… you might be eligible for a legal settlement:
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They sold the cars and then screwed their customers on the financing? Vertical integration!
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Unfortunately, this just further reinforces my stance to NEVER finance a vehicle
My dad always saved up and bought cars for cash . . . new cars in his case . . . and said “If you can’t pay for it outright, then you can’t afford it”
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I’m sympathetic to the position. I haven’t had a car payment since the '90s. But that’s also because the most I’ve paid for a vehicle since the '90s was $4K.
I think for most people (who can’t scout out used cars for sale by owners…), the don’t buy a car until you’ve saved enough to pay cash is beyond reach in this day and age. There was a time the wages of regular working folks kept up with costs of living. That was basically pre-1970s (or really, something like 1930s-ish to 1970). I’m betting your dad’s advice was pre-'70s.
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My dad was born in 1938 and he bought his last new car for cash in 1995
He definitely taught me to live within my means, something many of my friends, colleagues and even other relatives don’t adhere to . . . some of them don’t even TRY to live within their means
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Wise man. My parents taught me the same.
But living within your means isn’t the same thing as not buying on credit. It means knowing what you can afford to finance (which, yes, is a long lost “art” for many (most?)).
On my way off to college in '85 I basically needed a car. My dad (born in '47) was a small business person. As such, he was well aware of the need to use credit and manage it responsibly.
So he helped me buy my first new one - a 1985.5 Mercury Lynx (yes, there was a 1985 1/2 model). I think the sticker was all of about $6K. My parents helped with a down payment and my dad co-signed a loan (which also helped me start to build a credit rating).
For the money I could make in summers and working while at school the payment was within my reach. But it was all explained to me.
And after we signed off on the papers my dad said something like “Congratulations. You’ll now be in debt for the rest of your life.”
No debts ever @db4690 ? You never bought a house by using the mortgage market? Maybe not, and if so, then good for you. Zero debt is a good as it gets.
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I’ve had mortgages
One of my homes was paid off recently and the other will take a while longer
Other than the home, everything gets paid off in full, meaning all bills get paid immediately and I don’t carry a credit card balance.
As you said, I try to use credit wisely and last time I checked, my score was excellent
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+1
My father was born in 1910, and lived through the Great Depression, which resulted in his family losing their small chain of shoe stores. So, he knew–on a practical basis–the necessity of thrift.
When I was about to start my first professional job in 1969, I wanted to buy my own car, and I could have paid for a substantial part of a new car’s purchase price from my savings, although I would have had to finance part of the cost.
Because my father was able to walk to work, he really didn’t use his car very much during the week, so he suggested that I use his car for my daily 52 mile round-trip commute, and that I continue to save money. As he put it, “If you wipe out your savings account right now and start on the path of borrowing, it will be very difficult to get ahead, financially”.
So, I followed his advice, I paid for all of the gas and maintenance on his car for two years, and then in 1971 I was able to buy a new Dodge Charger SE for cash–and I didn’t have to completely wipe-out my savings in the process.
For the rest of my life, I have bought all of my cars for cash, but I did use a somewhat unique type of financing to buy one of them, during the late '70s. At the time, I was getting 16-17% interest on my Dreyfus Worldwide Dollar account, but rather than take all of the money for a car purchase from that account, I took a “pension loan”.
Because I was essentially borrowing my own pension fund money that was already socked-away, the pension plan charged only 3% interest on the money that I borrowed. I reasoned that this was more financially beneficial to me than if I pulled all of the money out of that high-interest Dreyfus account, and I think that I was right.
Anyway, as recently as 2 1/2 years ago, I bought a vehicle (probably my last one… ) with cash.
Edited to add… IIRC, @db4690 lives in–or near–Los Angeles, and I hope that he–and his home–are safe from those devastating fires.
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It’s important to build a good credit rating before buying a home. Buying big ticket items with a loan to prove reliable repayment does that. I bought my first couple of cars with a loan but paid cash after that. I’m sure that you did that too, but other readers might not know the upside of reasonable use of loans.
@jtsanders I had a problem when I applied for a mortgage to have my first home built. I had purchased outright 5 acres of ground in a very desirable area. The land was worth more than 25% of the estimate to build the house we wanted. Both my wife and I had tenure track positions at a university. The loan officer asked where I financed my car. I replied that I bought the car for cash. He then asked me what kind of car I drove. “1965 Rambler”, I replied. The loan officer then said, “Why do you drive an old car like that (This was in 1972)”?
I became indignant. I said, “So I wouldn’t have to borrow money on an asset that depreciates. There is no way you would lose money if I defaulted on the mortgage. You would have the house and the land in a very desirable area and you would make money. However. I don’t want your loan. I have enough money to have a foundation laid. I will save until I can have the house framed and enclosed. I will then finish the house inside room by room myself”.
The loan officer went to the manager and I got the loan.
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My home is okay
Thanks for asking
Yesterday, we never really saw daylight, due to all the smoke
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