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Debt Free When You Bought Your Mustang?

Dat37tho

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Had no debt when I bought the car in Dec 2014. As of this month got about $20k left on the car note. Add in a $3000 Discover card to pay off and that's pretty much it. Living in an apartment with all the usual bills so that's a monthly annoyance. Would probably have about $4000 saved up in the last 6 months but I paid off about 75% of my wedding that's happening this weekend.
After that, all that I can save will be going to a "House Down payment and closing costs fund" lol
I want a garage before I get another car. Or a faster car.
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jtmat

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Outside of a mortgage that I would love to pay off early next year if some things work out for me, I'm "technically" debt free. Heck, not paid credit card fees in 15 years at least (aka not carried a balance over)... love credit cards for the ease of use and money those reward cards provide.

I max out retirement so I'm okay there (started retirement fund in my 20s). I'm also in the market, which is fun to watch at times... sometimes not. :-)

Paid off those student loans many years ago... almost wish I would have waited and then paid off the house, but that is life. The student loan rate was almost 0 for me at the time... House loan is low as well so all is well.

Saved for the mustang (or whatever car I was going to get).... very happy with my little vert... great car.
 

madweazl

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I dont know what debt free even means, I've financed all of my vehicles. Always find something I gotta have for said vehicles which usually leads to me dropping it on a credit card. Then I go through a cycle where I have to pay off credit cards about every three years; rinse and repeat. I'm just an instant gratification kind of guy.

If you can get an interest rate under 4.9% there really isnt any point to a down payment. I havent paid over 2.9 in about 10 years now.
 

jtmat

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I dont know what debt free even means, I've financed all of my vehicles. Always find something I gotta have for said vehicles which usually leads to me dropping it on a credit card. Then I go through a cycle where I have to pay off credit cards about every three years; rinse and repeat. I'm just an instant gratification kind of guy.

If you can get an interest rate under 4.9% there really isnt any point to a down payment. I havent paid over 2.9 in about 10 years now.
Even with 2% interest a 35k car with 6% taxes for 5 years is $2000.00 in interest. Do that four to ten times in your life and it "could" impact your retirement...

Plus, if you put a down payment you don't have to pay the "gap insurance". The dealer said that was one of their money makers... how true that is I don't know.

I did not have to get gap insurance so I don't know if it really costs a lot or not. Could be pennies on the dollar far as I know and he was baiting me to see if I'd purchase something else. Who knows.
 

madweazl

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Gap insurance was only $199 for the car through Navy Fed. If $20k hurts your retirement, you failed (not saying you, just in general).
 

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MagneticA

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Gap insurance was only $199 for the car through Navy Fed. If $20k hurts your retirement, you failed (not saying you, just in general).
20k is 20k. If given the choice, I'd rather keep it in my pocket.
 

jtmat

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That is low... but an expense.

I was thinking more along the total mindset of thinking $2000 is not a lot of money or even $200.

But even 20k can be much more than 20k due to lost money for investments, etc.

No biggie though... we all do things differently... long as we are good with where we end up, no right or wrong.
 

Balr14

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Because of the nature of the work I do (Mainframe IT consultant), my income has never been steady. Consequently, I pay cash for everything (house, cars, vacations, etc.). I set aside a separate bank account for cars and only spend what is in that account. There has been a couple cars I wish I could have bought, but my car account was about $10k - $15k short.
 

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Ecoboosted

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I was lucky enough to pay my car off in about 18 months. Now that it’s paid off I have no inkling to trade it or buy anything else and start a loan up again.
 
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XS

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I had some student loan debt to pay off when I got my car. There was no question of if I could afford to take on both though. About 4 months after buying the car I paid the student loan down. I've been paying above the monthly minimum on my car, but still not rushing to get out from underneath it. It seriously boosted my credit score along with other healthy financial habits, which came in handy when I bought a house.
 

Rapid Red

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Because of the nature of the work I do (Mainframe IT consultant), my income has never been steady. Consequently, I pay cash for everything (house, cars, vacations, etc.). I set aside a separate bank account for cars and only spend what is in that account. There has been a couple cars I wish I could have bought, but my car account was about $10k - $15k short.
Smart
 

Dr. Norts

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Sold my G37S for 25k and took 15k from my savings. Been paid for since the day I got it.

I hate car payments. More MOD money!

I would love to pull the trigger on a GT500 but again car payments suck. I'd rather just take another 10k from my savings and slap a blower on this one. I'm already balls deep in mods.
 

lew

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Like the title states, how many of you cleared away debt to make room for a new Stang or car? :cheers:
64 years old, have 0 debt, all vehicles paid for in cash. I feel very fortunate to have lived my life always within my means of support. Very rarely did I ever buy on a time payment contract. When I did, I made sure the payments were low enough that should I become unemployed, (which happens frequently in the construction trade) I would not be drained of funds paying for any notes, and life's expenses.
It has paid off....
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