To move or not to move?

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Al3xK said:   jaytrader said:   You make a lot of assumptions. How do you know OP walked into a dealership and did a sign & drive? Unless I missed it, I don't recall the OP stating how they acquired their vehicle and its payments.

They're educated assumptions, and to try and argue that OP could have technically done something different is just silly. Also, to assume something other than what's conventional doesn't make sense either, especially when OP is 20 w/$33k salary.

The $140/month insurance alone should set off bells & whistles as a $18k+ car...now I'm sure you'll argue the bad driving record, but that wouldn't mesh with the $400/month car payment.

And every first time car buyer does the exact same thing. They walk into a big dealership with their eyes glossed over and shop for the car of their dreams. Sign whatever, put some money down, and drive home.


Give me the scenario you think that could make $540/month total for a car make sense on a $33k salary? OP has 5 payments left? 1.49% interest rate? Killer deal? Not at 20 years old. They can't even get a loan until they're 18 w/o cosigner, which I doubt they have since they're consulting FW for advice and not their parents.

I'm just saying, let's be real. Not the "technically you don't know these X,Y,Z variables and they could be off the charts from what you expected"


I'm all for being real. With that said, why not look at the inverse of your assumptions and "be real" about you not knowing all the facts? I'm not looking to battle with you, but clearly you think you know what's going on based on perhaps, the "norm" or your own experiences? Maybe their parents gave them $10k to put down and they are paying the difference? Maybe their parents used to help them with car insurance, who knows? I know my situation is a lot different than most people my age regarding vehicles, salary, schooling, debt, etc. Perhaps your assumptions are right, I'll give you that. However, you cannot sit here and tell me/us to be real when you, yourself, aren't. You're looking at it from a bias and/or "typical" point of view. Why not be open minded instead of assuming such details? Also, what does their car payment have to do with the original question at hand? I mean, people have priorities. When you're 20 making any sort of decent wage (given the relative factors for the area, COL, etc) the money burns a hole in your pocket. Perhaps since OP has no bills, they felt comfortable getting into such a "high" car payment (relative to income) because they had no other financial responsibilities?

I know when I was 20, I was spending a lot of my earned money. But again, my situation differed from the next guy/gal as everyone's does.

jaytrader said:   Al3xK said:   jaytrader said:   You make a lot of assumptions. How do you know OP walked into a dealership and did a sign & drive? Unless I missed it, I don't recall the OP stating how they acquired their vehicle and its payments.

They're educated assumptions, and to try and argue that OP could have technically done something different is just silly. Also, to assume something other than what's conventional doesn't make sense either, especially when OP is 20 w/$33k salary.

The $140/month insurance alone should set off bells & whistles as a $18k+ car...now I'm sure you'll argue the bad driving record, but that wouldn't mesh with the $400/month car payment.

And every first time car buyer does the exact same thing. They walk into a big dealership with their eyes glossed over and shop for the car of their dreams. Sign whatever, put some money down, and drive home.


Give me the scenario you think that could make $540/month total for a car make sense on a $33k salary? OP has 5 payments left? 1.49% interest rate? Killer deal? Not at 20 years old. They can't even get a loan until they're 18 w/o cosigner, which I doubt they have since they're consulting FW for advice and not their parents.

I'm just saying, let's be real. Not the "technically you don't know these X,Y,Z variables and they could be off the charts from what you expected"


I'm all for being real. With that said, why not look at the inverse of your assumptions and "be real" about you not knowing all the facts? I'm not looking to battle with you, but clearly you think you know what's going on based on perhaps, the "norm" or your own experiences? Maybe their parents gave them $10k to put down and they are paying the difference? Maybe their parents used to help them with car insurance, who knows? I know my situation is a lot different than most people my age regarding vehicles, salary, schooling, debt, etc. Perhaps your assumptions are right, I'll give you that. However, you cannot sit here and tell me/us to be real when you, yourself, aren't. You're looking at it from a bias and/or "typical" point of view. Why not be open minded instead of assuming such details? Also, what does their car payment have to do with the original question at hand? I mean, people have priorities. When you're 20 making any sort of decent wage (given the relative factors for the area, COL, etc) the money burns a hole in your pocket. Perhaps since OP has no bills, they felt comfortable getting into such a "high" car payment (relative to income) because they had no other financial responsibilities?

