Making $100K a year isnt anything special especially when you ower 5K on a 9 year old car

[Wild self]

Go to a police auction and get a great car for cheap.

 

[BlvdBrawler]

If you making 99K, then why the fukk do you owe almost 5K on a 9 year old car?

I don't normally attend these roasting sessions but the above is a legitimate question, even if you eliminate the income from the situation. Owing 5k on a 2004 car is not the business.

 

[BlvdBrawler]

Yeah but a car is still losing value each year and/or as the miles add up. So yeah you only paid $500 in interest but you're left with something that's not as valuable as it was when you bought it. If you just paid the 7k up front, you're still going to lose value, but you're not out an additional $500. If it's 0% interest then you may have a point.

I'm not spooked by credit I just realize I don't want the risk at th end of the day. Even with a 0% interest car, you can lose your job, get sick and rack up medical bills or whatever and lose the ability to pay the money back.

C'mon Raw, we've talked about this before. Any interest rate less than inflation = you paying LESS than if you paid cash.

Paying $7k up front = not having that $7k earning interest.

 

[HookersandIceCream]

I don't normally attend these roasting sessions but the above is a legitimate question, even if you eliminate the income from the situation. Owing 5k on a 2004 car is not the business.

Sh*t has me
I mean that and you plan on financing another car thats more expensive to maintain?

 

[Rawtid]

C'mon Raw, we've talked about this before. Any interest rate less than inflation = you paying LESS than if you paid cash.

Paying $7k up front = not having that $7k earning interest.

Man, if you put that car payment in a reasonable investment over the same amount of time that you would have financed the loan, you will have made more than what you paid in payments plus interest. Pay yourself a car payment, not the bank.

 

[MikelArteta]

Go to a police auction and get a great car for cheap.

or have a friend who has access to adessa, most of the cars are right off lease

saved like 5k off my last car

 

[BlvdBrawler]

Man, if you put that car payment in a reasonable investment over the same amount of time that you would have financed the loan, you will have made more than what you paid in payments plus interest. Pay yourself a car payment, not the bank.

The future value of a $7000 investment over a 5 year period at 5% with no additional investment is $8,933.97
A $7000 loan at 5% over 5 years is a $132 monthly payment totaling in $7926.00 over the life of the loan.
$132 invested monthly over 5 years at 5% will yield $9190.23 at the end of that period.

So we've got our calculations, lets compare them.

Your way, you drop $7000 on the car, thereby foregoing it's future value of $8933.97, but invest the $132 payment for 5 years, saving $9190.23. $9190.23 - $8933.97 gives you a total of $256.26. That's your opportunity cost.
My way, I drop $0 on the car, get a loan, and over 5 years, pay a total of $7926.00 in payments, but have an investment worth $8933.97 for a difference of $1007.97, my opportunity cost.

 

[TruStyle]

Another coli dude lying about his money.



I don't believe it.

 

[Rawtid]

The future value of a $7000 investment over a 5 year period at 5% with no additional investment is $8,933.97
A $7000 loan at 5% over 5 years is a $132 monthly payment totaling in $7926.00 over the life of the loan.
$132 invested monthly over 5 years at 5% will yield $9190.23 at the end of that period.

So we've got our calculations, lets compare them.

Your way, you drop $7000 on the car, thereby foregoing it's future value of $8933.97, but invest the $132 payment for 5 years, saving $9190.23. $9190.23 - $8933.97 gives you a total of $256.26. That's your opportunity cost.
My way, I drop $0 on the car, get a loan, and over 5 years, pay a total of $7926.00 in payments, but have an investment worth $8933.97 for a difference of $1007.97, my opportunity cost.

Yeah but I still have $256 more and the opportunity in that time to put more additional money in investments. Your investment amount will always be $132 less each month. Of course that's under the assumption our money is the same and all that shyt. (I know you ballin though)

Also If I lost my job, I have a chance to sell my paid for car and pocket all the cash coming from the sall. You lose yours and you have to pay the loan off first and if it's worth more than what you owe, you pocket the difference. I always factor in the worse case scenario which is why I prefer to not borrow money.

 

[Kilgore Trout]

The guys name stuntone and he's from the south, im not sure what else you expect out of his threads.

 

[BlvdBrawler]

Yeah but I still have $256 more and the opportunity in that time to put more additional money in investments. Your investment amount will always be $132 less each month. Of course that's under the assumption our money is the same and all that shyt. (I know you ballin though)

Also If I lost my job, I have a chance to sell my paid for car and pocket all the cash coming from the sall. You lose yours and you have to pay the loan off first and if it's worth more than what you owe, you pocket the difference. I always factor in the worse case scenario which is why I prefer to not borrow money.

You actually... don't tho but Suit yourself brehette.

 

[Beegio]

On

 

[Rawtid]

You actually... don't tho but Suit yourself brehette.

Tell me how? The scenario was that we both started with $7000 dollars. I used mine to pay cash for a car. You invested your $7000 no additional investment earning. You then financed the same $7000 car I paid for with a car not of $132 per month for 5 years. For 5 years while you pay your car payment, I invest $132 per month instead. In your post you said that your investment balance at the end of 5 years would be $8,933.97. You then said that my monthly investment would yield $9190.23. $9190.23 - $8933.97 gives you a total of $256.26.

The bottom line for me is that you're putting less money per month into investments when you're making monthly debt payments at the same time.

 

[DaddyFresh]

@HookersandIceCream Going for the goat title

First that dude with oversized whale and 50$ floyd tickets who thought he was balling and now this

 

[beenz]

Financing a car really isn't a bad idea. Paying straight cash for a new car is pretty overrated.

For a used car it makes more sense but I know millionaires that still finance.

financing a car is fine. financing a 7 year old car ain't what's hot in these streets. I mean lets be real, if you're out here making those final payments on a 12 year old whip, you're gonna look like an a$$hole.