Buying a car

[Spray]

Never had to, but just had one totaled.

Buy new? Buy used? Lease new?

I know many other factors go into this decision, but just a quick informal poll.

What say you?

[sanantoniosooner]

depends on how much cash you have.

Definitely get one about 2 years old. Low miles, but someone else takes the bit hit on taxes.

If you have a few grand you can hunt for an older car that still seems solid. No payments is hard to beat.

[Spray]

I got a whole other can of financial worms to open. I could take the 4-5K we're getting from insurance and take a huge bite out of some high interest credit card debt. Then I could trade in my car to get the wife a new one- my work rents me a car when I need to travel and I don't really need a car otherwise.

OR

I can take the insurance cash and use for a down payment

OR

Combo the cash + my car and get the little lady a new car.

I think I would be comfortable with a 300-350/mth payment. Option 1 would free up money currently going to credit cards to go towards a monthly payment.

I know what you mean about no payment- both our cars are paid for and I have never bought a car myself so I have never really had a car payment (we borrowed against hers to pay for our wedding, but paid that off several years ago). This is what really ticks me off about the guy that took my wife's car out last weekend- it's not her fault, but it's gonna cost us money in the end.

[soonerboomer93]

my thought, buy new, drive it until it dies

unless you really want to be in a race to replace your car every 3-4 years and keep mileage low, then leasing might be ok. I haven't had a car payment for 3 or 4 years now and personally would rather drive an older car, then constantly spend $400 a month on a car payment

[sanantoniosooner]

If I had 4-5k, I'd be paying cash for a car and applying the payment about to the balance of those credit cards.

But that's me.

[usmc-sooner]

junk bonds

[Spray]

One little detail to keep in mind though- the car I buy will be for the wife who hasn't had a new vehicle in 7 years. I would be happy to find a vehicle for 4-5K for myself, but I'm pretty sure she's gonna want something (even used) that costs a little more. Not necessarily outrageous, but I'm guessing I'm looking at at least 10-15K.

[Spray]

junk bonds

Alright Gordon Gecko. Don't "junk bond" up my thread.

HA! Comedy gold!

[sanantoniosooner]

Well for 5k down on a 12 k car you can get a fairly low payment.

[Spray]

Well for 5k down on a 12 k car you can get a fairly low payment.

No doubt about it.

From your previous post I was assuming you meant buy a car for 5K and not take on an extra payment so I can concentrate on the credit cards.

[sanantoniosooner]

No doubt about it.

From your previous post I was assuming you meant buy a car for 5K and not take on an extra payment so I can concentrate on the credit cards.
oh definitely, I'd prefer no payment, but if it's for the wife, and you can meet in the middle with a low payment, then try and make her happy.

[oumartin]

insist on payin' sticker price, Don't put any money down and get highest interest rate and longest possible term available!

[soonerbrat]

it's fun buying your first brand new car
that new car smell is intoxicating

[Spray]

insist on payin' sticker price, Don't put any money down and get highest interest rate and longest possible term available!

You know if you're gonna go smart-***, at least be original. Not your best work mar-teen.:D

[oumartin]

fun and buying car do not belong together in the same sentence!

[Spray]

fun and buying car do not belong together in the same sentence!

Exactly what I'm afraid of.

[soonerbrat]

ok, maybe not the actual buying process, but HAVING a brand new car is fun.

how's that?

[oumartin]

Just take the biggest A-hole in your family with you!

[soonerbrat]

If they try to charge you too high an interest rate, just walk out. they'll chase you and lower it a lot.

[soonerboomer93]

oh, and send up the Mike Rich signal

he might be able to give you advise on what would be better to pay off the cc, or the car load (longer term but lower interest then most cc)

[Spray]

oh, and send up the Mike Rich signal

he might be able to give you advise on what would be better to pay off the cc, or the car load (longer term but lower interest then most cc)

Most definitely- this thread is both Froz and jk nip. I would be interested in input from both.

[Frozen Sooner]

Heh.

I'm of two minds about buying used/new. You get a big financial pro on buying used-you don't take that first-year depreciation hit. On the other hand, buying a used car is sometimes a crapshoot. There's a REASON they're selling, you know?

As for paying off credit card debt versus borrowing against a car:

Go to your credit union.
Find out what they'd finance you for and if you'll need a down payment.
Keep enough cash to make the down payment.
Send the rest to the credit card companies.

