'11 TL to '16 ILX?
05-25-2016, 01:54 PM
#1
Cruisin'
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'11 TL to '16 ILX?
Hello guys,
I currently own '11 TL that I have gotten as CPO. I am financing it and there is about 15k left on it. Since I am commuting to the city, the car has been sitting at home for 5 days a week and the monthly payment seems kinda waste. I am looking into trading in the car and leasing an ILX since there are great deals. Has anyone made this change and if yes, what would you say about ILX? thank you!
I currently own '11 TL that I have gotten as CPO. I am financing it and there is about 15k left on it. Since I am commuting to the city, the car has been sitting at home for 5 days a week and the monthly payment seems kinda waste. I am looking into trading in the car and leasing an ILX since there are great deals. Has anyone made this change and if yes, what would you say about ILX? thank you!
05-25-2016, 08:24 PM
#2
Hello guys,
I currently own '11 TL that I have gotten as CPO. I am financing it and there is about 15k left on it. Since I am commuting to the city, the car has been sitting at home for 5 days a week and the monthly payment seems kinda waste. I am looking into trading in the car and leasing an ILX since there are great deals. Has anyone made this change and if yes, what would you say about ILX? thank you!
I currently own '11 TL that I have gotten as CPO. I am financing it and there is about 15k left on it. Since I am commuting to the city, the car has been sitting at home for 5 days a week and the monthly payment seems kinda waste. I am looking into trading in the car and leasing an ILX since there are great deals. Has anyone made this change and if yes, what would you say about ILX? thank you!
Wouldn't the ILX lease payments be a waste too?
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TacoBello (05-31-2016)
05-25-2016, 10:21 PM
#3
Three Wheelin'
Avoid leasing if you can. It will be difficult to get out of the monthly payment cycle. Financially, trading in a perfectly fine car for a new one is a waste of money.
05-25-2016, 10:41 PM
#4
How much do you pay monthly for the TL? And how long have you been making those payments? How much do you estimate on paying monthly for the ILX? Curious as to why would you want to trade apples for grapes, but need more info.
Last edited by Rae Rad; 05-25-2016 at 10:44 PM.
05-25-2016, 11:04 PM
#5
05-26-2016, 10:41 AM
#7
Cruisin'
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I have been paying $420 for base TL and I still have 3 years left. For the ILX, I would be paying $247 a month for 36 month 10,000miles per year.
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05-26-2016, 11:35 AM
#8
I see. You will be saving $173 on monthly payments for the next 3 years with a total of $6,228 of savings.
Do you see yourself owning the TL after you're done financing in 3 years? Are you happy with your TL? Or is the high payments vs usage the only issue?
In 3 years you would own the TL no stranges attached. Vs the ILX you would be either turning it back in or buying out the lease and starting NEW monthly payments.
Short term you save money but long term you will spend more.
Its a decision you have to make for your self. Are you willing to sacrifice complete ownersship of the TL in 3 years to save $6,228? Or spend more on either financing the same ilx or getting into a new lease adding more long term monthly payments.
Last edited by Rae Rad; 05-26-2016 at 11:39 AM.
05-26-2016, 11:55 AM
#9
The ILX and TL are 2 very different vehicles.
1)At first glance is obviously the size difference, the TL is substantially bigger, you are losing about 13" in length alone are you ok with losing so much car?.
2)Power- You lose a ton of HP and torque.
3) Fit and finish - The ILX cabin does not look and feel as luxrious as the TL.
On the flip side you gain the most updated features Acura has to offer-That being you dont get the base ILX (please dont you will regret it)
1)At first glance is obviously the size difference, the TL is substantially bigger, you are losing about 13" in length alone are you ok with losing so much car?.
2)Power- You lose a ton of HP and torque.
3) Fit and finish - The ILX cabin does not look and feel as luxrious as the TL.
On the flip side you gain the most updated features Acura has to offer-That being you dont get the base ILX (please dont you will regret it)
Last edited by Rae Rad; 05-26-2016 at 12:10 PM.
05-26-2016, 01:15 PM
#10
Three Wheelin'
Getting sucked into the lease cycle is a good way to easily get the next cool shiny car. But you'll never build any wealth doing this. Unless you're already wealthy and money is no object, OR you own your business where you can write off much of the lease cost, leasing is no good.
