I have a terrible memory, I forgot about my own thread!
I bet everyone else did, too...
I hope that everyone had a safe and enjoyable Fourth of July. We watched fireworks from Mom's driveway. I just wish that I had remembered to illegally park Mom's car in front of her house before someone illegally parked their ego hauler there.
So, I was getting financial advice from YouTube again--actually, I just received notification that Watch JR Go filled his engine with Orbeez. I thought it sounded lame and I was not impressed, but Orbeez and destruction videos are popular.
Then I saw:
The woman has $2,000 loan on a $1,000 car and now it needs a $2,500 repair. She said she had enough money to pay for the repair and tackle her car loan "with a vengeance," but then said she had $1,100 in savings. He said that if she sold the car for $900 and she used up her savings, she could pay it off, but she still would not have a car, so he started talking about getting another $2,000 loan for another car. He loathed putting her further in debt, but nobody else has a car she can borrow?
"I am fiercely independent."
"You are fiercely in debt."
She later mentioned her parents would loan her their $700 car, but it wasn't as nice as her $1,000 car.
"What the crap does it matter?"
I agreed with everything he told her, but the comments are especially weird with all of the crackpots thinking they are smarter than him.
"it is a fact that you get the worst deal on a car if you pay cash. You get a better price on the car if you finance. Pay cash and you can kiss the rebates goodbye...the dealership WILL keep them."
It sounds logical, but it confuses me that someone who advocates buying new cars would waste their time with Dave Ramsey videos.
This page says that dealerships make more money when people finance, so they are willing to negotiate a lower price that they will make back through financing.
I believe that I got this from a Dave Ramsey post. You want a new car, but only have $1,000. Instead of putting $1,000 down and having a $300 payment, you buy a $1,000 car and put $300 a month in the bank.
Ten months later you have a car worth roughly $1,000 and $3,000 in the bank.
Get a $4,000 car and keep putting $300 a month in the bank.
Every ten months replace your car with a newer and nicer one and eventually you will be able to afford a new car without getting into debt.