what's your monthly car payment as a % of your monthly takehome?

[spleuchan]

If you had a car payment in the 80's you probably learned to save up so you can pay cash and avoid the large amount of interest payments. However, today you can get a 5 year car loan at 1.79% with Navy Federal Credit Union. The cost of interest on a $20,000 loan is less than $30 the first month and only goes down as the months go on.

I'll admit buying a cheaper car is better due to the car tax and the fact it is a depreciating asset, but buying with cash vs. financing isn't as big of a deal as it used to be. A few years in the future, who knows what the interest rates will be, so it is always good to save up just in case, but here and now, it really doesn't make too much of a difference.

[Deeman804]

Originally Posted by ReblTeen84

Amen. I bought an '01 Jeep Cherokee when I was 19, grandparents lent me the money. Paid back every dime, just got rid of it 2 weeks ago. When major things started breaking, I bought the manual and my neighbor showed me how to fix stuff on it - it never saw a shop after that except for a Chrysler TSB when it was misfiring and the dealer couldnt fix it, that one cost me a pretty penny. Did my own oil changes, gaskets, plugs, etc myself, saved thousands in the end. Now though, with me working a normal job and out of school, plus the new Jeep, dealer will be doing the maintenance. Under warranty though in case something major breaks.

Yeah, I'm pretty much your age (based on your tag) and with an 02 car. I want a newER car but am kinda of on the fence about ridingthis one until it dies or selling it before it truly becomes a moneyhole. I love not having a payment but hate the issues that come about more frequently with age. I anticipate it getting worse too. Seems like everyone here just rides the rusty. That's okay, but being in a corporate job and leaving a client meeting with a loud timing belt or giving my boss a ride to lunch and getting a "you know you could probably use new shocks" isn't a good look.
As bad as it sounds...I'm damn cheap. I want to make it past the 10 year mark, but want a reliable car that can a 6ft+ guy can feel comfortable in (that eliminates most small cars). Im confused but it helps hearing different perspectives though.

[sullyguy]

Originally Posted by Deeman804

Sooo...what type of paid off cars do you guys have. Did you have a spare 10-15K laying around? Chose an unreliable american car and learned how to fix it? Paid a lot for a new car and rode it out for 20 years. As a young person I don't know too many that pay cash. What's the secret?

(The first car I had exclusive use of was a $400 very-used learther-seated two-seater Fiat Spider hand-me-down from my brother originally bought by my parents. Near its end I had to park on a hill to jump start it AND I had to shift the (manual) floor shift with two hands because the mount was rusted out; that was late high school. I rode a motorcycle during 12th grade and for much of undergraduate college)

My own first car was bought new at list price for cash right after I got into graduate school - totally silly expensive mistake.

Each car thereafter was bought new either with cash or on credit - two different times I bought two on credit at the same time for wife and myself, same dealers.

My Nth and (so far) last car, a minivan, was bought on credit - 3% interest rate I believe - and took three years to pay off. That was in 2006. The monthly payment was about $800-ish and was probably about 1% of monthly take-home pay at the time.

Since we're good drivers with no accidents and essentially no tickets our insurance is quite low - maybe about $700/year total covering both cars.

[should note as an important aside - I took a Drivers Ed course in high school and I've been driving for...ahem...40 years since]

[brenpilot]

Originally Posted by sullyguy

The monthly payment was about $800-ish and was probably about 1% of monthly take-home pay at the time.

I hope you mean 10%, or else I'm really jealous

[car54]

Originally Posted by Carlingtonian

Car54: Do they let you drive your school bus home and use it on your off hours, like some police departments do with squad cars?

No on using it on off hours....I don't know why anybody would want to...oh wait, they did catch this one guy at Home Depot loading 16 foot 2X10s through the emergency door of his bus...LOL.

As for driving the bus home, that was once VERY common...most FCPS drivers parked their bus at their residence year round. But as Federal law began requiring noisy pre-trip inspections (air brake tests, horn tests, backup beeper tests, etc) it became much less common....the neighbors rightfully didn't want to be awakened at 5:00 am by that racket.

Parking at home is still allowed in cases where the neighbors would not be disturbed...my residence would qualify because it's on over 2 acres and the houses are quite far apart. I don't do it because, 1) my wife would NOT stand for it and, 2) my lot is heavily wooded and mucho tree surgery would be required to get the thing up my looong driveway (no on-street parking in my 'hood).

They do let just about anybody take their bus home during the mid-day break, but not overnight....that's why school buses parked on sub-division streets is such a common late-morning/early afternoon sight in FFX Co.

[sullyguy]

Originally Posted by brenpilot

I hope you mean 10%, or else I'm really jealous

Lol! Yes, about 10%!