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Did you get that loan at a bank/credit union, or at the dealership where you bought the car? If the answer is, "dealership," you didn't get 1.8% financing for that vehicle.
How are some people so completely unable to figure this out? It doesn't matter where they got the 1.8% financing. The rate that's in the contract is the rate - if it says 1.8%, then they got 1.8% financing. This is not a hard concept for most people.
I just bought a new car for my wife, and the purchase price was completely and totally unrelated to the interest rate (1.9%, by the way). I negotiated the selling price of the car, then discussed financing. Guess what - when we elected to take the 1.% financing, the other numbers didn't change.
Did you get that loan at a bank/credit union, or at the dealership where you bought the car? If the answer is, "dealership," you didn't get 1.8% financing for that vehicle.
Not this again. You just don't get it. I'm thinking you never will. Just because you got hosed by a dealer once doesn't mean we're as incompetent as you.
Did you get that loan at a bank/credit union, or at the dealership where you bought the car? If the answer is, "dealership," you didn't get 1.8% financing for that vehicle.
Bank. Well, sort of. It was through a bank that was on the dealership "list". The previous car was financed through the same bank.
I keep my cars for 10 years and only buy last years model at year end with the lowest interest rate available. I negotiate the price hard, don't get ripped off on any extended warranties or other BS, and make sure everything on the contract adds up to the numbers I get using simple loan payment calculators online. It isn't rocket science, and yes, dealers have tried to slip bad math past me in the past. Then I make sure to pay them off at least a year early, and therefore I have cars with no payments for 6 off the 10 years I owe them.
The last 5 cars I've bought have been in this exact same way. I only buy reliable car brands and I change oil religiously.
I need reliable cars, my wife and I both work, my weekends and days off are valuable to me, and I can't be in the shop having to fix things every month..that's what you get with $5K used cars. You get a 3 year old Honda, that's a different story, but then you aren't paying $5K. Dave Ramsey's advice is very simplistic, although there's nothing evil about it.
Not this again. You just don't get it. I'm thinking you never will. Just because you got hosed by a dealer once doesn't mean we're as incompetent as you.
WTH are you talking about? If Toyota or Honda or Subaru's in house financing gives you 1.8% on the contract, and the payment you get every month is the same as what you calculated 1.8% should be on a particular price point..how did you get ripped off exactly? Magic?
WTH are you talking about? If Toyota or Honda or Subaru's in house financing gives you 1.8% on the contract, and the payment you get every month is the same as what you calculated 1.8% should be on a particular price point..how did you get ripped off exactly? Magic?
You should also note that while the average age of death might be 70 something, the actuarial tables shift when you hit 65. Once you reach 65, you can reasonably expect to live to 80. If you're married, one of you can expect to live to either 85 or 90 (I forget which.)
Well according to the bean counting people at my insurance company, they are betting I'm dead before 65.
I think they're wrong but who knows? I've promised them I'll live to collect the last payments they owe me but they don't seem to believe that...
On another note, I just happened to be listening to his show today as I was driving somewhere. A lady called in and she said she just got a $200k settlement check for an accident. She said she'd be out of work for another six months, her husband makes $110k yr and they have $30k in medical debt and I believe she said about $20k in credit debt. He immediately told her to pay off all of the debt and take 6 out six months of emergency fund cash.
Now in my mind, money like that is very,very,very hard to come by in one lump sum so I'd do everything to hang on to as much as possible. Given she'll be back at work in 6 months or so they'd most likely be making more than enough to pay off the $50k in debt and still retain the $200k, maybe to pay off their house down the road to get the most bang for the buck interest wise and so they'd always have a roof over their heads no matter what.
The real killer is many people who buy too expensive vehicles and then take too long payments are always upside down. Worse yet, they continue to stay that way and never get out. I'm sure we all know people who have always have a car loan. It just becomes a normal thing to them, like a mortgage for some.
I've got friends who have never paid off their car and always end up moving the rest of their old loan into the bigger new loan. They continue to do this over and over again instead of keeping that vehicle for twice as long as their loan, getting out of debt, and then saving money towards their next purchase.
Anyone else notice the price of a new car is getting more expensive, loans are getting longer, but yet average pay for people is about the same over the last 15-20 years.
How are some people so completely unable to figure this out? It doesn't matter where they got the 1.8% financing. The rate that's in the contract is the rate - if it says 1.8%, then they got 1.8% financing. This is not a hard concept for most people.
I just bought a new car for my wife, and the purchase price was completely and totally unrelated to the interest rate (1.9%, by the way). I negotiated the selling price of the car, then discussed financing. Guess what - when we elected to take the 1.% financing, the other numbers didn't change.
I "think" the OP may be referring to the dealer bumping up the out the door price to give them the 1.8% financing. I have had a dealer try this once or twice when we were looking at buying a vehicle. Essentially we agree on a monthly payment and out the door price. The salesman sends us to financing.
Then we go to financing and they say we were approved at 1.8%.... but our payments are about $8-$10 a month more than what we just shook hands on, and the out the door price is $500-$1000 more than we just discussed.
I don't know if that's what happened in this case, and we have walked when they have tried to pull this but I don't think that's necessarily what happens in every case.
I "think" the OP may be referring to the dealer bumping up the out the door price to give them the 1.8% financing. I have had a dealer try this once or twice when we were looking at buying a vehicle. Essentially we agree on a monthly payment and out the door price. The salesman sends us to financing.
Then we go to financing and they say we were approved at 1.8%.... but our payments are about $8-$10 a month more than what we just shook hands on, and the out the door price is $500-$1000 more than we just discussed.
I don't know if that's what happened in this case, and we have walked when they have tried to pull this but I don't think that's necessarily what happens in every case.
That's a scum dealer issue. Car sales forms are pretty simple. Lay out the terms of the deal evening giving you exact amount of interest you will be paying.
All you have to do is pay attention to the contract and make sure the numbers you agreed upon stay that way. Dealers will try to squeeze every penny out of the customer, regardless of whether you qualified for 0%, 1.8%, or 5.9%
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I've promised them I'll live to collect the last payments they owe me but they don't seem to believe that...
