APR Rates?

[Mr Roarke]

I could use my money more wisely, I do admit that. I could be filthy rich if I wanted to be. It's not my goal, I'm not out to better my neighbors. Being more rich than my neighbors is not my life goal, in fact, none of them realize just how much I have. They probably think I'm borderline just getting by. I wear jeans and ragged T-shirts. My goal is to be as happy as possible in the time I have left. Anyone with money knows, it won't make you happy. Yes, its nice to have enough to buy anything you need or want, but thats where it ends. I never wanted a castle, or a yatch and I never really wanted to travel. Would be cool to have a buggati, but then I'd have the rich dude stigma, and thats not me. I love it on my acreage...I don't need anything more. I'll use the Raptor for deliveries and will be a write off. Yes, smarter with money, its a good thing, but saving 2K on something I buy 3 or 4 times in my life isn't going to harm me one iota, but I do see how it would help others. To me, 2K this time around isn't worth the hassle of setting up auto-payments and signing the loan sheet to tell you the truth.

 

[The Macf]

And what would the return on that investment be?

the joy of helping out your fellow man.

 

[Craigy]

My local credit union offers 1.99% for 48mo.

As far as long term auto loans, just look at exotic car financing. Most of these are 10 year terms, some even longer. The idea isn't that you'll pay it off in 10 years, but that you'll simply pay some interest and depreciation on it until you trade it in on the next car. That way you never have to tie up $350k on a new Aventador, but instead pay $20k a year for it and keep it going indefinitely as you keep swapping cars. Some guys pay cash but for many they'd rather have that cash tied up in an investment.

 

[crash457]

the joy of helping out your fellow man.

How about a hearty handshake and a congratulations on your new truck. That still gives me the same return on investment.

 

[The Macf]

I guess

 

[dmercer3]

Share a link?

---------- Post added at 09:00 AM ---------- Previous post was at 08:53 AM ----------



Evidently at least one, if reading comprehension is the measuring stick. I said "cash only lifestyle". I didn't say anything about using cash for luxuries or whatever you want. But if you have zero debt and/or do not use debt products, you are not making the most of your money.

That, by definition, is not making the most of your money. You can try to rationalize it all you want or drag whatever SJW labels out you want, but neither change facts.

If you or anyone are risk averse and that drives you to avoid any variation of debt, that's your choice. But don't fool yourself into thinking it is the best use of your money. You are talking feelings, I'm talking math.



BTW, there is not a single filthy rich person in the world who is 100% debt free. There are some moderately wealthy people who are debt free, who could be wealthier through the use of debt.

ill give you two links.. .vfinx has a 10 year of over 7% but a 5 year of 16%...

VFINX

https://finance.yahoo.com/q/pm?bypass=true&s=VFINX&ltr=1

VHDYX

Not at 10 years yet but averaging 15% roughly

https://finance.yahoo.com/quote/VHDYX/performance?p=VHDYX

plenty more if you look, and these two are relatively secure in allocation.

 

[gravedgr]

I spent a lot of my 20s and early 30s paying off debt that I accrued using poor judgment. I went many years with no debt (no credit cards, no auto loans or even a mortgage) and thought I was doing things right. Its hard to think that your not being fiscally smart when you have no debt and live in a home that is fully paid for at 40yrs old. But then you realize that there is a difference between credit responsible and credit dependent. I have since refinanced my home and built myself a nice garage/workshop, carry at least one auto loan and have 1 credit card. I pay all of my bills with my credit card and pay that balance off monthly. I get rewards from the card and it keeps my credit score above 750. I invest extra income rather than pay outright for large purchases like my new Raptor. To say that my $70k won't earn me more that the interest paid on the loan is ridiculous. First investment return is a floating margin. The returns may net 12% but if left unmanaged, can drop to 2-3% or even result in a loss. That is why you cant just park your money somewhere and think it will all work out. Use your money as well as your worth to your advantage. Being responsible with you money means that banks are willing to loan you $70k for a new truck and doe so at very low interest rates. Not capitalizing on that means that you are letting your worth go to waste.

I know it seems backwards to think that you should have debt to gain wealth but if you step back and see the whole picture it does make sense.

That being said, you can be wealthy without debt or risk, but the rewards grow with the risk. The key is to find the level of acceptable risk for you.

Said it better than I could.

---------- Post added at 04:34 PM ---------- Previous post was at 04:25 PM ----------

If instead I take the 72 month loan and pay $347 more to it, making it the same payment as a 48 month loan, it will get paid off in the same timeframe and pay "pretty darn close" to the same $3122 in interest. Any amortization schedule will show you this. Those extra payments go straight to the principle therefore the recalculation is done on a lower amount.

That's the kicker, right? And what I said - close, but not the same. With a short term car loan, the difference is negligible. Extrapolate that to a 30 year mortgage at 4-5%. Wasn't trying to say you weren't right in spirit, just trying to be factually accurate.

---------- Post added at 04:35 PM ---------- Previous post was at 04:34 PM ----------

ill give you two links.. .vfinx has a 10 year of over 7% but a 5 year of 16%...

VFINX

https://finance.yahoo.com/q/pm?bypass=true&s=VFINX&ltr=1

VHDYX

Not at 10 years yet but averaging 15% roughly

https://finance.yahoo.com/quote/VHDYX/performance?p=VHDYX

plenty more if you look, and these two are relatively secure in allocation.

Nice, thanks. Always looking for options.

 

[Deleted member 12951]

That's the kicker, right? And what I said - close, but not the same. With a short term car loan, the difference is negligible. Extrapolate that to a 30 year mortgage at 4-5%. Wasn't trying to say you weren't right in spirit, just trying to be factually accurate.

We were talking truck payments not house payments. I should have never mentioned my house mortgage, that apparently cause confusion. But even if you want to throw the house in it, I have rarely if ever seen a 30yr, 20yr or 15yr mortgage being offered for the same rate so you cannot compare (hence why I brought the house into it) that but auto loans often do have the same rate.

My only point is and what I was quoting is there is nothing wrong with taking a 6yr loan if the rate is the same as 4yr and you can be diligent in making payments accordingly.

 

[yenrod]

will you guys go to my gofundme so i can make this months payment?

I cannot, but if you stop paying for your cell phone and get on an obama phone with free insurance you can save some cash. I also quit paying back my student loans as they too will soon be forgiven and free! I will so much extra cash laying around - sweetness...

 

[MajorAR]

You guys financing over 36 months need to rethink your priorities! LOL.