Guys who have financed / are financing a vehicle, how do you justify it? I'm NOT trying to bully anyone...

Seattle is a blessing and a curse. The car scene is really cool, but I swear there's multiple accidents every day. Absolute insanity.

I feel it. When I bought my current WRX (2002 wagon) I was also looking at newer WRXs, used FR-S, and after calling around and getting quotes I decided to buy the older car and spend my extra money on actually enjoying it, taking it on road trips, buying nicer tires, etc. It's money I was going to spend anyway, so why not?

>2002 WRX $48/mo liability only
>2008 WRX $180/mo full coverage
>2013 FR-S $194/mo full coverage

I never view it as "money saved," just money I will use for other things.

Ah that's not something I've considered. Money not spent on ridiculous insurance / monthly payment would likely be money dumped into the vehicle for light modifications / repairs anyways. It could even out some months or be more, but I have the option of just not getting anything, too. Interesting, thanks!

I finaced my FoST at 2% only so I can build on that part of my credit so I can buy a house later on.

It can even be smart if you are young and havn't built credit, to finance the car and make all the payments.

The Jews win though if you fail to pay or make minimum payments. Remember this. Thats the whole game. They like people who fuck up but still pay in the end.

Financing is fine for a car as long as it's low apr and short term. Cars rarely have return on investment, so it is just an expense. I'd rather drop 10k on my house, which holds its value, and then get 20k more out of it because of the increased appeal.

This is hard for the kids on this board to understand though. Just because you can buy something outright, doesn't mean you should. Sometimes financing is a smarter move long term.

Yeah, but 95% of the people on here (and Veeky Forums) will talk about """investments""" they aren't making, and never will make, increasing in value faster than their loan interest rates.

It's one thing to talk about it, but most people here have no fucking clue about the reality of it. This is how it goes when you're on a forum full of NEETs and minimum wage cucks.

Bottom Line: """investments""" tend to be luck based, but there are some that are retarded and you'll never make money on in any timeline. Cars are one of those things. IDGAF how collectible/rare/etc a car is, even the things you see at Barret Jackson auctions are probably not making that much profit for anyone once you factor in things like inflation, restoration costs (if applicable), etc.

>interest rates still at ridiculous low levels even after the recent increase
>the money is practically free and my work is stable
>i get to put the rest of my capital to work in ways that actually benefit me instead of tying an unnecessarily large portion of it up in a single purchase

That's all there is to it. If you understand how money works, have good credit, and aren't some general conspiracy retard it's a simple concept.

All true. Look at the value of vehicles in graphs. It depreciates to like 10% of its value it 10 years. Cars will always devalue like this because they realistically have a finite usable life. So buy used cars with great value to minimize lost investment and focus your money elsewhere like things with return or bettering yourself.

Im not an ideal picture of this because Iike cars as a hobby so I blow money on parts but you get the idea.

if it's a newish car, and I know I can afford it in cash I would just finance it instead. builds your credit a fuck ton.

>bought new car
>yes I know what depreciation is and that I took the brunt of it
I got the car I wanted with all the features I wanted and I got 0.0% financing. At 0.0% it was a no brainer to finance.

OP, it depends on what you make and what your living expenses are like.

>sports car with a high accident rate being under 25 single male
Yeah, you get killed due to the risk profile. Make sure you contact a few agents though - try GEICO directly and then take your quote and send it to a few agents through Progressive's independent agents tool. They'll seek coverage quotes at a bunch of companies on your behalf and look for a better price. Depending on where I lived and the car I had, GEICO, MetLife, Travelers, etc. were all cheaper than one or the other at one point.

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You going to buy that 170k house out of pocket OP? No you're going to need a mortgage which requires credit.

There were a few reasons I financed a new car. First, I was tired of changing cars every 1-3 years when something serious broke that was more expensive to fix than it was to replace the entire car.

Further to this point, I have a warranty on the car for the next 5 years so if anything dies, I just take it to the dealership and they fix it. It's not likely that I'll need to use this but I'll be happy that I have it if I do.

Also, further to the first point, I wanted something new and reliable. I drive around for work and it's imperative that I can to where I'm going because I don't get paid if I can't go in. The nail in this coffin was the last time I had the trans grenade on me on the way to a client and I lost out of a huge contract as a result. I just can't be driving something that I don't fully trust anymore.

Finally, I really wanted the car I financed but there was no way I could afford to pay for it in full upfront right now.

>(((financing))) a car
mmm yes goyim make payments on your car for years and years while you don't actually own it. Gotta build that (((credit))) like a good goy.

I've almost paid mine off. Last year of three.

> Justifying it
My old shitbox was costing me hundreds a month to keep running, drank and leaked oil everywhere, and I could feel it building up for another major fault. I did the maths, and decided I could afford a much newer car, and looked online. Went around, did shopping, financed a 3 year old Focus Zetec, don't regret it one bit. Even WITH payments on it and it's demand for premium fuel, I'm saving money compared to el shitbox.
Yes, it's peace of mind for reliability. It's having a car without any hidden issues, and with legal recourse if it does have any. I also had super good credit, so was a shoe-in for approval.
Now, I'm financing it and not leasing it because I plan on keeping this car for a while. 100k miles or 10 years, whichever comes first, then I trade it for a fresh car.

>buying an frs regardless of financing or paying cash
kill yourself.

