ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S. › ValueBuddies.com › Personal Finance v
96-month car loans wreck your wallet

96-month car loans wreck your wallet

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
CY09 Offline
Moderator
*****
Posts: 2,295
Threads: 27
Joined: Jul 2012
Reputation: 41
#1
13-04-2013, 09:23 AM
"96-month car loans wreck your wallet"

http://www.marketwatch.com/story/96-mont...2013-04-12

She's advising against 8 yr car loans but in sg we were there!
Find
Reply
Musicwhiz Offline
Posting Freak
*****
Posts: 4,958
Threads: 1,349
Joined: Sep 2010
Reputation: 36
#2
13-04-2013, 09:29 AM
(13-04-2013, 09:23 AM)CY09 Wrote: "96-month car loans wreck your wallet"

http://www.marketwatch.com/story/96-mont...2013-04-12

She's advising against 8 yr car loans but in sg we were there!

Ours was actually worse - 120-month loans (10-year loans) with 0% downpayment (100% financing).

Really cannot imagine the amount of interest paid by then...... Rolleyes
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
Website Find
Reply
cfa Offline
Posting Freak
*****
Posts: 1,343
Threads: 49
Joined: Nov 2010
Reputation: 7
#3
13-04-2013, 09:36 AM
We are World class .
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
Find
Reply
NTL Offline
I am a Freak!
*****
Posts: 1,045
Threads: 5
Joined: Nov 2012
Reputation: 6
#4
13-04-2013, 09:49 AM
I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.
Find
Reply
opmi Offline
Posting Freak
*****
Posts: 2,743
Threads: 23
Joined: Mar 2013
Reputation: 25
#5
13-04-2013, 01:29 PM
(13-04-2013, 09:49 AM)NTL Wrote: I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.

In an asset inflation situation, anyone who borrow and consume first wins.
Find
Reply
Musicwhiz Offline
Posting Freak
*****
Posts: 4,958
Threads: 1,349
Joined: Sep 2010
Reputation: 36
#6
13-04-2013, 03:03 PM
(13-04-2013, 09:49 AM)NTL Wrote: I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.

If your friend is paying an average of 4-5% effective interest rate on the car loan, then she must be saying that her investments can average a better return than that over the medium-term. So from this I can conclude that your friend must be a very astute investor!
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
Website Find
Reply
Temperament Offline
Posting Freak
*****
Posts: 3,474
Threads: 95
Joined: Jul 2011
Reputation: 17
#7
13-04-2013, 06:02 PM (This post was last modified: 13-04-2013, 06:25 PM by Temperament.)
(13-04-2013, 06:02 PM)Temperament Wrote: [Image: search?q=debt&client=firefox-a&hs=gey&rl...rce=univ&s]
Cursor over it. Right Click. Select "view image"
Then enjoy or drag looking on the the images/pictures.
Shalom.
[/quote]
Just for fun; my favourite picture is the man barely floating with a piggy bank and a shark right underneath him. If we are not careful we may ended up like him.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Find
Reply
arthur Offline
Senior Member
****
Posts: 508
Threads: 85
Joined: Sep 2010
Reputation: 10
#8
13-04-2013, 06:58 PM
(13-04-2013, 01:29 PM)opmi Wrote:
(13-04-2013, 09:49 AM)NTL Wrote: I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.

In an asset inflation situation, anyone who borrow and consume first wins.

Have a look into the historical era AFTER the asset inflation situation.

Find
Reply
NTL Offline
I am a Freak!
*****
Posts: 1,045
Threads: 5
Joined: Nov 2012
Reputation: 6
#9
14-04-2013, 09:08 AM
(13-04-2013, 03:03 PM)Musicwhiz Wrote:
(13-04-2013, 09:49 AM)NTL Wrote: I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.

If your friend is paying an average of 4-5% effective interest rate on the car loan, then she must be saying that her investments can average a better return than that over the medium-term. So from this I can conclude that your friend must be a very astute investor!

While I do not know her investment return like, I do believe that she had did her calculations before taking on such a proposition.
Find
Reply
mysterion Offline
Junior Member
**
Posts: 47
Threads: 3
Joined: May 2012
Reputation: 1
#10
14-04-2013, 11:15 AM
(14-04-2013, 09:08 AM)NTL Wrote:
(13-04-2013, 03:03 PM)Musicwhiz Wrote:
(13-04-2013, 09:49 AM)NTL Wrote: I have a friend who stretch the car loan to maximum as she believe she can invest and get a better return than the interest paid over the 10yrs period.

If your friend is paying an average of 4-5% effective interest rate on the car loan, then she must be saying that her investments can average a better return than that over the medium-term. So from this I can conclude that your friend must be a very astute investor!

While I do not know her investment return like, I do believe that she had did her calculations before taking on such a proposition.

Wouldn't indexing outperform 4-5% over a 10 year period easily?
Find
Reply


Forum Jump:


Users browsing this thread: 8 Guest(s)