I know when I was 20, I was spending a lot of my earned money. But again, my situation differed from the next guy/gal as everyone's does.


I suppose any one of those things could be true. I guess we, including others who have commented, got hung up on how the specifics of my comment could be wrong.

I will say that if OP is spending $540/month (~25% of take home pay) for vehicle expense and plans to move and have no job. She's likely to get that car repo'd. $6k does not last long after moving expenses between two people when there is an expensive car payment coming up.

And since OP mentioned it, it doesn't sound like those payments are about to stop anytime soon.

Too bad OP disappeared.

Al3xK said:   jaytrader said:   Al3xK said:   jaytrader said:   You make a lot of assumptions. How do you know OP walked into a dealership and did a sign & drive? Unless I missed it, I don't recall the OP stating how they acquired their vehicle and its payments.

They're educated assumptions, and to try and argue that OP could have technically done something different is just silly. Also, to assume something other than what's conventional doesn't make sense either, especially when OP is 20 w/$33k salary.

The $140/month insurance alone should set off bells & whistles as a $18k+ car...now I'm sure you'll argue the bad driving record, but that wouldn't mesh with the $400/month car payment.

And every first time car buyer does the exact same thing. They walk into a big dealership with their eyes glossed over and shop for the car of their dreams. Sign whatever, put some money down, and drive home.


Give me the scenario you think that could make $540/month total for a car make sense on a $33k salary? OP has 5 payments left? 1.49% interest rate? Killer deal? Not at 20 years old. They can't even get a loan until they're 18 w/o cosigner, which I doubt they have since they're consulting FW for advice and not their parents.

I'm just saying, let's be real. Not the "technically you don't know these X,Y,Z variables and they could be off the charts from what you expected"


I'm all for being real. With that said, why not look at the inverse of your assumptions and "be real" about you not knowing all the facts? I'm not looking to battle with you, but clearly you think you know what's going on based on perhaps, the "norm" or your own experiences? Maybe their parents gave them $10k to put down and they are paying the difference? Maybe their parents used to help them with car insurance, who knows? I know my situation is a lot different than most people my age regarding vehicles, salary, schooling, debt, etc. Perhaps your assumptions are right, I'll give you that. However, you cannot sit here and tell me/us to be real when you, yourself, aren't. You're looking at it from a bias and/or "typical" point of view. Why not be open minded instead of assuming such details? Also, what does their car payment have to do with the original question at hand? I mean, people have priorities. When you're 20 making any sort of decent wage (given the relative factors for the area, COL, etc) the money burns a hole in your pocket. Perhaps since OP has no bills, they felt comfortable getting into such a "high" car payment (relative to income) because they had no other financial responsibilities?

I know when I was 20, I was spending a lot of my earned money. But again, my situation differed from the next guy/gal as everyone's does.


I suppose any one of those things could be true. I guess we, including others who have commented, got hung up on how the specifics of my comment could be wrong.

I will say that if OP is spending $540/month (~25% of take home pay) for vehicle expense and plans to move and have no job. She's likely to get that car repo'd. $6k does not last long after moving expenses between two people when there is an expensive car payment coming up.

And since OP mentioned it, it doesn't sound like those payments are about to stop anytime soon.

Too bad OP disappeared.

Glad this didn't turn to an insult-fest pissing match. Respect, mon!

jaytrader and Al3xK: Get a room you two, will you.

Seriously, the OP is AWOL and we will not know what the heck is going on with her BF or move, let alone the terms of her car loan.

