Several years back I started a new car account, I saved up about $20k but instead of buying a new car I paid off my mortgage. I have zero debt now, make around 120k a year, and not quite sure if I have the patience to drive my 2006 kia rio with 1/2 functional AC and 150k miles on it for another year or more. I'm thinking of getting a new car loan but wanna keep my savings account for emergencies, thus no money down.
What's the pro's con's or things I'd need to know to go this route? Im looking at slightly used (2 years old less than 40k miles) sedans 16 to 20k? Or is there some reason I should save for some type of down payment?
I would likely pay off the loan early as I did with my mortgage (22 years early!!!) so interest rates don't scare me too much, I'm mainly asking because I have never done this before. Bought the first car with cash, pretty much bought everything in life besides my house in cash.
Thank you in advance to anyone who replies.
I think the easiest thing to do is go to your bank or place where you have the best relationship and get a pre-approval for a car loan. Then, just find a car that's under that amount.
My hubs did a pre-approval through NFCU for the max amount he qualified for. They approved him up to $55K, mailed him a blank check and promissary note, and then he went to the Chevy dealership & bought the '18 Silverado LTZ Midnight Edition he was eye balling for $51K.
He still won't let me drive it...