How much is your car payment?

[07Burb]

Mr. Soulsea, my gasp isn't at the total cost but at the monthly bill. I'd dread making a $900 a month payment on any ride. I'd much rather just pay for it up front over that dreaded monthly payment that is very close to a lot of people's house payment. also, if you were to follow Dave Ramsey (and other similar folks) you'd also understand the point of view of falling over at that kind of monthly payment it's shocking to me but everyone has their own comfort zones.

 

[Yuko04]

Mr. Soulsea, my gasp isn't at the total cost but at the monthly bill. I'd dread making a $900 a month payment on any ride. I'd much rather just pay for it up front over that dreaded monthly payment that is very close to a lot of people's house payment. also, if you were to follow Dave Ramsey (and other similar folks) you'd also understand the point of view of falling over at that kind of monthly payment it's shocking to me but everyone has their own comfort zones.

HOLY SHIT...You took the words right out of my mouth! Dave Ramsey? No shit I though that was a MN thing!
Now look a man makes his own, and paves his own, I get it, But DR saved my Life.
It is very interesting seeing what fellow members pay though. As for me,4 vehicles...wifes daily,my daily,show minitruck and YUKON to pull it.....NO PAYMENTS! Only payment I have is my house....

 

[randuff]

I finance vehicles for a living and you would be amazed at some of the payments these people take.

For the record my payment is $600x60 @ 0%

 

[Freedom Motorsports]

2.9% 60 months @ $363 or so. Nothing on the Dmax, and $260 on the Colorado. With $103 per month for full coverage on all three which I believe will change dramatically when my son turns 16 in November.

 

[R_Sharpe]

$250/month for gas. I've been blessed with the ability to pay cash for my truck .

 

[mattah]

I finance vehicles for a living and you would be amazed at some of the payments these people take.

For the record my payment is $600x60 @ 0%

Man I can only imagine.

 

[soulsea]

Mr. Soulsea, my gasp isn't at the total cost but at the monthly bill. I'd dread making a $900 a month payment on any ride. I'd much rather just pay for it up front over that dreaded monthly payment that is very close to a lot of people's house payment. also, if you were to follow Dave Ramsey (and other similar folks) you'd also understand the point of view of falling over at that kind of monthly payment it's shocking to me but everyone has their own comfort zones.

You're slightly missing the point Jacob.

Just like house payments, one cannot judge anything simply by seeing a monthly payment amount. It's entirely possible that a person paying $450/mo is paying more for the same truck than another person who's paying $900/mo for it.

Too many variables such as downpayment/trade in, apr, length of term, deal on the truck itself, come into play.

At the end of the day a $900/mo payment is only 'a lot' if it's beyond the means of a person ... for some folks, a $300/mo payment could easily evoke the same gasping if that is a lot relative to their income/wealth. ($900/mo to a person with a $250K a year income is obviously relatively less that $300/mo to a $30K a year income). I promise you that there are a lot more folks in the latter category than the former ... but their gaspworthiness is less evident.

 

[07Burb]

***GASP***



I completely agree, Serge. my intention is not to gauge a persons wealth based on their payment and what percentage of that payment is on their budget. Just expressing my feeling toward the size of payment regardless of wealth or annual income.

 

[soulsea]

***GASP***



I completely agree, Serge. my intention is not to gauge a persons wealth based on their payment and what percentage of that payment is on their budget. Just expressing my feeling toward the size of payment regardless of wealth or annual income.

 

[07Burb]

 

[Ben]

Zero

 

[Big Bad Allis]

You're slightly missing the point Jacob.

Just like house payments, one cannot judge anything simply by seeing a monthly payment amount. It's entirely possible that a person paying $450/mo is paying more for the same truck than another person who's paying $900/mo for it.

Too many variables such as downpayment/trade in, apr, length of term, deal on the truck itself, come into play.

At the end of the day a $900/mo payment is only 'a lot' if it's beyond the means of a person ... for some folks, a $300/mo payment could easily evoke the same gasping if that is a lot relative to their income/wealth. ($900/mo to a person with a $250K a year income is obviously relatively less that $300/mo to a $30K a year income). I promise you that there are a lot more folks in the latter category than the former ... but their gaspworthiness is less evident.

Exactly! My $904 payment is a no brainier. I could pay cash too. At 0% it doesn't make sense to use my money for almost a 60K vehicle. My accountant backed it up with showing benefit at the end of the year for a vehicle I needed anyways. Of course I didn't need a Denali but I wanted that package because it's nice to have. I think the value I get for the $904 payment is fine. It was almost $1800 for the additional warranty and $800 for the Blizzaks added to the total which I also received the 0%.

 

[RydnDrty]

$770/ month for 72 months...gotta refi in a coupleof months...trying to build my credit back up...

 

[soulsea]

Also, for the sake of bean counting ...

A $0/mo payment because someone paid up front for their ride doesn't mean that a person pays $0/mo for their truck.

Let's say hypothetically that I paid $40K cash for the HyHoe a year and three months ago, and I sold her for $34k. Although I had no payments to make, $6000/15mo = $400, which was my de facto monthly purchase cost towards the truck, but the only difference is that I paid all those payments up front.

Interest was still being earned through the investment of that $6000 by whomever received it, and paid by me in the form of me not earning interest on that money.

This is to again emphasize how even a $0/mo payment on its own, really is no indicator as to real cost, but is confined to cash flow considerations.

Time for coffee ...

 

[felixgun]

Lol. Alright serge geez!!!!

 

[Denali0229]

I understand what Serge is saying. The monthly payment is not an indicator of what the car costs. Down payment, interest rate, loan term, etc. is the real indicator. Someone with a $300 payment versus a $900 payment can get the same car in theory with the right down payment, interest rate and loan term. I think it all depends on your threshold to take on debt and monthly payments. My threshold was $500. But when I started looking, I thought it was $300-350 Somehow it ballooned to $500 by the time I got to the closing table I personally don't want to take on a lot of debt.

 

[soulsea]

Lol. Alright serge geez!!!!

 

[Peaches]

Here's a good example of living beyond your means. Recently an acquaintance decided to purchase a new Sierra. Sticker was $45,000 or something to that effect. They traded in their existing truck (which wasn't old or paid off), reducing the price to $38,000 after existing rebates. Monthly payment is $560 a month for 78, but possibly more months and 6%.

Annual income? $23,000.


We're all hedging our bets on when they'll file bankruptcy.

 

[Denali0229]

Just an FYI, for those of you getting 0% interest, that is definitely the right thing to do. For example, say you have $50,000 cash to spend on a vehicle. You can finance the truck at 0% for 60 months and pay $833/month and take say $45,000 (put the rest in reserves) and invest in a CD or bond that pays say 2-3%. Say you got 2.5%, at the end of five years you will have $50,913, or $5,913 more than you started with (assuming no financing or bank fees). That will buy you a nice supercharger! If you pay cash for the truck, you will slowly recouple that investment by not paying a monthly payment. But a dollar is worth more today than it is tomorrow so it's better to have the cash and invest today. Sorry, I majored in Finance and crunch numbers all day at work. But it's just something to think about if you are fortunate enough to get an offer for 0% interest. I wish I did!

 

[07Burb]

Well, this convo has suddenly turned popcorn worthy overnight