Never Have Another Car Payment!

[scoopsteve]

In another thread I started, someone said that paid off cars would need to be replaced at sometime (which is correct) however, make a paid off car work in your favor! here is what I mean (and I do this myself and it works)

I drive a 2001 Infiniti (paid cash for it approx 13K), I will drive this car for another 6 months or so, and then trade it in on another USED car and will be able to trade even (no out of pocket except $100 for paperwork) for a newer vehicle with less miles. By using this system, you can avoid EVER having a car pmt, and you get to trade vehicles every year. My suggestion to all would be to NEVER purchase a brand new vehicle because they depreciate so much in value., Remember the goal here is to RETIRE don't buy the fanct house and car just to say you have it, look at the goal. God Bless

 

[Martha]

Scoop, you're still having a hard time understanding inflation.

 

[JPatrick]

Scoop, I think this one needs a little more splaining.  For me at least

 

[Marshac]

I'm confused. Since you're obviously using a dealer to conduct the trade, and they make a profit by giving you bottom dollar for your trade, and ask top dollar for their inventory, I fail to see how this works in your favor. If you figure that the trade-in/out spread is $500, then every trade you conduct yields a net loss of $500 in "car equity" in addition to the vehicle depreciation. There is no way around it- owning a car costs money.

 

[grumpy]

scoop.

I don't see how this can work. You would have to trade down each time to a less luxurious car. Eventually you will be driving a Yugo. The cash you receive in trade can't be enough to buy a newer, lower milage car of the same quality.

Grumpy

 

[scoopsteve]

What's not to understand? First of all the key is owning the vehicle free and clear (paying cash for the initial car). I was driving a 1999 Jeep Wrangler that i paid cash for (13K), when gas was starting to go through the roof, I took my Jeep into the dealer and found a car that I liked (2001 Infiniti) and I traded out of the Jeep and into the Infiniti EVEN!! It cost me nothing ( except the $100 paperwork fee).

The reason that you trade so often is so that the car you are driving dosen't drop too much in value and the miles are keep pretty low. In the case I jusy explained, I was actually able to trade UP into a nicer vehicle with a few less miles. After a year or so the vehicle will still be holding pretty close to its value so you are able to trade for an equal car. Just trying to help guys, this is not theory, it is fact I have done it and will continue to do it.

 

[Texas Proud]

Scoop.... a great idea that will not work...

Your car has a value and it will drop each year.... no way around that (excluding exotics of course)...

Now, your $13K investment is now maybe worth $8K or even $5K... so you can trade for a car that is worth something around that level... You can NOT get a NEWER CAR with LESS MILES that is WORTH MORE...

All you have said in your post is that your older jeep was worth more than a newer infinity since you traded even..

 

[Nords]

What's not to understand? First of all the key is owning the vehicle free and clear (paying cash for the initial car). I was driving a 1999 Jeep Wrangler that i paid cash for (13K), when gas was starting to go through the roof, I took my Jeep into the dealer and found a car that I liked (2001 Infiniti) and I traded out of the Jeep and into the Infiniti EVEN!! It cost me nothing ( except the $100 paperwork fee).

The reason that you trade so often is so that the car you are driving dosen't drop too much in value and the miles are keep pretty low. In the case I jusy explained, I was actually able to trade UP into a nicer vehicle with a few less miles. After a year or so the vehicle will still be holding pretty close to its value so you are able to trade for an equal car. Just trying to help guys, this is not theory, it is fact I have done it and will continue to do it.

Are you trying to stay in vehicles that are only slightly used?  It sounds like your $13K will buy you less & less-- say, about 3-5% less each year.  Unless the car dealer is willing to eat the inflation to keep you coming back for that $100 transaction fee, in which case you seem to have a good deal at their expense.  I think that everyone on the board would love to get their cars through your dealer.

Or are you trying to minimize the money you spend on transportation?  An even cheaper method is one that's been mentioned on this board several times-- buy used and drive them into the ground.  The most we've ever paid for a car is $8100.  Our current vehicles are 12 & 9 years old and they still have less than 100K miles.  It's not luxury because we don't value it-- the object of our game is cheap no-frills transportation.  If that's your objective too then you can do better than the method you espouse.

 

[scoopsteve]

Texas Pound,

It is your choice to think it will work or not however, I am telling you I have done it (by the way I live in Texas also). Again, just trying to help!

 

[MasterBlaster]

Scoopsteve:

What was the transaction amount of the Wragler to Infiniti deal ?

Did you have to pay sales tax/registration etc. ?

Did you take out a big loan on the new car ??

Did you buy their long term warranty/ paint sealant/undercoating etc. ?

Was there anything about the Infiniti that was unusual ? Like it was a salvage car/ high milage car/ trashed car ?

- Your method defies common sense. Help us to understand it ?

