Frustrated ordering for spring

[Jason Richardson]

That theory is based on the assumption of a non-volatile stock market which is not the age we live in either. If this was 8 years ago I'd agree with you. In 2014 after the 208 crash, not so much.

It has nothing to do with the stock market. Thats where you people always get screwed up. Its as much the quality of life the extra cash position can get you. Buying other things, putting it into other payments at low rates for things other than cars. Cash on hand is inherently worth more than cash later.

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[phil1336]

Ok, so living in your house with (no) Mortgage is a "bad" idea, better to still have 29 years left to pay on it. Having a Car thats paid for within 36 months or the typical life of its bumper to bumper warrantee is also flawed. To each their own. Some fools, like myself just don`t enjoy drowning in Consumer Debt be it on credit cards or monthly Car loans. I`d prefer to shorten the period of re-payment. Cheers

 

[Ruby305GT]

It has nothing to do with the stock market. Thats where you people always get screwed up. Its as much the quality of life the extra cash position can get you. Buying other things, putting it into other payments at low rates for things other than cars. Cash on hand is inherently worth more than cash later.

Amen! And my point entirely from my OP


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[Jason Richardson]

Ok, so living in your house with (no) Mortgage is a "bad" idea, better to still have 29 years left to pay on it. Having a Car thats paid for within 36 months or the typical life of its bumper to bumper warrantee is also flawed. To each their own. Some fools, like myself just don`t enjoy drowning in Consumer Debt be it on credit cards or monthly Car loans. I`d prefer to shorten the period of re-payment. Cheers

Drowning it debt means nothing in and of itself. Its an archaic term tied to times past when as I said interest rates were multiples higher than now. You'd be some kind of stupid to give up 40K in cash now if you're approved for an interest rate of 0-2% on a 72 month tern. I mean youre not grasping the simple fact that a 400 dollar paymebt 6 years from now is worth a lot less than 400 today at the time youd make that payment in 6 years. Inflation etc. And tbe very fact that interest rates are so low means that the total interest paid is equally as miniscule. All youd be is 40K cash poorer now

 

[Ruby305GT]

Drowning it debt means nothing in and of itself. Its an archaic term tied to times past when as I said interest rates were multiples higher than now. You'd be some kind of stupid to give up 40K in cash now if you're approved for an interest rate of 0-2% on a 72 month tern. I mean youre not grasping the simple fact that a 400 dollar paymebt 6 years from now is worth a lot less than 400 today at the time youd make that payment in 6 years. Inflation etc. And tbe very fact that interest rates are so low means that the total interest paid is equally as miniscule. All youd be is 40K cash poorer now

I can understand on real estate, hence you can make money off of it by renting it, equity over years of ownership, etc. On a car though, it's a depreciation item, why not finance it for a low interest rate. God forbid I say that, I got jumped the minute I stated that...

Agree with with Jason on this one.


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[Jason Richardson]

Oh and if you're all worried about being upside down on a long term loan, which is kinda hard with lpw interest rates but regardless, I would recommend gap insurance. Costs me a grand total of 10 bucks additional a month and if anythig happens to my car anytime in the seven years, bam loan paid off, you go shopping for a new car and youre not stuck making payments for the life of the loan or dealing with lost value if you had paid cash for it.

 

[phil1336]

I can understand on real estate, hence you can make money off of it by renting it, equity over years of ownership, etc. On a car though, it's a depreciation item, why not finance it for a low interest rate. God forbid I say that, I got jumped the minute I stated that...

Agree with with Jason on this one.


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Correct me if I`m wrong but you did mention Real Estate, right? Assuming you do live in Broward County, if you bought Property between 2006 and 2008, despite the uptick in recent property values, could you sell your home for what you originally paid for it? NOT! I live in Palm Beach County and nothing has rebounded to those previous levels. Some much for the old adage of Real Estate always being a sound investment cause they ain`t making any making any more of it.

 

[Ruby305GT]

Correct me if I`m wrong but you did mention Real Estate, right? Assuming you do live in Broward County, if you bought Property between 2006 and 2008, despite the uptick in recent property values, could you sell your home for what you originally paid for it? NOT! I live in Palm Beach County and nothing has rebounded to those previous levels. Some much for the old adage of Real Estate always being a sound investment cause they ain`t making any making any more of it.

