Does this make sense

[oldtrig]

I turn 62 in 17 days. I still work full time. I have no debt, home and all clunkers paid for. I bought two five year cd's in late 07 yeilding me right at 5%. Thinking back then I might retire soon I had the bank send me checks every month. I get about $700 return per month from these CD's. I want to buy a new Nissan truck with no down payment and zero interest. Why not just let my cd's pay for the truck and never touch my money ? I do not need the income from the CD's as I still work full time. I will not live forever but needed advice here from someone else that this would be a wise move. My present truck is 20 years old with over 200,000 miles on it. The way I figure this would probably be the last truck I would ever buy. oldtrig

 

[Rambler]

Are you asking our advice about something here? Well, if you want to buy the truck and let the cds pay for it, fine, sounds like a deal. Get your cash for your clunker too, if you move fast enough (I think). How long are you going to work? Is it secure? What will you do when the cds expire, pay off the truck?

...had to ask...why a Nissan? I think Toyotas are better built...but thats me...

R

 

[crazy connie]

If you buy the truck now and the CD's cover it that is great. What if you lose your job for any reason before the vehicle is paid off, do you have enough other income to live on?

 

[Bestwifeever]

What were you doing with the $700 from the CD's since you started getting it in 2007?

I think I would let the CDs grow (or invest the $700/mo in something else) until you actually do retire, and find another way to make the truck's payments.

 

[oldtrig]

I just put the money in the bank ($700) and get very little return on it. I do not have a vehicle to trade that would qualify under the clunker rule. 1990 Nissan truck is what I drive. I bought it new. Toyota's would have to be good to beat this old truck, 248,000 and still going. My job is secure unless I want to end it. I could make it with SS and state retirement if I decided to leave before 66 so the $700 would not be missed. I know vehicles drop the minute you drive one off , I just thought this might be a way to buy one and never use my real money. Thanks for the tips. oldtrig

 

[W2R]

Since you started the CD's in 2007, and have been putting the money in the bank, some must have accumulated.

$700 x 24 months = $16,800

Personally I would use that cash to buy a nice used truck in cash, assuming that you would have enough cash left for your emergency fund.

Sure, they are offering you 0% interest and $0 down for the new truck, but they have to be making their money somewhere and I think the negotiated price for the brand new truck would have to be high. (?)

 

[Dawg52]

I would pass on the new truck and save the money. You are close to retirement so I would save the money for unexpected retirement needs. When your old truck is no longer serviceable, buy used. But that's just me.

Good luck with whatever you decide.

 

[freebird5825]

If you decide to go for a replacement vehicle...

Nissan's pre-owned program looks pretty good.
Nissan Certified Pre-Owned Vehicles - Nissan USA
New vehicle warranty info only up to 2007 (why not 2008 and 2009?) is here for comparison
Nissan Vehicle Warranty - Nissan USA

I didn't see any great deals on buying new vs used, but your local dealer may have something else going on.
Cash to pay is a powerful negotiating tool these days - keep your cards close and let them know that only at the right time.
I would suggest bringing a savvy friend to play the skeptic when you go to the dealer. I personally love playing that role.

 

[Moemg]

I have been thinking about doing this very thing . Buying a car with the 0% payment and leave my money in the market where right now it is making a decent return . They are giving great deals right now . Instead of 0% most are offering $1000 off so it really is not that great an incentive to pay cash . Also if you buy a new car this year you can write off the tax so that is another push towards the new car .

 

[crazy connie]

If you can afford it and you want it then do as you please. There is always the option of new vs used. As long as you have the income to get by if you lose your employment then it is simply a choice. Make the decision and enjoy your life oldtrig.

 

[Bikerdude]

Do it!. And buy new. This is the best time to buy new with all the incentives and "cash for clunker" tax payer giveaway. You will get at least a 3 yr. warranty so your repair costs will be extremely low for the foreseeable future.