But I understand to a lot of younger people, this kind of talk is a killjoy. It's only when you get older that you regret wasting all that money -- money that could be used for your kids college, tuition, retirement, etc.
Last edited by schen72; 05-26-2016 at 01:19 PM.
05-26-2016, 01:17 PM
#11
Three Wheelin'
I see. You will be saving $173 on monthly payments for the next 3 years with a total of $6,228 of savings.
Do you see yourself owning the TL after you're done financing in 3 years? Are you happy with your TL? Or is the high payments vs usage the only issue?
In 3 years you would own the TL no stranges attached. Vs the ILX you would be either turning it back in or buying out the lease and starting NEW monthly payments.
Short term you save money but long term you will spend more.
Its a decision you have to make for your self. Are you willing to sacrifice complete ownersship of the TL in 3 years to save $6,228? Or spend more on either financing the same ilx or getting into a new lease adding more long term monthly payments.
Do you see yourself owning the TL after you're done financing in 3 years? Are you happy with your TL? Or is the high payments vs usage the only issue?
In 3 years you would own the TL no stranges attached. Vs the ILX you would be either turning it back in or buying out the lease and starting NEW monthly payments.
Short term you save money but long term you will spend more.
Its a decision you have to make for your self. Are you willing to sacrifice complete ownersship of the TL in 3 years to save $6,228? Or spend more on either financing the same ilx or getting into a new lease adding more long term monthly payments.
05-26-2016, 01:20 PM
#12
05-26-2016, 02:33 PM
#14
My point is, just finish paying off the TL and then you own the car free and clear and you don't have any more monthly payments. Take that money formerly used for monthly payments and save it by investing. Years later when you need a replacement car, pay cash for it. In the long run you will build real wealth this way. The downside is that you don't have the latest shiny thing every 3-5 years.
Getting sucked into the lease cycle is a good way to easily get the next cool shiny car. But you'll never build any wealth doing this. Unless you're already wealthy and money is no object, OR you own your business where you can write off much of the lease cost, leasing is no good.
But I understand to a lot of younger people, this kind of talk is a killjoy. It's only when you get older that you regret wasting all that money -- money that could be used for your kids college, tuition, retirement, etc.
Getting sucked into the lease cycle is a good way to easily get the next cool shiny car. But you'll never build any wealth doing this. Unless you're already wealthy and money is no object, OR you own your business where you can write off much of the lease cost, leasing is no good.
But I understand to a lot of younger people, this kind of talk is a killjoy. It's only when you get older that you regret wasting all that money -- money that could be used for your kids college, tuition, retirement, etc.
Looks like hed save money monthly by swapping cars. His payments will be longet but that could even out if say the TL needs a new radiator or tranny work while the ILX will be under warranty and even after should last much longer.
05-26-2016, 04:13 PM
#15
I mean the car is going to just be a sitting duck 5 days out the week right?...
OP should buy a 3G TL cash money $$ and not have any payments at all... He should be able to find a 3G in good condition anywhere from $4,000 - $7,000 depending on mileage. that's what I would do if my car was not my daily driver. Why pay so much money to park your car?
OP should buy a 3G TL cash money $$ and not have any payments at all... He should be able to find a 3G in good condition anywhere from $4,000 - $7,000 depending on mileage. that's what I would do if my car was not my daily driver. Why pay so much money to park your car?
05-26-2016, 04:57 PM
#16
Three Wheelin'
In the short term his CASH FLOW will look better, because only $200+ will be outflowing compared to $400+. But he won't be actually saving any money. After 3 years of $200+ outflow (leasing) then what? He has to buy another car by financing it or leasing. Then the cycle starts all over.
05-26-2016, 05:34 PM
#17
In the short term his CASH FLOW will look better, because only $200+ will be outflowing compared to $400+. But he won't be actually saving any money. After 3 years of $200+ outflow (leasing) then what? He has to buy another car by financing it or leasing. Then the cycle starts all over.
My point exactly
05-26-2016, 07:25 PM
#18
In the short term his CASH FLOW will look better, because only $200+ will be outflowing compared to $400+. But he won't be actually saving any money. After 3 years of $200+ outflow (leasing) then what? He has to buy another car by financing it or leasing. Then the cycle starts all over.
If OP doesnt feel financially secure making 400$ payments for a car he doesnt drive then cutting that in half for a new car may help out a great deal as he is now freeing up 200 each month. Continuing that cycle for an extra 3-4 years may be much easier than making double the payment every month.
