His last activity date is 7/4/08. He probably couldn't get his TSX back, so now he has no reason to come to the forums anymore =P

 

And hire Wackura as a personal financial planner.

Nothing wrong with asking how it turned out for a fellow Acuraziner....

 

I pretty much agree with what most people have said so far about this guy's spending habits.

If you cannot afford the deductible, you cannot afford the car.

Having enough money to pay for something means that you can buy it, not that you can necessarily afford it. If I went by this logic, I technically can buy myself a nice loaded brand new $70K M3, since I have the money to do so. However, if I do, I will spend years of savings, plus an unreasonable chunk of my current monthly income on a depreciating asset. Does that still mean I can afford it?

In my opinion, if you have to save to pay for something, excluding things like a house, and a car (only if you need to save for a cheap commuter), you cannot afford it. Living on credit is what's causing a lot of the BS that's going on right now in the US. Everyone wants to drive a Lexus and shop at Gucci, yet the average income is still about $30k. Not a good mix...

 

It's because of that reason that even when I make twice as much as I made when I bought the TSX that I won't buy a car that costs twice as much because for the most part they lose that much value and that's an idiotic way to watch money vanish.

I doubt that while the RL costs about $15,000 more than the TSX on the lot that the difference in production cost is anywhere close to that. I don't think an RL is $15,000 better than a TSX and there comes a point where you start spending a lot more and getting little back. This is alteast true in perception if not reality, because maybe the leather in the RL feels better than the TSX, and maybe it costs Honda $1000 more but personaly the difference isn't worth $1000 to me.

 

In the end ... they're cars. Just cars. What is worth some money that you CAN'T see is reliability, incidence of repairs, quality of service at dealers, etc. But ... none that factors in when you have an at-fault collision, which is why scoping out the insurance costs pre-sale is a must-do -- they contribute to TCO (total cost of ownership). I think a common problem (not necessarily this OP, but some buyers), which we've mentioned too many times here, is buying a car based on that monthly loan payment, and turning a blind eye to the mileage, repair costs, type of gas required by the engine, cost of frequently replaced parts (filters, et al). Those TV ads saying, "drive it away for under $400 a month" ($399 a month ) are hiding all these things.

 

There was an incredibly annoying VW radio ad that ran recently saying that for $200, about what you can spend on a good pair of jeans, you can drive away with a great piece of German engineering. What is completely glossed over is that $200 is a long-term monthly recurring cost... Most people aren't going to be buying $200 jeans (hell, that would buy me 5 pairs) each and every month, and spending more money putting gas into it and buying insurance for it. But the stupid thing is, that ad probably worked on a lot of people.

 

Worse still is that people who buy $200 jeans shouldn't be attracted to something like a $200 car payment. This subprime mortgage crisis was caused in part by people managing money badly, and I wonder if we'll see the day when overspending and overborrowing becomes illegal.

 

I think that many people believe that just because a bank approves them for a loan that it's some kind of endorsement that they are "OK" and not extending themselves. Lenders are the LAST people who will look out for you. They'll do anything to find a way to give you money. That's why interest is front-loaded - they get most of their money in the first 25% of the loan. Who cares if after that time you can't make the payment - they've made the profit by then.

When I was approved for my first mortgate, I got a spending limit that if I took it all, would have never been able to make the payment. I was amazed they'd actually give me a limit like that. The payment would have been like 50% of my take-home pay. Unfortunately, younger buyers often learn the hard way that banks will not spend any energy to keep you in check.

 

Financiers at car dealerships and banks usually have plaques on their walls, pictures of family on their desk facing your direction and a stack of business cards, a business card for you and a few for your friends, all meant to give the impression that they are trustworthy advisors like some sort of doctor of financial matters. In my last few encounters with those people they blatantly tried to work against by best intresests so I'm building up a hostility towards them.

 

well, what i would do in your situation, is get a personal loan, maybe one without any pre-pay penalties? and pay it off as fast as you can?

 

this was said many times but ive gotta say it again... why are you even driving a tsx if you cant afford $1000 deductable?

and yes, as mentioned in an earlier post. if you are at fault in this situation, you have much more to worry about than a mere $1000 payment.....

 

Do we need to start a "finances talk" sub-forum?

...posted in red but mostly serious!

 

...at least this guy had insurance.

 

I think you always have to keep in mind who they represent. They're paid to look out for the bank - maximize profit, reduce risk. They are not financial advisors, even though they appear to be. When I sold cars, I was stunned to find out the dealer "sold" loans at higher rates than the lending bank, and they had a way to pencil-whip the paperwork to hide it and keep the profit. Bank had an 8% loan they sold as 9%, and they kept the 1% as profit. Astounding.

I've found the perfect defense when getting a loan is to bring a calculator that computes loan payments with you. This is key when buying a car. All I have to do any more is set the calculator on the desk and I always get straight answers.

 

I think this would be an interesting forum! Especially given how much trouble a lot of folks get themselves into with credit cards and over-extending....

 

oh, I'd have plenty to teach these kids in that forum.

most every American is about as stupid as a donkey when it comes to money.
they're all brain-washed into thinking monthly and not calculating total costs
and total wealth and whatnot.

the average American has a negative savings amount and credit card companies
are reporting 15% default ratings...

it's sad really.

but honestly most average middle class Americans could pay off their cars, their
homes, yes, their homes, and their debt in 7 years or less if they cared to.
Or rather if they weren't so stupid and brain-washed by marketers and advertisers.

man, don't even get me started...

 

should have brought the car to somewhere else besides the dealership. you can usuall negotiate your deductible with the bodyshop so you dont have to pay it. but i think 1k is somewhat steep.

 

Yeah, actually it would be interesting.

I don't think I'm alone in buying the TSX because I saw it as the best value out there in the "intro lux" market (if not others as well) - so I was very money conscience of my decision.

Let's call it the "Damn Kids Don't Know How To Manage Money" Forum. That will get lots of youngsters to drop in

 

there is one good thing in his favor-even tho he had $1,000 deductible he did have the car insured. There are alot of driver's out there with no insurance.