How in debt are you with your Tacoma?

What if you made 134,000 a year and had a 0 APR. You bet financing the whole thing would be the best decision.

The means are different for different people, as are debt arrangements.

 

At 0% if you aren't giving up any promotional cash, you are stupid if you don't no matter how much you make. After you account for inflation you are really paying less for the vehicle with 0%

 

I was starting to think I was the only dumb ass in the invest/future value of money/0% crowd.

 

This is true that most mortgages have a higher interest rate than autos, so you're better off applying the money towards the house. But it's all about risk.

Say you lose your job and have 0 income. You can potentially lose your house and lose your truck. If you own your car you can sell it and pay the monthly mortgage. You can do that if you have a lien on the car, but that only works if you're not upside down.

This is a thought provoking thread of what peoples debt and risk tolerances are...

 

$0. Everything was paid for with cash, even the truck.

 

No debt...paid cash

 

My daily driver (04 escape) reached 100k miles and decided it was time for a new daily driver. Had a 07 corvette c6 (garage queen) in the garage so traded it in straight up. No more toy but brand new 15 owned..

 

I agree. I'd also be curious to know how many of the 'paid cash - no auto debt' crowd have always been that way. My guess would be that most people have had an auto loan at one point in time or another in their life but I don't know for sure.

 

20sumtin k... no rush

 

Please show me where I can get 7-10% returns. I will jump on it.

 

This is the only vehicle I've purchased outright. All others were financed or leased.

 

EDIT: Only new vehicle I've purchased with cash.

 

S&P 500 returns 10% per year annualized over time. there you go. Go buy an S&P 500 Index Fund

 

7-10% has to be from our over inflated stock market. It can go away much faster than it grew. We all have or have had debt. As I said previously, debt is the most powerful tool we have. It's promising to read that many of us are making good decisions. Inflation is the sleeping giant. Fixed rate long term loans are great if you can stay employed. Traditionally auto loans are higher rates than home. It seems like 8-9% auto loans, 5-6% home loans are a historic "norm" Living within your means with a low debt to income ratio will insure you come out ahead

 

No. 10% annualized S&P 500 returns over time is not to do with an over inflated market. I can bring up 20-30 year blocks all the way back to ~1870 and it's the same...S&P returns between 9-11% per year

 

Bought it new for $30k. I currently owe ~$16,500.

 

S$P started in 1957, Last ten years show a 5.4% return. If you go back further it's all theoretical.

 

This says the S$P started in 1957 and shows 5.33% return over the last ten years.




http://us.spindices.com/indices/equity/sp-500/

 

S&P 500 did originate in 1957. It's been recalculated using the markets going back to 1870 to calculate what a S&P 500 would have been but it's from real data and stocks. It doesn't matter what the market has done the past 10 years. You have to use 20 to 30 year blocks to get the correct annualized data. 10 years is too short although a case can be made for that if you keep doing it through history.

If someone doesn't want to take on debt or pay it down faster, than I have no argue with that. But I will always argue for and take on low interest debt in favor of withdrawing money out of the stock market that returns 9-11% annualized in 20 to 30 year blocks.

If I can get rates at less than 5% I will always borrow. Anything over 5% and it gets dicey and probably not worth it. I also will never pay down a house early either with how low rates are. But my scenarios do not work if you just keep your money in cash..then, yes, pay debt down quicker

 

Robert Shiller, the famous Yale professor provides the data going back to 1871. You can find his data online.

Anyway, let's move on. Someone asked for 7-10% rates. They exist but they don't exist in a short period of time. One may get lucky doing it for a year or 2 but one must be willing to let their funds alone for a long time to make it work