Maybe she bought a luxury car that she cannot afford and financed it over 10 years.
Maybe she got a crown Vic from a family friend and trying it pay it off in six months (at $400 per month, that is still too much to pay for a Crown Vic!).
In any case, we will never know. No point in arguing here.

uutxs said:   jaytrader and Al3xK: Get a room you two, will you.

Seriously, the OP is AWOL and we will not know what the heck is going on with her BF or move, let alone the terms of her car loan.

Maybe she bought a luxury car that she cannot afford and financed it over 10 years.
Maybe she got a crown Vic from a family friend and trying it pay it off in six months (at $400 per month, that is still too much to pay for a Crown Vic!).
In any case, we will never know. No point in arguing here.

Seems like, based on your last few lines, you want to join us in our room? Threesome?

Al3xK said:   jaytrader said:   Al3xK said:   ^^You're right, I'm assuming. I'd bet money I'm assuming right though. A $15k 5 year loan is sub $300. $400 is a fortune in car payment terms.

Yet you are a self-admitted $500/m Escalade driver?


I buy cars regularly (10+/year) so when I sell it in a couple months, I'll have made $1-2k on it.

It's actually $457 or something and I have the cash to pay it off, Penfed is just so cheap to borrow. I didn't walk into a dealership like OP and sign & drive, it took me a couple months to find this specific one.
I'd like to know 1) how you afford to buy 10 cars a year with 100k salary and 2) how to make money on cars.

1) How much I make is beside the point...I have access to dealer auctions through cousin (dealer). That plus it's just a regular market, so even if I buy private party sales...you just have to know the market. I know that my 2007 Escalade is worth ~$28k with miles, color, and options. If I can get it for ~$26k, then I can drive it around for 4 months or whatever and just sell it and get my money back.

I refuse to buy a car for what it's worth on a public market.

Al3xK said:   1) How much I make is beside the point...I have access to dealer auctions through cousin (dealer). That plus it's just a regular market, so even if I buy private party sales...you just have to know the market. I know that my 2007 Escalade is worth ~$28k with miles, color, and options. If I can get it for ~$26k, then I can drive it around for 4 months or whatever and just sell it and get my money back.

I refuse to buy a car for what it's worth on a public market.
So ... I'm guessing the public doesn't have access to it, otherwise FWF would be all over this?

For more clarification:
My car payment is 300$. I pay 400 so I can stay ahead, in the case that I have some sort of financial crisis.

Yes, my boyfriend IS going back to school.
He is registered for an online school next semester.

We were not planning on moving to LA at all, it's a beautiful city but not a place I'd want to live.
We were discussing moving out to Silver City when he finishes his degree, or possibly in the summer of 2014.
The area of Law Enforcement that I work in has a high turnover rate, they're always hiring for it somewhere.

We are both currently in Austin, just got back here yesterday. He has had two job interviews already.
Our relationship is great, no I wont give pictures, yes he is 'hot'.

Neither of us really go out often, yeah we are the Netflix kind of people, and we love hiking / exploring.


LoneStayGuy - Yeah, 140 is high. I just completed defensive driving and will be receiving the discount shortly. We will most likely move into Williamson county, as I work in that area.

Treffen - My father is dead. My mother supports me 100%. She also works in law enforcement.

jaytrader said:   Al3xK said:   jaytrader said:   You make a lot of assumptions. How do you know OP walked into a dealership and did a sign & drive? Unless I missed it, I don't recall the OP stating how they acquired their vehicle and its payments.

They're educated assumptions, and to try and argue that OP could have technically done something different is just silly. Also, to assume something other than what's conventional doesn't make sense either, especially when OP is 20 w/$33k salary.

The $140/month insurance alone should set off bells & whistles as a $18k+ car...now I'm sure you'll argue the bad driving record, but that wouldn't mesh with the $400/month car payment.

And every first time car buyer does the exact same thing. They walk into a big dealership with their eyes glossed over and shop for the car of their dreams. Sign whatever, put some money down, and drive home.