I'm not in OPs situation but I can see how a brand new car could easy some stress. Especially if it also means half the payments. Yes I get that he wilol be paying twice as long but that may not be an issue.
05-26-2016, 11:25 PM
#19
OP - What city are you in? Look into a carsharing service like Turo or Get Around (I'm sure there are others, those are the two larger players in my area). I have my 2010 TL Tech w/ 113k-ish miles on it on Turo and it's being rented out around 20-25 days/month and netting me around $450 to $600/month minus random expenses (unlimited car wash/vacuum service, more oil changes, depreciation) but since my job now gives me a full metro subsidy, my finances are a lot better. I "profit" around $400/month after random expenses. profit of $4000+ every year on a paid off car that I can realistically get maybe $12k trade in for? Not bad. Plus I can make a decent number of tax deductions to reduce the tax owed (to my employer lol)
Also, if you (or anyone else here) is interested in Turo or GetAround, PM me for a referral code for a discount on your first rental (and sometimes an intro bonus on your earnings as well)
Also, if you (or anyone else here) is interested in Turo or GetAround, PM me for a referral code for a discount on your first rental (and sometimes an intro bonus on your earnings as well)
Last edited by CTNYC; 05-26-2016 at 11:28 PM.
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justnspace (05-27-2016)
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schen72 (05-28-2016)
05-27-2016, 10:32 AM
#22
05-27-2016, 02:27 PM
#24
Similarly i could have taken a year off my lease by paying an extra 100 each month. However that extra 100 has been helpful when it comes to other expenses. I have a job so i can make 200 payments all month every month. 400 however would be tough.
So while youre right, i chose my plan based off my situation. That is all i am speaking on so OP can see other poiny of views. While i agree with what you both are saying, i just dont think its that drastic.
05-27-2016, 10:09 PM
#25
Leasing isn't a horrible deal, however, if you do value a newer nicer car. To put it simply, you'd probably be spending around $12k to $16k every 10 years (without taking opportunity cost of that money) if you bought a brand new TL/TLX (or similar) car versus leasing it..
That being said, I bought a 2010 TL 3.5 Tech w/ 85k-ish miles for $19k (after tax) cash looking at the long term (I'm in my lower 20s). Once my portfolio has grown to a figure I'm satisfied with and can provide me with a solid low risk return, I'll definitely be in the showroom every 36 months
buy that whenever..
05-31-2016, 12:56 PM
#27
but haaay!!!
isnt that what you're doing
Here!?
you're effectively agreeing with me.
isnt that what you're doing
That being said, I bought a 2010 TL 3.5 Tech w/ 85k-ish miles for $19k (after tax) cash looking at the long term (I'm in my lower 20s). Once my portfolio has grown to a figure I'm satisfied with and can provide me with a solid low risk return, I'll definitely be in the showroom every 36 months
you're effectively agreeing with me.
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CTNYC (06-01-2016)
05-31-2016, 01:02 PM
#28
My point is 200 monthly is nothing. Id rather drive a newer car, pay half what i am monthly, but extend the payments longer. In the end hell arguable have a nicer car, and didnt pay out that much more.
Similarly i could have taken a year off my lease by paying an extra 100 each month. However that extra 100 has been helpful when it comes to other expenses. I have a job so i can make 200 payments all month every month. 400 however would be tough.
Similarly i could have taken a year off my lease by paying an extra 100 each month. However that extra 100 has been helpful when it comes to other expenses. I have a job so i can make 200 payments all month every month. 400 however would be tough.
no matter how you slice it, extending a car loan or any loan is not smart.
and you're likely to stay in this cylce or loop for a long long time.
05-31-2016, 01:29 PM
#29
Team Owner
Honestly, if I needed a car for only 2 days a week, I'd dump the 2011 TL and buy something for 5-8k and call it a day.
OP clearly doesn't have a need (or at least I couldn't hear him saying he has a need) for a new car. Personally, I'd likely get like a 2008 Civic Si coupe/sedan. Fun to drive, 200hp, LSD, 6MT, looks good, and their prices are pretty low these days.
But I'm guessing all of this advice will fall on deaf ears and OP will be driving a new ILX in the next few weeks, for which he essentially is burning an additional 20k on nothing.