I bought foreclosed for 245k in 2010 and now my next door neighbor just sold for 375k in 2014. Why would you buy during a bubble, I saw it coming and waited. I invested right after and picked up a town house and some single family home investments for dirt cheap. Now I can gain 70-80% on my investment by selling. What's your point? We are talking about car loans and interest rates, RE was brought up as a quick comparison not the argument.


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[JimmyTwoTimes]

Financing a Vehicle for 5 or 6 years leaves one "upside down" for most of the duration of the loan. Better to put down a larger amount and pay it off in 36 months if at all possible. Lower APR and no "negative" equity!

It's never good to be upside down, but it's far preferable to take out a loan at 2.x% and pay that than it is to pay cash up front, since you can almost certainly get better than 2.x% on investments.

 

[Must_have_stang]

I agree 2-3% apr is reason... I am sure by spring time, ford will have 0-3% consistency for the mustang.

 

[tsunami]

I will be ordering a Premium convertible. My dealer wants $5,000 non-refundable down payment..."ouch". !0% down, non-refundable...seems a little extreme when other Forum members are talking about $500 refundable.

 

[Ruby305GT]

I will be ordering a Premium convertible. My dealer wants $5,000 non-refundable down payment..."ouch". !0% down, non-refundable...seems a little extreme when other Forum members are talking about $500 refundable.

Time for another dealership


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[phil1336]

I bought foreclosed for 245k in 2010 and now my next door neighbor just sold for 375k in 2014. Why would you buy during a bubble, I saw it coming and waited. I invested right after and picked up a town house and some single family home investments for dirt cheap. Now I can gain 70-80% on my investment by selling. What's your point? We are talking about car loans and interest rates, RE was brought up as a quick comparison not the argument.


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Timing and knowing where the "bubble" is going to burst seldom works in real estate or the stock market. Easy to look (smart) when you bought a foreclosure at 245K and now your neighbor sold a similar unit for 375K. You could just as easily bought at 245K and the bottom could have then gone to 200K. Sometimes simple luck appears as wisdom, its not. Back on topic, I`m not into Car Loans of 5 or 6 years regardless of cheap interest. Its 3 years and out for me. I can then decide to take my equity and buy new again, go for a lease, or simply purchase a Ford Service Plan on the cheap through the internet and keep driving the Vehicle a few years longer with (no) payments.

 

[Ruby305GT]

Timing and knowing where the "bubble" is going to burst seldom works in real estate or the stock market. Easy to look (smart) when you bought a foreclosure at 245K and now your neighbor sold a similar unit for 375K. You could just as easily bought at 245K and the bottom could have then gone to 200K. Sometimes simple luck appears as wisdom, its not. Back on topic, I`m not into Car Loans of 5 or 6 years regardless of cheap interest. Its 3 years and out for me. I can then decide to take my equity and buy new again, go for a lease, or simply purchase a Ford Service Plan on the cheap through the internet and keep driving the Vehicle a few years longer with (no) payments.

This thread is not about real estate and common "wisdom" as you want to call it. Call it luck for all I care, if you make the right decisions and the right time, well, chance favors the ready mind.

Anyway. You speak of equity? Equity on a depreciating product is just how much money you haven't lost yet. Doesn't matter whether you bought it outright, financed it, whatever the case is. If you want to push your point of financial sense, purchase a car that's over 4-5 years old, where the highest years of depreciation have passed it. Hopefully something reliable and you would have no car payment and a working car. Don't tell me purchasing a 30k+ car is a "good" financial decision, spare me the nonsense.

You want to talk finance and making a good decision. Let's say you buy for 30k, finance it over 5 years at 3% or less paying less than 1k interest the first year, put the 30k into mutual fund at medium risk 5-6% return, you made 1500-1800 on that return. I've had medium risk return as high as 10%, some loose, but I can always take my money back, vs a trade in or trying to sell you car to get your money back? I can go on, but I think you get the point, hence Id rather finance and keep capital in my pocket or investing it, given the interest rate makes sense.


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