topic Re: Possible New Auto Loan... Need Advice in Auto Loans

Possible New Auto Loan... Need Advice

Anonymous — Mon, 08 Sep 2014 15:37:20 GMT

I'm thinking of scoping out a new vehicle. Quick facts..

- my vehicle is not in a negative standing

- loan is right under 10k while KBB is stating the "good" trade-in value is roughly 11k

- income is roughly $25k

- no living expenses (living with family)

- according to DCU, EQ is around 690 (allowed a higher balance to report than usual - it has been paid down)

- loan is currently with DCU at 1.240% as a refinance

I've been thinking of getting a brand new vehicle. Willing to spend roughly $30-35k after fees. Would this be possible with my income?

I've been putting aside $700/mo as a means to see whether such payments are possible and haven't had an issue thus far.

Re: Possible New Auto Loan... Need Advice

cahiatt — Mon, 08 Sep 2014 15:45:33 GMT

My personal opinion....

That's a big chunk of your income. And if something comes up and you end up having to get your own place this will become a bigger issue.

Back in 1997 I bought a $17k car and had about a $250 payment. When I later added rent, utilities and groceries I was darn near broke. Income then was about the same as what you are reporting.

Re: Possible New Auto Loan... Need Advice

Anonymous — Mon, 08 Sep 2014 16:49:03 GMT

Very interesting, I didn't think much about that till you mentioned it.

It would be horrifying to be struggling due to a car payment when I'm on my own. I could also see the potential setbacks due to a more expensive vehicle if my parents kick me to the curb prior to the agreed date.

Re: Possible New Auto Loan... Need Advice

SamsungHDTV — Tue, 09 Sep 2014 15:42:27 GMT

Be money smart and wait until you are in a better situation. I'm also a big fan of riding until your wheels fall off. But if you just really want a new car, I would wait until you have a higher income.

Re: Possible New Auto Loan... Need Advice

dabrian — Tue, 09 Sep 2014 16:12:44 GMT

Definately wait. I have been "car poor" before and it isn't much fun.