All you need to do is limit yourself. You can't take $$ with you when your gone, but for those us with family you want to make sure they are taken car of and not leave them to pay off your debt. I would finance a car for 5 yrs and pay a little extra each month. I did it with both my 93 and 97, I paid the 93 off in 3 1/2 yrs and the 97 in 4 yrs. Now I got a mortgage and other responsibilities so I am not going to run out and buy a new mustang. Not practical right now. I wait and see what happens. Besides it is almost time to pick up a new daily driver so, priorities come first then the toys.
Problem with new mustang
- Thread starter spanky442
- Start date
SVTdriver said:
First of all, it would not be $800 for me cause he subtracted my thirty percent from sticker. I never pay sticker for anything. I know there is four or five thousand to be had off sticker on any car over 25k. More on cars costing 30k plus. Even so, $800 hundred spread over three years is not bad. Its only $22 dollars a month. For some, its better to have the 25k in a fallback account earning some interest. It all comes down to each persons comfort level. There are alot of ways to finance to accomplish different goals. For example, I finance my cars for five years, but pay them off in two to three. That way if my wife or myself lose a job, we have a more managable note. We don't live beyond the means that one of our jobs can pay for. We save alot of money. Nobody had to teach me how to save money. It does not work anyway. My dad did have influence on my money habits, but I have two brothers that can't manage their money for crap. Most people I know finance themselves up to the eyeballs to have everything they want. They know they are in huge debt, but say you only live once. One guy said he would rather live in debt and have nice stuff now, than try to save and buy it cash. You can't teach a guy like that to save money, cause he knows he should but wants to keep up with the neighbors.
shatner saves said:
Even worse is when I see people say, "I got 0 percent financing". Most dealers are offering huge discounts with rebates right now or 0 percent financing. Example, recently dealers in Houston were offering Suburbans for 12,000 offf sticker. Some were offering 8,000 off sticker on trucks. Or 0 percent. If you pay sticker and get 0 percent, it comes out more expensive than if you take the discount and rebate and get 3% financing. I say 3% cause my credit union offers 3 and sometimes 2.5%. Most people don't look at the specifics, so they turn debt into worse debt.
SVTdriver
Founding Member
I realize that some people do try to keep up the their neighbors. But I think to classify people into that is a bunch of BS. I didn't think about anyone else but me. When I bought my Cobra. I liked it and so I bought it. And I disagree with not being able to teach someone to save money. If the person really wants to learn and discipline themselves enough. Then it is possible.
mp67 said:
I wasn't implying that you purchased cars at MSRP, I was just throwing numbers around.
As for the incentives...
I believe that's a side effect of the current economy. The last 2 years were a very good time to be in the market for a new car. Take a look at any dealership, at least the ones I've seen, and you see lots jammed with cars.
When the economy improves to the point that people are tripping over themselves to get back into the dealerships again, The huge rebates, 0% financing, kiss-your-ass-and-call-it-ice-cream attitude at the dealerships will quickly vanish.
shatner saves said:
Its true that it has been easy to buy at a discount recently, but if you bargain hard even in good times and show them you are willing to walk away from the deal at anytime, even over an extra $100 dollars you can do well. Example: In 1990 I bought a new 5.0 that stickered for a little over 16k. My dad went with me and we had them down offering the car to us for 13,600, which matched an ad in a larger dealership that was up in the city. My dad said, if you can't give us another $200 dollars, then we can't do the deal. The guy had to check with his manager and of course we got the car. Now, tell the sales guy not to even tell me what he can get off of sticker but that I will give them $500 over their cost, and if they don't agree then I walk.
The thing about the new mustang is that Toyota just passed Ford as the number two car company. Ford will be willing to offer incentives on all of their models to try and get that back.