OP clearly doesn't have a need (or at least I couldn't hear him saying he has a need) for a new car. Personally, I'd likely get like a 2008 Civic Si coupe/sedan. Fun to drive, 200hp, LSD, 6MT, looks good, and their prices are pretty low these days.
But I'm guessing all of this advice will fall on deaf ears and OP will be driving a new ILX in the next few weeks, for which he essentially is burning an additional 20k on nothing.
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05-31-2016, 01:43 PM
#31
Take it from me.... I was in the same boat. I drove an 04 Corolla. I only drove the car to the bus stop which is a mile or 2 away from my house. I wanted something new, but that would give me payments. Decided to keep the Corolla and do maintenance to it. Was driving through town and a girl hit me and totaled it. Now I have car payments, fairly cheap, but still have car payments. But I hardly take the bus to work now because of it.
05-31-2016, 02:49 PM
#32
Three Wheelin'
I understand the desire to have a nice. I really do. But it's best to buy what you can truly afford, not just based on the monthly payments. That is, if you actually want to accumulate wealth in your life. If you only think about monthly payments you'll be a debt slave forever. For example, for my ILX, I could easily "afford" the monthly payments on a leased 5 series or E-class, but I felt it more prudent to just pay cash for an ILX. If I couldn't have paid cash for the ILX, I would have paid cash for a cheaper car. Bottom line is, my financial philosophy requires that I never finance a depreciating asset. For me, buying a car is just like buying a cell phone. If I have the cash, I write out a check for it. If not, too bad.
Of course, I do like to live vicariously from my friends who have financed/leased BMWs!
Of course, I do like to live vicariously from my friends who have financed/leased BMWs!
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Curious3GTL (05-31-2016),
justnspace (05-31-2016)
06-06-2016, 08:21 PM
#34
MY GAWD this is an excellent thread!!! YES you guys get it!!! Buying a car is generally a bad deal! LOL! "They" (dealerships, banks, even your credit unions) are loaning you money at the most expensive rate they can! They are in it for the money guys! Seriously!! REALIZE THIS!! It's a business!
OP... Just get a nice beater... Get an older luxury car in excellent condition...that you can buy and maintain out of pocket at no great expense... call it a day....
I had a fun little Civic I paid $5k for... short quick trips on base In California... I had $65k liquid cash at the time. Could I have afforded a nice fun car? Yes. BUT WHY?! So I can drive 20-25 miles during the week? And on weekends - anywhere from 0-150 miles? Did I really need a nice car? NAH. Plus then some dude ran me off the road...right off base... totaled it out... I got the ILX as my "new start car" after active duty... I paid LESS then a New Civic SI cost at the time, and I've been everywhere with it... I could have got a Lexus... But I was making life moves...Was gonna be an RN... School raised tuition to an insane amount... so I bailed... SO... I partied, I traveled... I worked different jobs... I like FREEDOM more then a badass newer or bigger car to impress people who could care less... And I'm not hating... A nice car is awesome... IF - you can EASILY afford it!
Now I'm looking at becoming a pilot, getting an aeronautical degree... Suppose to start in the fall... The Post 9/11 GI Bill keeps changing certain things... what it covers... etc... So I was indecisive as to what I was going to do... The situation kept changing... Schools i wanted to go to changing policies, whats required... 2-3 year wait lists...... Big Mess... Hard to make these big life changing decisions when you literally had a solid game plan for like 5 years... then it just blows up...
So I remember when I was on Active Duty... this racist bitch ass SGT I had, tried to get in my business and ask me why I didn't invest in retirement, or why I didn't have a nicer car ( mocking me)... Only reason he knew, was because the Financial Planner we had offered to us Marines for FREE, said that I was the most successful saver she had helped out so far.... Any way... I just told him... Because my retirement plan is getting an education that earns me WAY more income... Like?... why would I tie up my money in retirement funds?... When I need liquid funds NOW to get through school? Da fuck? Why am I going to put in $5 or 10K a year of my measly ass government check... which is like a HUGE percentage of my take home pay... VS.. Make 6 figure++ income (my future projected income when educated, well at least that's the goal)....and put even 3 times that measly $5k or $10K amount away for retirement, and its a way lower percentage of my future take home pay? Gonna hurt me a LOT less......Then i could tell he felt stupid...GOOD
I'm not saying I SHOULDN'T invest in retirement right now... I'm just saying... My short term game plan is actually WAY more important... I mean, once I finish college I can stop maxing out at jobs at about $50K right now... And then I have all kinds of options... Rejoin the active duty military as an Officer... Fly for an airline... Fly for various agencies or companies... Make GREAT money (after I pay my dues)... Say, FUCK IT, and Get a Master's... It's like sometimes people tell you - SO YOU GOING FOR YOUR MASTER'S?... Like.. DUDE... Can I finish my bachelor's FIRST?! Relax, man... One thing at a time!!
