Made my bed, and now I must sleep in it. - Page 2 - Toyota Yaris Forums

YarisSedan · 11-07-2009, 09:27 PM

I used to work at a car dealer before as a salesman. It would blow me away people trading in thier cars for a new one when it was going to be paid off in just a few more months. Some poeple get used to having a car payment. Me personally i can not wait to no longer have a car payment. My plan is even though im used to it the amount of money i would be sending out for my payment im just going to put that in my savings. That way it makes it more easier to save. Instead of looking at it is i have a extra 250 dollars a month for whatever i want to spend it on.

DandiDani · 11-07-2009, 09:30 PM

that's very smart^. i still have a quite a long time before our yari are paid off

...

YarisOwnersDad · 11-07-2009, 10:02 PM

Quote:

Originally Posted by Kal-El

You might as well pay the $19K especially since it's interest free and then keep the Yaris beyond that. So do you plan on taking it on the long haul?

One other thing I forgot to ask was why you didn't lease vehicles? That's usually the way to go if you want a new car every two years or so. I noticed most of the previous cars you owned were American and had horrendous resale value. I can only imagine the hit you took.

I put about 20K miles on a car per year, so leasing is kind of out of the question for me.

I have no plans to trade my Yaris for anything. I think I can count on Toyota quality to keep that little car running for 300K miles without much more than routine maintenance.

Tom

Bob Dog · 11-07-2009, 11:25 PM

This all sounds very strange to me. I save up several thousand dollars put it down on a car and pay it off in several months, by not spending on anything else during the period I am buying it. I then drive he car for 150,000 or 200,000 miles. Almost no money is spent on interest, and debt only about last for 6 to 12 months out of every 10 to 15 years.

why? · 11-07-2009, 11:50 PM

Quote:

Originally Posted by Bob Dog

This all sounds very strange to me. I save up several thousand dollars put it down on a car and pay it off in several months, by not spending on anything else during the period I am buying it. I then drive he car for 150,000 or 200,000 miles. Almost no money is spent on interest, and debt only about last for 6 to 12 months out of every 10 to 15 years.

nice. You're the exact opposite of prolly 90% of all americans.

YarisOwnersDad · 11-08-2009, 08:02 AM

Quote:

Originally Posted by Bob Dog

This all sounds very strange to me. I save up several thousand dollars put it down on a car and pay it off in several months, by not spending on anything else during the period I am buying it. I then drive he car for 150,000 or 200,000 miles. Almost no money is spent on interest, and debt only about last for 6 to 12 months out of every 10 to 15 years.

That's the smart way to do it, Bob Dog. Way to go!

Tomster

Bob Dog · 11-08-2009, 09:05 AM

I know what impulse spending is though> I have nooo problem racking up a couple hundred dollars on impulse purchases on the internet, things I want when I see them but will probably never use..

YarisOwnersDad · 11-08-2009, 09:40 AM

You know, in a very real sense, it was my addiction to new cars that got me into credit card debt.

I never had a credit card until I heard about the GM Master Card where 5% of your purchases went toward a rebate on a new GM vehicle up to $500 per year maximum. Later, they came out with a "Gold Card" deal that would raise the maximum rebate earned per year to $1000. They eventually did away with that, and the maximum is now $500, Gold Card or not.

Yeah, I saved a lot of money on cars over the years with those rebates, but did I REALLY save, if I was buying cars that I didn't need?

Also, we were very good about paying off our balance every month for the first several months after getting the credit card. We were buying things with the card that we would otherwise have been writing checks for. The convenience of writing one check at the end of the month instead of writing checks for everything we bought was great, plus we were earning money toward a new car.

The only problem was that we finally started buying more things than just the usual monthly items, and we started carrying a balance on the credit card. We have gone from carrying a zero balance to carrying about $15,000 total on three different cards. The GM card is no longer even the main card that we use.

I might have eventually gotten a credit card anyway, since most people seem to have them, but I first got into credit cards because I was attracted to the rebate earnings of the GM Card.

Tom

Bob Dog · 11-08-2009, 09:47 AM

quite an addiction fest out ther if one succumbs...

YarisOwnersDad · 11-08-2009, 10:07 AM

Quote:

Originally Posted by Bob Dog

quite an addiction fest out ther if one succumbs...

That has been my problem... no self discipline, no restraint, just "good credit."

I am living proof that "good credit" can get you in big time trouble as you near the end of your working career.

I sure hope that the message is coming through loud and clear to you younger Yaris Buds. Don't fall into the same trap that I did.

Once again, I looked only at "can I make my monthly payment," but I should have looked at "just how deeply in debt do I really want to go, and how long will it take me to get all of this paid off?"