Give me the scenario you think that could make $540/month total for a car make sense on a $33k salary? OP has 5 payments left? 1.49% interest rate? Killer deal? Not at 20 years old. They can't even get a loan until they're 18 w/o cosigner, which I doubt they have since they're consulting FW for advice and not their parents.

I'm just saying, let's be real. Not the "technically you don't know these X,Y,Z variables and they could be off the charts from what you expected"


I'm all for being real. With that said, why not look at the inverse of your assumptions and "be real" about you not knowing all the facts? I'm not looking to battle with you, but clearly you think you know what's going on based on perhaps, the "norm" or your own experiences? Maybe their parents gave them $10k to put down and they are paying the difference? Maybe their parents used to help them with car insurance, who knows? I know my situation is a lot different than most people my age regarding vehicles, salary, schooling, debt, etc. Perhaps your assumptions are right, I'll give you that. However, you cannot sit here and tell me/us to be real when you, yourself, aren't. You're looking at it from a bias and/or "typical" point of view. Why not be open minded instead of assuming such details? Also, what does their car payment have to do with the original question at hand? I mean, people have priorities. When you're 20 making any sort of decent wage (given the relative factors for the area, COL, etc) the money burns a hole in your pocket. Perhaps since OP has no bills, they felt comfortable getting into such a "high" car payment (relative to income) because they had no other financial responsibilities?

I know when I was 20, I was spending a lot of my earned money. But again, my situation differed from the next guy/gal as everyone's does.


My interest rate is 6.9%, from the dealership. My credit union offered a 12% interest rate.
I did have a cosigner, and I plan on refinancing soon.
If I had purchased the car of my dreams, trust me, I would have a much nicer car.

uberlyawesome said:   My interest rate is 6.9%, from the dealership. My credit union offered a 12% interest rate.
I did have a cosigner, and I plan on refinancing soon.
If I had purchased the car of my dreams, trust me, I would have a much nicer car.


AH HA! OP returns to prove me right muhahahaha.

Bought from dealership with traditional financing and cosigner. $300/month isn't terrible so ~$15k car.


And I don't think most FW'ers wanted pics of your BF.

uberlyawesome said:   My car payment is 300$. I pay 400 so I can stay ahead, in the case that I have some sort of financial crisis. Perhaps others can chime in, but I don't see this as a good financial move on a 6.9% loan. You could be putting $1200 a year in a emergency fund. If you have a crisis within the next couple of years, this plan means you'd have to either sell your car, or take a title loan which will most likely be higher than 6.9%.

rufflesinc said:   uberlyawesome said:   My car payment is 300$. I pay 400 so I can stay ahead, in the case that I have some sort of financial crisis. Perhaps others can chime in, but I don't see this as a good financial move on a 6.9% loan. You could be putting $1200 a year in a emergency fund. If you have a crisis within the next couple of years, this plan means you'd have to either sell your car, or take a title loan which will most likely be higher than 6.9%.

Typically on car loans if you pay extra each month it can advance your next due date so you can "stay ahead" giving the flexibility to not make payments for some time.

lonestarguy said:   rufflesinc said:   uberlyawesome said:   My car payment is 300$. I pay 400 so I can stay ahead, in the case that I have some sort of financial crisis. Perhaps others can chime in, but I don't see this as a good financial move on a 6.9% loan. You could be putting $1200 a year in a emergency fund. If you have a crisis within the next couple of years, this plan means you'd have to either sell your car, or take a title loan which will most likely be higher than 6.9%.

Typically on car loans if you pay extra each month it can advance your next due date so you can "stay ahead" giving the flexibility to not make payments for some time.

This is correct.

I don't get the point of this thread.

didn't TripleB recently return with an alt-id with "uber" in it?

lonestarguy said:   rufflesinc said:   uberlyawesome said:   My car payment is 300$. I pay 400 so I can stay ahead, in the case that I have some sort of financial crisis. Perhaps others can chime in, but I don't see this as a good financial move on a 6.9% loan. You could be putting $1200 a year in a emergency fund. If you have a crisis within the next couple of years, this plan means you'd have to either sell your car, or take a title loan which will most likely be higher than 6.9%.

