>watching a bunch of financial videos >bunch of gurus saying

>>17407263
I personally think it depends realistically on how much you make vs how much you can afford to spend on a payment. For people in their younger years, it might be a good idea to finance a car because it'll improve your credit score for later in life when you decide to try and take out a mortgage. Don't finance a $40,000 car when you only make $25-30k a year tho, that's just dumb.

I wouldn't ever finance through a dealer, however. Always try to find a local credit union that is reputable and you trust. Thats what I did, and I have enough money in the bank right now to pay off a majority of the loan, but I'm trying to improve my credit score along with other means so I can eventually get a mortgage easier.

>>17407263
>Invest $300 a month in mutual funds
I always see this meme on /pol/ and /biz/ but how the fuck do I actually go about this

>>17407263
if you can get an interest rate thats less than inflation, financing a car is better than paying straight cash.

>>17407276
>Improve credit score
Ding ding ding. Say you get a $20k loan at 4% interest for 72 months. That's a bit over $300/month, and at the end of the term you've paid $2500 in interest. Over 6 years. Meanwhile you've been driving the car you like and can actually buy a house, get cheaper interest rates for future loans, etc.

>BUT IT'S 6 YEARS
Don't pay the minimum. Get a loan that you could comfortably pay at least 1.5x the minimum on an average month. Best case: pay the car off early, pay less on interest. Worst case: you're not buying panties, wearing them for a week, and selling them for profit to faggots to pay bills that month.

Financing a car is a bad idea if you have bad or no credit, otherwise take half the money you would put towards a car, put it in your investment account, and finance the balance. If your credit is good your interest rate will be lower than what the account earns by a significant margin.

I just financed a 30,000 car at 1.9%, the money I would have spent on it is in an account earning 12%

>>17407283
If you're one of them geniuses do it yourself

If you're like me and don't have a clue, go somewhere like Investors Group where you'll get an advisor who will essentially manage it all for you, for a small commission of course. I've turned $50k into $80k in like 5 years which isn't even that good I think

>>17407323
>4% interest
Bro you got gouged. Maybe it's chump change to you but think of the morals. You basically asked a rich banker to give you money, where you'll give him even more money over time, for an item that perpetually loses value to the point it's worthless once the loan period ends. In 6 years your car is worth poopoo

>>17407323
Not to mention, most creditors will let you refinance the loan. Mines for 4 years at a pretty steep interest rate, but I was told in about 6 months I could realistically cut it in half if I refinance.

>>17407330
>If you're like me and don't have a clue, go somewhere like Investors Group where you'll get an advisor who will essentially manage it all for you, for a small commission of course.
Advisors like that will do everything they can to maximize their commission, and that mostly just means making many bad investments and taking their cream off the top. When you're dealing with money, everyone's a scum bag.

You don't need to cuck yourself in a car loan contract in order to boost your credit. Get a credit card when you're legal, use it literally everywhere, pay it off immediately. Never use it to buy something you know you can't immediately pay off. Put away a small amount of money each month and invest it. Get a phone contract, get car insurance. Once you're 30+ y/o you'll have plenty good credit for a mortgage, which you'll hardly need as your investments are now worth quite a lot. Or, don't touch them, and have hundreds of thousands of dollars when you're retired, on top of a nice pension. Literally living the dream

>>17407263
You're gonna get fucked if you pay in cash. Dealers make next to nothing on car sales. After they pay the salesmen his cut and other shit they make maybe $1k off the deal. They make most of their money off those packages and warranties they try to tack on at the end of the sale. If you go in with an actual bag of money they wont budge much on the price.

If you finance through them with whoever wants to give you the best deal, they're more willing to play ball and actually drop the price because the bank gives them a kickback.

If you want the best deal, save up the cash and finance the car, then pay off the note either in full right away or maybe pay it off in a year to try to bump your credit higher.

If you finance then pay off the note right away don't expect any good treatment from that dealer again, because you just bent them over and went in bone dry.

>>17407375
It's not as bad as you think. I'm paying him for a service, that service being I don't have a flying fucking clue how money works nor do I have the mental capacity to learn it, hone the knowledge and execute it effectively. For some people they're millionaires when they're 19, because they get it. I don't. So if he wants 5% commission IDGAF, he's a nice guy and we go fishing in the summer

>>17407263
The best financial advice is always
>never buy a car

You should always be saving money. If you can afford to save 20% of your income and still make your payment then go for it. If you REALLY want the car and would keep for 10+ years, the extra $2000 you will have paid in interest won't mean much

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>>17407263
>After all if you really love a car, waiting 5, 10, 15 years shouldn't matter right
Yea it doesn't matter. Invest all your money right now, you'll be exactly in the same position as you are right now in 10-15 years. You definitely will not be thinking about house payments, kids, or your retirement.
Hey actually a better idea is waiting until 65 to purchase that shitbox, then you have all the time in the world to enjoy it.