IF Jon is doing something similar... or others... THEN I would kind of see the point of their argument... BUT... GENERALLY... Longer loan = BAD BAD BAD... But maybe its just what you gotta do... And leases too ! BAD BAD BAD!! Unless the exceptions... But .. face reality guys... Most of us are not exceptions... Don't lease....
Point is... The real goal is FREEDOM... not owing a payment... Not worrying about a payment if you have one... Avoiding a payment if you don't need one at all.... Don't take on loans you don't need to!!!. YOU DON'T OWN IT UNTIL ITS PAID OFF!!! I can't tell you how many people I saw at Honda that have been "paying off their house" (shows up on their credit)...for 50 years? WTF? 2 and 3 refinances?! They don't get it... It doesn't matter if you've been paying for 50 years!! Miss enough payments, YOUR ASS IS ON THE STREET!!!
OP... Just get a nice beater... Get an older luxury car in excellent condition...that you can buy and maintain out of pocket at no great expense... call it a day....
I had a fun little Civic I paid $5k for... short quick trips on base In California... I had $65k liquid cash at the time. Could I have afforded a nice fun car? Yes. BUT WHY?! So I can drive 20-25 miles during the week? And on weekends - anywhere from 0-150 miles? Did I really need a nice car? NAH. Plus then some dude ran me off the road...right off base... totaled it out... I got the ILX as my "new start car" after active duty... I paid LESS then a New Civic SI cost at the time, and I've been everywhere with it... I could have got a Lexus... But I was making life moves...Was gonna be an RN... School raised tuition to an insane amount... so I bailed... SO... I partied, I traveled... I worked different jobs... I like FREEDOM more then a badass newer or bigger car to impress people who could care less... And I'm not hating... A nice car is awesome... IF - you can EASILY afford it!
Now I'm looking at becoming a pilot, getting an aeronautical degree... Suppose to start in the fall... The Post 9/11 GI Bill keeps changing certain things... what it covers... etc... So I was indecisive as to what I was going to do... The situation kept changing... Schools i wanted to go to changing policies, whats required... 2-3 year wait lists...... Big Mess... Hard to make these big life changing decisions when you literally had a solid game plan for like 5 years... then it just blows up...
So I remember when I was on Active Duty... this racist bitch ass SGT I had, tried to get in my business and ask me why I didn't invest in retirement, or why I didn't have a nicer car ( mocking me)... Only reason he knew, was because the Financial Planner we had offered to us Marines for FREE, said that I was the most successful saver she had helped out so far.... Any way... I just told him... Because my retirement plan is getting an education that earns me WAY more income... Like?... why would I tie up my money in retirement funds?... When I need liquid funds NOW to get through school? Da fuck? Why am I going to put in $5 or 10K a year of my measly ass government check... which is like a HUGE percentage of my take home pay... VS.. Make 6 figure++ income (my future projected income when educated, well at least that's the goal)....and put even 3 times that measly $5k or $10K amount away for retirement, and its a way lower percentage of my future take home pay? Gonna hurt me a LOT less......Then i could tell he felt stupid...GOOD
I'm not saying I SHOULDN'T invest in retirement right now... I'm just saying... My short term game plan is actually WAY more important... I mean, once I finish college I can stop maxing out at jobs at about $50K right now... And then I have all kinds of options... Rejoin the active duty military as an Officer... Fly for an airline... Fly for various agencies or companies... Make GREAT money (after I pay my dues)... Say, FUCK IT, and Get a Master's... It's like sometimes people tell you - SO YOU GOING FOR YOUR MASTER'S?... Like.. DUDE... Can I finish my bachelor's FIRST?! Relax, man... One thing at a time!!
IF Jon is doing something similar... or others... THEN I would kind of see the point of their argument... BUT... GENERALLY... Longer loan = BAD BAD BAD... But maybe its just what you gotta do... And leases too ! BAD BAD BAD!! Unless the exceptions... But .. face reality guys... Most of us are not exceptions... Don't lease....
