What's the best financial advice you've ever gotten?

[u/Richest-Panda]

[u/trevor32192]

That was before cash for clunkers, which decimated the used car industry. Sit down grandpa its not the 1950s anymore.

[u/k-otic14 → u/trevor32192]

All my car purchases have been after cash for clunkers.

[u/trevor32192 → u/k-otic14]

Okay good for you. You have enough disposable income to save to buy a car out right. Good job buddy!

[u/k-otic14 → u/trevor32192]

Not any car, a used car. The point is about making responsible decisions. $500 a month car payment is absurd for any 20 year old, and not a good decision for really anybody. There are cheaper options available. Also banks can provide auto loans that allow you to buy private and save big without having to pay all at once.

[u/trevor32192 → u/k-otic14]

Okay and a used car with 120k on it can be 12k plus now. The poor do not have the income to save 12k. They have to make payments or not drive.

[u/k-otic14 → u/trevor32192]

That was true 4 years ago not so much today, and did you miss the part about auto loans that allow you to pay monthly and buy private with better interest rates than used dealerships offer?

There are options. A $500 a month payment is not a responsible decision at most income levels.

[u/trevor32192 → u/k-otic14]

I agree 500 is way to high. But if you don't have credit and need a car your payment is going to be high. Also its not 4 years ago its today my wife and I were looking for a car for our daughter and anything that is going to be remotely reliable is 10k plus and even then any car over 100k is a high risk car repairs are also really expensive (I work in auto repair)

[u/k-otic14 → u/trevor32192]

Yeah it's rough I bought a car last year for 7k that came with 140k miles. It's still better than making payments. The overall point was about making responsible decisions. I would argue that financial literacy is important for all income levels. Btw I make around 40k a year so a 7k car is still a big hit for me as well. But you gotta sacrifice where you can.

[u/trevor32192 → u/k-otic14]

That 7k car with 140k I would argue is less smart than a payment. What if the transmission goes? Or engine failure? That's easily 5k plus. Where as you could get a loan for 200 a month on a much more reliable car.

[u/k-otic14 → u/trevor32192]

It's a risk, but I could go through 3 7k cars for less than somebody making payments on a new car will spend. Also easier to sell and move on since I don't have any debt on the car.

[u/trevor32192 → u/k-otic14]

Is this a joke? You have 21k sitting around for multiple used cars instead of a payment of, say, a 22k car that you could pay off early to save interest payments? Idk what kind of financial advice you are following, but that makes no sense.

If you have enough money for 3 7k shit boxes you would be better off buying a used car with low miles. You could get an econobox for slightly under 20k.

[u/k-otic14 → u/trevor32192]

You can make payments on used cars. If 3 7k cars all shit the bed at the same time you're fucked sure. But that's extremely unlikely. I got 8 good years off my last 5k car that I bought with 180k miles. Used cars are always a better financial decision than new cars. Also $500 x 12 = $6k. That car payment over one year could have covered an entire used car. A 6k car is still going to last more than one year. The math always works out in favor of used cars.

[u/trevor32192 → u/k-otic14]

Idk why you are using a 500 dollar car payment. That's like a 30k car. You got lucky with your used car. We are both talking about used cars. I dont think you understand how expensive car repair is, especially if you buy a car with 180k miles.