TheLampoGroupInc asked:
Free cars for life? What? We’re not kidding! We Americans love our cars, don’t we? We just can’t help it! But how much do we really love the car payments that weigh us down? Learn how you can save and avoid car payments for the rest of your life!
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Tags: Car Payments, Love, Rest Of Your Life
May 7th, 2008 at 7:55 am
I just looked up a 2009 Chrysler Sebring Limited and at Carmax a NEW one is around $21000 with taxes and fees…listed price is around $25000. Financing the $21000 at 7% gives a payment of $420 for 60 months…paying back around $24000. Trade in value in good condition with 75000 miles is around $3700. So it would cost you $20000 to finance one and then trade it AFTER it was paid off. Conservatively at 3% annually the $420 for 5 years comes to around $27000….$32000 if at 10%.
May 8th, 2008 at 4:09 am
I thought this was a Dave Ramsey video! I got a 94 Corsica a year and a half ago for $500 and no problems except maintenance and a battery. I got a 2000 Cavalier for $1100 two months ago and no problems with it. I could go out and buy two new cars and pay cash but it is too hard to give up the money on a depreciating thing like a car….I used to trade my new cars every year to three years. Talk about rolling over negative equity! Did it for ten years and then got smart.
May 11th, 2008 at 1:20 pm
yep, you should craigslist it, then go to a dealership for a 6,000+ car, they dont offer **** for trade ins.
May 12th, 2008 at 11:37 am
but there not really free right, like hes just talking about saving the 450 a month , then sell the car and buy a 6,000 dollar car, then save the 450 for a few monthes t, than sell that, then buy a 10,000 outright and so on…right??
May 15th, 2008 at 12:15 am
Paul’s point was you’d have the entire amount to invest and while you’d be making payments on your loan, you’d still make more money, an extra 4%. Though he has a point, I’d rather not be in debt.
May 16th, 2008 at 8:16 am
your first mistake was walking into a dealership in the first place.You’ll pay $1000 more to several thousand more through a dealer verses a private party. the second mistake was you should never tell a dealer you’re paying cash. The make a lot of money in the finance charges. You never tell a salesperson up front about a trade-in either.
May 17th, 2008 at 1:26 am
I think you are confusing Mutual Fund with IRA or 401K which can be made up of mutual funds. You will pay a Capital Gains tax though.
The Point of this video is not to take out debt and pay interest on something that falls in value so drastically. If you don’t have the money, you can’t afford it.
I disagree that you will average 12%. From what I have seen, long term is more like 8% through depressions and bubbles.
May 18th, 2008 at 7:18 pm
The point is that its just a stupid idea to finance a car when a car always depreciates in value as apposed to a home that appreciates so all this is saying is to keep your interest money to yourself I mean really who wants to pay interest on something that depreciates its just stupid no matter how you put it so if you can help it pay cash for a car and save your money and set a goal for yourself for your dream car and that way you will work hard for it save your money and pay CASH ! yes
May 19th, 2008 at 10:33 am
there seem to be a lot of arguments on individual things that this video is advising now this is a general common sense video and personalizing it is what everyone will do of course , so of course teh value of your car will not be exactly the same as it would be a few years later or even 1 year later c’mon people take everything soooooo literally it makes me sick and yes there are taxes if you cash out you mutual fund early but all the people that are nitpicking are missing the point ….
May 21st, 2008 at 2:21 pm
Funny how people like you are coming out of the woodwork. “Oh, I never financed a car, never had a credit card, blah, blah blah”.
May 22nd, 2008 at 4:43 pm
How would this advice have worked over the past 5 years. If I put my money in a stock mutual fund each month, would I really get 12% average like the video claims? April 2004 the S&P 500 was 1,107.30 today it is trading at 856.56, not a profit but a loss. You would have less money than you invested and still be saving to reach you goal. Would the $6000 car really be traded in a year latter for $6000 or would it depreciate too when you try to trade up. BAD MATH DAVE FANS!!!
May 25th, 2008 at 3:06 pm
Free car? No. Nothing is free, not even common sense.
Saving money? Are you fucking nuts. Most of the people in this generation are jackasses.
I bought my first car with cash. Only an idiot finances a car. You finance a house, but not a car. IT’S COMMON SENSE!!! Americans are greedy and want it all now. That’s why they’re in the mess they’re in.Greed and stupidity.
May 27th, 2008 at 11:16 am
It is an example.
The point is you earn interest and not pay interest.
May 28th, 2008 at 3:12 pm
You have a repulsive way of putting your point, but you’re right about saving money.
May 29th, 2008 at 9:10 pm
buy a $1500 car with your insurance check, pocket the rest, & add what you can afford (your average car payment) to the pot. Then you can do the math. Good luck
May 29th, 2008 at 10:22 pm
But don’t you take a huge hit taxwise every time yo take money out of that mutual fund?
May 31st, 2008 at 11:22 pm
dont buy a new car to replace your wreck.
get a $3000-5000 one, pay the $125/mo, and stick the remaining $300/mo in the fund.
this is the WHOLE point of proper handling of money. you/we/us are basically programmed to spend evey dime we get on crap we dont need, and doesnt REALLY make life better.
no one NEEDS a $20000+ car. go frugal, actually save the money you “saved”, and stop making bankers rich.
and if you truly like/want a nice car, be patient save, do this and be a slave to no one.
June 2nd, 2008 at 5:58 am
Canadians too
June 5th, 2008 at 4:05 pm
how would this idea work for somebody that just got in a wreck and doesn’t have 10 months to save money?
June 7th, 2008 at 7:27 am
You’re absolutely right. The average growth of the stock market in any given 10-year period, including the great depression, has been 12%. Fact. Look it up.
June 10th, 2008 at 2:18 pm
Loan logic=fail
June 13th, 2008 at 2:42 am
Roughly 12% is the average since the market was created. It’s more like 11.8%. Not counting the last two years, there are mutual funds that pay nearly 18% for a ten year average. if you look beyond your big national banks listings.
Looks like youy can build a brick house with all that happy $hit.
June 14th, 2008 at 7:55 pm
The point is to save the money you would have sent to a bank or dealer. just doing that will get you $3-5K/yr to pay cash for your car. No payment=no note=freedom to live and save on your income=financial indipenence.
June 15th, 2008 at 9:06 am
Your logic is flawed, faggot.
June 17th, 2008 at 5:04 am
So, it stands to reasson, if I didn’t have a car loan then I would be making the whole 12% rather than the 4%. So it is still smater to NOT have the car loan.