 

[oldtrig]

I backed out at the last minute. I did not like the way the salesperson was pushing me. It is my money and I will spend it like I please not like a salesman tells me to. I hope times continue to be good for car companies but from what I see after visiting several they are in big trouble, rather the banks will be the one that gets hit. You would not believe the people that are buying these cars and trucks because of the clunker crap. Most of the people I talked to did not care of they had a job next week, they just wanted that government handout great deal. I will just fix my old truck myself and drive it until it will not go anymore, I still have the ability to do all of the repairs myself. Thanks for the tips. oldtrig

 

[Dawg52]

I backed out at the last minute. I did not like the way the salesperson was pushing me. It is my money and I will spend it like I please not like a salesman tells me to. I hope times continue to be good for car companies but from what I see after visiting several they are in big trouble, rather the banks will be the one that gets hit. You would not believe the people that are buying these cars and trucks because of the clunker crap. Most of the people I talked to did not care of they had a job next week, they just wanted that government handout great deal. I will just fix my old truck myself and drive it until it will not go anymore, I still have the ability to do all of the repairs myself. Thanks for the tips. oldtrig

Wouldn't that be ironic after all the mortgage crap we have gone through. Another program to stimulate the economy coming back to bite us in the caboose.

I think you made a sound decision.

 

[cardude]

I would not buy a new vehicle and I was in the new car business for years, so I think you made the right choice as well.

It's just too easy to go buy a used vehicle off of Craigslist and skip all the new dealer crap that you might have to go through (and it sounds like you did). Many of the good car salespeople left the business recently and now you have to deal with a lot of inexperienced salespeople and the resulting heavy handed management policies (strong "desk" control, multiple turns from other salespeople and managers, bad F&I hammers).

This is all IMO and I may be full of it however......................

 

[bubba]

Wouldn't that be ironic after all the mortgage crap we have gone through. Another program to stimulate the economy coming back to bite us in the caboose.

I think you made a sound decision.

I've been thinking about that all week. What if a bunch of the folks who ran down to the car lot on the clunkers program default on their car payments and we (taxpayers) have to bail them out. Honestly, I wouldn't bat an eye. In fact, I almost expect it. Good grief.

 

[audreyh1]

I've been thinking about that all week. What if a bunch of the folks who ran down to the car lot on the clunkers program default on their car payments and we (taxpayers) have to bail them out. Honestly, I wouldn't bat an eye. In fact, I almost expect it. Good grief.

Yeah, lots of potential scenarios out there to worry over.....

HOWEVER! In spite of oldtrig's personal experience, apparently the credit score of the folks participating in this program is FAR HIGHER than that of "normal" automobile customers. So I doubt we have to worry about this. And, the government is not "on the hook" for any car loans involved.

Audrey

 

[Bikerdude]

I would not buy a new vehicle and I was in the new car business for years, so I think you made the right choice as well.

It's just too easy to go buy a used vehicle off of Craigslist and skip all the new dealer crap that you might have to go through (and it sounds like you did). Many of the good car salespeople left the business recently and now you have to deal with a lot of inexperienced salespeople and the resulting heavy handed management policies (strong "desk" control, multiple turns from other salespeople and managers, bad F&I hammers).

This is all IMO and I may be full of it however......................

I'm surprised you feel that way. Here we have a guy who keeps his cars 20 years. Has a truck with 200K on it. Has a chance to get 25% to 40% off a new vehicle with all the incentives and clunker cash. Plus here in CT they also wave the 6% sales tax for this year. I wish I had a 20 yr old truck I could trade in. I'd be riding around in a shiny new one.

 

[bubba]

Yeah, lots of potential scenarios out there to worry over.....

HOWEVER! In spite of oldtrig's personal experience, apparently the credit score of the folks participating in this program is FAR HIGHER than that of "normal" automobile customers. So I doubt we have to worry about this. And, the government is not "on the hook" for any car loans involved.

