside down do you roll that in? And how does that compare to your spouse? … I never put any money down. I buy only when there’s a discount. For 40 years my business paid for my vehicles because I drove many miles for the business. I bought only year end or discounted trucks so I had different brands. That allowed me to have collector cars as my personal vehicles. My wife drove performance or sport cars usually for 5-7 years. The last is a 2011 Genesis. She still has her last sports car an Acura Intagra Type R. My retirement truck a 2014 Texas Edition GMC cost me 27K. It was discounted from the mid 40K. A big sale on 12/31/13. The dealer called me at my office needing one more sale. My ex son in law worked there at the time. All the stars aligned. It was our personal highest payment for a vehicle to date at 400$. Several years later and several more vehicles later my last new vehicle came in at 500$ per month. I’m in a different situation now being retired. I don’t see buying another new vehicle. I turned a different leaf. It happens when you get older. I’m going to run them longer. My wife still drives her 2011 it looks good. I just put 20K miles on my Avalanche in four years. That model will go 300K easy. The trip vehicle the Odyssey is just barely at 150K. I’m going with longevity. As far as payments. Unless it’s a screaming deal at 0 percent it’s cash here on out. There’s only a few brands I’ll buy going forward. We’ll just leave it at that.

 

We just bought a new Mitsubishi. Cash. It's what we do now. And immediately we start saving for the next one on a monthly basis. Ego, we don't pay interest. Oh, and it doesn't have to be new. But it has to be low mile with a traceable maintenance history. Cherries only, thank you. I've bought exactly three new cars in my life. Two others that were dealer rejected auction vehicles with under a thousand miles and at auction price or lower. Usually, body damaged I get fixed. Oh, and a handful of higher milers used that were so cheap or so marketable as passing would have been criminal OR were family cars I knew from purchase. My sisters-in-law's Honda Civic.  A 64 Malibu SS from North Dakota with allot of miles, no rust and only $400. A $50 dollar MINT AMC Gremlin 232 from Arizona. Three times I've had a payment and every time it was paid off in a fraction of the term. I run them all into the dirt and it takes forever to do it. 

 

I'll bet I haven't had 1/10th of the cars of most folk my age and never drove a dog or a hog. 

 

[Donstar]

8 hours ago, Grumpy Bear said:

 

We just bought a new Mitsubishi. Cash. It's what we do now. And immediately we start saving for the next one on a monthly basis. Ego, we don't pay interest. Oh, and it doesn't have to be new. But it has to be low mile with a traceable maintenance history. Cherries only, thank you. I've bought exactly three new cars in my life. Two others that were dealer rejected auction vehicles with under a thousand miles and at auction price or lower. Usually, body damaged I get fixed. Oh, and a handful of higher milers used that were so cheap or so marketable as passing would have been criminal OR were family cars I knew from purchase. My sisters-in-law's Honda Civic.  A 64 Malibu SS from North Dakota with allot of miles, no rust and only $400. A $50 dollar MINT AMC Gremlin 232 from Arizona. Three times I've had a payment and every time it was paid off in a fraction of the term. I run them all into the dirt and it takes forever to do it. 

 

I'll bet I haven't had 1/10th of the cars of most folk my age and never drove a dog or a hog. 

 

I believe that you never drove a dog but I thought you have/had a hog!  I am curious what model of Mitsubishi you chose to buy and if Pepper has gone.  My wife wants us to share a vehicle as she seldom drives.  However, a pickup is not on her radar so I am in no hurry to give up this truck!  "We" don't want a car payment and are hesitant to spend a substantial amount of savings on a vehicle.  I am safe as long as our senior vehicles behave!  If, I was in the market, the '25 Hyundai Santa Fe would get a serious look!

