Car Payment vs. Savings

I'd imagine that the financial habits of someone who is upside on 2 cars and runs up credit card debt would never be in a position to pay their car off, so I don't think Savio's situation is in any way comparable to your situation.

 

No but in order to avoid my fate I would suggest to him that he pay off the car.

I have two cars that I have financed and I am upside down on both. The good news is that last month I started making a higher payment on each of them so that they both pay off in three years.

 

Your fate has nothing to do with Savio having a car loan.

 

I find something to do with that money to make more than 4.3%.

 

One of the dumbest things financially is to finance a depreciable asset, yet most people do. I guess it's hard not to these days.

 

It is hard to avoid. How do you get to work if you do not have a car? I have been stupid about it and I am worse off than most people. I could have kept my cars longer but I think I learned a lesson.

 

not to derail the thread....

but.

what cars do you drive and are they paid for?

just curious...you seem to be smart with your money and I'm looking at moving out from under the piece of shit Jeep and buying something that makes sense and has one of them 100000 mile warranties.

I get 500 a month car allowance, but I'm looking to only spend 400 of that, so I'm obviously looking in the 20-25K range.

 

What kind of Jeep do you have. I have had Jeeps and they have been decent for me.

 

Nothing about having a car is being smart with money.

Nothing.

That said, I have a bunch of cars. I have a Vespa, too.

These are paid for:

Vespa
'99 Volvo
'74 Alfa Romeo
'2003 or 4 or something honda minivan

This one is a corporate lease:

2007 BMW 335i.

What kind of car you should get is pretty much up to you, not trying to be a dick but I really don't know if you want a Suburban, and F250 or other big truck, a corolla, a Lexus, or what.

 

If you have to finance try not to go beyond 4 year terms. Five yeasrs is common and I've even seen 6 year financing. Anything that long and, 1 you're probably buying beyond your means and 2 you're pretty much guaranteeing yourself you'll be upside down at the end of the term.