3 ms·

$1k/mo is a new car with no down payment, most people aren't doing that. It's literally the most expensive way to get a vehicle! Maybe #2 depending on your view

by pc86 3y ago

$1k/mo is a new car with no down payment, most people aren't doing that. It's literally the most expensive way to get a vehicle! Maybe #2 depending on your views on leasing and how you calculate cost there. And even using the $1k/mo number, you're still paying thousands more in rent to save that.

dylan604 3y ago
$1k/month doesn't just necessarily mean the financing on the car. When I look at the monthly requirements for the car, I include insurance in that number. If the place I'm living requires a parking fee, I include that number. I don't include gas/maintenance as those are variable, so I'm only including the fixed costs fees. You can also get higher payments with money down if you have no to low credit ratings. Been there, done that. You play the game using the online calculators that dealers provide on how much your payment can change based on credit score and down payment, and the credit score will dramatically change compared to the down payment.
throw0101d 3y ago
> $1k/mo is a new car with no down payment The average monthly payment for a used car is $500/mo, and $700/mo for a new car: * https://www.nerdwallet.com/article/loans/auto-loans/average-monthly-car-payment https://www.nerdwallet.com/article/loans/auto-loans/average-... Then add maintenance, insurance, depreciation, fuel. And that's just the stuff that shows up on a spreadsheet (of which depreciation most folks don't really think about).
- jonfw 3y ago
  You wouldn't consider depreciation a cost in addition to your car payment, depreciation is on your balance sheet and your car payment is on your cash flow. Your balance sheet would factor in only your interest payments and depreciation, the principal on your loan is irrelevant there because it's being realized as equity. The average monthly payment for a used car being $500 does not mean that somebody on a low income has to pay $500 to own a car. I'd imagine that the average price paid for a cup of coffee is around $5, but that doesn't mean that that's what coffe costs. It just means that a lot of people pay way more than neccessary for coffee. Similarly- lots of people drive cars that are bigger, faster, newer, more luxurious, and more capable then necessary. The bare minimum cost to own a vehicle is not $500 a month by any means- my 5000 dollar car has lasted me 6 years now as an example. Even if we consider it is now worth half of it's original value, that comes in at about $70 a month in depreciation. Hardly unaffordable
  - bombcar 3y ago
    Most people who do this math are horribly bad at it. Somehow poor people can afford these cars that cost way more than they make.
    - jonfw 3y ago
      I can't imagine that poor folks in expensive cars are doing any math
- jjav 3y ago
  > The average monthly payment for a used car is $500/mo, and $700/mo for a new car Average isn't a very interesting number here. I know a guy with a $15K/month car payment, I'm sure people like him push the average up. If you're trying to save money, don't go for average. Buy a cheap used car, ideally in cash, and your operating costs will be minimal. The sky is the limit how much you can spend on a car if you wanted to splurge(waste), but you can also a fully functional car for very cheap if you care to save money.

by pc86 3y ago

dylan604 3y ago

$1k/month doesn't just necessarily mean the financing on the car. When I look at the monthly requirements for the car, I include insurance in that number. If the place I'm living requires a parking fee, I include that number. I don't include gas/maintenance as those are variable, so I'm only including the fixed costs fees. You can also get higher payments with money down if you have no to low credit ratings. Been there, done that. You play the game using the online calculators that dealers provide on how much your payment can change based on credit score and down payment, and the credit score will dramatically change compared to the down payment.

throw0101d 3y ago

> $1k/mo is a new car with no down payment The average monthly payment for a used car is $500/mo, and $700/mo for a new car: * https://www.nerdwallet.com/article/loans/auto-loans/average-monthly-car-payment https://www.nerdwallet.com/article/loans/auto-loans/average-... Then add maintenance, insurance, depreciation, fuel. And that's just the stuff that shows up on a spreadsheet (of which depreciation most folks don't really think about).

jonfw 3y ago
You wouldn't consider depreciation a cost in addition to your car payment, depreciation is on your balance sheet and your car payment is on your cash flow. Your balance sheet would factor in only your interest payments and depreciation, the principal on your loan is irrelevant there because it's being realized as equity. The average monthly payment for a used car being $500 does not mean that somebody on a low income has to pay $500 to own a car. I'd imagine that the average price paid for a cup of coffee is around $5, but that doesn't mean that that's what coffe costs. It just means that a lot of people pay way more than neccessary for coffee. Similarly- lots of people drive cars that are bigger, faster, newer, more luxurious, and more capable then necessary. The bare minimum cost to own a vehicle is not $500 a month by any means- my 5000 dollar car has lasted me 6 years now as an example. Even if we consider it is now worth half of it's original value, that comes in at about $70 a month in depreciation. Hardly unaffordable
- bombcar 3y ago
  Most people who do this math are horribly bad at it. Somehow poor people can afford these cars that cost way more than they make.
  - jonfw 3y ago
    I can't imagine that poor folks in expensive cars are doing any math
jjav 3y ago
> The average monthly payment for a used car is $500/mo, and $700/mo for a new car Average isn't a very interesting number here. I know a guy with a $15K/month car payment, I'm sure people like him push the average up. If you're trying to save money, don't go for average. Buy a cheap used car, ideally in cash, and your operating costs will be minimal. The sky is the limit how much you can spend on a car if you wanted to splurge(waste), but you can also a fully functional car for very cheap if you care to save money.