Car owners can't afford their loans any more. It's bad for everyone.

[dalola]

Simple answer: Don't borrow money, if you don't have the funds on hand to buy something, don't, you can't afford it.

Well, that is certainly one way to look at things, and could work well in the Bezos family, but a bit short-sighted I think... I would suggest borrowing money wisely instead. ?

Sponsored

 

[SonicBlue]

Simple answer: Don't borrow money, if you don't have the funds on hand to buy something, don't, you can't afford it.

EDIT: Don’t borrow money… for stuff you don’t intend to keep for a good long while.

 

[Kamuelaflyer]

Simple answer: Don't borrow money, if you don't have the funds on hand to buy something, don't, you can't afford it.

You paid cash for your first house?

 

[charl-E]

Back in the ‘80s there was a common saying “a car depreciates 25% just driving it off the lot.” May be an old saying, but that stuck with me.

 

[Fred Bombelyn]

You paid cash for your first house?

It was a trailer, but yes.

 

[Kamuelaflyer]

It was a trailer, but yes.

You are an outlier. That’s not always a good thing.

 

[Fred Bombelyn]

You are an outlier. That’s not always a good thing.

Maybe, but I'm not in debt.

 

[chillyWilly]

My wife bought a Chevy Malibu. We spent over 500 in gas the first month. (2013 Malibu). Traded it in, underwater for a 2013 C-Max. Kept that for over 275k miles.

 

[GreaseMonkey]

Maybe, but I'm not in debt.

Your location is your password, btw.

 

[Fred Bombelyn]

Your location is your password, btw.

?

 

[Fred Bombelyn]

?

Thanks, hadn't noticed.

 

[GreaseMonkey]

Simple answer: Don't borrow money, if you don't have the funds on hand to buy something, don't, you can't afford it.

That is totally unrealistic for 99+% of people and is actually bad financial advice. It might work for you and Dave Ramsey (unless you are Dave). ??‍ are you?

 

[Ford_orr]

I've never understood this car value depreciation anxiety. Are you buying a car as an investment option to add to your portfolio? Of course that would be silly so why worry about the resale value? Treat it like a commodity you consume and drive it happily until the wheels fall off. You'll sleep better at night.

 

[Jack Roberts]

I've shared that my 2022 MME Premium is worth about $16k less than I owe. This is a growing and troubling trend.

"The share of trade-ins with "negative equity" — meaning the owner owes much more on their loan than their car is worth — was hovering at about 25% at the end of 2024, according to data from the car-shopping website Edmunds. That was up from about 20% in 2023."

https://apple.news/AywQqA_ktSY-gA86ZxYN4Gg

A car has never been an investment. Keep it until it’s paid off. Pay higher payments to pay it off early. Don’t finance the next one for longer than you want to keep it. You are not in control of anything but the decisions you make.

 

[superdave80]

It was a trailer, but yes.

So... no.

Sponsored