Hubby and I were thinking about buying 2 newer cars. We have not been car shopping since 2002 and had a bit of sticker shock.
We’ve decided to keep our cars since his is paid off, and mine could be in less than a year if we really attack it.
But I think of my friends, financialy in similar places as we are, and they are driving new or newer cars. We figure they’ve got to be paying $1000 a month for both their cars (plus insurance etc). Is that usual? Because I’m feeling really shocked that anyone can be affording that much money a month. But it seems like many people do.
Should we just adjust our thinking, and realize $1000 monthly is normal? Again we’ll be keeping our old, payed-off cars, I’m just trying to get a grasp on the world we live in here because I obviously have been in oblivion on this issue.
So dopers, if you have one, what is your car payment?
Mine is $0 because I paid for mine used in cash and my wife got hers as a work bonus. Cars are a quickly depreciating asset and I don’t really know why people by the new ones. Used cars aren’t all about $1000 Ford Tempos with 200,000 miles. If you buy somewhere around the 3 year sweet spot or maybe even later, you can have a very nice car for a fraction of the price whether it is a Lexus or a Nissan. Only fools buy new cars (no offense to the fools around). It is just a needless money drain that literally gains you almost nothing if you are careful about the used car you get.
In April, I bought a used 2006 Jetta with 10K miles. My car payment is $268 but I pay $300 every month. I drove my last car for 10 years (paid off for 6 years!). I can’t wait until this car is paid off and I don’t have a car payment again The world I live in - no car payment is the preferred state.
I don’t know my exact car insurance, since it’s bundled with my renter’s insurance. I think it’s like $60 a month.
I have one car paid off, and pay $317 a month on the other. It’s a 2004 Explorer that we bought used.
I did hear a good guideline a while back… If you can’t afford the payments on a particular car for a 42 month loan, you can’t afford that car. With a loan longer than 42 months, you will spend several years “upside-down”, where you owe more than the car is worth. With a 42 month loan, you should be able to sell/trade in a year and not owe money.
I would imagine that most people do not follow that advice.
My car’s all paid off, but it was just over $300 a month while I was paying it off (something like $303 or $305). I got it in 2000, though, so things could have changed since then.
We’ve got a 2000 Accord, and a 1995 Saturn, both fully paid off. The Accord had payments that were ~$335/month, IIRC. We bought the Saturn used about 4 years back, for about $2400 cash.
$263.12 a month for a 2004 Sable bought used. Insurance is now $78 a month, but two months ago I was paying $246 a month with Progressive…I’ve now switched to USAA
$168.11 for my used Volkswagen. I had a used Neon before that and my payments were only $115. I’m not sure exactly what my husband pays for his Explorer but I think it’s around $225.
$313/mo for our 2004 Accord (was the dealer demo, had 7k miles when we bought it “new” so we got it for around $17k, IIRC).
The 2000 Focus (which we bought used) is paid off; I’m hoping to sell it and buy my Aunt’s minivan when the Honda’s paid for in 2009. We say it at least once a week, “shoulda bought a minivan”.
$540. ’06 Pathfinder. My Wife and I alternate. Or at least that’s the plan. Her ’02 Jeep is paid off. When my Pathfinder is paid off she will get a new car. If her Jeep lasts that long (:sigh: it’s kind of a lemon).
Good advice, some appropriate modification of which could probably work for most people. Buy less than 3 y.o. and get a newer car with more warranty time left, later and you pay even less. Let someone else take that huge “off the showroom” hit. Just, as Shag says, be patient and make well-maintained another priority.
99 Jeep Wrangler that’s been paid off for several years and still runs great.
02 Pontiac Montana Minivan that I bought used in 2004. It was a rental and had 15K miles on it. I’m paying $300.76 per month for it and am on the downward slide of the payments.
Toss me also in the group that doesn’t see why people buy new cars. Used ones are so much more economical and if you do a bit of work they’re just as good as new ones.
About $280. That was a 5 year loan for about $15,000. I was able to put about $3000 down.
But you’re trying to buy TWO new cars? Yeah, with insurance and payments, you’re probably looking at $1000 per month.
Who cares what your friends are doing. . .if they’re anything like a lot of other people they think debt=wealth. They might even have tapped their home equity to buy new cars.
Do you think it’s a good idea to consider cars that were leased for three years and are being sold used? Or would they have as a rule not have been as well cared for?
Actually, I know several couples (including my now deceased F-i-L) that use(d) home equity to purchase cars. It lets one avoid paying interest (generally higher) to the auto finance company and it allows you to write whatever interest you do pay on your home equity line off on your taxes.
The world I live in - no car payment is the preferred state.