SVTdriver said:
Key words is that if they want to learn. My post said that the examples I gave did not care. They do not want to save their money, they want nice stuff right now, even if they are in major hock. The one guy told me "I wish I could save money, but I have too many notes to pay". He had just built a 250k house, and had a $700 a month car note. Then he tells me about his new big screen. He walked into the audio store and told them he needed credit to buy a new tv. They said they would give him 1k. He said he did not see any tv he could buy for that. They came back a few minutes later and said they could get him 5k. He spent every dime and had to give them a check too. Now he was already having trouble making his bills before that, but he added another one. You can't teach someone like that, cause he don't want to learn.
4point6
New Member
ANYONE with a job back in the 60s(even just pumping gas) could buy a brand new Mustang V8. now its usually someone done with college with a good job.
Or someone who is dumb enough to want to have a $400 to $500 a month car payment that only makes $400 to $500 take home pay each week. I got a friend just like that and he's always broke because he wants the good things in life and he cannot afford them. He likes to live beyond his means. He bought a brand new leftover 98 Mustang V6 and got a 7 year loan on it. He got the loan at a high interest rate because his credit was not that great and ended up paying $472 a month for 7 years. He's owned the car since Feb. of 99 and just refinanced the car for 3 years to lower his payments to $300 a month. He only makes $375 per week takehome pay and has to work 55 to 60 hours a week in order to take home $500-$550 each week. He pays $575 a month rent and is trying to pay his weekly bills. At the end of the week he's left with very little if not nothing. And the real funny thing about all this is that he just bought a brand new house for $130,000 that's being built for him. He only put $500 down for his house and he's going to finance the rest of the balance. So, he'll now have a $1,200 a month mortgage by the time he passes papers on his new home. People like my friend who want all the nice things in life need to be making more than $500-$550 takehome pay each week in order to live like the way they do. They all live beyond their means and end up having trouble paying their bills because they have $400+ a month car payments and $1,200 a month house mortgages. These types of people think that they are getting ahead, but they are nothing but morons who have dead end jobs that are just trying to get by. My friend is a good example of one. 
mp67 said:
That's pretty staggering. Yours and Ron's example (while being kind of extreme: 7 year note, WOW!) are good examples of what I've been talking about. If you look at a specific aspect, it doesn't seem that bad. Taken as a whole, you realize what a mess some people are in.
I am from a mining town. The mine is the biggest and highest paying employer. For a lot of years, the pattern was the same: kid has an "in" and waits till he can legally drop out of school and go to work there. 1 month later he is driving a brand new car. Since he is working for the company and is in the union, he can get a loan for whatever he wants. This contiunues....
The last time they had a strike, It lasted exactly 2 weeks and they voted to go back to work with basically the same contract they had before. Why? because in another week, the car payment, the house payment, the boat payment, the cottage-at-the lake payment, the snowmobile payment, etc were all due. As a group, they have deystroyed their collective barganing power with the lifestyle they lead and they can't find anything else because they have no transferable skills.
I don't know. Maybe I just don't have a lust for things that would make me spend somone elses money to have them.
You are 100% RIGHT Shatner.
Most people want everything and they want it "right now". Like my friend who bought his 98 V6 Mustang with a whopping $472 per month payment for 7 years. I once asked him WHY he didn't buy something else that was more affordable and he told me that he wants to be able to "like" what he drives. He would rather pay an extra $200 a month to buy something that he "likes" to drive when he cannot afford to. This same friend of mine bought his wife a used Infinity for $18,000 about 2 1/2 years after he bought his Mustang. His monthly payment for the Infinity was $350 a month with a 5 year loan. Just before he bought the used Infinity, he had just bought a brand new home for $72,000 with his wife and was paying over $950 a month for the mortgage. I remember that I once asked him to buy something that cost $100 that would benefit him in his life and he told me that he didn't have $100 because he needed the money to close and pass papers on his new hime. I said WTF to myself. Anybody who doesn't have $100 shouldn't be buying a $72,000 brand new home. He ended up owning the home for less than 2 years up until 2002. Him and his wife got a divorce. His wife was just as bad as he was. She was working and only making $350 a week takehome pay just like he was. She was complaining that he wasn't making enough money and that's why she divorced him.
