- Thread starter
- #11
Thanks for alll the replys. However for those of you that wanted and did bash me for being "ignorant" that is why i posted this question in the first place. So, who is ignorant now and why are you responding?
Car Totalled
- Thread starter rontho
- Start date
Thanks for alll the replys. However for those of you that wanted and did bash me for being "ignorant" that is why i posted this question in the first place. So, who is ignorant now and why are you responding?
- 11,280
I am addicted to responding to stupid questions. It has caused my family many problems and I am looking to get help. I wish there was a forums anonymous. I know I am not the only one out there that needs help.
- Thread starter
- #13
- 11,280
LOL.. wasnt referring to you
Well part of my disease causes me to have a guilty conscious.
- 11,996
- 11,280
So you're Catholic?
Not once did I mention being an alcoholic so I'm not sure where this came from...
Hi there man, I think you have a very good deal there. Your car was worth $25K when you bought it (years ago). However, as you might be aware, as soon as you drove off the lot from the dealer the car dropped by in value. Over the first year, it lost approximately 20% of its value, meaning that if you sold it only one year after you bought it you would have lost $5000. The second year, similar amount, third year and beyond the car looses value, but not as much as the first two, probably around 10-15%.
I say walking away clear is a great deal. Otherwise, you would have owed money to your finance company. Think about it this way, if this car was not totaled, you would have traded it in when you bought a new car for a similar amount - probably less.
I understand the frustration though of being forced to start over and shop for either a new car (big money) or a used car (where you don't know the car history)
- 16,916
If you wreck the new car you just bought, it's not worth $25,000 anymore either.
The lesson to learn is QUIT buying new cars. Quit getting loans for more than your payoff. Quit needing GAP insurance which is SUCKERS insurance.
Next time you get a $12,000 settlement just buy a $5,000 car. Pay cash. Bank the rest. Save up for your next car while you are driving the $5,000 car for a couple years. When you have enough to pay cash, sell your $5,000 car for $3,500 and buy your next USED car with cash.
New cars are for suckers or very wealthy people.
I'm not ragging you. This is called tough love.
Anytime I see anyone with a car payment I think "That guy does NOT have his **** together." and if he has an expensive car with a car payment I know he's not going to have his **** together anytime soon either. He doesn't understand how to become wealthy.
The lesson to learn is QUIT buying new cars. Quit getting loans for more than your payoff. Quit needing GAP insurance which is SUCKERS insurance.
Next time you get a $12,000 settlement just buy a $5,000 car. Pay cash. Bank the rest. Save up for your next car while you are driving the $5,000 car for a couple years. When you have enough to pay cash, sell your $5,000 car for $3,500 and buy your next USED car with cash.
New cars are for suckers or very wealthy people.
I'm not ragging you. This is called tough love.
Anytime I see anyone with a car payment I think "That guy does NOT have his **** together." and if he has an expensive car with a car payment I know he's not going to have his **** together anytime soon either. He doesn't understand how to become wealthy.
G
Guest
Guest
I have to think, the OP is high maintance, and lives paycheck to paycheck and right on the verge of going broke. He/she tried to live the high life when they cant afford it, managed to buy a expensive/fancy car, and now cant afford to get another, and their lifestyle will suffer because they cant be as flashy as they were before.
Friends will tease him, how come you went from a Mercendez or BMW to a Honda Accord......
Friends will tease him, how come you went from a Mercendez or BMW to a Honda Accord......
- 15,319
Agreed. I can certainly buy a new car if I wish but I LOVE my Mercedes 230K. I bought it 18 months ago for under $10K. Cost me about $2K between maintenance needs and new tires.
So I get to drive a Mercedes for less than the cost of a new KIA.
Oh yeah, of course I paid cash. All my cars with 4 exceptions were bought used.
Rick
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I disagree. The OP is typical of many people who think credit is king. My son has to be reminded of this from time to time.
He is probably a good guy and got caught up in the "buy this nice car and finance it for 7 years." Lots of people do this because it makes them feel wealthy. Same with leasing.
It's the renting vs owning battle. I own my cars and will own my house in under 9 years.
Rick
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