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How many of you will be making two car payments?

Rahkmalla

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Haven't had a car payment in years. Don't intend to start now. There's a reason I'm getting a base (hopefully base mansquatch). Lucky enough to have the house paid off before I turn 35, but I gotta start saving for the next house so I gotta up the savings for a lot more than just cars.
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mrxg78

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Guilty
- FJ got it second hand $$$$ over three years (two to go)
- Odyssey $$$ one more year to go (most probably will trade in for a Tesla and finance the rest over three years)
- 4door 6MT BL $$$, when ever it gets here!

I never had a vehicle that I haven’t been paying installments on. Investment annual returns 7-8% (over last 20 years) car financing 0-4%. The math looks like it favors financing IMHO!
 

Yukon65006

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Second granddaughter gets her permit in the spring so the wife’s Patriot will be handed over to her. Older granddaughter got my old civic when she turned 16 a few years back. So that means two new vehicles in 22 for us. Within the current interest rates I will most likely buy down to payments I like on both. Still have a few months to see what the market does on my new vehicle fund.
 

PSUTE

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Have one now. Will be replaced by another one. Mortgage about paid off. 10 year old Sierra showing its age, but it is in semi retirement. May have to replace the original battery sooner rather than later. Just a thing...
 

PSUTE

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Second granddaughter gets her permit in the spring so the wife’s Patriot will be handed over to her. Older granddaughter got my old civic when she turned 16 a few years back. So that means two new vehicles in 22 for us. Within the current interest rates I will most likely buy down to payments I like on both. Still have a few months to see what the markeXt does on my new vehicle fund.
It would be foolish to give up investments making 5X in interest to avoid a car payment...
 

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Rahkmalla

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Investment annual returns 7-8% (over last 20 years) car financing 0-4%. The math looks like it favors financing IMHO!
Annual returns of 6-8% matter when you're considering long term investments. But in the short term everyone thinks the next crash is looming. Also 0% is a rebate not a real rate. Comparing the low end to the low end you've got 2% loan vs 6% investment. After capital gains tax the 6% looks like 4.5%, and paying off debt is a guaranteed return while 6% (4.5%) is dependent on the market not crashing.

I'm never gonna be the richest guy buying my cars and houses cash or 10 year mortgage that I pay off early, but when the world takes a poo, I'll sleep snug as a bug in a rug while highly leveraged guys are offing themselves.
 

tyrobronco

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We make a monthly payment of $400 to our 'car fund'.

Currently, all 3 vehicles are paid off so the past 2 or so years the account has been building for things like tires and eventually the Bronco.

With all the extra delays (I was hoping August 2021 but looks like April 2022), that account continues to grow.
 

Dino

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I'm an independent contractor, and I was hoping for another year maybe 2 out of my work truck so I could throw as much as I could towards the Bronco, and have it paid down a ton so I would only have 2 payments for maybe a year.

Nope. Work truck shit out on me last weekend. Had to get another. Went with an '11, and I'm going to try to pay it down as much as I can before the Bronco gets here.

This may be a lot of work and not enough Bronco time here soon lol.
 

Yukon65006

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It would be foolish to give up investments making 5X in interest to avoid a car payment...
While I would normally agree and have advised the same in the past. My vehicle fund has never been counted into our retirement plans or any net-worth calculations. While I don't want to go too deep into our finances I am in my mid 50's and retiring in May 1st 2022 with a very stable base. I will pay down enough to get the payments well into the window of what fits into the retirement budget. Any remaining funds in the vehicle fund will be left in the investment for future vehicle purchases.

General rules are just that general rules. Everyones life situations are different and must be molded to fit their wants and needs. It wasn't until I was transferred into a position in the military that involved counseling junior enlisted and junior officers on investments and life planning that it really hit home with me that MY way wasn't right for all.
 

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LeBronco

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People on here be rolling in cash. I’m still feeling somewhat guilty for doing this and trading in my vehicle that is paid off lol I was raised to be conservative with my money though, so it’s a mental battle with any purchase
Nothing wrong with conservative and I would never recommend spending money you don't have, but you only live once, enjoy it while you can. life is short!!
 

Yukon65006

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People on here be rolling in cash. I’m still feeling somewhat guilty for doing this and trading in my vehicle that is paid off lol I was raised to be conservative with my money though, so it’s a mental battle with any purchase
I am of mostly Scottish decent so being conservative aka cheep is in my dna. It is a mental hurdle to get over and a trying struggle for my wife living with me.
 

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Moya7

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Haven't had a car payment in years. Don't intend to start now. There's a reason I'm getting a base (hopefully base mansquatch). Lucky enough to have the house paid off before I turn 35, but I gotta start saving for the next house so I gotta up the savings for a lot more than just cars.
You must not live in CA!
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