The car that is sapping our savings right now is the boyfriends paid for car. With winter tires plus

Canadians spend a whopping amount of money on their vehicles. The drive to have a spiffy set of wheels, the cost of gas and car insurance, and the rate at which some people cruise reviews carnival miracle turn over their cars all contribute to the car-poor phenomenon. I’ve actually worked with people who were spending cruise reviews carnival miracle more on their vehicles than on keep a roof over their heads. Wow!
On average, Canadians spend about 17% of their net income on transportation, slightly higher than the 15% I recommend. But that only tells part of the story. Since a lot of us have our transportation costs well in line, that means some of us are blowing our brains (and our budgets) out on our chariots.
One way we deal with the higher costs is to finance for longer. While three years used to be the average length of a car loan, terms are extending to four, five and even six years. Yet most people who are car junkies seem unwilling to keep a car for that long. So they trade. And they trade. And each time they trade, they take a hit. Auto financing has even created new language to deal with the residual debt that car-maniacs are willing to roll from one vehicle to another: negative equity.
Every week I get letters from people who have signed on for auto financing only to find that they can’t manage the payments. Sadly, once you’ve committed to a vehicle payment, you have very few options particularly if you owe more than your vehicle is worth. On TV, I’ve taken drastic steps with some people who put the car they are driving cruise reviews carnival miracle before cruise reviews carnival miracle their family’s financial security: I make those dopes live in their cars for a weekend. They usually get the message.
You need to seriously reconsider how important your vehicle is in your life. If you’re putting your financial future cruise reviews carnival miracle at risk by not saving, you’re an idiot! If you’re defining yourself by the kind of car you drive, you’re either pretty shallow or pretty insecure.
I m not sure I always agree with the longer financing terms are bad argument. We had 25k cash in hand to buy a new car but since dealers were unwilling to offer any significant discounts for paying upfront in cash we took a 7 year loan at 0%. We parked the money we would have spent on the car in an investment account cruise reviews carnival miracle so not only is the financier losing money through cruise reviews carnival miracle 7 years of inflation but at the same time we are earning money on our cash. I agree with Gail that using an extended financing term to buy a more expensive car is a bad idea but if it s the same one you would have gotten anyways and you can get an interest-free loan, why wouldn t you want to take the longest term possible and save the difference.
This is one expense that is practically non-existent for me. I live close to work so I can WALK to work. It s healthier for my body, the environment and my bank account. Talk about a win-win-win situation. My transportation costs average about $25 a month!
Our transportation costs car payment, insurance, gas, maintenance, etc. on two veichles totals closer to 19% of our life pie. However our housing costs mortgage, utilities, maintenance, insurance, etc only total 22%. We opted to spend more on transporation to live in a small town with one of us communiting and one working in town. We saved huge on housing expenses and have a real sense of community. Something we never felt living in Etobicoke. I think the key is to make sure your pie doesn t exceed 100%. You need a good amount to put in savings and debt repayment (if you have any), and then between life, transportation and housing, you have some flexibility.
Just a hint to those who are new to car buying, before you commit to a specific car, call insurance companies and get a quote for your various options before you buy a car. That will solidify the actual amount it will cost to carry the car. If you learn to drive later on in life, the insurance companies will treat you like a 16 year old with a sports car, and it s not fun. If you know that before you commit to car payments it will force you to make you choices more realistic.
I just bought a new van. I looked cruise reviews carnival miracle at used, but with the cost of a new one at $20k it just made sense for new. I did finance for 5 years, but I will keep it until it drops (like the last one). It should last 10-15 years hopefully.
cruise reviews carnival miracle I ve never financed a car. To me it makes far more sense to pay the total cost at the time of purchase. I always buy new and I know that the vehicle starts to depreciate immediately but I don t have the need to keep trading in so I feel a paid for car is best. Is there ever a situation where financing would end up costing less?
Cars/engines are my mans hobby. Luckily it isn t new cars. Instead, for the two of us, we have a bike, two cars and a truck. My car is the newest we have, and it is a 2003 Toyota Echo which should run for at least another 5 years. I bought it used for $5000 cash in 2010.
