Quote:
Originally Posted by Irace86.2.0
You don’t know anything about me old man, or what my mom did to give my brother and I as much opportunities as she could, even if it meant working two jobs and weeks of Macaroni N Cheese. You assume too much.
The fact is the OP is buying during a housing bubble and is likely paying top dollar compared to five years ago. There are very few markets in the US where it is cheaper to buy then rent. In all likelihood, the OP is selling the car to get a better interest rate or qualify for a larger loan. If he can reduce his debt to income ratio then his credit score could improve so he gets a better interest rate; a larger down payment, especially getting to the magic 20%, will reduce interest rates and avoid having to buy private mortgage insurance. This is standard stuff.
Considering the bubble, and the fact that most analysts would consider the market to be flat or to go down over the next five years, the OP must have a stable job and be in it for the long haul. He is likely doing what he is being advised to do to maximize his savings by selling the car before writing a loan. After the loan is secured then he is free to mess up that credit score.
That is, unless he is selling his car to qualify for a home at a value beyond his natural means. This would be irresponsible at any time, but pretty reckless during a housing bubble, and it was a problem we saw all too frequent during the last housing burst. I’m giving to OP some credit that he isn’t so foolish and has enough disposable income to buy responsibly. You seem to act like the man is selling the car and eating beans to scrape the money to buy a home, which isn’t responsible. Anyone who has the disposable income to buy responsibly has the means for a cheap hobby car.
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My original statement was that it was good to see somebody doing the responsible thing. You scoffed at that.
You now write a very nice piece on how he did the responsible thing.
Was not saying he would have to eat beans but simply that once the car is gone it can take many years to get back into it. Shit happens and the "next year" becomes "well maybe" next. If you truly had to scrimp to live you would understand that very simple fact of life.