A few reasons on that:

1. Car debt isn't junk debt. It doesn't hurt your credit score.
2. Car debt is typically low interest debt. I'd much rather be paying 6.3% on 5k than 11-18%.

[yermom]

buy the car on your credit card ;)

depending on the interest rate on your credit cards, that may or may not be cool to pay them off first. if you are disciplined with the payments, i'd pay more into whatever has the higher interest

i like buying new because i'm not a fan of the crapshoot, but if you want to save money wait until the new model year comes out and buy last year's model. a certified Honda sounds like it would be pretty cool though.

oh, and have you thought about a Subaru? :D

[oumartin]

buy a hummer!

[Spray]

buy the car on your credit card ;)



martin, take note! This is original smart ***.

I think the credit card debt is definitely the way to go in my situation. I have a Best Buy card that HAS TO GO.

I do like the idea of buying last year's model. When does that usually happen? I'm not up on the auto sales cycle.

[Spray]

buy a hummer!

I gotta give it to you. This isn't just failure, but spectacular failure.

Keep trying!:D

[yermom]

depends on the make, i know Subarus have come out as early as March while i have been paying attention

[Spray]

So about this time of the year I can expect the 2007s to go on sale because the 2008s will be coming out? Is that right?

****. Life is hard. My brain hurts.

[soonerboomer93]

buy a hummer!


why do you think he's gonna get his wife a new/slightly used car

[oumartin]

I hear they have an interest only loan now you might go that route too!

[soonerboomer93]

check around to see what cars have the new model year out

[Blue]

Just take the biggest A-hole in your family with you!

Well the A-hole says stop being a cheap bastard and get your wife one of these babies...

http://img.alibaba.com/photo/11461820/2006_Land_Rover___Range_Rover_HSE_Sport.jpg




What's 5 down and 800 a month gonna cost ya? :D Debt is the American Way!

[oumartin]

wow blue, that little x red gonna set ya back that much? :D

[Blue]

wow blue, that little x red gonna set ya back that much? :D

There ya go, Bish.

[soonerboomer93]

Heh.

I'm of two minds about buying used/new. You get a big financial pro on buying used-you don't take that first-year depreciation hit. On the other hand, buying a used car is sometimes a crapshoot. There's a REASON they're selling, you know?

As for paying off credit card debt versus borrowing against a car:

Go to your credit union.
Find out what they'd finance you for and if you'll need a down payment.
Keep enough cash to make the down payment.
Send the rest to the credit card companies.

A few reasons on that:

1. Car debt isn't junk debt. It doesn't hurt your credit score.
2. Car debt is typically low interest debt. I'd much rather be paying 6.3% on 5k than 11-18%.


is CC debt "junk debt"?

and the fact that i just paid off most of it is probably a good thing (although 1 card is still 0% interest, it was just I didn't like the balance on it)

[Frozen Sooner]

Generally speaking, credit cards are considered junk debt. Long term debt on credit cards tends to be the result of financing your lifestyle-you're consistently spending more than you earn.

[soonerboomer93]

That's why I paid off my dell account ASAP. I only let my one of my cards get around 1/2 the limit because it's 0% interest for until september. That and my trips home are freakin expensive because I have to stock up a few months of supplies to bring back

[OUHOMER]

Are you here in Okla?, Are you a member of Weokie Credit union. They got a pretty good deal with Enterprise Car rental. Newer cars low mileage. Check out their web site. Plus Weokie is easy to deal with. Check out their web site

[olevetonahill]

If I understand your situation correctly .
Pay off thos dayum CCs , give your wife your car , save ya a big ole chunck of cash . and Buy a 2 /3 yr old certified used car a lilttle later in the yr.
Yup Buying and owning a NEW car is nice , But those payments go on a hell of a lot longer than that NEW smell does . Just sayin

[Harry Beanbag]

http://www.carbuyingtips.com/carintro.html


If you don't let yourself get royally screwed when buying a new car then depreciation really isn't that bad, depending on what car you buy of course. Two years ago I bought a brand new Accord for $18500, sticker price was $24000. I traded it in, yes a trade in, about a year and 20000 miles later for $17000.

You need to educate yourself about the whole sordid ordeal to keep from getting bent over.

[Spray]

Thanks, folks. All sage advice. Well, almost all (Blue & Mar-teen) :D.