luxury watch brands under 1000 image
Wolf
I never understood it, I am not perfect and sure I feel tempted to take out a loan every time I see a sexy Mercedes pass me by in my old Toyota; but after thinking about it I would be a fool to be making $250+ payments per month when I could drive my 1998 Toyota for free since I own it
I had to ask since I was watching an episode of Judge Judy and the case was about tax return money and the financing of a car. Didnt watch the entire thing but watched enough of it to know that the couple had $6k and still decided to finance a monte carlo. Thats like the silliest thing I ever heard, my Toyota corolla cost me $1200 and I had it for like 10 years with no probs. Who the heck would down pay $6k on a pos and then still have monthly payments?????? I could buy 3 strong used Toyotas or Hondas with $6k...smh
Can someone please explain this to me? I could understand financing a car like a BMW 745 since most people cant buy it outright, but surely someone can buy a car like mines or a monte carlo for A LOT less than $6k. Why even finance a car like that when everyone knows it holds no value and isn't even considered luxury. Its like me financing a Toyota Tercel and making a dealer rich when I could simply get one for $1000 cash from a person seller!
If the person is low on cash and has to go to a Buy Here pay Here place for transportation to get to and from work then fine. I cant judge them because they are low on cash and probably got like $500 to their name; but having $6k and still financing a car is totally beyond me!
Answer
When you finance a car through a dealer they use a bank or credit union. The bank or credit union buys the car for the agreed price from the dealer and then starts charging you a monthly bill with interest! Its not really the dealers who get rich it is the banks.
Say you agree on a 20,000 dollar car and you have qualified for the loan through bank X. Once all the paperwork is done the dealer sends it off to the bank. The bank sends a 20,000 dollar check to the dealership to buy the car. Then 5 years down the road when all the payments are made depending on interest rate you endup paying about 24,000 for the car, guess who made the money here (the bank) they made 4 grand off of the buyer just for loaning the money.
I agree a buy here pay here place is dumb because they charge typically 20-50% interest its robbery, and they do make the money at those places, which is why no one should buy from those places. I also agree if you are looking for a used car and have a substantial amount of money in the bank you should buy it outright and I have.
What most people are thinking about is they only have to pay 150 bucks a month to buy the car for 4-5 years, not 5 grand all at once. What they don't realize is they will end up paying almost twice the amount the car is worth in the end by making payments, so if it is a 4 thousand dollar car they end up paying at a local used car lot (shady acres) 8 grand or more for that 4 grand car (stupid plain stupid).
Now as far as new cars go (like me) I have a 2011 Ford Ranger I got it for 19,000 brand new and it is the XLT model, got a good deal, but I did not have 19 grand to just plop down on a new car, but I can easily afford the payments, and my interest is only 3 %. So even at the end of the 5 years I will only endup paying about 22,500 for it which is still about 3 grand under MSRP!
You should also ask why do people even borrow money for anything, the main reason because we all put wants in front of needs, and those wants are or can be expensive so much so it is beyond our temporary means of getting that object, banks say ok I will loan you the cash but at a price, and us dumb consumers agree, it has gone on since the beginning of man so there is no point in even trying to stop it.
When you finance a car through a dealer they use a bank or credit union. The bank or credit union buys the car for the agreed price from the dealer and then starts charging you a monthly bill with interest! Its not really the dealers who get rich it is the banks.
Say you agree on a 20,000 dollar car and you have qualified for the loan through bank X. Once all the paperwork is done the dealer sends it off to the bank. The bank sends a 20,000 dollar check to the dealership to buy the car. Then 5 years down the road when all the payments are made depending on interest rate you endup paying about 24,000 for the car, guess who made the money here (the bank) they made 4 grand off of the buyer just for loaning the money.
I agree a buy here pay here place is dumb because they charge typically 20-50% interest its robbery, and they do make the money at those places, which is why no one should buy from those places. I also agree if you are looking for a used car and have a substantial amount of money in the bank you should buy it outright and I have.
What most people are thinking about is they only have to pay 150 bucks a month to buy the car for 4-5 years, not 5 grand all at once. What they don't realize is they will end up paying almost twice the amount the car is worth in the end by making payments, so if it is a 4 thousand dollar car they end up paying at a local used car lot (shady acres) 8 grand or more for that 4 grand car (stupid plain stupid).
Now as far as new cars go (like me) I have a 2011 Ford Ranger I got it for 19,000 brand new and it is the XLT model, got a good deal, but I did not have 19 grand to just plop down on a new car, but I can easily afford the payments, and my interest is only 3 %. So even at the end of the 5 years I will only endup paying about 22,500 for it which is still about 3 grand under MSRP!
You should also ask why do people even borrow money for anything, the main reason because we all put wants in front of needs, and those wants are or can be expensive so much so it is beyond our temporary means of getting that object, banks say ok I will loan you the cash but at a price, and us dumb consumers agree, it has gone on since the beginning of man so there is no point in even trying to stop it.
Scion Fr-s, Subaru BRZ Or Toyota Gt 86?!!?
Bryan
Which one has more style, is more reliable and more affordable of them all, basically which one is better in maybe every aspect....
Answer
my preference in short: Scion FR-S, but you really can't go wrong with any of these machines
-they are mechanically identical so no difference, in terms of reliability
-in North America the GT 86 isn't available, but in terms of styling is identical to the FR-S
-personally I prefer the sharper lines and more aggressive shape of the FR-S front fascia; the BRZ reminds me more of Nissan's lines [your personal preference]
-cost wise, Scion is least expensive up-front with their mono-spec approach, although they leave room to add accessories if you want more then the base package; Subaru and Toyota group extras into optional packages that turn out more expensive and may include gadgets you don't want, but if you really need the luxuries (ie leather seats) you can't get them from Scion
-regardless of the branding, I recommend the automatic transmission (~$1000 on any), for significant fuel savings and because maintenance-wise Toyota's automatics will require less $$$ in repairs over time [if you are a 'save the stick shift' purist, at least read/watch my sources, most are pleasantly surprised]
-unexpected difference: handling under stress; see source 1,2, or 4, but in short the Scion/ Toyota has a lighter/balanced feel and more free for precise handling, and the BRZ has a more heavy/limited, stable feel through corners [again driver preference, but important if you want to push this car to the limit]
my preference in short: Scion FR-S, but you really can't go wrong with any of these machines
-they are mechanically identical so no difference, in terms of reliability
-in North America the GT 86 isn't available, but in terms of styling is identical to the FR-S
-personally I prefer the sharper lines and more aggressive shape of the FR-S front fascia; the BRZ reminds me more of Nissan's lines [your personal preference]
-cost wise, Scion is least expensive up-front with their mono-spec approach, although they leave room to add accessories if you want more then the base package; Subaru and Toyota group extras into optional packages that turn out more expensive and may include gadgets you don't want, but if you really need the luxuries (ie leather seats) you can't get them from Scion
-regardless of the branding, I recommend the automatic transmission (~$1000 on any), for significant fuel savings and because maintenance-wise Toyota's automatics will require less $$$ in repairs over time [if you are a 'save the stick shift' purist, at least read/watch my sources, most are pleasantly surprised]
-unexpected difference: handling under stress; see source 1,2, or 4, but in short the Scion/ Toyota has a lighter/balanced feel and more free for precise handling, and the BRZ has a more heavy/limited, stable feel through corners [again driver preference, but important if you want to push this car to the limit]
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Title Post: Why do people finance overpriced cars and make dealers rich?
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Rating: 98% based on 9457 ratings. 4,7 user reviews.
Author: Unknown
Thanks For Coming To My Blog
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