how much did you put down on your car and how much do you pay a month for how many months?
Overheard on a podcast that the average monthly car note in America is $550.
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$800, but really, it’s irrelevant. I could have paid all cash, but I’m getting 0.9% APR on a 5yr loan, so it’s basically free money.
Whats the mentality behind this. Actually curious.
What? I wanted a nice car and I get a market return above the rate of my loan, so I make money instead of paying cash. You’re in finance?
The idea is that you can take the lump sum of cash and invest it as opposed to buying the vehicle in cash up front. The interest you earn with the lump sum in theory should earn more money and be a better investment than paying cash for the car and not having the cash anymore. This means it is viewed better to finance a vehicle, especially if you get a low interest rate because you have a small payment per month and this leaves the lump sum amount of cash to be invested.
This is all in theory.
Bought a car at the end of April 2020. Basically the height of COVID. Dealers were shitting their pants. Brand new AWD sedan. Somehow was able to swing 0% financing, 5 years, with $0 down. They even rolled all my fees into the loan and gave me about $500 more than my trade was worth lmao. I pay $393/mo.
As someone who needs a new car soon. It astounds me how expensive new vehicles are. Like a Toyota Tacoma is running like 45k new. Subarus are running 25-30k new. I just cannot justify buying a new car.
Why do you need to buy a car new? Used cars are the answer to your problem
the first "new" is new to me. As in I drive a 2001 clunker with 230k miles on it. time for something "new" and I was just looking at brand new cars - just for fun and the price tags are ridiculous.
Bought a pre-owned Honda Civic back in Jan of 2020 for 13k with 20k miles on it. Works like a charm and is really inexpensive. Needed it for University anyway so worst case scenario ill sell it if I come back to nyc.
I have multiple cars and always buy them used (pre pandemic). Have been working on cars for a very long time and know where to look, what parts to source, how to service, etc. In the end it is cheaper this way. Always pay in cash.
If I was in the market for a new car, which is something I am interested in, then I'd go for around 500$ per month for about 36 months.
Bought a car in June 2020, put $13k down and pay $365 per month. Sticker price was ~$26k, added on a warranty for a few extra thousand which is factored into the loan
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