Typically on car loans if you pay extra each month it can advance your next due date so you can "stay ahead" giving the flexibility to not make payments for some time.
My bad. I'm more familiar with BTs and no interest credit card or store card deals. There the fine print is that even if you pay more than the minimum on one month, the next month you are still on the hook for the minimum.

rufflesinc said:   lonestarguy said:   rufflesinc said:   uberlyawesome said:   My car payment is 300$. I pay 400 so I can stay ahead, in the case that I have some sort of financial crisis. Perhaps others can chime in, but I don't see this as a good financial move on a 6.9% loan. You could be putting $1200 a year in a emergency fund. If you have a crisis within the next couple of years, this plan means you'd have to either sell your car, or take a title loan which will most likely be higher than 6.9%.

Typically on car loans if you pay extra each month it can advance your next due date so you can "stay ahead" giving the flexibility to not make payments for some time.
My bad. I'm more familiar with BTs and no interest credit card or store card deals. There the fine print is that even if you pay more than the minimum on one month, the next month you are still on the hook for the minimum.


This even works on many Home Equity Loans. I currently don't owe a home equity loan payment until fall of 2017 as I've been making 4-5 payments per month since I opened it in Feb 2011.

lonestarguy said:   rufflesinc said:   lonestarguy said:   rufflesinc said:   uberlyawesome said:   My car payment is 300$. I pay 400 so I can stay ahead, in the case that I have some sort of financial crisis. Perhaps others can chime in, but I don't see this as a good financial move on a 6.9% loan. You could be putting $1200 a year in a emergency fund. If you have a crisis within the next couple of years, this plan means you'd have to either sell your car, or take a title loan which will most likely be higher than 6.9%.

Typically on car loans if you pay extra each month it can advance your next due date so you can "stay ahead" giving the flexibility to not make payments for some time.
My bad. I'm more familiar with BTs and no interest credit card or store card deals. There the fine print is that even if you pay more than the minimum on one month, the next month you are still on the hook for the minimum.


This even works on many Home Equity Loans. I currently don't owe a home equity loan payment until fall of 2017 as I've been making 4-5 payments per month since I opened it in Feb 2011.
Aren't mortgages a sweeter deal since you are applying the extra amount each month to the outstanding principle, thus paying less interest over the life of the loan? From what OP says, she ends up paying the same.

rufflesinc said:   lonestarguy said:   rufflesinc said:   lonestarguy said:   rufflesinc said:   uberlyawesome said:   My car payment is 300$. I pay 400 so I can stay ahead, in the case that I have some sort of financial crisis. Perhaps others can chime in, but I don't see this as a good financial move on a 6.9% loan. You could be putting $1200 a year in a emergency fund. If you have a crisis within the next couple of years, this plan means you'd have to either sell your car, or take a title loan which will most likely be higher than 6.9%.

Typically on car loans if you pay extra each month it can advance your next due date so you can "stay ahead" giving the flexibility to not make payments for some time.
My bad. I'm more familiar with BTs and no interest credit card or store card deals. There the fine print is that even if you pay more than the minimum on one month, the next month you are still on the hook for the minimum.


This even works on many Home Equity Loans. I currently don't owe a home equity loan payment until fall of 2017 as I've been making 4-5 payments per month since I opened it in Feb 2011.
Aren't mortgages a sweeter deal since you are applying the extra amount each month to the outstanding principle, thus paying less interest over the life of the loan? From what OP says, she ends up paying the same.


No, mortgages are not better. The HEL and car loans use simple interest. Each payment will cover any accrued interest since the last payment using the formula of interest rate / 365 * # of days since last payment with the remainder going toward principal. There was a big archived thread where this was discussed a few years ago at http://www.fatwallet.com/forums/finance/60734/. Both car loans and HEL have you pay a daily interest amount equal to your rate/365 * your principal balance.



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