 

[HobbyDave]

You don't get something for nothing. You can't base a method of getting newer cars on the fact that you've done a single trade.

If you're planning on driving cars and not spending money, its just not going to work. I've had people give me free money, but its not something I can plan on happening in the future. Maybe you found some car dealership that can't add, but the money is coming from somewhere. Either you ripped them off, or you're losing money in the deal and you just don't realize it yet.

 

[LOL!]

Scoop, you are not supposed to blab about the big secret of no car payments.

1. First car, a 1979 Civic.  I didn't have to buy it because I married someone who owned it.
2. In 1991, traded the Civic in for a 1989 Maxima.  I can't believe the dealer gave me a practically new car for $100 plus my old 200,000 mile-plus Civic trade-in.
3. In 2002, the Maxima was getting long in the tooth and had just been hit broadside by an errant driver.   Nevertheless and unbelievably, the Lexus dealer just gave me a 2001 Lexus when I traded in the wrecked Maxima.  He did ask for the customary $100, but since the Lexus was used, I bargained him down to only $90.
4.  I'm already dreaming of my AMG E55, thinking of a 2007 that I'll get in 2008 for only a $100 and my old car.

Anyways, it's pretty easy to do this.  You just have to know the system.

 

[cute fuzzy bunny]

I think you end up driving a donkey after 20 years on this plan.

Hee haw.

 

[wildcat]

I just like watching Master Blaster's avatar.  As the Joker said in Batman I..."Where does he get those wonderful toys?!"

 

[grumpy]

3. In 2002, the Maxima was getting long in the tooth and had just been hit broadside by an errant driver. Nevertheless and unbelievably, the Lexus dealer just gave me a 2001 Lexus when I traded in the wrecked Maxima. He did ask for the customary $100, but since the Lexus was used, I bargained him down to only $90.

LOL.

So, let me get this straight. A car dealer took a wrecked 13 year old Maxima in trade and for no cash just gave you a one year old Lexus? I assume that the dealer is no longer in business 'cause he would surely go broke doing deals like that. So when are you going to offer to sell me the Brooklyn bridge?

Grumpy

 

[Theo]

LOL.

So, let me get this straight. A car dealer took a wrecked 13 year old Maxima in trade and for no cash just gave you a one year old Lexus? I assume that the dealer is no longer in business 'cause he would surely go broke doing deals like that. So when are you going to offer to sell me the Brooklyn bridge?

Grumpy

I thought he was being sarcastic...   could be wrong.  If he was, he certainly forgot to use his [sarcasm][/sarcasm] html code.

 

[scoopsteve]

I tell you guys what, I will post here EXACTALY what takes place when I go to trade in the Infiniti. Let me make this clear, if you guys want to argue about wether or not it works, that is your choice. I just wanted to share something with you guys.

I guess you think it is un-reasonale to think that one can retire in 6-7 years if they are able to live off of half their income and are debt free right?? SHEESH!!!

 

[farmerEd]

I have to agree with Steve...it will work...and here is my secret to retiring rich

Buy a stock... sell it in one year when it goes up 50% and then buy another stock that will go up 50% the next year...keep on doing that and in less than 20 years you can grow $100K to over $100 Million....jees...I should be charging you guys for this information....

Then you can have whatever car you want.


</sarcasm>

 

[CybrMike]

Only one problem. I love my


BMW

 

[justin]

Only one problem. I love my


BMW

Good thing you've got a couple million in the bank to pay for the maintenance on that sucker

 

[yakers]

Scoop, you are not supposed to blab about the big secret of no car payments.

1. First car, a 1979 Civic. I didn't have to buy it because I married someone who owned it.

Anyways, it's pretty easy to do this. You just have to know the system.

Maybe easy to do,but that can be one hell of an expensive way to get a car

 

[justin]

Scoopsteve, I'll admit, I'm skeptical.

Now you have a 5 year old Acura. Let me get this right, you are going to trade it in for a newer car with less miles on it? Maybe a 4 year old Accord? Then in 2 more years, trade it in for, what, maybe a 3 year old Ford Focus? Then what do you trade your five year old ford focus for in 2 more years? A moped and a fancy helmet?

Has some clever car salesman put this idea in your head? Where did you get this idea from?

 

[MasterBlaster]

Maybe he did some sort of pre-paid lease. Or a pre-paid lease with a balloon payment.

Maybe he used his paid for Wrangler to pay for a couple or three years on the Infiniti lease.

The trading every couple of years is the tip.

 

[justin]

I'm baffled too. I'm just waiting for the spam sales pitch - "Buy my $29.95 system that tells you how to never pay for your new cars ever again".

 

[cute fuzzy bunny]

Only one problem. I love my


BMW

Whats the difference between a BMW and a porcupine?

Porcupine has the pricks on the outside.



(I'm a (re)former 325ic driver)