[KARNUT]

33 minutes ago, Donstar said:

I believe that you never drove a dog but I thought you have/had a hog!  I am curious what model of Mitsubishi you chose to buy and if Pepper has gone.  My wife wants us to share a vehicle as she seldom drives.  However, a pickup is not on her radar so I am in no hurry to give up this truck!  "We" don't want a car payment and are hesitant to spend a substantial amount of savings on a vehicle.  I am safe as long as our senior vehicles behave!  If, I was in the market, the '25 Hyundai Santa Fe would get a serious look!

I couldn’t give up a truck either. I put very little miles on it even though it’s my daily driver. Most of the time it’s just to one of three walking tracks. The last CPO vehicle my wife bought was a her 2011 Genesis it only had 1K miles on it. Same deal she runs to town daily. She swims at the Rec center and is the church secretary. Those two vehicles could last us many more years. The Odyssey is what we use for trips. Originally I was cutting back to two vehicles as daily and trip vehicles. I had a Camry I gave to my daughter at a reduced cost. Then my mother in law quit driving and gave my  wife her CRV. I later switched with my daughter for the Odyssey. We still have a 2001 Acura Intagra Type R my wife bought new as a daily. Sounds like a lot to take care of but our insurance is cheaper than if we had one new vehicle. Only one I wash by hand. I’m a bit of a nut with vehicles and I’m always looking for the next great deal. I’ve never been more satisfied with the vehicles I have at this time. There’s really not a new vehicle out there that thrills me especially at the cost to own. I’m not going to settle for less just to get a new vehicle. I’ve been down that road and it never works. I couldn’t unload the Camry fast enough. Great car, not exciting. I thought that would be the way of the Odyssey. Strangely enough I like it. Especially since it’s one of 4. Perfect vehicle. It couldn’t be my only. Same with the wife’s car. I’d be miserable without a full sized truck. 

[Grumpy Bear]

2 hours ago, Donstar said:

I believe that you never drove a dog but I thought you have/had a hog!  I am curious what model of Mitsubishi you chose to buy and if Pepper has gone.  My wife wants us to share a vehicle as she seldom drives.  However, a pickup is not on her radar so I am in no hurry to give up this truck!  "We" don't want a car payment and are hesitant to spend a substantial amount of savings on a vehicle.  I am safe as long as our senior vehicles behave!  If, I was in the market, the '25 Hyundai Santa Fe would get a serious look!

 

Pepper is safe and well. She'll not be sold.

 

A Mirage G4 Sedan. Last model year they are being sold in North America. Around $20K US dollars. I think the only cheaper car sold in this market is the Nissan Versa S five speed manual, but they are a bit of a Unicorn and only a few hundred cheaper. It's our first car with a CVT and we haven't wintered one yet. Sold till stocks are gone likely into next summer?? I only have a few thousand on it so I can't really give it much of a revue yet. It is easy of fuel. Over 50 mpg.

 

 

Edited October 9, 2024 by Grumpy Bear

[customboss]

 

[Atlas]

2 hours ago, customboss said:

 

 

Way, WAY too sensible. Get outta here with that malarkey...LOL The only hole I'd poke in this is $6600 doesn't buy much truck in the Midwest. The ones he uses as examples are thoroughly rusted, or TMU / total mileage unknown. The Ford probably has 140 or 240k miles, not 40k. And those kinds of trucks might not be a great choice if reliable daily transportation is the goal. Those trucks are 23 years old and 36 years old, respectively..

 

But...increase the cash budget to $10k or $20k, a little more saving, and find a nice West Coast or Southern truck (no rust) and you might just come up with a decent rig with some good years and miles left in it.

