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- Feb 19, 2006
Originally Posted by ksteezy
I get the feeling you dudes who say financing is for suckers or stupid, are just salty, broke and/or with unstable jobs to even think about comitting to monthly payments....how can you tell me a used car that can break down at any time (ive been there) beats financing a car...or even paying 10k cash for a used "newer" car is even smarter being that this car will no longer be under warranty and being that this car is newer, mechanics will have more reason to rip your pockets apart....
To each its own, but speaking from experience the only thing that can challenge financing a car is leasing...the fact that keeping up with these payments incredibly boosts your credit is reason enough to assume that financing >>>
You are generalizing.
Used cars have warranties. It is possible to get certified used vehicles from very reputable dealers with excellent warranties without taking the biggest depreciation hit the car will take in it's short lifetime. There are plenty of certified used dealers that offer the same warranties as new cars. No one is saying go out and buy a used car with over 80k miles. However a used car with 20-30k miles and a powertrain warranty up to 100k miles, or full warranty of 100k miles is a better choice.
Not every used car breaks down as soon as you leave the lot. It really depends on where you buy your used car. Shady "dealers" FTL.
It's also good to have a good relationship with a mechanic, it's not hard to either unless you're the type to take your car to the dealer for everything (another L). There are plenty of reputable mechanics out there that will do minor maintenance at a fraction of the cost, and when %%$! hits the fan they will not "rip you off". I know my way around my car, and everyone should. The information is at your fingertips. I do all the minor maintenance (oil changes, hoses, etc.), however I don't have the tools, time or space to do major work on my car. I do know what I'm talking about when something goes wrong (I've had my '99 Eclipse since 2001, burned out my clutch twice, busted heads once, timing belt) and the general cost of fixing it.
All the major work done on my car is due to wear and tear, and the fact that it is currently sitting at 180k miles.
I will just use your example. You bought a Acura TL-Type S for $40k. I just browsed autotrader.com and saw a 2008 with 15k miles for $30k and a 2008 with 10k miles for $30k...with full warranties.
Oh yeah... 50K for a "rainy day" fund
Like I said, 10k is a good amount (5k in cash, 5k in savings) the rest of your money should be growing in various accounts (Retirement, Investments, etc.). 50k just sitting there is pointless and counterproductive. I know personally, if I ever catch myself between a rock and a hard place and have to save my assets in the present I can pull from my retirement fund. It's a last resort, and it will get taxed like hell, but you got to save the present to have a future.
Luckily I have a steady income flow and have a very stable job