Car Loans - keeping America poor?

[desertdwellerdyl]

$80k household with 2 kids should owe a very small amount of taxes.

Good to know. I don't have kids and file as single so I get a good chunk of taxes taken out granted my withholding is conservative so a decent refund is usually in order.

 

[Marshfly]

Okay financing a house or vehicle to keep up with the Joneses is one thing. But what do y'all think about financing a pair of Swaros to keep up with the WKRs??

Don't finance effin toys. But do save up for lifetime alpha optics. Yes it's worth it. LOL.

 

[WeiserBucks]

Don't finance effin toys. But do save up for lifetime alpha optics. Yes it's worth it. LOL.

Can confirm, solid strategy.

 

[cnelk]

Good to know. I don't have kids and file as single so I get a good chunk of taxes taken out granted my withholding is conservative so a decent refund is usually in order.

Adjust your withholdings. Try to get as close to 0 as possible

 

[FuddRucker]

I think it's insane.

Me too! I think the emphasis on alpha glass is a pretty good indicator of the SES of the average (or most active) roksliders. Not a perfect indicator because I think a lot of guys really value hunting and spend money in ways that reflect that. But a lot of recs on here just don't work with a lot of guys' budgets. Though I'd be lying if I said I don't window shop based on those same recs or try to see how I can fund/save up for all the hunts I want + the best gear I can.

 

[180ls1]

Me too! I think the emphasis on alpha glass is pretty good indicator of the SES of the average (or most active) roksliders. Not a perfect indicator because I think a lot of guys really value hunting and spend money in ways that reflect that. But a lot of recs on here just don't work with a lot of guys' budgets. Though I'd be lying if I said I don't window shop based on those same recs or try to see how I can fund all the hunts I want + the best gear I can.

Agreed.

That said its much better to spend money on things you enjoy. My hunting gear is worth far more than what I drive, for example.

 

[Predator_SD]

Simple, buy used then drive it and maintain it yourself until you top 300,000 miles on it. Rinse and repeat.

Also, have the common sense to realize that if you need to take out a 12 year loan to “make the payments” you cannot afford that vehicle! But Americans ya know, gotta have the best to keep up with the Joneses right.

 

[desertdwellerdyl]

Adjust your withholdings. Try to get as close to 0 as possible

I'm pretty sure I already am at 0.

 

[WeiserBucks]

Another thing that I don't get is that most newer vehicles seem to be plagued with chronic issues and people rush out to buy them anyways? It's like looking for a wife at the whorehouse.

 

[Predator_SD]

This might have something to do with it as well. Saw this at a sportsman show last weekend and had to snap a picture. Twenty years of payments totaling $150k for a camper that will be worth almost nothing in 20 years. But zero down!
View attachment 871098

After reading Rich Dad Poor Dad about a decade ago, I started a vehicle fund. Basically his thing is that if he wants a vehicle with a $500/month payment he first has to buy an investment that makes $500/month to pay for it. That fund continues to grow beyond its original intent. I can’t get myself to part with my trusty 2005 duramax that I paid cash for 13 years ago.

I see a lot of $85,000 bass boats with similar terms.

People are crazy

 

[CorbLand]

I'm pretty sure I already am at 0.

He is saying that you want to be close to 0 when it comes to owing or getting a refund.

If your taxes are set to 0 deductions, you are having the most amount of taxes taken out of your pay.

If your getting money back on taxes, it means that your over paying and giving the government a free loan.

 

[cnelk]

I'm pretty sure I already am at 0.

If you’re getting a large refund you’re not withholding the right amount.

 

[Speaks]

I see a lot of $85,000 bass boats with similar terms.

People are crazy

When I bought my $35k bass boat and they were trying to talk me into financing they had a 30 year option. If I remember correctly I did 2 year at just under 2%.

 

[pods8 (Rugged Stitching)]

Good to know. I don't have kids and file as single so I get a good chunk of taxes taken out granted my withholding is conservative so a decent refund is usually in order.

A household at $80k is like a single filer at $40k, the income gets spread across two folks essentially. That doesn't really offer any advantage if they both earn half(ish) of that money. But in a single income marriage or grossly different salaries the higher earner gets to pay less tax than if they were a single filer because some of their income in the tax tables is shifted essentially (IE the lower tax brackets married is essentially 2x single).

Qualifying kids offer a $2000ea tax credit. So with a married $30k standard deduction and being in the 12% tax bracket (married) the tax liability is gonna be pretty low, the feds might even be paying out depending on other deductions (401k, etc). The feds are definitely paying out to to a married couple with $80k gross and 3 kids.

 

[pods8 (Rugged Stitching)]

I'm pretty sure I already am at 0.

Plug your data into here and it'll tell you how to properly adjust your W4.

Tax Withholding Estimator | Internal Revenue Service

Check your W-4 tax withholding with the IRS Tax Withholding Estimator. See how your withholding affects your refund, paycheck or tax due.

www.irs.gov

 

[Marbles]

I view a vehicle as nothing but cost, longer I own it, the less the cost per year. There is a place for loans, my life would not work with only one vehicle, and when my old truck stopped working, I needed something to replace it.

It is tempting to upgrade my Corolla to something all wheel drive, but hard to justify the cost and the Corolla will likely by around for another 10 year or more (hard to believe I got it 11 years ago now).

I hate my current truck loan, but hatd to pay 2.2% interest loan off early when my savings account makes about double that.

The advantage of paying it off early would be no pretending I have money to spend on gear.

 

[desertdwellerdyl]

Plug your data into here and it'll tell you how to properly adjust your W4.

Tax Withholding Estimator | Internal Revenue Service

Check your W-4 tax withholding with the IRS Tax Withholding Estimator. See how your withholding affects your refund, paycheck or tax due.

www.irs.gov

My withholding is 0. It's just the fact that I file single & claim zero dependents. If anything it says I should withhold a little more (it's off by a couple hundred dollars).

There's only one fix to this lol.

 

[cnelk]

My withholding is 0. It's just the fact that I file single & claim zero dependents. If anything it says I should withhold a little more (it's off by a couple hundred dollars).

There's only one fix to this lol.

Just because you have no dependents doesn’t mean you have to claim 0.

I bet if you filed Single and 2 dependents it would work out better for you.

 

[TheWhitetailNut]

I bought a new $60k Tahoe in 1999. Still drive it. Been paid off for a long time. I’m retiring in two weeks and after 26 years I finally want a new car, so I’m going to have my first car payment in a very long time this month. I think it was worth it….20 years of discipline and saving that $700 a month payment.

The only reason I’m willing to buy a new car is my goal is to drive it 20+ years (like the last one…that I still plan to drive).

I had my first sales job in 1999, a loaded Tahoe was under $50k. If you were disciplined for 20 years and are now retired, why do you need to take out a loan to buy a car?

 

[cnelk]

A little off topic but on the subject of withholding

Many companies give a bonus. If you are lucky enough to get a big bonus at the end of the year, change your dependents to 9 for that one paycheck.
You will be taxed less and get more in your pocket.

Just be sure to change it back the following month