Monthly payments

[Doubeleive]

They’re nuts thinking they’ll get 40%.

they won't but they can shut everything down trying

 

[Steebu]

It's negotiation ... they ask for 40%, corporate counters with 15%, it ends up being 25%.

 

[Sparksalot]

It's negotiation ... they ask for 40%, corporate counters with 15%, it ends up being 25%.

And new vehicles become unobtainium.

 

[Banks22]

And new vehicles become unobtainium.

Yea seriously the first vehicles to get price increases cuz of this will be the big 3 suvs

 

[DenaliCountry]

Yeah I’ve done it but some dealerships I talked to it didn’t match up and everytime I say I did the calculations,they politely tell me it’s just a loan calculator online lol. I know they try to add on a percent for financing but leasing should be a straight number from the leasing company. But I asked for leasing and finance deals and seems like the few dealers I talked to for basically same pricing is different

I have a spreadsheet I made that I can send you that will get you within a few $ when financing. Just plug in purchase price, license $, Tax Rate, trade, amount owed on trade, down $, etc. and then update with your applicable rate and term and it will tell you what you are going to pay.

PM your email and I will send it to you.

 

[the 18th letter]

And new vehicles become unobtainium.

Become I cant afford a new one of these trucks now lol.

 

[dc968]

If you guys are paying that much in insurance something is critically wrong.

Having a car payment doesn't mean you are irresponsible. You have to make the debt work for you. If I can get a lower interest rate on the car payment compared to how much investment gains I can get by keeping my capital in my own investment accounts, then it would make more sense to keep my money.

Usually I'm netting about 10 to 20% a year on investments. If my interest on the loan is less than that it makes sense to keep my money and pay the car note.

Money is getting more expensive these days as base interest keeps rising so for some it makes sense to pay it off if they can't make more on their own capital..

Agree that having a payment doesn’t mean you’re irresponsible, but you also can’t bank on 10-20% investment returns going forward. The stock market has been irrational the past 10 years and always reverts to long term norms. Buckle up.

 

[DuraYuk]

Agree that having a payment doesn’t mean you’re irresponsible, but you also can’t bank on 10-20% investment returns going forward. The stock market has been irrational the past 10 years and always reverts to long term norms. Buckle up.

Its not all just in the stock market. I average 10 to 12% during the norms.

The irrationality of the market during the pandemic and during the stimulus made me way more.

real estate has always been the name of the game. Even during the downturns its one of the safest bets out there.

The days of cheap money are coming to an end until the next cycle.

 

[vcode]

that's what I am wondering right now used car prices seem to be back to reality at least somewhat but if they strike that's not going to help at all

Used car prices here in WI. are still insane. $50K for a 2019 Tahoe with a lemon title.....

 

[Doubeleive]

Used car prices here in WI. are still insane. $50K for a 2019 Tahoe with a lemon title.....

seeing 2020's here for low 40's, 2015-2016's in the low 20's even a number of 2021-2023's are on the market 50-60 up to 90's just depends on the trim and mileage
and these are all rust free vehicles

 

[91RS]

Depends on interest. But I’d say 1200$ 72 months

Sorry, but this is insanity. I can’t fathom spending that kind of money for a Yukon that will probably be worth $30k by the time it’s paid off. That’s more than my house payment! Buy something used and save a pile of cash.

 

[Polo08816]

How about living within one's means and NOT worrying about a payment? Set aside money based on what you can afford with your monthly budget. Collect that and see what you can afford given your circumstances.

If this won't work, and you can't live without payments, then I'd go for something you can put a majority down on, have a small payment, and then pay off ASAP.

Debt free is the way to be. Proud owner of a beater 2008 Denali, and a nice 2017 Denali for the wife. Sacrifices pay off.......FOMO sinks a person.

Everyone's situation is a little different so I won't pass any judgment. For sure debt free is the way to be.

There are so many different ways to slice this. But at the end of the day, does anyone really want the pain of having a $1,200 monthly payment? That's a *lot* of money. We're already hearing that credit card debit just crossed 1 trillion dollars so I'm hoping folks aren't fomo'ing into a purchase.

Yeah, I can't imagine the position someone needs to be in that requires them to take out a car loan on a vehicle this expensive. I would do a 36 month auto loan as long as it was 1% or lower provided I had enough cash to buy the vehicle outright in the first place.

Agree that having a payment doesn’t mean you’re irresponsible, but you also can’t bank on 10-20% investment returns going forward. The stock market has been irrational the past 10 years and always reverts to long term norms. Buckle up.

Its not all just in the stock market. I average 10 to 12% during the norms.

The irrationality of the market during the pandemic and during the stimulus made me way more.

real estate has always been the name of the game. Even during the downturns its one of the safest bets out there.

The days of cheap money are coming to an end until the next cycle.

I find that people tend to exaggerate their average gains. Bernie Madoff had an unusually consistent return of around 10% per year.

 

[tjs3922]

Payments.... It is so individual based. I never take my cash out to buy cars/trucks. My Yukons both have payments and that is what I want. My Yukons both have approx 30-40% equity, so that makes it easy to trade or get out if I have to. I have followed this strategy for the last 20 years and have been mentally happy with it. Do I always come out on top? dont know. I will tell you that low mileage Yukons, Tahoes, Burbs have been good to me. I never keep my rides more than 30-36 months.