Tomster

Bob Dog · 11-08-2009, 11:56 AM

There are organizations that help. Lots of people have the problem , it might be useful for you to talk to some other folks face to face that share your compulsion. I didn't used to worry about the hangover, only how good that first drink would feel... Hard problems can be overcome with understanding and diligent application . I believe they call your folks debtors anonymous. It is my strong suggestion that you check them out. You know and admit you have a problem, that is the first and greatest step.

YarisOwnersDad · 11-08-2009, 12:23 PM

Quote:

Originally Posted by Bob Dog

There are organizations that help. Lots of people have the problem , it might be useful for you to talk to some other folks face to face that share your compulsion. I didn't used to worry about the hangover, only how good that first drink would feel... Hard problems can be overcome with understanding and diligent application . I believe they call your folks debtors anonymous. It is my strong suggestion that you check them out. You know and admit you have a problem, that is the first and greatest step.

Thanks, Bob Dog.

I think I have seen the light, but if I need the help, I will sure try to get some.

What I have to do now is work that debt down, and that's just what I plan to do. There will not be any more purchases "on credit," and as smaller bills are paid off, I will apply that monthly payment to other debts instead of using the money to buy something else.

I just finished paying off a Care Credit loan for some dental work, and I will apply that $126 per month payment toward reducing my credit card debt. Also, I am paying on a couple student loans for my son, and when they are paid off, I will use that money to increase my credit card payments and work down the principal. Whenever ANYTHING is paid off, its monthly payment is going to go toward reducing my credit card debt.

Tom

texkid · 11-08-2009, 12:40 PM

YarisOwnersDad: I too have an addiction, but it is not cars. It is computers and guns. I can somewhat relate since I am known to go out of my way to get a new laptop or at least new parts just to get better speeds or bigger storage. I have bad credit only because I didn't pay off the credit cards (I was young and VERY stupid). We learn more from experience than from a book.

Stay strong and focused.

Kal-El · 11-08-2009, 03:34 PM

Quote:

Originally Posted by Bob Dog

This all sounds very strange to me. I save up several thousand dollars put it down on a car and pay it off in several months, by not spending on anything else during the period I am buying it. I then drive he car for 150,000 or 200,000 miles. Almost no money is spent on interest, and debt only about last for 6 to 12 months out of every 10 to 15 years.

Strange to you but most Americans buy more than they can afford with a 60 or even 72 month loan term. And they remain upside down on the value of their cars. Many put down only the trade or less than $1,000 cash.

Bob Dog · 11-08-2009, 03:40 PM

Owing more on property than the net worth of it's liquidation value is enslavement.

Kal-El · 11-08-2009, 04:18 PM

Quote:

Originally Posted by Bob Dog

Owing more on property than the net worth of it's liquidation value is enslavement.

Yes, but isn't that the position that every homeowner takes when signing a mortgage?

But I do agree with you that no one should put themselves upside down on a car loan.

Bob Dog · 11-08-2009, 04:53 PM

A home owner is taking a mortgage on what should be an appreciating asset( at least tradionally). He (or she) is also eliminating the consumption expense of paying rent, and turning it into investment expenditure.There is also the case when debt is incured to capitalise a business. In both of these cases it is the taking on of debt with the reasonable expectation that later, greater wealth will be gained. Consumer goods debt is just the opposite. Wealth is being lost both to the declining value of the goods purchased and to the interest that must be paid on the debt. One should also consider the interest lost from investment of these same monies, and the tax that must be paid on the money used to pay off the debt and the interest on the debt. The cumulative effect is staggering.

why? · 11-08-2009, 10:10 PM

Indeed it is. Good Luck trying to convince the majority of Americans on that...

11-07-2009, 09:27 PM	#19
YarisSedan Drives: 08 Yaris Sedan Join Date: Oct 2008 Location: California - Bay Area Posts: 2,773	I used to work at a car dealer before as a salesman. It would blow me away people trading in thier cars for a new one when it was going to be paid off in just a few more months. Some poeple get used to having a car payment. Me personally i can not wait to no longer have a car payment. My plan is even though im used to it the amount of money i would be sending out for my payment im just going to put that in my savings. That way it makes it more easier to save. Instead of looking at it is i have a extra 250 dollars a month for whatever i want to spend it on. __________________ http://www.cardomain.com/ride/3210549

11-07-2009, 09:30 PM	#20
DandiDani View User's Garage Drives: 09' Meteorite liftback Join Date: Jul 2009 Location: Jeff,Indiana Posts: 1,374	that's very smart^. i still have a quite a long time before our yari are paid off...