The whole moral behind this true story is that both of these people were living beyond their means. They wanted the nice house, 2 nice cars and lots of money which they both were not making. Right now, my friend is making the same exact mistake as he did back 4 years ago. He's getting himself into bigger debt by building a bigger house than what he used to own. The money which he currently makes is not enough to sustain his bills. In my opinion, I think that he will have a hard time making ends meet if he has to pay $1,200 a month mortgage on his new house. Right now, his new girlfriend is offerring to fork him over $600 a month to cover half of the mortgage and live in the house with him. If he ever gets into a fight with her or if she ever leaves him, he will definitely have a very hard time paying his mortgage bills on only $500-$550 a week takehome pay.
Most people want everything and they want it "right now". Like my friend who bought his 98 V6 Mustang with a whopping $472 per month payment for 7 years. I once asked him WHY he didn't buy something else that was more affordable and he told me that he wants to be able to "like" what he drives. He would rather pay an extra $200 a month to buy something that he "likes" to drive when he cannot afford to. This same friend of mine bought his wife a used Infinity for $18,000 about 2 1/2 years after he bought his Mustang. His monthly payment for the Infinity was $350 a month with a 5 year loan. Just before he bought the used Infinity, he had just bought a brand new home for $72,000 with his wife and was paying over $950 a month for the mortgage. I remember that I once asked him to buy something that cost $100 that would benefit him in his life and he told me that he didn't have $100 because he needed the money to close and pass papers on his new hime. I said WTF to myself. Anybody who doesn't have $100 shouldn't be buying a $72,000 brand new home. He ended up owning the home for less than 2 years up until 2002. Him and his wife got a divorce. His wife was just as bad as he was. She was working and only making $350 a week takehome pay just like he was. She was complaining that he wasn't making enough money and that's why she divorced him.
The whole moral behind this true story is that both of these people were living beyond their means. They wanted the nice house, 2 nice cars and lots of money which they both were not making. Right now, my friend is making the same exact mistake as he did back 4 years ago. He's getting himself into bigger debt by building a bigger house than what he used to own. The money which he currently makes is not enough to sustain his bills. In my opinion, I think that he will have a hard time making ends meet if he has to pay $1,200 a month mortgage on his new house. Right now, his new girlfriend is offerring to fork him over $600 a month to cover half of the mortgage and live in the house with him. If he ever gets into a fight with her or if she ever leaves him, he will definitely have a very hard time paying his mortgage bills on only $500-$550 a week takehome pay.
shatner saves said:
I know exactly what you are saying. My town is a refinery town. I am a salary non-exempt worker. Meaning, I get ot pay when I work it. I don't live beyond what I can afford on straight time. So when I make ot, its gravy. I am able to save a lot of money this way. Then I can buy nice things for cash a lot of the time. There are tons of people where I work though that live right up to their ot pay salary. When they don't get the overtime pay, life is rough on them. They typically have two car notes at a time, and alot of times these are $500 a month or more car notes. That puts them at $1000 or more in notes plus insurance. Their wives typically drive high $ suv's, while they drive supercab, crewcab type pickups. They build expensive homes, and buy boats, fourwheelers, and deer leases. At least most of them are smart enough to contribute a good % to our 401k plan. There is a lot of money to be made at a refinery in ot, and I could live well beyond what I am living now, but my wife and I agree not to live beyond what one of our salaries would support. I drive a 95 pickup and my wife drives a 2000 avalon. I will get a new pickup this year and make it go another 9 or 10 years. My wife won't get a new car for at least 2 more years. Some of these people see me buy nice stuff in cash and say stupid stuff like "If I had your money". The funny thing is they do, but it goes every month to payments. I was actually one of the lowest persons on the ot list last year. I'm just determined that I will put my kids through college, retire early enough to enjoy it without being sick and fragile, and always have a fall back stash in case of disaster.
I don't belive it Ron Jeremy is actually giving some good financial advice. 
My $02.
