car payments.

Don't forget the sales tax every time you trade in. Add an extra $1,600-1,700 to that.

Buy smart! Don't just mindlessly go trade in. Stay off the car lots if you have no willpower.

I just assumed a lease on a 2011 DCSB TRD Sport last week with 3 months to go. I will then buy it out for $19k. I am selling my Subaru Forester for $14k. New to me truck for a difference of $5k plus tax.

 

i laugh everytime i see posts shitting on people who finance their vehicles. i financed my tacoma for .9 through my local cu. i RATHER pay the monthly than drop 30k cash for a truck all upfront.

 

ya when in reality anything under the worlds average inflation rate (usually thought to be 1.8 or so) is technically making you money lol

 

I am trying to buy a C6 Z06 that already has everything I want. I like the 7 liter, and maybe with an exhaust. I know that the C5 is much cheaper but I will have to mod it to get more power. I won't have to do that with a C6. Way down the road if I wanted to I could drop the car off and get maybe 750hp supercharger kit that basically comes with everything for around 15k. There isnt a car on the road that can keep up with that. But as of now I want it mainly stock....

 

Not true....unless PA changed something in the last 6 years....

When I traded in my Dodge Ram for my tacoma..... The only sales tax I paid, is on the difference between the trade-in value and the purchase cost.

My Dodge Ram was listed online for $19,000
Toyota gave me $19,000 for the Dodge in trade in.
The new Tacoma was $29,000

Sales tax was calculated on only $10,000 of the purchase due to the $19,000 trade. If I would've sold the Dodge privately at $19,000 and then bought the tacoma, I would've paid sales tax on the entire $29,000.

 

Good Luck and have fun with it. Just don't go 'over your head' with all the mods & such. Remember...You'll have a car payment on this.

And if you've never owned a corvette or any other high horsepower vehicle - BE CAREFUL. This thing will pussy whip your ass into a ditch if you're not careful (and it doesn't take much).

 

I hear ya.... I am thinking about keeping it stock for now, maybe exhaust if it already has it installed. I am excited...but I have driven lots of cars in my years.

 

That only work on brand new cars in Ohio. I found that out the hard way when I traded my 2010 for my used 2012....

Almost killed the deal for me.

 

PA is probably the same (I don't know for sure). Double dipping.....
The State has already collected sales tax on the vehicle when it was new. The state collects again every time that car is sold - from the dealer OR privately.

 

I take a totally different approach to car payments by acting as my own bank and financing myself.

In 1996, I bought a new Tacoma for just under $10K cash out the door. Drove is daily as a work truck, and used it as a tool to make money for 17 years. Sold it for $4K to the first guy who came to look at it, because it was in excellent mechanical condition.

Then I bought a new 2012 for $19k cash out the door. Applied the $4K from the old one to the new one, which brought the new price down to just $15k.

When you finance or lease a vehicle you are forced to pay for full insurance coverage because the finance company owns your vehicle. But when you own your own vehicle, you enjoy the freedom to choose how much insurance you buy for it. I always get the bare minimum required for vehicle registration, and pay only one time a year. That works out to just $23 a month.

Over 17 years, the money I saved on insurance bought me another new truck for free.

 

I came up with a question this morning (we all know how philosophical showering can make you) and had an idea. This thread seemed halfway relevant so I figured I'd bump it instead of start a new one

So not too far down the road, I'm probably gonna be buying a house. No plans yet, but I'm sure it'll happen. This will require a loan, which I'm sure will be difficult for me to get with no credit (I think, I have 2 credit cards but you don't get good/bad credit from just those do you? It was my understanding you had to borrow money to build credit). I'm also currently in the market for a new motorcycle. I have the cash now for it and will have even more once my ninja sells, but I was thinking I could get a loan for the bike and then pay it off quickly to build credit. Does this seem like a somewhat solid plan? Could I pay it off immediately to avoid much interest?

Pardon my financial ignorance, I haven't ever financed anything before. I'm kinda a believer in "If I need to borrow to buy it, I don't need it"

 

Having a couple credit cards will improve your credit score assuming that you don't have any late payments.

 

Yes.... Your credit cards play a big role in your credit. If you miss payments or are late = bad for your credit/score.

You should think about getting a credit report to see what your credit score is.

A credit report will also show any & all types of credit cards that you've had in the past. If you have too many - even if they're 10 years old and you've never used them.... They stay on your credit report until you have the account deleted.

If you have 5 (example) credit cards on your credit report, they assume this as a debt load and go against you when applying for loans.

 

Banks want to see a history of on time payments, so take a loan on the bike and make the payments for a while. Don't just pay it off immediately (some loans have a prepayment penalty if you pay them off too soon).

 

honestly car payments break down into budgeting and just thinking things through. Im 22 just out of college and my motorcycle and car are financed.

the car i had 1.5 years in college making payments but working 40 hour weeks in order to afford everything but i still had plenty of fun.

the motorcycle i just got in july but i have a real time job now and can easily afford everything still such as rent/bills/food/insurance/payments/fun without worrying. The motorcycle itself saves me $100/month just on gas.

now i am wanting to sell my car to get a tacoma (hence me being here) but i still plan to sell it more than what i owe or ill keep it till i can get trade in what i owe and continue saving till then to have a decent downpayment. I have a great credit score as i havent missed any payments and have 1 credit card that ive used twice i think.

its all budgeting

 

Thanks guys... I have 2 credit cards, both of which are directly withdrawn from my checking account so every payment for ~2 years has been on time. I guess I'll just have to talk to a bank to see what I could do, I don't wanna be making payments for no reason if the interest is gonna be significant. Time to try out one of those free credit report sites that always have such enjoyable commercials on TV I guess

 

Same applies to Colorado. I traded in a my POS Jeep for 5k, got my brand new 13' Tacoma for 28.5k (DCSB, SR5). I "only" had to pay taxes on the difference (23.5k).

For me personally, I did finance my truck with a local credit union. My interest rate is 2.25%. I don't mind paying this interest for 2 years, and pay off the remaining balance after 2 years.

 

Definitely get a credit report. In fact, its a good idea for everyone to get a credit report yearly. This could show any suspicious activity on your report of identity theft or someone opening up accounts using your information.

I wouldn't take on a loan just to build credit. Use your credit cards 'lightly' for a while to build credit.

When I was 18, I got my first credit card in college. I used it to buy things like computers, furniture, etc. the type of stuff I couldn't afford to pay for outright. Made payments, paid a little extra -after 4 years in college of using that card ... I was able to buy a new car without a co-signer. The credit just builds from there. Make your payments and on time.

You could ask your bank for a credit report but it might cost $. Those free credit sites aren't bad. I actually had to use the one site to freeze my credit. Our doctors office was broken into and patient information was stolen. I had my credit locked for 90 days so nobody (even myself) couldn't open any new accounts.