MagneticA
Well-Known Member
Go Voo Doo! Removing debt from your life is one of the most empowering things a person can do for themselves. It is underrated, but liberating.
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Voo Doo
Well-Known Member
Been an advocate forever to...pay yourself first! Always a little bit of a saver but never gave up anything either! In 2000 I asked our planner how we could get another $650 a month in our pockets?? He said.......pay off your mortgage!!! So we did! And he was right!!
Now don't forget....I'm older than most of you but in this glorious car hobby there really is no age......... Just more wisdom!! :lol:
olla
Well-Known Member
$600 a month is like rent money in some states. Hell in some states you can live in a nice apartment for that kind of money.
I hope the OP chosen wisely but he may have made his choice already which is to go ahead and buy it.
Had a friend who had a bad ass high end SUV but every month he had a hard time paying his other bills including housing. He learned the lesson.
I hope the OP chosen wisely but he may have made his choice already which is to go ahead and buy it.
Had a friend who had a bad ass high end SUV but every month he had a hard time paying his other bills including housing. He learned the lesson.
daltron
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Lol, three times that amount is entry level nice apartments here.
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plc268
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That explains it.
BleedingTeal
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Everyone is making some good points, but as someone who's been in your shoes I believe I can speak from a position others here have not.
I'm now in my mid 30's and after having spent most of my adult life with a less than stellar credit history, I finally found myself in a position to afford a nice car late last summer. I found a car I had wanted for a few years and in the make and model I wanted, and the monthly was more than I would have liked but I could afford it. $470 a month with a 19% interest rate for a 2009 car with a sticker of $19k was ok I thought as I needed a large purchase to make a dent on improving my credit history. So I put $4k down and went ahead with the purchase and I've thoroughly enjoyed my car for the 15 months I've had it.
But about 3 months ago I started researching and reading and I realized that when it comes to your credit history your ability to make on time monthly payments matters than how much your monthly payments are. I could easily have made the same headway in improving my credit score by buying a $10k car and paying it off in 2 years than what I've made paying the roughly $11k I have so far into this, and of now having $14k left over to pay off.
My advise to you is this: by all means look at buying a new car. But not now. Buy something cheaper and improve your score over the next 18-24 months, get 2 credit cards and pay more than half of the balance every month. Credit score is the ability to make monthly payments equal or over the minimum over a period of time. The benefit in having credit cards is they establish a long period of payment history and they payoff will be minimal now, it will be hugely beneficial in say 5 years when you have an on time payment history for the account(s). Paying off your credit card every month can actually be less beneficial to your credit score than paying a few hundred every month. And if at all possible do not exceed 35% credit utilization across your open unsecured debt as that is a negative mark on your credit record.
Obviously waiting is hard to do, but do not make the same mistake myself and many others here have by spending more than you have to. Be patient and when the time comes and you have the money to properly afford it and the credit history to get a good interest rate than jump on it. But by jumping early you may end up costing yourself several thousand dollars that you otherwise wouldn't have to spend.
Best of luck to you OP!
I'm now in my mid 30's and after having spent most of my adult life with a less than stellar credit history, I finally found myself in a position to afford a nice car late last summer. I found a car I had wanted for a few years and in the make and model I wanted, and the monthly was more than I would have liked but I could afford it. $470 a month with a 19% interest rate for a 2009 car with a sticker of $19k was ok I thought as I needed a large purchase to make a dent on improving my credit history. So I put $4k down and went ahead with the purchase and I've thoroughly enjoyed my car for the 15 months I've had it.
But about 3 months ago I started researching and reading and I realized that when it comes to your credit history your ability to make on time monthly payments matters than how much your monthly payments are. I could easily have made the same headway in improving my credit score by buying a $10k car and paying it off in 2 years than what I've made paying the roughly $11k I have so far into this, and of now having $14k left over to pay off.
