Comments on: GFC 076: The One Monthly Payment KILLING Your Wealth

By: Jeff Rose

Jeff Rose — Tue, 27 Dec 2016 00:33:49 +0000

In reply to Ryan. Hi Ryan - You're asking a good question. If you're saving at least 30-40% buying used, the answer is more obvious. But 20% is really a gray zone. You're probably looking at high demand vehicles, and the discounts on those aren't as generous. You really have to go with your gut here. If you plan to drive the car for a lot of years - until it breaks as you say - you may be better off buying brand new. It's a tough call.

By: Ryan

Ryan — Tue, 20 Dec 2016 19:15:04 +0000

In my recent car shopping I have found that the prices for recent model year (1-3 yr old) certified pre-owned vehicles I am interested in (highly rated SUV for hauling around a four person family) cost 80+% of the price of a new car. Sure, the older the car you look to buy the cheaper the purchase price, but where does the higher risk of major maintenance and repair costs factor in? I prefer to buy new and drive it until it breaks.

By: Jeff Rose

Jeff Rose — Wed, 14 Dec 2016 21:54:29 +0000

In reply to Natalie @ NatalieBacon.com. That's an excellent point Natalie. Student loans are like car loans - but often much larger - and there's nothing to sell to pay them off. You really have to have a long-term strategy for that one, and plenty of patience and resolve.

By: Natalie @ NatalieBacon.com

Natalie @ NatalieBacon.com — Tue, 06 Dec 2016 13:07:18 +0000

I’m ALL about buying used and buying cheap (as long as it’s reliable!). For me, my monthly payment that’s killing me is actually my student loans! Too bad there’s no collateral on that one, or else I’d definitely trade it in! 😉

By: Jeff Rose

Jeff Rose — Wed, 26 Oct 2016 18:00:02 +0000

In reply to Mustard Seed Money. The lease idea works for you because you have a "preferred arrangement" though your brother-in-law. But I wouldn't recommend it for everyone. The problem with a lease is that you ALWAYS have a payment and you NEVER own the car.

By: Jeff Rose

Jeff Rose — Wed, 26 Oct 2016 17:50:00 +0000

In reply to Lila. Hi Lila - A lot of people focus on how old their car is, or what ever the problems with it are. But if you think more about what you gain by not having a later model car - with a monthly payment - the old car isn't so bad any more.

By: Mustard Seed Money

Mustard Seed Money — Sat, 15 Oct 2016 20:26:05 +0000

For the longest time I only drove used cars. I didn’t have a car payment and life was good.

Then my brother in law started to work for a car company and I was able to get a leased vehicle with maintenance, better insurance and unlimited mileage for less than the insurance and maintenance that I would pay on a used car. On top of that I got a new car every year.

I made the switch after running the numbers. If it ever changes in the future I will re-evaluate but for now it makes financial sense to have a car payment 🙂

By: Lila

Lila — Fri, 14 Oct 2016 20:32:09 +0000

You know suddenly driving an old bronze 2003 Honda Accord doesn’t seem that bad after all, yea that’s what I drive. At least it doesn’t have a payment plan ha!

By: Jonathan Dyer

Jonathan Dyer — Fri, 14 Oct 2016 15:51:01 +0000

Wow! Thankfully the car payments I’ve had in the past have been nowhere near $500. This is some eye-opening math you present here — hopefully more people will wake up to how insane spending that kind of money on a car payment is.