The only thing you should borrow money to buy is something that will appreciate in value, like your house, a buisiness that can turn positive cash flow, a good real estate investment, etc.
NEVER borrow money to purchase something that will go down in value, like a car, a vacation, a 40" plasma TV, etc.
Too many people in their 20's get into so much debt that they become slaves to their job and can never dig themselves out.
My $02.
The only thing you should borrow money to buy is something that will appreciate in value, like your house, a buisiness that can turn positive cash flow, a good real estate investment, etc.
NEVER borrow money to purchase something that will go down in value, like a car, a vacation, a 40" plasma TV, etc.
Too many people in their 20's get into so much debt that they become slaves to their job and can never dig themselves out.
SVTdriver
Founding Member
351CJ said:The only thing you should borrow money to buy is something that will appreciate in value, like your house, a buisiness that can turn positive cash flow, a good real estate investment, etc.
NEVER borrow money to purchase something that will go down in value, like a car, a vacation, a 40" plasma TV, etc.
Too many people in their 20's get into so much debt that they become slaves to their job and can never dig themselves out.
I can only sort of agree with the house financing. If you are not renting the house out. Then you really aren't gaining that much. While the house does appreciate calue. The amount of interest over time. Is a real killer. A guy I worked with bought a $180k house. If he goes the whole 30 yrs on the loan. He ends up spending over $300k. And this was with the low mortgage rates.
SVTdriver said:
Factor in a modest 5% appreciation rate per year, and his house will be worth alot more than 300k in 30 years. Plus, if he just pays about 100 dollars extra a month on his note, he can knock it down to about 22 years. The fact is not many people can afford to pay cash for their house, and you will get nothing in return for 30 years of renting.
A house is a good investment with certain requirements. A good neighborhood and location are always important. Doing some reasearch about pricing. Learning what options add to the bottom line is important. Is that extra room worth 10 grand? It depends. Just like shopping for a car some haggling is necessary to get a good deal.
In any case, it is better than renting. Figure that the taxes break even every year. You pay property tax, but you get it back on your income tax. Plus, you get a break on car insurance. There is also the intangible, you can actually change things if you want. Paint, carpet, put a hole in the wall, etc.
In any case, it is better than renting. Figure that the taxes break even every year. You pay property tax, but you get it back on your income tax. Plus, you get a break on car insurance. There is also the intangible, you can actually change things if you want. Paint, carpet, put a hole in the wall, etc.
My parents have been in their house for 50 years. They paid $12,000 for it and then spent $1,000 putting on a garage and later $2,000 for a small addition. If they sold their house tomorrow they could get at least $170,000 for it, maybe as much as $200K. That's a 5% tax free appreciation.
In the 20 years I've been in my house it has almost tripled in price.
Another thing to keep in mind is that once you have a good amount of equity in your house you can get a home equity loan if you need cash. Home equity loans carry the lowest rates you can get as an individual and they are tax deductible. I have an equity line of credit that I can tap if I need to @ 3.00%. With the tax deduction benefits the net rate of my ELC is more like 2%. Tell me another way to get a loan for up to 10 years at a net rate of 2%?
Like MP67 said, I made extra payments early on in my mortgage and paid it off in 15 years. When I bought the house I drove used junks and put any money I had in my house. That was the best decision I ever made. Now, within reason, I can have any toy car I want and pay cash for it.
In the 20 years I've been in my house it has almost tripled in price.
Another thing to keep in mind is that once you have a good amount of equity in your house you can get a home equity loan if you need cash. Home equity loans carry the lowest rates you can get as an individual and they are tax deductible. I have an equity line of credit that I can tap if I need to @ 3.00%. With the tax deduction benefits the net rate of my ELC is more like 2%. Tell me another way to get a loan for up to 10 years at a net rate of 2%?
Like MP67 said, I made extra payments early on in my mortgage and paid it off in 15 years. When I bought the house I drove used junks and put any money I had in my house. That was the best decision I ever made. Now, within reason, I can have any toy car I want and pay cash for it.
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