I took a loan out against my 401k. Car is paid off and I make payments back against my 401k to repay the loan. The interest rate is the same as my 401k, and that interest goes directly back to me, so essentially a 0% loan. Full coverage is cheaper as there is no lien against the vehicle.

Are you including the penalties on that though?

Money put in a 401(k) is not taxed, it gets taxed at withdrawal. So when you withdraw money, 20% of it goes to the IRS right away. Your actual tax bracket can be higher, plus state taxes, plus a 10% early withdrawal penalty if you're under the age of 59 1/2 years old.

Basically, most people under 60 take at least a 30% hit when they take money out of a 401K early.

Meanwhile from good credit unions you can get a 2.49% APR for a 48 month loan.

here
>loan not withdrawal
Much less of a bad deal than early withdrawal but it sounds like a bad deal compared to getting a good auto loan from a credit union:

>The plan administrators must set a “reasonable” interest rate that reflects the prevailing market rate for similar loans. Although IRS guidelines provide examples in which the plan trustees set an interest rate reflecting market-rate loans for the borrower’s credit profile, experts say in practice many plans don’t look at the individual’s creditworthiness and set a default interest rate at 1% or 2% over the prime rate, a benchmark that’s currently at 3.25%.

The prime rate has risen since the article was written, but let's take 3.25% (lower) as the prime rate. That's 4.25-5.25% interest. It would be cheaper to get an actual loan from a credit union and then let investment money grow...

why does everyone assume EVERYONE else is trying to buy a house?

I dont find anything wrong if you want to build your credit and buy your own house and live your life. Good on you. But not everyone lives that way.

spotted the renter/cuck
>he doesn't want a house where no one can tell him what to do on his own property
>he doesn't want a c o m f y garage where he can wrench on his toys

?

I want to buy a house and Im currently live at my parents saving up mate.

Im just talking about people who have the money to probably buy property of their own but have no interest. Nothing wrong with that.

>where no one can tell him what to do on his own property
As long as you aren't subject to the Democratic Republic of the Homeowner's Association and their glorious leader Mrs Jones who doesn't like you or your noisy car that goes fast. She'll have your car seized for being parked badly and forbid you from working on it or even washing it.

I guess to keep the thread rolling, what is a reasonable monthly income percentage for an enthusiast to spend on a vehicle? 20%? I think that leaves plenty of money for small extra things and some to put into savings.

Also the reality is that I will probably never manage my money to the point of putting it in places to gain small interest percentages to take advantage of the "free money" you guys keep bringing up. At least for right now, anyways. I haven't done nearly enough research and nothing I've ever done in school apart from one personal finance class (that was an elective) has taught me anything about how money can work for you. Armchair economists tell me how easy / difficult it is to get into micromanaging every dollar?

The only advantages I can see for me personally would be to help build credit and have the peace of mind reliability.

>financing a BRZ

My credit union gave me a 1.5% loan when I was 22 for a diesel ML320 so why the hell not? I had the benefit of being able to deduct it off my taxes for my business every year, and now own the thing free and clear
Protip- shop around, even if your credit is nigger-tier you can still find a sub-7% apr loan

finance a used and save that lump some of money to buy a home or start a buissness

break free of your chains

Shop around. My insurance for a new BMW when I was 21 was only $66 a month for full coverage. Granted i wasn't in a high risk area like NYC but considering some companies quoted $250+/month its worth it to make a few calls

"took a loan our against 401k"... So does this secured loan affect the 401k in any way (assuming you make all your payments)?

What kind of rate can you get say $5k against a $10k 401k?

Why eat good meat from a local butcher instead of buying disgusting supermarket meat?
Why go to a fancy restaurant instead of going to mcdonalds?
Why buy 4ply toilet paper instead of using newspaper? Lmao

How old are you?

I've been paying for my new 2016 focus st for over a year now in February. Its the first new car I've ever purchased new, but after my previous car got wrecked and acquiring my new big boy job it was time.

In short: it's the top of the line model and my payments are ~$450/month. I'm 26 so thankfully my insurance went down at 25 so that's not so bad. Still not great due to my speeding tickets during my racer boy teenage years (which I still might be in, to be honest, I've certainly calmed down though.)

Obviously the new car will come with a longer warranty, so if you're wanting to modify (which a lot of people want to do with 86s) you're going to have that inner battle with yourself to modify or not, what will void my warranty? Can the dealership tell if I've made changes even though I reverted it back to stock for services? That all comes down to the dealership and you I suppose.

It's really nice having a car I know won't go bust on me at an intersection anymore. The car is plenty powerful for my daily city driving and fun enough for everything else. I don't have any plans to modify anything that would void my warranty. The peace of mind is worth the payments. Also, something that used to not be important to me ever, but now I sort of like it is driving around in the latest model of something. Kind of nice, I guess. Of course the RS is out so that's different now.

Think really it comes down to you, what you can afford, and what you want to do with the car and your expectations of it. Having a new car is one of the best feelings ever, knowing it (probably) won't break down on you and if it does the dealer will fix it free gives great peace of mind. Finacially, I have plenty enough money after I pay for my house and car and everything else. If money were tighter, the car would definitely be one of the first things I'd change.

>get job fresh out of uni
>in a different state, so have to move
>cant take shitbox with 190k+ miles
>graduated debt free but only have 4800 cash
>finance car, build credit for buying house, invest money into stocks, make 10.07% return, and dont have to drive a shitbox to work