New advice on buying a new car

[s1ngletracker]

my vote is get something you don't have to get a loan on. The premise of doing it 'to build credit' is weak IMO

[Trogdor]

Originally Posted by s1ngletracker

my vote is get something you don't have to get a loan on. The premise of doing it 'to build credit' is weak IMO

That's a tricky one. It depends on your interest rate. If you can out earn your loans interest rate by investing somewhere else at a higher rate of return, than you're generally better of doing that. It does build credit, and earns you money that you would otherwise have not gotten.

For instance, if a mortgage rate is 4.5% and you know you can gain 6% from an investment account, hell yeah you should take that loan for as long as you can! Dump your paycheck in to the investment account, let it gather interest for 30 days, pull out the payment and let the principal of the investment grow by 1.5%

[Halon]

Originally Posted by s1ngletracker

my vote is get something you don't have to get a loan on. The premise of doing it 'to build credit' is weak IMO

+1 I've had 1 car payment in my life (when I was 19) and didn't like that. Won't ever do it again if I don't have to. But different strokes for different folks.

[HiImBrian]

Originally Posted by s1ngletracker

my vote is get something you don't have to get a loan on. The premise of doing it 'to build credit' is weak IMO

Originally Posted by Halon

+1 I've had 1 car payment in my life (when I was 19) and didn't like that. Won't ever do it again if I don't have to. But different strokes for different folks.

I don't plan to get a loan for a car I can't afford. I plan to get a loan on something I can pay off easily. It's unfortunate (but understandable) that you start off with zero credit and have to work your way up. I've gone 24 years without needing a credit card and I still don't need one. But if I plan to buy a house in the future I need to start thinking about credit.

I'm obviously not buying a new car solely to build credit...I'm just killing two birds with one stone.

[Murlo26]

Originally Posted by Halon

+1 I've had 1 car payment in my life (when I was 19) and didn't like that. Won't ever do it again if I don't have to. But different strokes for different folks.

I got one for my evo for about half of it and I must say it wasn't bad at all until I bought a house, then I really hated life and the fact that I had a mortgage and evo payment.

If you can get away without one that is ideal. If I could go back I would've saved more and paid more up front for lower payments but I don't think a car loan is the end of the world. I am finishing off the evo loan in a few weeks and not getting another car loan anytime soon, that will feel great.

[HiImBrian]

Originally Posted by C3L1CA

Does it have to have 4 doors and be awd?


Ever think about the Jaguar x-types? Just throwing out other 4 door awd cars.

I don't think I'm much of a Jag guy haha thanks though.

Originally Posted by Murlo26

I got one for my evo for about half of it and I must say it wasn't bad at all until I bought a house, then I really hated life and the fact that I had a mortgage and evo payment.

If you can get away without one that is ideal. If I could go back I would've saved more and paid more up front for lower payments but I don't think a car loan is the end of the world. I am finishing off the evo loan in a few weeks and not getting another car loan anytime soon, that will feel great.

Oh I'll definitely have a car paid off before I buy a house. I just started a 14 month lease and I don't plan to have a car payment by the time I move outa here

[cmspaz]

Originally Posted by HiImBrian

I don't think I'm much of a Jag guy haha thanks though.

But it's really just a Ford Mondeo.