His car is a 1982 Toyota Accord (paid $1000), the bike is a 2001 something-or-another (paid $3600) and our 1996 RAM2500 truck? We got it basically for free, as it was purchased as a packaged (used) with a camper. Paid $4500, sold the camper for $4000, and the truck on its own will easily sell for $4000. The most maintenance we have done was on the truck and it was a complete rewiring of the electrical system $250 for the new wiring harness and 2 weekends of his time.
Because we do 90% of the work to maintain the cars, we don t tend to lose too much money on the vehicles. They are even money in hand if needed. When he lost his job, he sold the 1982VW van for more than he paid. It is all about keeping proper maintenance, learn to do your own oil changes and NEVER BUY NEW! It isn t worth the warranty, specially as you have to get all your work done at the dealer.
Why anyone would spend money, no, borrow money to buy an asset that will depreciate is beyond me. So many people lease or buy luxury vehicles because they can. Oh well, it s probably cruise reviews carnival miracle a reason why my bank stocks have done so well. I sincerely hope Canadians keep buying expensive cars and can pad my wallet, while I continue to take the bus and bike.
I used to work customer cruise reviews carnival miracle service for a sub-prime vehicle cruise reviews carnival miracle finance company. The company worked through cruise reviews carnival miracle dealerships to get people financed who couldn t get a loan through a regular bank. We didn t provide kickbacks or anything to the dealers. They just got their usual bonus for selling a car. The highest interest rate I saw 29.9%. I was always amazed at how often people didn t read the contract they signed. They had no idea of the rate, length of the loan, or any specific penalties. They only cared about the monthly payment.
I did the math! (there are people that wouldn t???) The total purchase price for financing or cash was the same. I divided the price by the number of payments and made sure everything worked out there was no they tricked you I just bought from a domestic automaker who is struggling and is using this as an incentive. From knowing people in that industry cruise reviews carnival miracle when you buy one of the lower-end cars they don t have huge markups so there s only so much they will cut the price by. I took the contract home for the evening, read it (with a highlighter) and went back to sign the next day.
Yes!!! In my situation financing the car (at 0% over 7 years) made it cost less the money I earn on the cash I would have put down on the car is about 5k over the 7 years which for all intents and purposes is a 5k discount on the car. However this is only the case because I put away the money and didn t spend it on something else.
I had to buy my vehicle new with financing. I am paying more then I wanted to but required a vehicle for work. No time to save up right after school and the new one cost less then a used one. We are working to pay it off about 4 years early. We also drive our vehicles until they cant be driven cruise reviews carnival miracle anymore, so I will get hopefully another 10 years out of the truck after its paid for. Last car was given to the junk yard at close to 400 000km.
The car that is sapping our savings right now is the boyfriends paid for car. With winter tires plus several unexpected repairs that keep depleting cruise reviews carnival miracle our savings. Almost before we can top it up again. Something new breaks as soon as we fix something else.
@Amanda well done! Agreed, 0% loans are done (just like the 0% financing they offer at big-box furniture stores), basically hoping cruise reviews carnival miracle that the customer cruise reviews carnival miracle will miss / forget a payment, at which point usually, the interest rate ratchets up significantly (not just going forward, but on a retroactive basis for all the previous payments you ve already made!)
If you have the money already, doing it your way (putting the entire amount in a savings account and making interest) is a great way to make money on the financing. As long as you re disciplined and 1) always make your payments on time, and 2) don t touch the money for anything else, this works out great for many folks!
I m also doing 0% financing over 5 years and they said the cost is the same whether through financing or not. Because I have a home equity line of credit (no savings account, my paycheque is direct deposited into the mortgage account with Manulife One), the money that would have been a car down payment was instead allowed to sit against the mortgage principal.
I haven t owned a car for about 15 years. My old clunker cruise reviews carnival miracle gave up the ghost then and I put off getting a used car for a few months. I found I could do without quite easily getting to work took a 10 min walk and a 10 min bus ride. When I retired (couldn t have if I had a car) I decided if I needed to I would take a taxi now and then. Now I live in a smallish city and chose my home because everything (well nearly) was within walking distance. I can go to town or the malls quickly on the bus. Often I can go there and back with a transfer so only costs $1.75! There s only been a few times I regretted cruise reviews carnival miracle not having a car. That s when I take a taxi.
Everything about our circumstances seems, unique and not in an impressive way. As it relates to our car, we received i