Point is... The real goal is FREEDOM... not owing a payment... Not worrying about a payment if you have one... Avoiding a payment if you don't need one at all.... Don't take on loans you don't need to!!!. YOU DON'T OWN IT UNTIL ITS PAID OFF!!! I can't tell you how many people I saw at Honda that have been "paying off their house" (shows up on their credit)...for 50 years? WTF? 2 and 3 refinances?! They don't get it... It doesn't matter if you've been paying for 50 years!! Miss enough payments, YOUR ASS IS ON THE STREET!!!
Last edited by aomechmarine; 06-06-2016 at 08:30 PM.
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CTNYC (06-07-2016)
06-07-2016, 11:51 PM
#35
MY GAWD this is an excellent thread!!! YES you guys get it!!! Buying a car is generally a bad deal! LOL! "They" (dealerships, banks, even your credit unions) are loaning you money at the most expensive rate they can! They are in it for the money guys! Seriously!! REALIZE THIS!! It's a business!
OP... Just get a nice beater... Get an older luxury car in excellent condition...that you can buy and maintain out of pocket at no great expense... call it a day....
I had a fun little Civic I paid $5k for... short quick trips on base In California... I had $65k liquid cash at the time. Could I have afforded a nice fun car? Yes. BUT WHY?! So I can drive 20-25 miles during the week? And on weekends - anywhere from 0-150 miles? Did I really need a nice car? NAH. Plus then some dude ran me off the road...right off base... totaled it out... I got the ILX as my "new start car" after active duty... I paid LESS then a New Civic SI cost at the time, and I've been everywhere with it... I could have got a Lexus... But I was making life moves...Was gonna be an RN... School raised tuition to an insane amount... so I bailed... SO... I partied, I traveled... I worked different jobs... I like FREEDOM more then a badass newer or bigger car to impress people who could care less... And I'm not hating... A nice car is awesome... IF - you can EASILY afford it!
Now I'm looking at becoming a pilot, getting an aeronautical degree... Suppose to start in the fall... The Post 9/11 GI Bill keeps changing certain things... what it covers... etc... So I was indecisive as to what I was going to do... The situation kept changing... Schools i wanted to go to changing policies, whats required... 2-3 year wait lists...... Big Mess... Hard to make these big life changing decisions when you literally had a solid game plan for like 5 years... then it just blows up...
So I remember when I was on Active Duty... this racist bitch ass SGT I had, tried to get in my business and ask me why I didn't invest in retirement, or why I didn't have a nicer car ( mocking me)... Only reason he knew, was because the Financial Planner we had offered to us Marines for FREE, said that I was the most successful saver she had helped out so far.... Any way... I just told him... Because my retirement plan is getting an education that earns me WAY more income... Like?... why would I tie up my money in retirement funds?... When I need liquid funds NOW to get through school? Da fuck? Why am I going to put in $5 or 10K a year of my measly ass government check... which is like a HUGE percentage of my take home pay... VS.. Make 6 figure++ income (my future projected income when educated, well at least that's the goal)....and put even 3 times that measly $5k or $10K amount away for retirement, and its a way lower percentage of my future take home pay? Gonna hurt me a LOT less......Then i could tell he felt stupid...GOOD
I'm not saying I SHOULDN'T invest in retirement right now... I'm just saying... My short term game plan is actually WAY more important... I mean, once I finish college I can stop maxing out at jobs at about $50K right now... And then I have all kinds of options... Rejoin the active duty military as an Officer... Fly for an airline... Fly for various agencies or companies... Make GREAT money (after I pay my dues)... Say, FUCK IT, and Get a Master's... It's like sometimes people tell you - SO YOU GOING FOR YOUR MASTER'S?... Like.. DUDE... Can I finish my bachelor's FIRST?! Relax, man... One thing at a time!!
IF Jon is doing something similar... or others... THEN I would kind of see the point of their argument... BUT... GENERALLY... Longer loan = BAD BAD BAD... But maybe its just what you gotta do... And leases too ! BAD BAD BAD!! Unless the exceptions... But .. face reality guys... Most of us are not exceptions... Don't lease....
