Comments on: Reader Q & A: Building Credit With Car Purchase http://studenomics.com/readers/building-credit/ Wed, 23 May 2012 15:40:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Budgeting in the Fun Stuff http://studenomics.com/readers/building-credit/#comment-34130 Budgeting in the Fun Stuff Tue, 20 Jul 2010 19:05:41 +0000 http://studenomics.com/?p=4792#comment-34130 Hubby and I just paid off our hopefully-last-ever car payment...I will say that if you have to finance, then pay it off as quickly as possible. If I could go back and do things over, I would have bought a used car and paid it off in my first year at work since I literally only had $1000 to spare for a downpayment right out of college. Instead I bought a new Chevy Aveo (crap car) for $12,000 and paid it off in 2 1/2 years, which cost me about $800 in interest. 5 years later, I hate my car but will continue driving it until it dies because I hate a car payment more and we're just rebuilding our car fund... Hubby and I just paid off our hopefully-last-ever car payment…I will say that if you have to finance, then pay it off as quickly as possible.

If I could go back and do things over, I would have bought a used car and paid it off in my first year at work since I literally only had $1000 to spare for a downpayment right out of college. Instead I bought a new Chevy Aveo (crap car) for $12,000 and paid it off in 2 1/2 years, which cost me about $800 in interest. 5 years later, I hate my car but will continue driving it until it dies because I hate a car payment more and we’re just rebuilding our car fund…

]]> By: myfinancialobjectives http://studenomics.com/readers/building-credit/#comment-34086 myfinancialobjectives Tue, 20 Jul 2010 02:03:06 +0000 http://studenomics.com/?p=4792#comment-34086 hmm this is a question I love to talk about and hear others opinions. I am in favor of buying a Car with CASH. I have never had a car payment, and don't intend to in the near future. How do I do it? Public Auto auctions. I get cheap good cars there for between $1-$5000. My Father has bought 5 cars from them, all of which our family ended up using for 2+ years each. I'm driving one now, debt free and I love it! Not only do you have to consider the extra money that you will be paying on a car due to interest and the monthly payments if you finance, but it is also costing you in that the money you are paying every month for this car, is money you could be putting towards other debt. The quicker you knock out the other debt, the more money you save in interest! Now if you have to first pay off your car loan, that's over $1,000 of extra interest paid on the loan, before you can even start tackling your additional debt. Call me weird, but I just hate to take on additional debt if I have not already eliminated the majority of my debt:) Of course, the reader did not say he/she had any other debt, so my whole point could be useless haha:) hmm this is a question I love to talk about and hear others opinions. I am in favor of buying a Car with CASH. I have never had a car payment, and don’t intend to in the near future. How do I do it? Public Auto auctions. I get cheap good cars there for between $1-$5000. My Father has bought 5 cars from them, all of which our family ended up using for 2+ years each. I’m driving one now, debt free and I love it!

Not only do you have to consider the extra money that you will be paying on a car due to interest and the monthly payments if you finance, but it is also costing you in that the money you are paying every month for this car, is money you could be putting towards other debt. The quicker you knock out the other debt, the more money you save in interest! Now if you have to first pay off your car loan, that’s over $1,000 of extra interest paid on the loan, before you can even start tackling your additional debt.

Call me weird, but I just hate to take on additional debt if I have not already eliminated the majority of my debt:) Of course, the reader did not say he/she had any other debt, so my whole point could be useless haha:)

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