Car Payments Are a Mantra of the Middle Class

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[daviddesmond]

At 73, I have never financed a car. My dad said if you can't pay cash for it, you can't afford it when I was a kid. As I drive my present car, I put money into an account for my next car. I save huge amounts on finance costs!

[CravinScrapping]

I’ve never borrowed for a car. I pay cash and drive it until the wheels fall off. Usually 15 years. My current vehicle is a 2006.

[bradhampton]

It’s no wonder the auto industry is struggling. Prices just too high. Interest rates out of sight.

[JohnBingo-ph]

I’m driving a 2004 Ford Expedition. I got it almost 5 years ago with under 100k miles. We paid it off in about 18 months; been driving it free ever since. My wife’s car is 07 Mustang we paid off long ago. We keep them in excellent condition; if we ever replace either, we’ll follow the same plan: quality brand, used, low mileage for a low price.

[HalfKort]

We are on baby steps 4 and 6 and we do not have baby step 5 because we have no children. Once our emergency fund was fully funded, instead of baby step 5 we decided to put a little bit aside every single week for a new car. It’s been 5 years saving that way and this year my husband will get his new car paid for outright. We will continue to save the exact same amount and in five more years that will be my car replacement and we will just keep going back-and-forth

[NorthernWindNut]

What’s interesting is that the auto industry has been way ahead on the subscription model. They’ve effectively made vehicles a subscription for decades. A lot of Americans never actually own their cars: they finance and then trade them in before they’re paid off or as soon as they do. Many of them finance from the manufacturer’s own finance company. They are banks that make cars on the side. Most people could not have a new car otherwise. That is how they continue to sell them with increasingly outrageous stickers and why no “buyer revolt” is going to sink them anytime soon. They really sell “car subscriptions, ” not cars.

[ajalicea]

That is why we have a separate account JUST FOR VEHICLE PURCHASES. New, used we just want as much money saved JUST for purchase.
Both vehicles are paid for. We know that the 2001 is coming to a point of replacing.

[ObiJuanTX]

Before you buy a house, make sure your car is fully paid off. You want your debt to income ratio to be as low as possible. I have coworkers that have $1, 000 car payments and their rent is $1, 500-$1, 800 a month for one bedroom apartments. It’s sad that working class and middle class people will struggle to look like they are rich

[yt]

A friend of mine who was a mechanical engineer before his retirement from a steelmill told me the following about new vehicles in his opinion. He said my wife and I drive cars that are at least five years old or older, but we normally would buy a used car that was in good condition and well maintained. He said if Pat and I want to go on a trip anywhere which we do reasonably often, we rent a car. If the car breaks down or something happens to it, they bring us another one. This makes a lot of sense unless you must have something new to show off to your friends and relatives.. In this day and age it would not be unusual to have over $100, 000 worth of cars/trucks sitting in your driveway depreciating or depending on where you live rusting away. I recently saw an advertisement for a Chevrolet pick up truck that could be financed for eight or nine years, think about that..

[mustangnawt]

Haven’t heard tote the note in a long time

[JB.Olsen]

I bought my used truck with 80% down and had the loan paid off in a little over a year. I was okay with the loan because I needed a truck, and knew I’d have it paid off fast. It depends on the situation, and sticking to your plan. The truck hauls my mower around and with the mowing side hustle it pays my house payment. Good trade I’d say.

[tombishop]

My last new car was in 1979. Never again.

[captaincouch]

I only borrowed for my recent truck because my other truck was destroyed when someone hit me and i need a vehicle while the insurance check came in and when that check came in i payed the truck in full only having to pay 80$ in interest on a 17, 000$ car. But i do believe that ramsy is right that in most cases it is not worth it to get a loan especially for a new vehicle that looses all of its value as soon as it leaves the lot. I just dont think ill ever understand the need for someone to take out a loan to buy the newest car and then sell it right as soon as its payed off to get the newest car again just one car payment after another never escaping the cycle

[darrellhicks]

I have never had a car payment. I save up my money and pay cash. You’ll be surprised how many things you don’t want to spend your money on when you do it this way. Often I’ll just walk away and keep the old car and keep my old money.

[davidbennett]

Cold and Bold: That’s where Chevy got that, Like a Rock.

[jfsabastian]

Yeah, how do we improve? We all know that, but we have to do it to be able to continue our day by day life. Instead of criticizing, we are waiting for the suggestion that makes us improve.

[OregonBornandRaised]

We buy used and wait for good deals but nothing is better than a paid off car.

[jim]

That is why I only ever took out one car loan in my life.

[tacticalgoldfinch]

Glad my car is 2018 and got it used and runs quite decent

[naturallifemiss]

How am I getting to work then?Waking up at 4am and walking to work...Busses are not an option where I live especially in the winter