2nd Evo and the story behind it
Sad thing is you did the right thing and being my car and house are both paid off along with all my other bills I still struggle on little things. Thing is you have no more payments but yet we all still pay property tax. I think it is a load of crap I have to keep paying for something that is already paid for and that is mine.
Sorry to bump a 2 week old topic but I think the message here is important.
As I read this story, I just look at my financial choices and can't help but to be ashamed. At first I almost felt proud to have not purchased that AS Evo 8 at the car lot 8 years back. $22,000 and only 8,000 miles on the clock but a warranty repair list 3-4 pages long. That car was tagged a lemon right on the title. Still, I wanted it so bad I couldn't sleep at night. Didn't care what it was considered. Scary thought huh?
.... I was going to go on about my current financial situation but realized It was starting to sound like a pitty party.
As I read this story, I just look at my financial choices and can't help but to be ashamed. At first I almost felt proud to have not purchased that AS Evo 8 at the car lot 8 years back. $22,000 and only 8,000 miles on the clock but a warranty repair list 3-4 pages long. That car was tagged a lemon right on the title. Still, I wanted it so bad I couldn't sleep at night. Didn't care what it was considered. Scary thought huh?
.... I was going to go on about my current financial situation but realized It was starting to sound like a pitty party.
There's nothing wrong with financing a car. Right now my bank is offering .25% financing on anything new bought through them.
Why would anyone waste $35k out of their bank account for a car when the bank is stupid enough to GIVE YOU the whole sum and charge crack head rates of interest? You can safely make 3 - 4% as a return (last year the S&P 500 soared 13+% so blindly investing in the stock market would have yielded triple that amount) just by investing your money so the difference is positive. It doesn't make economic sense to pay up front in those cases.
So the general idea of not being in debt is good, but I will not pay my house off until the last payment is due because it's below 4% and the mortgage interest is a write off. Car loans can be had for well below 2% and investment returns far exceed that so you're losing money if you blow a big chunk of money that could have been invested, instead of getting a low financing rate.
I think just like former alcoholics or drug addicts, some people just get traumatized by debt and cannot be involved with it at all. I charge everything on my credit card and pay it off every month or two, sometimes longer and it has an $11,000 limit. Hell, I paid for a new $9,000 roof on my house on my credit card and the bank had sent me a check! That was a sweet amount of points I racked up there!
Why would anyone waste $35k out of their bank account for a car when the bank is stupid enough to GIVE YOU the whole sum and charge crack head rates of interest? You can safely make 3 - 4% as a return (last year the S&P 500 soared 13+% so blindly investing in the stock market would have yielded triple that amount) just by investing your money so the difference is positive. It doesn't make economic sense to pay up front in those cases.
So the general idea of not being in debt is good, but I will not pay my house off until the last payment is due because it's below 4% and the mortgage interest is a write off. Car loans can be had for well below 2% and investment returns far exceed that so you're losing money if you blow a big chunk of money that could have been invested, instead of getting a low financing rate.
I think just like former alcoholics or drug addicts, some people just get traumatized by debt and cannot be involved with it at all. I charge everything on my credit card and pay it off every month or two, sometimes longer and it has an $11,000 limit. Hell, I paid for a new $9,000 roof on my house on my credit card and the bank had sent me a check! That was a sweet amount of points I racked up there!
Last edited by redleg225; Aug 1, 2013 at 11:19 AM.
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Joined: Dec 2008
Posts: 86
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From: Knoxville, TN
My car will be payed off in nov, yeaaaa! I got 0% interest too. The only person I've ever met who takes care of a car like I do is me. Every car I've bought used (with clean carfax, and certified 10k point inspections) has had hidden problems that aren't at all appearant at the time of purchase. I guess you can put the money you save towards correcting the problems the previous owner caused, but it will never be as clean as a car you've maticulously cared for.
On the other hand, people have problems with new cars too sometimes, and we all know about mitsu warranties.
On the other hand, people have problems with new cars too sometimes, and we all know about mitsu warranties.
Last edited by ZLAYER; Aug 1, 2013 at 08:27 PM.