/biz/ - Business & Finance

[Anonymous No.10367774]

Hey guys I got a question. I’m currently paying 800 dollars a month on a vehicle I can afford it but it’s taking money out of my pocket that I could use to pay off my student loans. Is it better to trade it in for a beater and pay for the negative equity for lower monthly payments or would that be a poor decision?

[Anonymous No.10367810]

TFW OP inadvertently answers his own question in his post

[Anonymous No.10367912]

>>10367774
Holy shit I've been driving the same 2002 Camry for four years I paid $4k with.

Net worth $250k, 0 student debt, $42k a year.

I am unironically going to beat you motherfuckers making $100k a year at life.

[Anonymous No.10367939]

>>10367912
Jokes on you my grandma owns and rents 5 houses in British Columbia. My mom is her only daughter and I’m her only grandson.

[Anonymous No.10367956]

>>10367939
If your folks give you $$$ I'm literally not even competing with you & could care less.

We live different lives & I'm not going to even pretend to know who's got it better or worse.

[Anonymous No.10367969]

>>10367956
I also made 55k before taxes last year at 21 years old

[Anonymous No.10367976]

>>10367939
Also, 2 houses & 2 duplexes in the Midwest so I'll prob catch up to your grandma before I die (decent brick homes like I own that are $50k-80k would be 10x that in west/east coast)

[Anonymous No.10367981]

>>10367969
And you are both paying $800 a month for a car. And literally wondering if you should pay towards student debt.

God, I feel like life is on easy mode. Was remodelling my first house at your age.

[Anonymous No.10367994]

>>10367976
Nice I hope they chink out in your state then so they can jack up the value of your property

[Anonymous No.10368006]

>>10367981
Well I’m staying with my parents so it’s cool. I work in the Arctic for half the month and then I get the other half off.

[Anonymous No.10368032]

>>10367774

I make 100k a year and still drive the $1200 subaru Impreza I bought in college . I pay $700 a rent and that hurts, I can't imagine paying $800 for a car unless it's a sprinter van I'm going to be living out of. How do you people justify paying this much for a car?

>Pic related
>My trusty steed

[Anonymous No.10368057]

>>10368006
Dammit, I want a job in the arctic

[Anonymous No.10368069]

Expensive cars are literally a status symbol. Nothing more. Some people value status highly, others don't. Up to you to decide

[Anonymous No.10368071]

>>10367774
you don't even need a "beater" you can buy a reliable used car for like ~$4k-7k outright and it can last you like 5-10 years with minimum maintenance.

I bought a 2001 Ford Mustang back in like 2010 for around ~$5500 and I still have it today, the most I've paid into it is regular oil changes, new tires once, changed brakes twice (myself) and had to replace the alternator ($75)

Overall this car has maybe cost me ~$6500 and I've been driving it daily for 8 years, so about $813/year or $68/month

Don't fall for the new car meme, especially if the money could be used more efficiently elsewhere

[Anonymous No.10368094]

>>10368071
You can literally get an almost new (2yr old / 40k mile) Mazda 6 for $10/12k.

The used car market is 50% of their value after 2 years (don't know if it's always been this way or we are just flooded w cars)

[Anonymous No.10368096]

Don't get a "beater" unless you know how to fix cars and know what to look for.

[Anonymous No.10368110]

>>10368094
How much does the value of trucks usually depreciate? I have a 2017 Tacoma but I already racked up about 20000 kms on it though.

[Anonymous No.10368117]

>>10368032
I paid 35k for a Focus ST and am in deep lobe with it since the day I bought it 2y ago.
It’s the car I was dreaming of as a boy when it wasn’t called ST yet and I made a dream come true. I din’t care about better, more expensive cars. It’s just what I set my mind on and I got it.

[Anonymous No.10368124]

>>10368110
Pretty sure trucks depreciate slower.

They are generally around longer, built more reliably, body style changes last for more years etc (although I could be wrong)

[Anonymous No.10368131]

>>10368117
You paid $35k for this???

[Anonymous No.10368139]

>>10368131
Are we talking 35k usd or cad?

[Anonymous No.10368167]

>>10368094
I don't think it was quite like that back when I bought mine, but it doesn't surprise me.

One thing I would suggest to anyone who's trying to save money though is to buy a car that you can work on yourself. Most Fords are super easy in my experience, not sure about newer Mazdas an shit.

With YouTube videos you can figure out how to do basic engine repair in minutes. Like when I put in a new alternator the mechanic shop quoted me ~$300 and so I just went and bought the part myself ($75) and went to YouTube, turned out it was 2 bolts and one plug and that was it, took me 5 minutes.

Same with brakes - mechanic quoted ~$1000 and I did it myself in like 5 hours and $125 in parts after watching a YouTube video.

I'd rather own something older that's easy to work on than something newer where you have to take it to the shop and pay a 500% mark up on even the simplist shit because the engine compartments all tight and fucked up, or you have everything integrated through the onboard computer and requires high end equipment to interact with

[Anonymous No.10368192]

>>10368167
Yea. I.changed the head + head gasket in both my 96 f150 & 66 Mustang (I owned ages ago).

Usually the compacts are terrible to work on. It doesn't surprise me that the really old lines like Mustang are good, with enough room / accessibility. I can confirm the 02 Camry era is as well.

One place people mess up is buying compacts. There is such a huge fucking difference between a 2010 Mustang & a 2010 Fiesta/Focus.

It is not uncommon on the domestic compacts to have $5k+ repairs over a few years as soon as they are out of warranty.

[Anonymous No.10368211]

>>10368110

If its 4WD it will hold its value like gold.

[Anonymous No.10368231]

>>10368032
they don't. they just do because they are retarded. imagine people paying a years income worth for their fucking car. having to pay off car debt for like 3-5 years. they are just bad with money. Then they don't know why they have any money and need to wagecuck for the rest of their lives.
>muh need new car because it is new and shiny, but loses 33% value after the first 10kilometers.

Driving my old but reliable Volvo40 Combi until it falls apart.

[Anonymous No.10368268]

>>10368131
No, black paint, fully equipped.
>>10368139
EUR

[Anonymous No.10368294]

>>10367774

Trade it in? What do you mean? Unless it’s a lease you took out a loan for the car which you owe to the bank. Regardless of how you do it, you have to pay that loan back... you can’t just waltz into the dealership and say “hey guys I’d like to trade this in for a cheaper car to lower my payments”. In short, you bought an expensive depreciating asset, on top of taxes and fees bundled into your loan, you’re kind of stuck my friend, you’re best bet is to try and save on interest (loan type dependent) and pay off the car loan as soon as possible to minimize the hit you will take on the finance charges.

If it’s a lease then yeah see what you can do about terminating that agreement, it will cost you but not as much as if you have an actual loan and ownership for the car.

[Anonymous No.10368321]

>>10368294
I meant selling the car at a loss and possibly refinancing my loan to pay the negative equity at with lower monthly interest.

>>10368211
And yeah it’s 4WD

[Anonymous No.10368327]

>>10368321
Lower monthly payments I mean. Or maybe a shorter time frame.

[Anonymous No.10368384]

>>10368321
I'd check on how much you owe.

Although if you are Canada and need a truck it might be worth reconsidering. If you don't, you could break even on the payments when you get to what it's worth, sell it then borrow / buy a Camry/Mazda/Honda for $8-12k