Dave Ramsey clip that seems like the typical American story right now

[SlugSlinger]

 

[JD8]

I bought a new car recently but was fortunate enough to be able to pay cash with my trade in. Probably should have bought one a couple of years old but got new car fever. I understand the allure of a new vehicle They’re nice to drive but not a very smart investment, especially with a huge payment. Interest on new cars is high as well. Honda offered me 3.9 for 36 months and an additional 1 % for each additional year financing. I was bantering with the finance guy and he told me they finance up to 72 months!

So you got new car fever and bought a new car in this environment? What would DR say? It's not like they're coming off sticker right now. Should've waited a year or so.

 

[JD8]

As expensive as the stupid things are, I'm surprised nobody is offering 30 year mortgages on them now. I think the average new car price is more than my folks paid for a brand new 1600sqft house in an up and coming addition back in '73.

Yep, IMO, something is gonna have to give. Inventory and pricing is increasing, along with interest rates. Something is gonna give.

 

[HoLeChit]

Where ya'll getting those $970/mo truck payments? I'm paying $1640/mo.

 

[SlugSlinger]

So you got new car fever and bought a new car in this environment? What would DR say? It's not like they're coming off sticker right now. Should've waited a year or so.

With record high auto repossessions, prices for used vehicles are coming down. It’s just taking some time to work through the system. Folks are just waking away from their $1,000 vehicle payments.

Auto dealers are in a panic. They just haven’t shared that with the public.

 

[SlugSlinger]

Where ya'll getting those $970/mo truck payments? I'm paying $1640/mo.

What do you get for 1640 per month?

 

[BobbyV]

I bought a new car recently but was fortunate enough to be able to pay cash with my trade in. Probably should have bought one a couple of years old but got new car fever. I understand the allure of a new vehicle They’re nice to drive but not a very smart investment, especially with a huge payment. Interest on new cars is high as well. Honda offered me 3.9 for 36 months and an additional 1 % for each additional year financing. I was bantering with the finance guy and he told me they finance up to 72 months!

We recently traded in my wife's 2011 Toyota Highlander that we bought new and put like 225K miles on. It was due for some repairs, but I wasn't interested in spending over half of the value of the car on them. So we bought her a new Highlander and will hopefully get the same use and mileage out of it. Our plan is to pay it off early.

 

[JD8]

With record high auto repossessions, prices for used vehicles are coming down. It’s just taking some time to work through the system. Folks are just waking away from their $1,000 vehicle payments.

Auto dealers are in a panic. They just haven’t shared that with the public.

Agreed. We want a bigger vehicle for the wife, but it seems some of the dealerships still have a bit of leftover arrogance from the inventory crunch. Will be patient. Also not impressed with a lot of the true 3rd row vehicles out there.

 

[HoLeChit]

What do you get for 1640 per month?

A brand new 2024 civic sport touring hatchback in royal red, black interior. My credit isn’t very good and I was upside down in my previous loan but they let me roll it over, and even let me finance the dealer market adjustment. I did it all smart though, my loan term is only 48 months, as I dont want it hanging over my head.

 

[SoonerP226]

So you got new car fever and bought a new car in this environment? What would DR say?

Pretty sure he would say that it’s not the best idea in the world, but if you can pay cash for it (which he did), it’s ok.