4-figure rolling car payments

Lately, I've been watching a bunch of videos showing people who have ridiculous car payments due to negative equity, a.k.a. being "upside down". Buyer finances a car. Later on the car breaks and/or buyer can't afford the payments anymore (usually the latter). Buyer goes to dealership to get a less expensive car to lower car payments. The remainder of the auto loan for the existing car is higher than what the car is worth. All that crap is factored into the new loan for the replacement car.

Ultimately, what happens is that the payment is actually lowered, but the loan term is some ridiculous 72-month thing where a) the replacement car will be something very used with probably over 100K miles on it already, b) the loan will absolutely outlast the life of the car, and c) the buyer will never be able to pay it off. This process repeats for years until the buyer ends up in financial ruin.

Then there's me, a middle aged guy driving a car with over 170K miles on it.

I'll get back to that in a minute.

The other day I made a quick run to a convenience store, and observed the other cars I saw on the road.

I know that any car I see under 10 years old is financed, and the monthly payment for it is ridiculous. Doesn't matter if it's leased or bought.

When I think about it, I should probably stretch that to every car I see under 15 years old probably has a car payment attached to it.

There are only two types of cars I see that I know are paid in full.

First, beat up work vans, which includes minivans. I include the minivan because I do see guys that can and do take those mom-mobiles, yank out all the rear seats, drill on a roof rack to carry around ladders and such, and that's the work vehicle. What used to be owned by a mom to carry kids to school is now owned by a man, who proceeded to stuff it with electrical, plumbing or gardening equipment and uses it for work. A van is a van, after all.

Second, cars just like mine, which are older low-optioned subcompacts. These are little hatchback or sedan gas cars that get 35-40 highway MPG. They all have over 125K miles on them, all have chipped paint, dents, scratches, faded plastics, and so on.

The vans are actually worth something because guys are willing to pay for one as long as it works. A van is just a big metal box so a guy can carry his stuff to job sites to do work and get paid. And since they were designed to be serviced, they can be repaired as long as the frame is still good.

Old subcompacts however are worth next to nothing. The purpose of a low-optioned subcompact is to get from A to B. A subcompact has little storage, little power, isn't as comfortable as a larger car, and doesn't tow. Yes, they get good fuel efficiency, but that doesn't increase the on-paper value at all.

The real value of an old low-optioned subcompact comes from long term ownership. The less options there are, the less there is to break. As long as the suspension holds up (or at least can be repaired) and the drivetrain doesn't grenade itself, this is a car that can run 250K to 300K miles in the cheapest way possible.

What that basically means is if the subcompact has a known good engine and the transmission is an automatic or manual, it can last the very long haul. If it's CVT, it's junk no matter who made it.

The problem...

...is that almost nobody makes a car like this anymore new. The only one left right now is the new Nissan Versa S FWD with manual transmission.

I only have one knock against that car. No option for remote keyless entry. You have to use the key to lock/unlock the door. But it has everything else. AC, power windows, power locks, 35 MPG highway on regular unleaded, cruise control, USB ports, it's all there.

That Versa is the kind of car you could run to 200K miles and beyond. While I'm not in the market for a car since the one I have works, if I did get that Versa, I'd take it to a shop to have keyless entry installed.

Do keyless entry kits exist? Yes, they do, and they're cheap. If the car already has power locks, keyless via fob can be added in. So if I wanted to be super cheap (and I most likely would be), I could install the keyless myself.

The only thing that doesn't make that Versa manual a god-tier level bargain is that it's not a hatchback with manual hatch release. If it were, that would be perfection, because cargo space is increased, and now it's a good hauler. Not a big hauler, but still, really good. And no electronic popper to break since it would just be a manual latch.

Even though it's a sedan, I would tell anyone that knows how to drive a manual that if you want a new car right now, go get that Versa manual and add in the keyless yourself. And buy the car with the intent of driving it until the wheels fall off. Don't even think about resale value.

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