In a pickle, car pickle. Help!?!

Bionic-Badger said:

It also helps to not use up much of the credit available on the cards, as that can indicate that there are some financial problems amiss. I think only in super exceptional circumstances have I gone past 50% of my CC's credit.


And some people get into bad habits, feeling like money burns a hole in their pockets or accounts or something. Also the less reserve funds you have, the less ability you have to take advantage of timely opportunities like good deals or other kind of stuff that pays in the long run. Credit cards can be nice for those opportunities too, but need to be used just to buy a little more time.

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100% agree on both counts. As I've gotten older the opposite has happened to me... I get antsy when my accounts start dropping below certain numbers. Rarely if every go past ~30% of my credit, and like having enough of a cushion to take advantage of good sales/opportunities.

We live in Ca. little brother. Take the motorcycle class. Buy a cool bike. Borrow moms when it rains.
Or an ugly cheap ( couple hundred dollar oil leaking PIS)

Cheap gas, cheap maintenance. Shiny new bike. Guarantee the most fun you can have with your pants on.

Davidx said:

We live in Ca. little brother. Take the motorcycle class. Buy a cool bike. Borrow moms when it rains.
Or an ugly cheap ( couple hundred dollar oil leaking PIS)

Cheap gas, cheap maintenance. Shiny new bike. Guarantee the most fun you can have with your pants on.

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Lol, thanks for the tip David! :crackup:

-Alex

So a coworker of mine leased a new car over the weekend, and I decided to run through the numbers, or a mid price lease, vs buying a used car as I've been doing.

2016 Honda Civic, EXT. New this car is about 21-22k, to drive off the lot (based on kbb).

$1500 down, $235, down payment includes all administrative fees and first months payment.

1265+(235*36) = 9725

Being a new car, his insurance is also $150 a month, which means another 5400.

So without any gas, or maintenance, he is looking at over 5k a year just to have it.

Ran it against my own numbers... $4200 including new tires, breaks with boots, battery, sparkplugs, complete flush of all fluids, and a bunch of smaller repairs. Insurance is about $75 a month, $900-1000 a year. So comes out to be also about 5k, for first year of ownership.

I do expect it to last another 2 years, for a total of about 3, before I get rid of it.

The big difference is, after the first year, unless there is a breakdown of some sort, I'd done paying. I do expect some problems to crop up... but highly doubt they will exceed 2k a year.

As a result, over the course of three years, I expect to have 4-6K more comparatively, to spend on other stuff, which in my case is fancy vacations.

Also, comparable models dropped in price about 5-6k over the past 3 years.

Overall, the best option financially, is to buy used.

Buying new is also an option, if you must have a new car, but it will leave you in a big hole financially, unless you can pay fully upfront.

The most expensive option by far, it would seem, is still leasing.

Leasing, or financing a new car, is also a greater risk, imo, because in the event of significant life changes, say you lose your job, if you fail to make a few payments, you lose both the car, and all of the money you put into it.