How To Finance A Car The Smart Way
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How To Finance A Car The Smart Way
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How To Finance A Car The Smart Way
finance advice
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32 comments
Life is hard lmao and your living with family still and don’t have too many crazy bills get the car you want! If its a fast car get a fast car if if not fast build it reliable and fast! Enjoy your life. Live your life not survive. When buying a car you want to enjoy it unless you do not care about anything but living
The weird thing is in 2022 if you buy the right car it will appreciate.
What if you’re financing an appreciating classic car ?
Never buy a brand new car and drive it into the dirt. Thats literally the worst thing you can do with a car.
Lmaoooo “ if you looking @ bmw Tesla this not for you”
I owe $4500 left on my Toyota Corolla with 3% interest and my monthly payment is Below $300 a month. Like $250. So maybe I’m ok as my car is a 2018 and not upside down on the loan. I have $22k in savings so should I just pay it all off now? Am I still in good shape with my loan as of now?
8% annual or monthly?
Toyota yeeeeeeah!
car guys- left the group
I couldn't afford to pay in 3 years even on the cheapest cars 😐
So if you're the average person making around $50k a year you need to buy a car for no more than $4k?
Should the 8% for the car payment include the cost of Insurance, or should we calculate that separately?
So if it's for personal use it's a liability, if it's for buissness generating income it's an asset.
How are you supposed to get a car with 8% of your income. If they mean 8% of your yearly income that is impossible for anyone livening below the top 20% of people but if they mean income over the coarse of the loan then I might see how that can make aense
I put a large down payment on my 2018 Corolla , a little under half ! Now the amount I owe 3 years later is around $5k left. The car itself is only 3 years old and I’m sure I’m not underwater in the loan. My goal is to never get underwater. Hey I might just pay this all off soon. I have $15k in savings and I’m tempted to just pay the $5k and get it over with. Or, I can sell my 2009 Lexus IS250 that I fully own for $9k and use that to pay off the corolla. However, the Lexus IS remains a fun car to drive and I love it. I’ll keep it.
I do have a side hustle which also helps in the auto expenses.
I've been a cash buyer on everything my whole life, and yes I'm saving for a house to pay for in cash.
Why can't you strech the payment to 60 mos.?
crap! i have a dream car! so close.. now i have to study how to finance it! now my dreams in a mist…
isnt 16% of 200% just 8%,
I wanna know what car they actually drive. Do people really follow what they preach?
8% and 8 % is the same guys no matter how you cut it. Great joke though.
Always get a pre purchase inspection and you can save so much money buying private party like Facebook marketplace
Solid advice, guys!!
How to finance a car the smart way- save and invest and pay all cash. Only buy what you can afford and if you can’t afford to pay it off on the spot in cash, then you can’t afford it.
Anticipate your vehicle needs, pay yourself a car loan for 3 years & pay cash, keep your + cash flow!!! Why give a lender even 1 percent. Geeze! Plan, like adults. Assuming an appreciated cost (debt) to pay for a depreciating asset (car) is insane.
For 36 months, a car loan with 3.899% (principle and interest paid over the entire duration) is the equivalent of paying cash today (assuming 2% inflation as the discount rate). Any % less is essentially getting a discount.
For 36 months, a car loan with 3.899% (principle and interest paid over the entire duration) is the equivalent of paying cash today (assuming 2% inflation as the discount rate). Any % less is essentially getting a discount.
Should create an excel sheet
Why would I pay $60k up front, when I’m getting 1.99% on an auto loan? I can invest that $60k and make 10% annually.
Best way to finance a car is DON'T! Most people should NEVER buy a new car until they are already millionaires.
For the vast majority of people should buy a car less than $5000 for cash and drive it until after it dies a few times. If you do buy a new vehicle you should drive it at least a dozen years and during the extra years without payment save for another if you are intent on driving a new vehicle.
Vehicles steal wealth more than anything else people buy. Broke people should never buy a new car and we already know about 80% of people live paycheck to paycheck. Broke people buy cars and trucks and pay through the nose. They sell you the cars and title loans because they understand math of the shiny things.
If you already have substantial wealth and no other debt except your mortgage and your income is high then go ahead and splurge if you must. If you already have your wealth then buy whatever you like with whatever financing you like.
We have a high income and net worth and I drive a Chevy pickup with over 420k miles. Who exactly are you trying to impress? Your friends are broke too. I agree that my mileage is extreme but it is just a tool that works fine.
8% of take-home income or using your pre tax income?