Student loans are draining. I added up what we are paying each month in student loans and I had to go get a beer after I saw the number.
Car loan question
- Thread starter cmjh10
- Start date
Student loans are draining. I added up what we are paying each month in student loans and I had to go get a beer after I saw the number.
I hear ya! I thankfully had a job out of grad school that allowed me to put more towards mine and I lived on the cheap, but paid off my car (which had a payment) and got my loans paid off....I remember being "teased" by folks about my frugality, but it felt good to get them gone and move on. My wife still has some..and we pay for them each month (we both HATE).....but at 2-3%, it DOES make sense to pay minimum and invest the excess money we have to our other investments.
I think the issue with society now is SO many people don't know where money goes, things cost more (meaning, no one had or 'needed' cell phones with data in the past..now it's a norm), and no one wants to sacrifice.
I'm not saying that's you....heck, i had to have loans as my family didn't have the means for college....but my loans and my work/assistantship got me to a better career and a solid income now.
Buy a cheap car and chip your way out of debt? $2,000-$3,000 should get you a good enough car to drive to work and back.
Literally, the first car listed on Des Moines Craigslist: https://desmoines.craigslist.org/cto/5559283341.html
$2,500 after negotiating and you have yourself a reliable car.
Edit: 3rd Car: https://desmoines.craigslist.org/cto/5559283341.html
Another: https://desmoines.craigslist.org/cto/5559092846.html
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Obviously, you are selling this car and this is your way of moving it j/k
You are correct...look at my last comment...so many "need" more than that..you know, bluetooth, back up camera, satellite radio, etc.
I just bought a car on craigslist....I had a price point...i did research....and then just looked for several weeks...found one...and brought a stack of cash and got it for $600 less than asking and we are super satisfied.
Well, the first sad truth is the fact we've built our cities in away for the last 40 years that essentially has put the weight of the cost of a car (more than one car if you're talking a family) as a REQUIREMENT to be productive in society. That is on average approx $6-$8K annual expense (per AAA) per car each family spends each year on auto ownership (depreciation, insurance, gas, financing, maintenance) . That is the first problem.
Second issue, while it isn't easy and assuming you aren't tied to living in a city or town located far from where you work, people can make home location choices based on trying to reduce their transportation costs to/from work (or to kids school, etc) . Live close enough to bike (or even walk) or live near a bus route (or train/subway if big enough city).
It doesn't mean you have to choose the lifestyle forever, but it is an alternative many could consider to help get off the debt train.
Didn't notice that, good catch. Looks like my last post with the Taurus with 132K and a clean title would be a better option.
Salvage title isn't the biggest deal....will get you on the sale later...but at that price, that's likely not a big resell later.
For those of us who aren't handy with cars, I'm not sure if buying a car with that many miles is a realistic option. I know I wouldn't be comfortable doing that.
How old is the vehicle? After 10 years it used to drop off. Also the rules of a salvage title have changed. May not even have one. If wreck was more than a year ago. It is basically irrelevant.
Pends on care of the vehicle. I can sell mine with 200k+ and buyers will still drive them 200 miles one way. I take good care of vehicles and do not beat on them. Except my chore truck, and that goes to the scrap heap.
Add $100 and have a mechanic go through a car like that pre-buying (and now you have an established mechanic)...they'll tell you upcoming needs, etc....and budget accordingly. I had a new car that actually had more issues than a used and I found myself at the dealership (some covered, some not covered by warranty).
Exactly. I just sold one with 110k...and it was a "gem" on the local craigslist scene...why? Because I kept it clean, had all service records, was honest with what I had done and what may need done, etc.
AND, when I buy used, you can tell right away the previous care/maintenance.
You should purchase this car https://desmoines.craigslist.org/cto/5547583222.html (Yes I am the one selling it)
I always love these threads. A person asks a simple question and the "No debt, Save all your money crowd" has to chime in with financial advice.
I always love these threads. A person asks a simple question and the "No debt, Save all your money crowd" has to chime in with financial advice.
You and I may have different definitions of reliable. I think you are way overestimating how well the majority take care of a vehicle with 130k+ miles on it. I've personally noticed buying and selling cheap vehicles over the last 15 years that people just don't take care of them anymore.
I did it this way, getting cheap vehicles as a start, but I also knew enough to know what I was buying and fix anything myself. I'm applying this to the masses. All I'm trying to say is financing a 7-15kish type of vehicle at a decent rate isn't always a bad thing.
I agree and that is kind of why I said earlier that each situation and person is different. Personally I just bought a 3 year old car and financed a chunk of it. We are 25 and 26 and by the time my wife is 30 in 5 years we should easily have paid off at least one of the vehicles and be close on the second as well as several student loans. In 10 years if we are not debt free other than our house someone can shoot me. It is not perfect and it is not what I would like but it is what we were dealt. We are doing significantly better than my parents who were not debt free until a couple of years ago and her parents will be in deep debt for a long time. I claim this as a victory for changing our family tree.
i'd like to know why some of us are never involved in surveys like this. is it a voluntary survey marketed towards those with little savings? are they advertising it at the actual bank branch? how do they verify this? are people with higher balances less likely to participate? are people with low balances just moving excess cash into the stock market/other assets?
This is what I have struggled with. I have a 2000 Buick Century with less than 75,000 miles. Biggest issue is the clutch solenoid is going out on it. I know if I drop a couple grand I could have it fixed and could get many more miles an years out of it. Really only gets driven by gf for work. Thats the biggest reason I want an upgrade though, so I have something to drive when she is at work or out of town. Besides my work truck, its the only vehicle for both of us.
We have both put together our budgets, and she can afford to buy the car from me, and after all my bills, including car payment and putting money away, I would still clear somewhere around 25% of my paycheck.
I believe you guys are getting too granular in trying to analyze this. The US Personal Saving rate that is normally referenced per the Fed, is the difference between income earned and expenditures for all US citizens expressed as a percent of income.
Saving Rate = Income earned - expenditures
So a US saving rate of 10% means that for every $1 earned, 10 cents was “saved”.
It is that simple. It isn’t broken down any further than that.
Back in 1959, we did save on average about 10%...and that lasted until around 1985. We are now saving at rates closer to levels of the Great Depression. Note: We’ll have to wait for Erik to chime in on how these rates compare to those of the English Settlers so we can bring true relevance to those numbers.
If interested, US Saving Rate discussion begins at 1:00 mark of this video (we are NOT doing so hot) : http://www.peakprosperity.com/video...ourse-chapter-16-national-failure-save-invest
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