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anyone else notice this correlation?

Senior Contributor

Re: anyone else notice this correlation?

I just need something cheap and mechanically sound.

 

Driving and cars aren't something I really enjoy unless it's a Jeep. Once I live close to work and everything else is nice and neat, I'll pick up a used one. At these gas prices the cost of driving one would be too high.


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
Goal Score: 776 FICO


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Message 11 of 20
Valued Contributor

Re: anyone else notice this correlation?

I have noticed what you are referring to as well. Spending big money on a car when they have other financial problems. I am okay with somebody buying a luxury car if they clearly have the means, but usually there are better deals out there. I know somebody who had the cash to buy anything on the market, and instead leased a modest A6. It is rarely logical to go out and spend a large amount of money on a car that will quickly lose its value.

 

Instead of my subaru I almost bought a g37x for $7k off MSRP. That to me would have been a luxury car, but I didn't need it. 

 

My requirements for a vehicle:

AWD

Always has good equity

Will never leave me stranded

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Message 12 of 20
Established Contributor

Re: anyone else notice this correlation?

I also see the trend of kids fresh out of school buying cars out of their reach. For one, they'll probably be amazed at just how far their paycheck goes...not much. And two, don't they know how much that wasted money will be in 40 years?

 

I have much better things to do with my money than spend it on a depreciating piece of metal. Maybe when I have all my money together I'll buy my dream car...a BMW


Starting Score: 515
Current Score: EQ08 711 EX08 731 TU08 735
Goal Score: 740+

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Message 13 of 20
Frequent Contributor

Re: anyone else notice this correlation?

I can understand how rediculous it is earning $20,000 a year with a $50,000 vehicle with a $300 monthly payment where 50+% of it goes to interest, but you'd have to realize 9 of 10 people will always look at the amount of the monthly payment instead of the interest rate.

 

Whatever floats their boat though. I wouldn't tell another man how to spend his $$$. It just separates the financially responsible from the irresponsible.

 

Also to a lot of people, their vehicles are a lot more than just transportation.

   Total CL: $177,300
 Highest CL: $10,000
  Average CL: $6,300
 Total PLOC: $26,000
     AAoA: 3 yrs & 11 mos
         Utilization: 7%
Inq: 11 (EQ) | 10 (TU) | 9 (EX)
         Derogatories: 0
         
Message 14 of 20
Valued Contributor

Re: anyone else notice this correlation?


GMCSierraDenali wrote:

I can understand how rediculous it is earning $20,000 a year with a $50,000 vehicle with a $300 monthly payment where 50+% of it goes to interest, but you'd have to realize 9 of 10 people will always look at the amount of the monthly payment instead of the interest rate.

 

Whatever floats their boat though. I wouldn't tell another man how to spend his $$$. It just separates the financially responsible from the irresponsible.

 

Also to a lot of people, their vehicles are a lot more than just transportation.


i can honestly say when i got my car, i really did look at the payment(insurance as well). since my car was on is last limb, i basically told the guy im already sold on the car, i did the research, lets make a deal. 

 

BUT with the advice on HERE, and my credit being in decent shape, i quallified for the 0% 2 years or .9 3-5 years

 

going from 80 a month, for your (car insurance+no payment) to almost 500 a month is a scary thought and something you cant consider lightly. 

Current: Discover Fico 709 3/15 Walmart Fico 743 4/15

Inquiries (24 Months): EQ 6 TU 1 EX 6 | Most Recent: 4/09/2015
Over 12 Months:9


2015 Goals:
Lower Utility
Earn Cash Back

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Citi DC $10,000
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Message 15 of 20
Frequent Contributor

Re: anyone else notice this correlation?

Oh I agree, my very first car payment I looked at the car payment amount first & totally ignored the interest rate. I feel like that's totally normal if you're not conscious about your credit status. It's a good thing I don't think like that anymore. Lol.
   Total CL: $177,300
 Highest CL: $10,000
  Average CL: $6,300
 Total PLOC: $26,000
     AAoA: 3 yrs & 11 mos
         Utilization: 7%
Inq: 11 (EQ) | 10 (TU) | 9 (EX)
         Derogatories: 0
         
Message 16 of 20
Established Contributor

Re: anyone else notice this correlation?

My criteria is safety and seats.  Having had two back surgeries, I need really, really good lumbar support and multifunction control seats....which may not push into "luxury" but not usually the least expensive model....and I love my heated seats.  Driving an 8 year old Jetta purchased new, 162000 miles and I still love.  Was almost double the cheapest version...but my back thanks me every day.  I think there used to be more of a correlation between expensive and safety...don't think thats still the case.


Starting Score: EQ 679, TU 697
Current Score: EQ 680, TU 672
Goal Score: EQ 720, TU 720


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Message 17 of 20
Super Contributor

Re: anyone else notice this correlation?

I can empathize.

 

If there's one area where I lose all semblance of fiscal discipline, it's cars.  Loved cars since I was young with my first when I was 17, and will always love and spurge on cars.

 

 

Message 18 of 20
Frequent Contributor

Re: anyone else notice this correlation?

I noticed this too. People on here trying to figure out how to pay everything but driving expensive cars . I have never had a car loan always paid cash . If I had one it probably would have gotten repoed . I could easily make one now but would rather not I just buy off craigslist I drive an old truck but just got my fiancee a 06 civic to us its nice and we are happy with it and its paid for. If I bought at a dealer probably would have costed me at least 4000 more plus intrest. Guess it just depends on people's priorities.
Message 19 of 20
Highlighted
Senior Contributor

Re: anyone else notice this correlation?

I'm driving a '96 Saturn wagon, LOL!


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
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Message 20 of 20