Quote:
Originally Posted by rokdog49
As long as you aren’t borrowing to do the buyout or aren’t paying interest, I can see how that can work well.
As far as brands that hold resale, we have owned Honda’s, Toyota’s and now Kia’s
All of these do quite well in that regard and are generally in demand.
My wife and I adhere to the philosophy of not paying interest to anyone…for anything.
We do use a credit card which is paid in full monthly and we get a cash back bonus on our purchases. Banks don’t like our ilk.
You pay us, we don’t pay you. We’ve spent the last 25 years debt-free, not because we are wealthy, because we lived well within our means.
You’re correct about the CD’s too. Huntington Bank has a 14 month CD that pays 5.18% APY on a minimum investment of $1000. We will soon be turning one over from another bank in May and as of right now, that’s where that one is going.
We “ladder” CD’s and have done so for the last three years since the rates began to climb. At our age, it’s a far better investment than stock market mutual funds.
No ups and downs…just ups.
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I don't normally post in this sub-forum anymore, but still read it. I had to respond to this post though. Continually, I read how individual debt has become such a huge problem in the US, so reading from you and a few others here about not carrying debt and living within your means, really makes me feel better that there are still folks like me out there. I learned long ago to pay myself the car payment each month instead of the bank so I would have the money to buy a car when the time came. We paid off our mortgage 10 years early and though we use credit cards, we always have zero balance at the end of the month.
There are a variety of reasons why not everybody can choose to live like this, so I am not faulting anybody who does (and am extra grateful that we can), but I am glad to know that there are others who, given the choice, choose not to carry debt. I have been told by those who work in the credit card business that people like us are called deadbeats because they don't make interest off of us.
As for cars, mine is 23 years old (Toyota Echo) and my wife's is 21 years old (Toyota Sienna). We bought them used and paid cash for them. Mine was 4 years old when I bought it and my wife's was 7 or 8 years old when we bought that. I have never owned a brand new car.
Since we are well into retirement, I probably wouldn't replace my car when it dies, especially since where I live veterans with service connected disability can ride the buses and light rail for free. We would need to replace my wife's van because she can't get around well enough to get on and off buses and light rail.
Tony