>>17407276
Can someone explain this american credit score bullshit to me? You can only take a low interest loan money if you've already taken loans? Is it like that other places in the world?

I've paid for my shit with cash all my life. Even bought a new car with cash.
And the only time I had to take a loan was for my house, and the bank gave me 1.25% in interest rates specifically because I always pay my dues in time, with cash. The only time I hear people complain about interest rates here, are when they buy everything on credit.

>>17408160
>loan money
Yeah, no idea why I wrote that.

Cash is always ideal... but depending on your financial situation it may be better to get the car now to increase your earning potential vs. waiting until you can afford the cash.

I bought a car for 17400 USD out the door and financed through the stealership. They gave me a 1000 USD off the car cost to finance with them. I am paying off the loan in one year, and the calculated interest I would have paid is about 450 USD. So by taking out a loan through the dealership I will have still saved an extra 550USD over paying in cash. So depending on how you work the numbers you can come out ahead, except with financing a used car.

>>17407263
>if you really love a car

what you can afford is more important than what you want

what you need is more important than what you can afford

>>17408160
>I've paid for my shit with cash all my life. Even bought a new car with cash.
>And the only time I had to take a loan was for my house, and the bank gave me 1.25% in interest rates

must be nice, not everyone has cash to buy new cars or get offered ridiculously low mortgage rates, lucky you

>>17407263
Depends on your credit score desu

If you get a loan with an interest rate below inflation, paying it off in full early would be throwing away your currently more valuable money. Though not having payments is nice in case your life turns into shit.

>>17407327
Yeah, now factor in comprehensive coverage and all the little dealership fees

You'd have to either be investing many, many times the worth of the car to get that money back or be a fucking stock market sorcerer

The ONLY good thing about buying a new car is getting to do the break in the way you think is best.

>>17407389
"pay in cash" normally means "buy it 2 years later used"

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>>17407344
>mfw my cars are 2 and 8 years old and both worth at least 75% of their original price

T-thanks inflation

>>17407263
Post some recommended financial videos

Also what's that nigger trick that nigs do where they pay for a car with a suitcase of cash then come back for it a few days later?

what's the purpose of this scam?

>>17408767
>what's the purpose of this scam?
washing the dirty Benjamins

>>17407330
>>17407375

Open a man guard account, diversify amongst government bonds, domestic stocks, and international stocks. General rule of thumb for the uninitiated is 100% minus your age in stocks. Vanguard charges less than 1% fees, usually around 0.25%. If the Fed is tightening increase your holdings in government bonds but decrease the duration, recession follows a tightening cycle. Periodically real ancestors your account to your target asset class weights.

Congrats, you are now ahead of 95% of Americans.

>>17407400

You're not making any money if he's charging you 5%. He's ripping you off. Just incest in diversified index funds through Vanguard.

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>Live in Finland
>License costs 2000€
>Everything is so close that car isnt even required and VR delivers
>Cheap cars themselves cost around 1000 if we factor in everything

Honestly, I dont even have a reason to own a auto as a poor student and I probably never will

>>17407276
Depends on the deal. I bought at dealer and financed through a special offer they had on my new truck. 51800msrp got for 40860 plus tax and other gay shit of course but none the less the interest was only 4.99%

I'm 22 with no credit history and make 73k a year so I could justify it

>>17409117
>live in burgerland
>have to drive 30 minutes for most things
>big pigfat SUV takes 31 gallons of gasoline and $70 USD out of my wallet per fillup
>stuck with it in college
>it's having problems and is barely worth $2,000 now

feels bad man

>>17409143
This basically.
>20 miles / 45 minutes from anything
>drive a 1992 suburban with 220k miles, no heater or ac and only 2 seats that was given to me out of pity
>costs $10 to go to the grocery store
>can't afford anything else
>the brakes just went out and I had to limp it home using the e-brake

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>>17409179
Hey anon mine is a Suburban too, but everything still works.

>164k miles
>5.3 V8, 2WD
>dents down the side
>transmission slipping badly
>intake gasket vacuum leak that makes the car want to stall when it's raining
>glazed brakes
>nearly bald rear tires that try to kill me every day
>dashboard doesn't work, except the gas gauge

at least everything else works, including cold A/C. If the A/C goes out in this car, it's going to the scrapyard familia

>>17407263
absolutely correct. buying a used car cash is the only appropriate way to purchase a car. If you're buying a car worth more than say 40,000 new then it doesnt matter to you cause you can afford to finance most likely

>>17407388
This. Financing a car for the sole purpose of "building credit" is the dumbest fucking thing I have ever heard. Credit card companies literally PAY YOU to use their credit cards. Just do that instead.

Besides, building credit is a meme. No one approves or denies you a significant loan based on a fucking credit history built from some shitty $20k car loan.