[KARNUT]

On 10/9/2024 at 7:22 AM, KARNUT said:

I couldn’t give up a truck either. I put very little miles on it even though it’s my daily driver. Most of the time it’s just to one of three walking tracks. The last CPO vehicle my wife bought was a her 2011 Genesis it only had 1K miles on it. Same deal she runs to town daily. She swims at the Rec center and is the church secretary. Those two vehicles could last us many more years. The Odyssey is what we use for trips. Originally I was cutting back to two vehicles as daily and trip vehicles. I had a Camry I gave to my daughter at a reduced cost. Then my mother in law quit driving and gave my  wife her CRV. I later switched with my daughter for the Odyssey. We still have a 2001 Acura Intagra Type R my wife bought new as a daily. Sounds like a lot to take care of but our insurance is cheaper than if we had one new vehicle. Only one I wash by hand. I’m a bit of a nut with vehicles and I’m always looking for the next great deal. I’ve never been more satisfied with the vehicles I have at this time. There’s really not a new vehicle out there that thrills me especially at the cost to own. I’m not going to settle for less just to get a new vehicle. I’ve been down that road and it never works. I couldn’t unload the Camry fast enough. Great car, not exciting. I thought that would be the way of the Odyssey. Strangely enough I like it. Especially since it’s one of 4. Perfect vehicle. It couldn’t be my only. Same with the wife’s car. I’d be miserable without a full sized truck. 

Since this post my grandson is driving the avalanche. I got a great deal on a 2010 Ridgeline with 160K miles for 7K. It has 169K on it now. I did the fluids and tags for another 1K. These few years had totally changed my thinking on buying new vehicles. Especially since my local Honda dealer as well as others in the area certified vehicles that are over 10 years old. Rust isn’t a problem so there’s that. As long as people will pay big money for full side trucks and no one’s going to certify 10 year old trucks. It’s tougher. The good news the farther you go back with GM trucks the more reliable, in my opinion.  The Toyota midsize and older Tundras are a safe bet. The Ridgeline and Ranger Too. I changed my mindset got away from fancy full sized trucks. Save a ton of money. If I do another I’ll lease. 

[Black02Silverado]

I should have kept my 2002 Silverado.  Back then it was fully loaded as an LT. Sold it at 200k miles on it and the only issue was a little use of oil, about a qt every 5k miles.  It would have been less expensive to have gone back through the engine then buying new.  Now I don't have the room in it like I do now which was the main reason for upgrading, but I would have had a reliable vehicle.  Anymore driving my 2019, it is always on my mind of the lifters going or the valve body in the 10sp going out.  Also at the worst time like on a trip up to PA to visit mom.

 

Also our 2016 suburban started having a small vibration at idle, it seems to come and go. I thought at first maybe engine mounts, but then it would have a big clunk when taking off I would think.  My scanner didn't show anything, I have a Topdon.  I really need to learn how to use it.  But a local shop said they found it had a misfire on 1,3,4,7 cylinders.  I just changed the plugs 18k miles ago.  So I got a set of AC Delco original plugs and installed them. From what little driving we have done so far it seems good but only time will tell. Now the lifters are on my mind on it as well.  It has 108k miles on it now.

[customboss]

2 hours ago, Atlas said:

 

Way, WAY too sensible. Get outta here with that malarkey...LOL The only hole I'd poke in this is $6600 doesn't buy much truck in the Midwest. The ones he uses as examples are thoroughly rusted, or TMU / total mileage unknown. The Ford probably has 140 or 240k miles, not 40k. And those kinds of trucks might not be a great choice if reliable daily transportation is the goal. Those trucks are 23 years old and 36 years old, respectively..

 

But...increase the cash budget to $10k or $20k, a little more saving, and find a nice West Coast or Southern truck (no rust) and you might just come up with a decent rig with some good years and miles left in it.

Just a little shopping and you can find a proper daily driver.  About a year ago I paid $5250 for a 1978 Jeep J20 4x4 134,000 miles that was mostly restored. New 0 time 360 V8 engine and solid driveline, only rusty floor pans I replaced. 
2 months ago I bought a 1974 IH D200 4x4 345 V8 very little rust for $5500. 61000 miles on it. Colorado truck. I drive it every day and it’s great. 
Just gotta get out and hustle a little. Cool thing is you can work on old stuff.