Point is... The real goal is FREEDOM... not owing a payment... Not worrying about a payment if you have one... Avoiding a payment if you don't need one at all.... Don't take on loans you don't need to!!!. YOU DON'T OWN IT UNTIL ITS PAID OFF!!! I can't tell you how many people I saw at Honda that have been "paying off their house" (shows up on their credit)...for 50 years? WTF? 2 and 3 refinances?! They don't get it... It doesn't matter if you've been paying for 50 years!! Miss enough payments, YOUR ASS IS ON THE STREET!!!
OP... Just get a nice beater... Get an older luxury car in excellent condition...that you can buy and maintain out of pocket at no great expense... call it a day....
I had a fun little Civic I paid $5k for... short quick trips on base In California... I had $65k liquid cash at the time. Could I have afforded a nice fun car? Yes. BUT WHY?! So I can drive 20-25 miles during the week? And on weekends - anywhere from 0-150 miles? Did I really need a nice car? NAH. Plus then some dude ran me off the road...right off base... totaled it out... I got the ILX as my "new start car" after active duty... I paid LESS then a New Civic SI cost at the time, and I've been everywhere with it... I could have got a Lexus... But I was making life moves...Was gonna be an RN... School raised tuition to an insane amount... so I bailed... SO... I partied, I traveled... I worked different jobs... I like FREEDOM more then a badass newer or bigger car to impress people who could care less... And I'm not hating... A nice car is awesome... IF - you can EASILY afford it!
Now I'm looking at becoming a pilot, getting an aeronautical degree... Suppose to start in the fall... The Post 9/11 GI Bill keeps changing certain things... what it covers... etc... So I was indecisive as to what I was going to do... The situation kept changing... Schools i wanted to go to changing policies, whats required... 2-3 year wait lists...... Big Mess... Hard to make these big life changing decisions when you literally had a solid game plan for like 5 years... then it just blows up...
So I remember when I was on Active Duty... this racist bitch ass SGT I had, tried to get in my business and ask me why I didn't invest in retirement, or why I didn't have a nicer car ( mocking me)... Only reason he knew, was because the Financial Planner we had offered to us Marines for FREE, said that I was the most successful saver she had helped out so far.... Any way... I just told him... Because my retirement plan is getting an education that earns me WAY more income... Like?... why would I tie up my money in retirement funds?... When I need liquid funds NOW to get through school? Da fuck? Why am I going to put in $5 or 10K a year of my measly ass government check... which is like a HUGE percentage of my take home pay... VS.. Make 6 figure++ income (my future projected income when educated, well at least that's the goal)....and put even 3 times that measly $5k or $10K amount away for retirement, and its a way lower percentage of my future take home pay? Gonna hurt me a LOT less......Then i could tell he felt stupid...GOOD
I'm not saying I SHOULDN'T invest in retirement right now... I'm just saying... My short term game plan is actually WAY more important... I mean, once I finish college I can stop maxing out at jobs at about $50K right now... And then I have all kinds of options... Rejoin the active duty military as an Officer... Fly for an airline... Fly for various agencies or companies... Make GREAT money (after I pay my dues)... Say, FUCK IT, and Get a Master's... It's like sometimes people tell you - SO YOU GOING FOR YOUR MASTER'S?... Like.. DUDE... Can I finish my bachelor's FIRST?! Relax, man... One thing at a time!!
IF Jon is doing something similar... or others... THEN I would kind of see the point of their argument... BUT... GENERALLY... Longer loan = BAD BAD BAD... But maybe its just what you gotta do... And leases too ! BAD BAD BAD!! Unless the exceptions... But .. face reality guys... Most of us are not exceptions... Don't lease....
Point is... The real goal is FREEDOM... not owing a payment... Not worrying about a payment if you have one... Avoiding a payment if you don't need one at all.... Don't take on loans you don't need to!!!. YOU DON'T OWN IT UNTIL ITS PAID OFF!!! I can't tell you how many people I saw at Honda that have been "paying off their house" (shows up on their credit)...for 50 years? WTF? 2 and 3 refinances?! They don't get it... It doesn't matter if you've been paying for 50 years!! Miss enough payments, YOUR ASS IS ON THE STREET!!!
I'm seeing some Toyota and Ford ads (IIRC) that are promoting 72 months 0%.... If I wanted a Camry or something, I'd be all over that.
06-08-2016, 12:30 PM
#36
Three Wheelin'
The key to financing is that it's okay to do IF you have the cash that you could have bought it outright. In this scenario, deciding to finance is perfectly fine as you may be trying to maximize other investments by leveraging at a low interest rate. However, one of my reasons for always buying outright is more psychological. I just don't like monthly payments. I like writing one check and then having the pink slip in hand.
