Quote:
Originally Posted by glatt
Actually, I agree with tw on this. It makes a tremendous amount of sense to pay cash for a car. Better to be making payments into a savings account where you will have interest working FOR you than to be paying someone else and have even higher interest working AGAINST you. If that means making do with a shit car for years while you save up the cash to buy one outright, then so be it. This is coming from someone driving a 15 year old car. Not gonna buy another one until we have the money for it. And then when we do, we'll start saving for the next one right away.
Only way I'd buy a car with a loan is if the interest rate was 0%.
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Unless you can do your own maintenance and repairs, you'll spend more than you would financing a car, unless you can get something reliable. You're not going to get something reliable for a couple hundred bucks, so unless you can get a family hand me down or something, you have to buy a car that's going to cost serious money, at least a few grand. You'll have trouble saving that without a job, and you'll have trouble borrowing that without a job, but you need a car to keep a job.
Now the best financing deals are on new cars, even 0% in some rare cases. That's why I think it's best to go with a new, reliable car, with a warranty, so you can save for what you really want.
The problem with many people is they over buy, only concerned with the monthly nut, not the total deal. Also trading up every year or two, getting deeper in the red with every move, just because as time passes they get more credit. It's a reflection of our times and our values, the same ones that caused this recession and being owned by walmart/China.
Cloud, we are not talking about you, or your situation, we've drifted into new territory.