Audrey

Not yet, anyway (bold emphasis by me)

 

[oldtrig]

There is just something about this clunker deal that is not right. Who do most think owned the clunkers to begin with and why were they still driving them ? They did not have the money to own a new car and now our new administration shows them how they can ride in style. This had got to be the most stupidest gimmicks I have ever heard of. Instead of going to all the trouble of dealing with old gas hog cars and trucks why didn't our elected officials just give anyone who buys a new vehicle $4500 if the purchased a new car. That might help jump start the economy. I know of at least five people who were told that their vehicles did not qualify and these people had the money to buy today. Good deals sometimes can lead to trouble. Buying something just because you get $4500 off is not the correct way to purchase. How many of these people would have never went into debt if this program were not started ? It will be interesting to see how this goes. Old trig

 

[quietman]

My "clunker" still runs fine. I renewed my license plate this week and found that due to age and value my "clunker" is now less expensive to register. When I last renewed my insurance, the agent suggested dropping collision, since the "value" of the vehicle is so low, so I save on insurance. Plus I have no car payment. I don't drive too much, so the potential for better gas mileage is not much of an incentive. Last year there were some car thefts in my area. My "clunker" was broken into, but apparently no joyriding thief wants to be seen driving it, so I was spared that hassle as well.

It would take an awful lot of "new car smell" to make me want to give up all these advantages.

 

[freebird5825]

I'm not in the market for a new car.
But I was curious ...so I went here
Most and Least Fuel Efficient Cars
to see which new cars are best/worst.
You can do a side-by-side (SBS) comparison here, using your current vehicle and comparing to a newer version.
Side-by-Side Comparison
I ran the SBS for all of my vehicles.
I used my faithful 1992 Honda Accord for the new versus old comparison. The Accord is rated at over 18 MPG and does not qualify as a clunker, per rules shown here CARS.gov - Car Allowance Rebate System - Home - Formerly Referred to as “Cash for Clunkers”.
My 2002 Jeep GC qualifies, but not enough for me to take on new car payments.

 

[Poundkey]

A little off the original topic, but these 90s Nissan truck engines are pretty darn reliable and not bad to work on. My SIL recenty had an engine failure due to a broken timing chain tensioner at 220K miles. Timing chain failure (unlike belted engines) is pretty rare. Since this is an interference engine the chain "drop" resulted in all 8 intake valves being bent.

He (a novice mechanic) was able to buy new valves, lapped them in, replaced both upper and lower chains, new valve stem seals, new tensioner, new gasket set, and replaced the water pump while he had it apart. I believe his cost for parts was around $500.

What impressed me was how good this engine looked on the inside. Very little carbon buildup. Cylinders still had hone marks and no ridges at the top. Pretty amazing for 220K miles. After assembly compression was 165lbs. on all cylinders. I expect to see another 200K from this truck with no problems.

 

[oldtrig]

I turned wrenches for 30 years before I took the job I have now so I can repair most anything. The problem is I do not want to anymore and a bad back stops me most of the time anyway. I own a 3500 square foot fully equipped garage so I have to place to do anything that comes up. I just need a young person to show how to do things.

I replaced the timing chain and all guides 10 years ago at 100,000. I should be good for a few more years.

One of the reasons I have been looking is I wanted a ride that was easy on my back when I ride and this old Nissan is not one of those. If I do not buy a vehicle now I will never buy one when I do retire. I am still looking. oldtrig

 

[haha]

I turned wrenches for 30 years before I took the job I have now so I can repair most anything. The problem is I do not want to anymore and a bad back stops me most of the time anyway. I own a 3500 square foot fully equipped garage so I have to place to do anything that comes up. I just need a young person to show how to do things.

When I was young an older retired diesel mechanic and one of the sharpest guys I have ever known did this for me. I learned so much, and we both had a great time together. We rebuilt 3 engines and did umpteen lesser jobs. For a while I considered becoming an auto-trans mechanic, but I realized that it was generally too dirty and too damn cold for me to be a lifer in that trade.

I hope you find someone to help who will appreciate it as much as I did.

Ha

 

[Westernskies]

Many of the good car salespeople left the business recently ......................

Bad timing, with Uncle Sugar throwing billions at the auto industry?