11-08-2009, 12:40 PM	#31
texkid The one with cheese on it Drives: '10 Corolla S Join Date: Oct 2008 Location: Sugar Land, TX Posts: 380	YarisOwnersDad: I too have an addiction, but it is not cars. It is computers and guns. I can somewhat relate since I am known to go out of my way to get a new laptop or at least new parts just to get better speeds or bigger storage. I have bad credit only because I didn't pay off the credit cards (I was young and VERY stupid). We learn more from experience than from a book. Stay strong and focused. __________________ DIY: A/C Insulation

11-08-2009, 10:10 PM	#36
why? Only Happy When it Rains View User's Garage Drives: Yaris LB Join Date: Jan 2006 Location: harnett county NC Posts: 4,097	Indeed it is. Good Luck trying to convince the majority of Americans on that... __________________ Colin Chapman disciple

11-07-2009, 11:25 PM	#22
Bob Dog DARK PHASE OF THE MOON Drives: 07 liftback Join Date: Apr 2009 Location: the Boondocks, NC Posts: 993	This all sounds very strange to me. I save up several thousand dollars put it down on a car and pay it off in several months, by not spending on anything else during the period I am buying it. I then drive he car for 150,000 or 200,000 miles. Almost no money is spent on interest, and debt only about last for 6 to 12 months out of every 10 to 15 years.

11-08-2009, 09:05 AM	#25
Bob Dog DARK PHASE OF THE MOON Drives: 07 liftback Join Date: Apr 2009 Location: the Boondocks, NC Posts: 993	I know what impulse spending is though> I have nooo problem racking up a couple hundred dollars on impulse purchases on the internet, things I want when I see them but will probably never use..

11-08-2009, 09:40 AM	#26
YarisOwnersDad Is now a Corolla S Owner View User's Garage Drives: 2010 Corolla S Join Date: Mar 2009 Location: Western Kentucky Posts: 460	You know, in a very real sense, it was my addiction to new cars that got me into credit card debt. I never had a credit card until I heard about the GM Master Card where 5% of your purchases went toward a rebate on a new GM vehicle up to $500 per year maximum. Later, they came out with a "Gold Card" deal that would raise the maximum rebate earned per year to $1000. They eventually did away with that, and the maximum is now $500, Gold Card or not. Yeah, I saved a lot of money on cars over the years with those rebates, but did I REALLY save, if I was buying cars that I didn't need? Also, we were very good about paying off our balance every month for the first several months after getting the credit card. We were buying things with the card that we would otherwise have been writing checks for. The convenience of writing one check at the end of the month instead of writing checks for everything we bought was great, plus we were earning money toward a new car. The only problem was that we finally started buying more things than just the usual monthly items, and we started carrying a balance on the credit card. We have gone from carrying a zero balance to carrying about $15,000 total on three different cards. The GM card is no longer even the main card that we use. I might have eventually gotten a credit card anyway, since most people seem to have them, but I first got into credit cards because I was attracted to the rebate earnings of the GM Card. Tom

11-08-2009, 09:47 AM	#27
Bob Dog DARK PHASE OF THE MOON Drives: 07 liftback Join Date: Apr 2009 Location: the Boondocks, NC Posts: 993	quite an addiction fest out ther if one succumbs...

11-08-2009, 11:56 AM	#29
Bob Dog DARK PHASE OF THE MOON Drives: 07 liftback Join Date: Apr 2009 Location: the Boondocks, NC Posts: 993	There are organizations that help. Lots of people have the problem , it might be useful for you to talk to some other folks face to face that share your compulsion. I didn't used to worry about the hangover, only how good that first drink would feel... Hard problems can be overcome with understanding and diligent application . I believe they call your folks debtors anonymous. It is my strong suggestion that you check them out. You know and admit you have a problem, that is the first and greatest step.

11-08-2009, 03:40 PM	#33
Bob Dog DARK PHASE OF THE MOON Drives: 07 liftback Join Date: Apr 2009 Location: the Boondocks, NC Posts: 993	Owing more on property than the net worth of it's liquidation value is enslavement.

11-08-2009, 04:53 PM	#35
Bob Dog DARK PHASE OF THE MOON Drives: 07 liftback Join Date: Apr 2009 Location: the Boondocks, NC Posts: 993	A home owner is taking a mortgage on what should be an appreciating asset( at least tradionally). He (or she) is also eliminating the consumption expense of paying rent, and turning it into investment expenditure.There is also the case when debt is incured to capitalise a business. In both of these cases it is the taking on of debt with the reasonable expectation that later, greater wealth will be gained. Consumer goods debt is just the opposite. Wealth is being lost both to the declining value of the goods purchased and to the interest that must be paid on the debt. One should also consider the interest lost from investment of these same monies, and the tax that must be paid on the money used to pay off the debt and the interest on the debt. The cumulative effect is staggering.