Comments on: Best Practice #2 – Car Payments are Bad http://stpes.wordpress.com/2008/11/13/best-practice-2-car-payments-are-bad/ Economic Talk by Peachtree Church, Villa Rica, GA Wed, 24 Dec 2008 18:52:52 +0000 http://wordpress.com/ hourly 1 By: dbreid http://stpes.wordpress.com/2008/11/13/best-practice-2-car-payments-are-bad/#comment-16 dbreid Tue, 18 Nov 2008 20:05:33 +0000 http://stpes.wordpress.com/?p=17#comment-16 rglmc, I agree Dave milks 12% return as a comparison. I don't do that well. If you do half as well as he says in the video, it's still pretty amazing. I am all about used cars, though, even older than you suggest. Part of it for me is trusting God that if I'm seeking Him (and part of buying a used car is about being the best steward I can be), then He will protect me in the purchase. I do get cars checked out before I buy, and I'm pretty much of the opinion that it's just a machine that if the right combination of parts and labor are applied to it, then it can totally be fixed, and you can do a TON of repairs to a car before it approaches anywhere near a study car payment. Like your reasoning above, and I'm very glad you posted. Keep it up! - Pastor Dave rglmc,

I agree Dave milks 12% return as a comparison. I don’t do that well. If you do half as well as he says in the video, it’s still pretty amazing.

I am all about used cars, though, even older than you suggest. Part of it for me is trusting God that if I’m seeking Him (and part of buying a used car is about being the best steward I can be), then He will protect me in the purchase.

I do get cars checked out before I buy, and I’m pretty much of the opinion that it’s just a machine that if the right combination of parts and labor are applied to it, then it can totally be fixed, and you can do a TON of repairs to a car before it approaches anywhere near a study car payment.

Like your reasoning above, and I’m very glad you posted. Keep it up!
- Pastor Dave

]]> By: dbreid http://stpes.wordpress.com/2008/11/13/best-practice-2-car-payments-are-bad/#comment-15 dbreid Tue, 18 Nov 2008 19:57:02 +0000 http://stpes.wordpress.com/?p=17#comment-15 David, great to see you posting! You are right on about the lower cost of insurance! I haven't had collision insurance ever. Also, I generally buy my cars about at 80,000 miles and 8 years old (I buy Nissans and Toyotas...I'm for American made, but I'm also for longevity and value for the money. (I've had great fortune with Nissan). Buying the older car generally makes the insurance very low (If you drive safely and once you get over that age 25 barrier...insurance is pretty low.) Yeah, saving the "found money" is key. Great post! Keep 'em coming! David, great to see you posting! You are right on about the lower cost of insurance! I haven’t had collision insurance ever.

Also, I generally buy my cars about at 80,000 miles and 8 years old (I buy Nissans and Toyotas…I’m for American made, but I’m also for longevity and value for the money. (I’ve had great fortune with Nissan). Buying the older car generally makes the insurance very low (If you drive safely and once you get over that age 25 barrier…insurance is pretty low.)

Yeah, saving the “found money” is key. Great post! Keep ‘em coming!

]]> By: rglmc http://stpes.wordpress.com/2008/11/13/best-practice-2-car-payments-are-bad/#comment-13 rglmc Tue, 18 Nov 2008 18:43:56 +0000 http://stpes.wordpress.com/?p=17#comment-13 I basically agree with Dave Ramsey that buying a new car is a bad idea but I disagree with some things that were said. First that most cars depreciate about 70% in four years, my findings thru the internet showed about 50%. Secondly any time you buy a used car your gambling, You may do all the research you want but its still a gamble, you may hit the jackpot or you may go bust. Third he says to save x-amount for 10 months and put that with you car that's worth x-amount to buy a newer car. He doesn't say that your used car worth x-amount is now 10 months older and has probably 10,000 more miles on the odometer. Lastly his assessment of mutual fund percentage rate is a probably a little off during these times. Finally I think it would be wise to buy a 2-3 year old used car (less of a gamble) with appx 20-30 thousand miles with a factory warranty remaining. I basically agree with Dave Ramsey that buying a new car is a bad idea but I disagree with some things that were said. First that most cars depreciate about 70% in four years, my findings thru the internet showed about 50%. Secondly any time you buy a used car your gambling, You may do all the research you want but its still a gamble, you may hit the jackpot or you may go bust. Third he says to save x-amount for 10 months and put that with you car that’s worth x-amount to buy a newer car. He doesn’t say that your used car worth x-amount is now 10 months older and has probably 10,000 more miles on the odometer. Lastly his assessment of mutual fund percentage rate is a probably a little off during these times. Finally I think it would be wise to buy a 2-3 year old used car (less of a gamble) with appx 20-30 thousand miles with a factory warranty remaining.

]]> By: David Thornton http://stpes.wordpress.com/2008/11/13/best-practice-2-car-payments-are-bad/#comment-11 David Thornton Tue, 18 Nov 2008 15:49:34 +0000 http://stpes.wordpress.com/?p=17#comment-11 Another benefit of not having a car payment is that you can decrease your insurance coverage. Collision coverage is one of the most expensive insurance coverages to buy and all lenders require it. If you leased a car, the lessor will typically require higher liability limits as well. When you pay off your car, you can reduce these coverages to save money. To be safe, don't blow your savings on eating out and CDs. Save it for you next car or for car repairs. And definitely drive safely! Another benefit of not having a car payment is that you can decrease your insurance coverage. Collision coverage is one of the most expensive insurance coverages to buy and all lenders require it. If you leased a car, the lessor will typically require higher liability limits as well. When you pay off your car, you can reduce these coverages to save money.

To be safe, don’t blow your savings on eating out and CDs. Save it for you next car or for car repairs. And definitely drive safely!

]]> By: Katie Reid http://stpes.wordpress.com/2008/11/13/best-practice-2-car-payments-are-bad/#comment-2 Katie Reid Sun, 16 Nov 2008 04:17:53 +0000 http://stpes.wordpress.com/?p=17#comment-2 Get Dave to tell you about sharing one car for seven years. It's not as hard or as bad as it sounds! Get Dave to tell you about sharing one car for seven years. It’s not as hard or as bad as it sounds!

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