>oh jeez I see you paid off your pre-owned nissan altima over a 5 year period. ok, i guess ill give you this $500k mortgage

>>17408815
I'm not a nig so can someone explain

>>17407263
In general, stay out of debt. Sometimes it may make sense to borrow money, but in this particular era we're in, debt is more likely to eat you alive than to give you a lever up. Plus, you're helping the (((bankers))), who are not your friends...

>>17407327

What investment currently pays 12% ? Bullshit faggot

>>17409413
American funds global growth, faggot

>>17407263
Financing is for people who need a car now and can't wait 5 more years. The Jews are holding desperate people at gunpoint to make easy shekels. Back in school I made a presentation about this exactly, teacher said I'm theoretically right, but he can't give me a passing grade because it sounded anti-semitic.

>>17408691
Enjoy your used fartbox poorfag

>>17407263
well right now i've always paid in cash for my vehicles. started off with a 125cc motorcycle and now i'm on a 750cc. meanwhile i've also bought a project car. needing full restoration. i personally find it a really satisfying way to do this. having first to take your whole car apart so you know everything about it and whats going on in it. it can take a long while but in the end you get so pumped up that you can finally drive it. best feeling ever. tough restoration can be expensive, you can invest as much in it as you want.

>>17409296
Money laundering

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>>17407263
>become wealthy in that time
>excludes 98% of 4chan
>has won one the world race once

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>>17409117
because you're an anime-watching eurocuck. you don't deserve to drive

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>>17407263
My wife and I have great credit. We're looking to buy a house so we're keeping a close eye on our ratings because better rating means lower interest which on a house in California means big savings. Paid off our truck and noticed a ding to our credit. Yes, paying off your loans will cost you. We're now looking to buy a new car for the sole purpose of having a car payment so that we can get better financing on a house. The difference in interest rates over 30 years is more than the car will cost.

It's stupid but thats how it works. You have to be in debt (and making timely payments) to get better credit.

>>17407263
Depends on the financing cost.

>>17410059
>America

>>17407263
yeah, I made the mistake of signing on to finance a car of about 10k and realize now it would have been much smarter to buy an older Honda and just pay for whatever fixes it needs and that would be a substantially lower cost

after taxes and interest you're adding a few thousand to the cost of the car, not to mention that things will still go wrong and you'll still need to pay for upkeep

if you really need a car for your commute to save money you should find a CRV on craigslist for $2000

>>17410059
>We're now looking to buy a new car for the sole purpose of having a car payment so that we can get better financing on a house.

Hey man I'd view that as a plus. Go to a dealership and get a Challenger Hellcat or something and laugh your ass all the way to the bank. Don't let this opportunity pass you by.

>>17407327

>Why get Jew'ed when you can Jew the Jew.

I just I just bought a fiesta MemeT for zero down zero percent for 72 months 1500 below MSRP with a 7 year bumper to bumper warranty. If you're making decent money and are already invested, it is absolutely retarded to pay cash when deals like this exist.

You don't need a car loan for a good credit score. Just use credit cards and credit lines.

My credit score is 788 and I've never had a car loan, just 8 years of using CCs for daily purchases.

It's never "worth it" to buy a new car ever, you pay a premium even with a 0% finance rate.

>>17410059
>borrows money
>pays back money
>hey this guy isn't trustworthy *credit score drop*

Yep, credit score is a fucking retarded concept

>>17410059
Yeah, but on the other hand, if you have a credit card you're not using but just keeping active, it's like having that car loan back.

total accounts matter enough to be annoying, but it's why I haven't closed my discover account out. That, and they're not charging me to keep it open. :D

>>17409055
>>17409063
Yeah but I have absolutely no idea what you just said.

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Somewhat related question

I know that generally financing a used car is retarded since youre buying something you cant afford, but what about something you can afford?
Like say a 30k used car privately sold off craigslist or whatever. Saving and blowing that amount of money in cash immediately feels like you're just begging for trouble.
Meanwhile you can finance through your bank for something stupid like 4 years, and then clear it off each month rapidly to finish it in a year. What you gain is a good buffer zone in case of whatever act of god.
Does that make sense or am I being retarded?

Dumb. Anyone that tells you to buy things in cash has no clue about how the economy works.

Go ahead and pay cash for everything in your life then go try to buy a dwelling, or go through any transaction which requires a credit check.

Everyone always says credit is the devil

These people are also morons. Credit is your fucking trustworthiness to repay your debt. End of story.

>>17411846
Are you loaning the money at a better rate than you get off your own investments?

Factor extra costs with a financed car (Extra Insurance can be one) into your calculations

>>17411870
Please note this is only for Americans.

The rest of the world has more logical means to determine what your loan risk is.