What is an absurdly high payment to one family is pocket change to another. To me it ends up being whatever makes you happy while keeping your financial well being looked after.

 

[steiny93]

Yeah I’ve done it but some dealerships I talked to it didn’t match up and everytime I say I did the calculations,they politely tell me it’s just a loan calculator online lol. I know they try to add on a percent for financing but leasing should be a straight number from the leasing company. But I asked for leasing and finance deals and seems like the few dealers I talked to for basically same pricing is different

If you know these 3 items the payment will be exact to the dollar:
- amount financed
- interest rate
- term

When you negotiate talk in terms of "out the door" numbers which are line itemed. IE, what do you need to pay to leave with the new vehicle (after trade / tax / everything). Easiest way to compare apples to apples.

Anyone that says the calculators are off is either lying or doesn't really understand what is going on. These calculators are exact, the funny business is in the inputs.

For example, if you work with a dealer, new car is $80k, your trade is $50k, you will assume that you need to finance $30k plus tax of say $8% at 5.99%. But wait, the dealer didn't get to add in documentation fees, title fees, destination charges, paint protection etc which add up to another say $5k. Talk in terms of "out the door" numbers and have them line item them, suddenly all the numbers will make sense.

The worst thing you can do is buy a vehicle without understanding where every dollar is going (ABSOLUTELY DON'T DO THAT!); ask questions until you understand the equation, otherwise you'll end up with $3k clear stickers on your door edges .

 

[TollKeeper]

Typically, you can expect 200 dollars per 10000 spent, plus interest.

With the market crashing right now, repo's going crazy...
The fed raising interest
The fed talking about raising interest again
Now is not the time to buy until the market reflects the abundance of debt.

77000
-5000
72000

The following do not include Sales Tax, or other stuff that @steiny93 mentioned
1690.59 at 5.99 interest at 48 months
1391.63 at 5.99 interest at 60 months
1192.91 at 5.99 interest at 72 months

 

[randeez]

120 month loans...get them payments down homie

 

[wjburken]

120 month loans...get them payments down homie

While I was at the Iowa State Fair, I saw companies offering 84 month terms on financing riding lawn mowers.

 

[B-train]

Typically, you can expect 200 dollars per 10000 spent, plus interest.

With the market crashing right now, repo's going crazy...
The fed raising interest
The fed talking about raising interest again
Now is not the time to buy until the market reflects the abundance of debt.

77000
-5000
72000

The following do not include Sales Tax, or other stuff that @steiny93 mentioned
1690.59 at 5.99 interest at 48 months
1391.63 at 5.99 interest at 60 months
1192.91 at 5.99 interest at 72 months

Yikes! And yuck! Those numbers are higher than most of the mortgages I've had over the years.......and they appreciated in value in the end.

Very large Oof! when a good used one for less than half would probably do the same job.

 

[randeez]

Payments.... It is so individual based. I never take my cash out to buy cars/trucks. My Yukons both have payments and that is what I want. My Yukons both have approx 30-40% equity, so that makes it easy to trade or get out if I have to. I have followed this strategy for the last 20 years and have been mentally happy with it. Do I always come out on top? dont know. I will tell you that low mileage Yukons, Tahoes, Burbs have been good to me. I never keep my rides more than 30-36 months.

What is an absurdly high payment to one family is pocket change to another. To me it ends up being whatever makes you happy while keeping your financial well being looked after.

pretty much agree with this. no point in dropping cash on stuff that i can finance for a couple bux (not so true anymore)
i bought ctsv first kind of impulse buy through dealer credit apr wasnt bad...credit union kinda bitched at me and offered lower apr so in the process of moving the loan there i bought the subaru.
having them separated seemed fine but when it was all at the same bank i had nearly 100k in auto loans on the books and it gave me anxiety or whatever for a while just seein that number everytime i logged in.
i've paid off about 35k of it in the past year between the two loans and the number isnt so scary anymore ... im on the fence with just paying off the subaru loan so i dont have to look at it anymore.
its not that i cant afford it im just stuck in the broke mindset and if i dont have the cash to cover the loan, then i see it as a risk
prob wont get into that much debt anytime soon, any new vehicles will prob put enough cash in to get financing down under 50k.

 

[tjs3922]

pretty much agree with this. no point in dropping cash on stuff that i can finance for a couple bux (not so true anymore)
i bought ctsv first kind of impulse buy through dealer credit apr wasnt bad...credit union kinda bitched at me and offered lower apr so in the process of moving the loan there i bought the subaru.
having them separated seemed fine but when it was all at the same bank i had nearly 100k in auto loans on the books and it gave me anxiety or whatever for a while just seein that number everytime i logged in.
i've paid off about 35k of it in the past year between the two loans and the number isnt so scary anymore ... im on the fence with just paying off the subaru loan so i dont have to look at it anymore.
its not that i cant afford it im just stuck in the broke mindset and if i dont have the cash to cover the loan, then i see it as a risk
prob wont get into that much debt anytime soon, any new vehicles will prob put enough cash in to get financing down under 50k.

I hear you. We are pretty much on the same page. It is really what you are comfortable with. I am the point of life where a auto note doesn't bother me one way or the other, 10-15 years ago I was pretty concerned if I saw a big balance on auto loans.

I am always a little miffed when someone pontificates that there is only one correct way to own vehicles. There are many correct answers here.