Who here owns their S2000 out right
09-10-2011, 08:13 AM
#31
Originally Posted by rob-2' timestamp='1315630513' post='20959893
[quote name='HarryD' timestamp='1315627153' post='20959795']
[quote name='thomsbrain' timestamp='1315626295' post='20959761']
[quote name='rob-2' timestamp='1315595555' post='20958488']
[quote name='s4play' timestamp='1315592217' post='20958237']
I've owned over 10+ s2000's and all of them were paid in cash. I don't believe in paying a bank stupid interest if I can avoid it. (aka home loan)
Cars such as the s2000 are really luxury items and it really should be paid in cash if possible. I know a friend who told me her BMW car payment was over $800 per month ~ I nearly choked! She put basically very little money down, borrowed like $50k and with awesome credit and 2.99% rate, her payment was $898 per month and about $140 goes to interest, rest goes to principal
Even on a simple $20k car loan at a decent rate of 3-5% apr, you are paying $$$ in interest every month. If you ever did the math I think many of you will be surprised, car loans are the worst investment any young guy can get involved in. In my younger days I did that and wasted $$$$ for sure.
[quote name='thomsbrain' timestamp='1315626295' post='20959761']
[quote name='rob-2' timestamp='1315595555' post='20958488']
[quote name='s4play' timestamp='1315592217' post='20958237']
I've owned over 10+ s2000's and all of them were paid in cash. I don't believe in paying a bank stupid interest if I can avoid it. (aka home loan)
Cars such as the s2000 are really luxury items and it really should be paid in cash if possible. I know a friend who told me her BMW car payment was over $800 per month ~ I nearly choked! She put basically very little money down, borrowed like $50k and with awesome credit and 2.99% rate, her payment was $898 per month and about $140 goes to interest, rest goes to principal
Even on a simple $20k car loan at a decent rate of 3-5% apr, you are paying $$$ in interest every month. If you ever did the math I think many of you will be surprised, car loans are the worst investment any young guy can get involved in. In my younger days I did that and wasted $$$$ for sure.
However cars make you no money and depreciate at approximately 10%/year, car loans 3-5% and my investments return 15%+. Putting all my money into a car costs approximately 20%/year for the life of the loan, say 5 years. 10 depr - 5% interest + 15% investment return = 20%.
It's a crude number but I always rather have cash on hand and debt then neither. Your general rule, if you don't have the cash to buy something is a good one to follow and clearly I follow it. I just opt to borrow at ultra low rates <10% is low, and invest the money. I get the benefits of owning both, with all the upsides as well. I see this as making my money work for me.
As long as you qualify for a good rate, it's better to get a loan and put your cash in appreciating assets than to put your cash in a depreciating asset. I COULD pay off my loan, but it would not be the wise financial choice to do so.
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I don't know what auto loan rates are, but in the current stock market, are you really making more than your loan rate?
If you're making 15-20% a year in the stock market, you're a rockstar. Apply at GS!
Best advice is to always pay off debts, then save up a 6+ month emergency fund, then invest. Or maybe not...
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If I had bought an index stock I would have doubled my money in 2 years. I suspect people who think 15% returns are low have been suckered into thinking 4% is a good return and stocks dont need to pay dividend. While you get 4% people are getting 20% with your money and laughing at all the stupid people only getting 4%.
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I'm sure it's possible but in the long-run, returns even out at much less than 15% annually. If you bought SPY 2 years ago, you'd be up 14%, 1 year 4.5%, YTD -8%. Oh and because of our recession, your 5 year return would be -11%. Eitherways, index funds are more or less the right way to go as an individual investor... Just buy it at the right time (as with all stocks!)
Like I said--if you pull 15% annually (and repeatedly--say 5+ years in a row) please go apply to GS. They'd love to have you.
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Are you factoring this of the NYSE figures? Not all markets are performing poorly. My china fund last year got me my lowest return, 11%. My South America funds are doing great, you seen Brazil lately? If you'd bought back into the NYSE while the dow was 7K and are selling now you're up 57%, which can pay for a lot of bad mistakes. If warran buffet can make 120% in one day, following non-conventional investing, or what I consider conventional, works. q4 I expect to take a beating, on euro debt, gold and oil. Long term our investing plans should return high yields of 12-15% after fees. Yup, you heard right, after fees.
When the NYSE finally normalizes I'll get back in with some funds that only purchase divined stock that have been increasing dividend payouts over the last 10 years. Until that time I stick to investing elusively in foreign investments, and products I can understand. This has a few problems, one swings in the dollar can impact my ability to enjoy the profits, but as the dollar strengthens it will, long term, mean our economy is on the recover, which in turn will mean we're buying more products from my places of investment. If the dollar goes to the shitter, like it did this year, all my foreign investments increase on currency alone. So my long term plans ride out everything but an entire collapse of world markets - which when it did happen, my metal holdings doubled.
What I really want to get into is water. But I've been unable to find a product that allows me to invest in clean drinking water world wide. Everything I'm reading suggests this is the next major investment opportunity. If my understanding is correct water prices are set to out pace every other commodity world wide.
Sure beats buy bonds!
09-10-2011, 09:15 AM
#32
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Graduated college in 03, moved back to my parents house and started working/saving. Bought MY00 in 05 with 25k for 18k cash. Have loved every moment owning it since. Seriously, changed my life. In retrospect, would have gladly taken on a loan. S2K
s r worth it
s r worth it
09-10-2011, 01:21 PM
#34
Own out right, but it was dirt cheap every time Don't want to deal with the lender in the event of an accident or any insurance claim since they have an interest in the car so checks issued from insurance will be to "yourname + lender'sname" 
Don't want to deal with the lender in the event of an accident or any insurance claim since they have an interest in the car so checks issued from insurance will be to "yourname + lender'sname"
09-10-2011, 01:55 PM
#35
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going on six years of ownership, bought her used with 15k on it, when i was 25, paid her off in two years. (i had to establish credit history somehow 
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