Quote:
Originally Posted by Carsten
I understand everyone argument about buying a cheaper used car. And I have been paying off a cheap used car for some time now but it still hasn't built any credit. And I have a very stable job and make close to around 60k a year at the moment(wedding photographer) So a 500 car payment is within reason for me. And I know with that kind of money I could just save and by the car in cash, but that would take a good year+ to save up for. Obviously if this loan doesn't work out than that will be the plan, but waiting a year plus to buy this car is a little long for me.
But I'm understanding the apr dilemma, I understand how interest works but when I've used the scion calculator at the same interested I just wayyyyy different numbers.
Edit: just realized how illiterate my iphone autocorrect makes me sound.
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The same arguments apply:
- You have no idea how to build up credit even though you have more than enough income. Stop paying off car loans and start using short term unsecured credit (aka credit cards) to your advantage
- If you can't wait a year to save up to buy this car, you don't have your priorities straight and a high APR is your only "out".
- Paying off a cheap used car for "quite some time" when you're 19 doesn't mean jack squat. Try 5-7 years for you to have enough decent credit to buy a house, that's usually the credit history a lender looks at.
I understand you want the car badly. A lot of us do when we see something we like. But buying a car is the 2nd or 3rd biggest thing most of us will buy in life next to a house (and a post-graduate education). You should know what financing and credit scores actually do for you before you go in to talk numbers, and how you should manage your finances better.
Make money work for you, not the other way around.
-alex