>>17411870
is right in terms of what
>>17412923
said, but
>>17412925
is right(er)

If you can borrow money for less cost than the money you make off investments, that's free money. The more you have in your investments at any one time the more you're going to make. If you can take a loan for something at less cost than you get for putting that money elsewhere you can effectively buy things you've got the money for on loaned money. If you don't have the money for it, don't buy it. If you think credit score matters (It doesn't matter as much as you think it does) then use credit cards for all your purchases, invest the money you spend for whatever the interest free period on the card is then pay the card off at the end of the period, accrue points and credit while getting another 60 days or whatever of the money you're spending in an investment.


It's not that hard.

>>17412945
You said
>money
9 times

>>17412925
You mean there are other countries that determine your loan risk AFTER determining how much of a cuck you are with paying boatloads of interest your entire life?

>>17412952
In my country they make a decision based on your individual circumstances including your history. None of this "Score" shit. You get given a fair rate based on your risk, artificially inflating that by using elaborate decks of credit cards and other little loans does little to benefit you, meaning the overall cost is lower for everyone.

>>17408767
>this scam
Has someone got that post of the guy who worked in a dealership and locked the briefcase in the cars trunk rather than depositing it and when he nigger came back he was mad as fuck?

>>17407283
Open Vanguard account online. Put all your money in VOO.

>>17407263
There is no such thing as a good used car if you don't have personal connections to help you out. From the mechanic you're buddies with to the family member that'll sell you the car to the lawyer uncle that'll walk you through the paperwork in case the car's a dud, knowing people makes buying used a lot easier.

Buying new is great if you want a base model. Just requires you knowing how to use email and online car quotes.

>>17412976
I too would like to re-read this

>>17410059

That's not how it fucking works, and opening a new car note "for the credit rating" is just an excuse to not feel bad about wasting money on a new car.

I actually worked at the commitment desk at a mortgage broker for 2 years. You can get 10-25BPS (that's one tenth of a percent to one quarter of a percent) off your rate if you hit certain breakpoints, depending on the amount of the loan. It also varies by lender and there are a host of other adjustments based on other factors such as Loan-To-Value of the property and, yes, even the ratio of your debts. So depending on what your debts look like, opening that car note might actually give you a higher rate. Oh, and did I mention that it all varies by lender? The top brokers and sales VP's are the folks who know this shit like the back of their hand and/or have good working relationships with the pros at the commitment desk who know where to go to get the best rates based on their borrower's situation.

Here's an example:

At a credit score of 739, you might get a rate of 4.50%. The moment you hit 740, bam - 4.25%. A lot of lenders didn't even give a shit about anything above 740 for the typical loan - if you had 820 it would still be 4.25%. For certain Jumbo loans and etc., though, it might matter... but only once you hit like 780 or 800 or some shit.

>>17407283
I just looked at /biz/
I'm out of my element
Help

>>17407263
I've only ever paid for a car in cash. I'm only 22 but I've bought 3 so far, just working shit warehouse jobs. It's very risky if you're young to finance a car, because you're almost guaranteed to be living paycheck to paycheck unless you live with your parents, and if for some reason you can't make a payment (or a few payments) your credit will take a hit. There are much better, safer ways to build credit when you're young. There are plenty of cars out there around 2- $4k that have been well maintained and have plenty of life left in them. It's within reason for a young adult to save that much money in a year, especially if he/she has to ride the bus or get rides from friends to work. And the car is yours, no strings attached. There are no payments, there are no restrictions. y o u r s

>>17413174
>I just looked at /biz/
that's like asking a priest for medical advice

just get on youtube and search for investing videos, there are plenty that show how it works and what to do

>>17407276
>Always try to find a local credit union that is reputable and you trust.
What do you mean by this? Credit union lends you money and you pay it back, right? What's there to not trust?

>>17409197
what if it's a 150k car?

>>17407461
Fuck off, busrider. Some of us have a job and bitches to get to.

>>17407461
Ack, sorry, i fail reading comprehension.

So what then, if the car is above $100k just save up half, finance the rest?

>>17412969
what are your circumstances and history that factor into the loan?

>>17412976

The laundering guy?

That's was good

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>>17407323
This guy gets it.

>>17407283
put it all in cryptos

>>17412948
>(You)

>>17409143
>have to drive 30 minutes for most things
which flyover are you from

>stuck with it in college
huh

>>17414192
you should never be buying something you can't afford to purchase outright. Sometimes (rarely) financing a car CAN make sense, but never if you couldn't buy it outright with cash to start with.

>>17416559
Wat nerd

>>17409143
>31 gallons
>$70
Good lord, that would cost me literally double.

>>17409432
>Implying it's a good idea for anyone on /o/ to be investing in such risky shit

>>17408767
They give dirty money to dealerships. The dealership will "clean" that money but depositing it and then writing a check when the nig comes back and no longer wants to buy the car