My advise to you is this: by all means look at buying a new car. But not now. Buy something cheaper and improve your score over the next 18-24 months, get 2 credit cards and pay more than half of the balance every month. Credit score is the ability to make monthly payments equal or over the minimum over a period of time. The benefit in having credit cards is they establish a long period of payment history and they payoff will be minimal now, it will be hugely beneficial in say 5 years when you have an on time payment history for the account(s). Paying off your credit card every month can actually be less beneficial to your credit score than paying a few hundred every month. And if at all possible do not exceed 35% credit utilization across your open unsecured debt as that is a negative mark on your credit record.
Obviously waiting is hard to do, but do not make the same mistake myself and many others here have by spending more than you have to. Be patient and when the time comes and you have the money to properly afford it and the credit history to get a good interest rate than jump on it. But by jumping early you may end up costing yourself several thousand dollars that you otherwise wouldn't have to spend.
Best of luck to you OP!
gunbunnysoulja
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Paying interest is something I absolutely hate. I'm a debt free kind of guy so I strongly believe if you can't pay cash for something you probably can't afford it. Save some cash for a large down payment and work on your credit. Join a credit union and never finance through a dealer unless 0 apr.
I use credit cards but only for rewards. I never pay interest to them.
Wife and I have awesome credit and own 3 homes (2 are rentals) and we don't make crazy money.
It's not always what you make but what you spend (and save).
I use credit cards but only for rewards. I never pay interest to them.
Wife and I have awesome credit and own 3 homes (2 are rentals) and we don't make crazy money.
It's not always what you make but what you spend (and save).
Sal33n
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You knew before you posted you would get negative comments right??? If you want it you will get it regardless what others say. Bottom line is if you can afford it, get it. Just make sure you aren't fooling yourself with how much you can actually afford every month for the next several years. Bad credit is a good indicator of bad money habits and spending more than what you can afford.
The interest rate doesn't matter. $500/month on a 19% loan is the same money out of your pocket as a $500/month on a 2% loan. You just need to make sure you are happy knowing if you waited you could have got more car for the same money.
I would suggest waiting 4 months. Each month put the equivalent of the monthly payment and insurance in your savings and see if you can actually do it and not be broke. If you can then get the car. You will have more money for a down payment, time to maybe clean up your credit (by getting your credit reports and fixing errors, disputing things, etc) and shop for a lower rate.
Good luck OP. I know your pain. Believe me. I want to buy one now too really bad. However I am waiting till spring or summer cuz I don't want it when I will refuse to drive it in winter and I want my current car paid off even though I can afford both. I don't want to be in a situation where something changes and then I am stretching myself thin with unforeseen circumstances.
Sorry for the long post.
The interest rate doesn't matter. $500/month on a 19% loan is the same money out of your pocket as a $500/month on a 2% loan. You just need to make sure you are happy knowing if you waited you could have got more car for the same money.
I would suggest waiting 4 months. Each month put the equivalent of the monthly payment and insurance in your savings and see if you can actually do it and not be broke. If you can then get the car. You will have more money for a down payment, time to maybe clean up your credit (by getting your credit reports and fixing errors, disputing things, etc) and shop for a lower rate.
Good luck OP. I know your pain. Believe me. I want to buy one now too really bad. However I am waiting till spring or summer cuz I don't want it when I will refuse to drive it in winter and I want my current car paid off even though I can afford both. I don't want to be in a situation where something changes and then I am stretching myself thin with unforeseen circumstances.
Sorry for the long post.
Voo Doo
Well-Known Member
I'm thinking...car payment...plus insurance...plus gas...equals well over $1000 per month!! Yikes!! Killer! Let's hope you are not planning any Mods!!!
Tommy556
Well-Known Member
I've never had any debt in my life and I just can't relate to people buying stuff they can't afford... It's beyond silly in my opinion and not going to end well for most.
So my advice is pretty obvious: Step away from this deal and never look back. Forget about the Mustang until you have actually saved some money. Go for a used one in 2-3 years. There's no way you should be looking at brand new cars.
So my advice is pretty obvious: Step away from this deal and never look back. Forget about the Mustang until you have actually saved some money. Go for a used one in 2-3 years. There's no way you should be looking at brand new cars.
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