06-08-2016, 05:29 PM
#39
Yea, you guys are giving really good points. I financed my ILX at 1.54%... At the time, the lowest my credit union was doing was 1.5%, so not too bad at all.... Now one of my credit unions is offering 0.99%...
I did a 5 year loan, because I bought GAP insurance. So I want that 5 years of GAP protection. I also put ZERO money down. Because i bought the car for so cheap, if I was to get the car totaled out right now, I'd get more money off of the car right now, then I've spent buying it... Although, I'd lose somewhat on all the fun stuff I did to it...
I am covered for an extra $5k on aftermarket stuff through insurance... I'm realistic tho, they would lowball the car and the aftermarket stuff value... But I'd still bare mimimum, walk away clean,break even probably... Like i sold the car off or something.
The money I saved from buying the car outright, I keep in rotating Checking Deposit Accounts, at the time anywhere from 1.5% interest, 3% interest and 5% interest, longer the the money is held the more the interest is...... There have been some really good offers on CD's at my credit unions since then as well, however I have not had the liquid money anymore to continue investing in them....
So in that way as well, I used the money i didn't just give up right away... In my scenario, I grew the money I saved...
BUT - buying cash gives you a TON of leverage on haggling and price, and saves you on financing rates and penalties, and fees, and taxes... and also any hidden stuff that especially the dealer likes to throw in their contracts...
So having seen both... They are both equally the best ways to buy a car... would depend more on the person's financial situation...
More liquid money and savings and all that.. buying cash is not too bad... although i will argue that GAP is a pretty big peace of mind... But you do pay for GAP... Mine was only $300, but the dealer I'd say was anywhere from $500 absolute cheapest, generally... to insane amounts like a couple or a few thousand...!!!
I did a 5 year loan, because I bought GAP insurance. So I want that 5 years of GAP protection. I also put ZERO money down. Because i bought the car for so cheap, if I was to get the car totaled out right now, I'd get more money off of the car right now, then I've spent buying it... Although, I'd lose somewhat on all the fun stuff I did to it...
I am covered for an extra $5k on aftermarket stuff through insurance... I'm realistic tho, they would lowball the car and the aftermarket stuff value... But I'd still bare mimimum, walk away clean,break even probably... Like i sold the car off or something.
The money I saved from buying the car outright, I keep in rotating Checking Deposit Accounts, at the time anywhere from 1.5% interest, 3% interest and 5% interest, longer the the money is held the more the interest is...... There have been some really good offers on CD's at my credit unions since then as well, however I have not had the liquid money anymore to continue investing in them....
So in that way as well, I used the money i didn't just give up right away... In my scenario, I grew the money I saved...
BUT - buying cash gives you a TON of leverage on haggling and price, and saves you on financing rates and penalties, and fees, and taxes... and also any hidden stuff that especially the dealer likes to throw in their contracts...
So having seen both... They are both equally the best ways to buy a car... would depend more on the person's financial situation...
More liquid money and savings and all that.. buying cash is not too bad... although i will argue that GAP is a pretty big peace of mind... But you do pay for GAP... Mine was only $300, but the dealer I'd say was anywhere from $500 absolute cheapest, generally... to insane amounts like a couple or a few thousand...!!!
06-10-2016, 10:03 AM
#40
Hmm... my experience has been different... All the dealers I've dealt with HATED that I bought with cash. If you're buying new, there might be some extra incentive if you finance through the manufacturer. I never mention that I buy cash when negotiating - When I bought my TL, I bought it at a very low price - something like $800 more than wholesale. However, the dealership just put on new brake pads/resurfaced rotors, put on 4 new tires (which are very expensive on the TL I might add!!), replaced a couple hoses, and other services...I also had them remove the vin etching ($300 or $400) charge that they automatically tacked on and also negotiated in that they replace the grill bc of a hairline crack. When I said I was putting $3k on my credit card (max they allowed) and paying the rest with a cashiers check, the manager was not happy. Boy did that finance manager try to scare me into a warranty when doing the paperwork. Guess they were looking to pull a fast one on me by charging me a higher finance rate and expected me to add warranties bc I'm a lot younger than their typical buyer and kept asking about what extra protections I can get for my new vehicle