topic Re: anyone else notice this correlation? in SmorgasBoard

anyone else notice this correlation?

j_casteel — Wed, 20 Feb 2013 21:52:38 GMT

People with low scores and/or past BK's post up about financing expensive luxury auto's? Most of the time for ridiculous terms!

Re: anyone else notice this correlation?

Shogun — Thu, 21 Feb 2013 18:05:04 GMT

No BK but my vehicle is 8 years old and paid for. I keep the DW in new vehicles, but my 2005 Cadillac still purs like she was new.

Re: anyone else notice this correlation?

Anonymous — Fri, 22 Feb 2013 11:57:06 GMT

Cars are a very emotional purchase, for some.

I believe there are times we try buying back a piece of our identity following a setback instead of really dealing with the grieving process. Houses, cars, relationships, shopping, etc... can be a part of it.

I don't know if there's any BK correlation but people with a significant negative item are going to get higher interest rates.

Re: anyone else notice this correlation?

Gunnar419 — Fri, 22 Feb 2013 12:09:30 GMT

I've noticed the same thing you have, OP. I have to bite my tongue sometimes to avoid saying, OMG, you're going to end up right back in the soup again!

Re: anyone else notice this correlation?

creditnocash — Fri, 22 Feb 2013 19:33:38 GMT

what do you consider luxury? alot of people tel me my car is luxury.

the worst part is financing a large amount on little down payment for an insane interest rate!

they got a feel for it and once they lose it they want it back and will sign their life away for it.

Re: anyone else notice this correlation?

j_casteel — Sun, 24 Feb 2013 15:05:14 GMT

definition of luxury vehicles can differ from one person to the next, but i'd say depending on the make and model a luxury vehicle is going to be relatively expensive compared to other makes and models, offer most all bell's and whistles, and be of a known expensive manufacturer. I see a lot of people having credit issues and the first they do is go out and finance a $50,000+ vehicle at 18% for 7yrs. To each their own, but come on they must've learned something from what they went through.

Re: anyone else notice this correlation?

E150GT — Sun, 24 Feb 2013 23:10:38 GMT

Ive not noticed any correlations but I see a lot of people on here that are trying to get approved for expensive vehicles are willing to pay. Now thats fine if you want to pay a huge amout of money to drive but it makes no sense to me. I did buy a new car, but I bought the cheapest model mazda offered besides the one without air conditioning.

Re: anyone else notice this correlation?

starry1 — Sun, 24 Feb 2013 23:14:06 GMT

No, because I was just discharged last week and financed a 2011 Dodge Caliber since the only other vehicle I have is 14 years old and has been sitting in the driveway since last May with a busted transmission. Yes, my interest rate is ridiculous, and I hope to refi with Navy towards the end of this year.

Re: anyone else notice this correlation?

Anonymous — Sun, 24 Feb 2013 23:26:52 GMT

Hmmm, as another posted, I think the definition of luxury (in some respects) is subjective. There are some people who think anything over 25k is luxury (which I don't). Also, there are some luxury manufacturers who have some vehicles that are less expensive - example, for most people they would consider a Mercedes Benz a luxury vehicle; however, their C-class Benzes are in the mid to high 20's range,I don't consider that price range to be in the "luxury" price range. For me, there are certain brands that are luxury to me, even if they have some lower priced models in their inventory.

Needless to say, I filed BK in Oct 2010, and my car has been paid off since 2007 (I bought my car brand new, in late 2002), and I don't plan on getting a car anytime soon, and when I do a. it won't be brand new, and b. I will be paying at least 50% down. I've never purchased a car without putting at least 20-25% down.

Re: anyone else notice this correlation?

Anonymous — Mon, 25 Feb 2013 02:04:17 GMT

What I don't understand is how some people are willing to pay a ridiculous interest rate on a used car like 18% because they had no down payment, but can somehow manage to come up with $2,000 to $5,000 in cash to upgrade the stereo and buy custom rims.

When I was younger and that movie "Fast & Furious" first came out, I knew several people who spent over $20,000+ on modifying and "upgrading" their vehicles, but owed a lot less on the remaining principal of their auto loan. They would have been better off just paying off their car's principal. To each their own.

Re: anyone else notice this correlation?

Anonymous — Mon, 25 Feb 2013 05:26:20 GMT

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.

Re: anyone else notice this correlation?

Anonymous — Thu, 28 Feb 2013 07:22:01 GMT

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

Re: anyone else notice this correlation?

Simply827 — Wed, 27 Feb 2013 19:36:28 GMT

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

Re: anyone else notice this correlation?

L0RDAVENTAD0R — Thu, 28 Feb 2013 07:04:12 GMT

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.

Re: anyone else notice this correlation?

creditnocash — Thu, 28 Feb 2013 14:28:41 GMT

@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.

Re: anyone else notice this correlation?

L0RDAVENTAD0R — Thu, 28 Feb 2013 18:20:02 GMT

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.

Re: anyone else notice this correlation?

demi — Thu, 28 Feb 2013 18:36:13 GMT

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.

Re: anyone else notice this correlation?

Open123 — Sun, 10 Mar 2013 15:19:21 GMT

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.

Re: anyone else notice this correlation?

twall06 — Sun, 17 Mar 2013 09:02:33 GMT

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.

Re: anyone else notice this correlation?

Anonymous — Sun, 17 Mar 2013 13:25:48 GMT

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