have paid off student loans, have steady job, no other debt, no credit history
2006-10-22 09:03:42 · 10 answers · asked by Spec 2 in Business & Finance ➔ Credit
Most of these answers sound pretty well intentioned and accurate. You have to consider your income. Provided that you have a typical emergency fund (3-6 months of income), pay as much down toward the car as possible. The remaining balance should not be more that 25% of your net income/bring home pay. Buy a good used car and let someone else eat the depreciation on a new car. Take a look at consumer reports and you can locate their ratings on reliability of used cars....I have found them to be pretty accurate in general but nothing beats bringing the specific car to a trusted mechanic.
2006-10-23 05:21:19 · answer #1 · answered by MJ 4 · 1⤊ 0⤋
1
2016-09-26 20:55:03 · answer #2 · answered by ? 3 · 0⤊ 0⤋
If I were you, I'd put the $5k in the bank (maybe a money-market account), and apply for a bank loan to buy a good used car. It sounds like you have managed your money well, and your student loans will show on your credit history.
Make payments on the car, and keep the $5k tucked away in case you need it for an emergency.
Think of it this way... if you put all your spare money (the $5k) into a car, and the transmission goes out in six weeks, what are you going to do? Better to be safe than sorry!
2006-10-22 09:13:04 · answer #3 · answered by Jim I 5 · 0⤊ 0⤋
depends on what you can afford. Dont try to spend your entire paycheck on a car. if i were you i wouldnt use the 5k at all. try to get a loan from your credit union for the amount. leave the 5k in the bank and earn interest, although you can pay the not out of it per month. its an easy way to build credit and make a lil money at the same time.
2006-10-23 06:26:16 · answer #4 · answered by ? 2 · 0⤊ 0⤋
I wouldn't take out a used car loan with $5K in cash. Use it and pay for a car outright, then you won't have to worry about a car payment.
2006-10-22 13:29:54 · answer #5 · answered by tessasmomy 5 · 0⤊ 0⤋
With $5k cash, you should not have any loan for a good used car. The $5k should pay it completely.
2006-10-22 09:21:57 · answer #6 · answered by SweetBrunette 5 · 0⤊ 0⤋
do not go to blue book, blue book is innaccurate, dealerships use the black book, and even if u know the blackbok value of ur car they will still try and rape u on ur trade in. if you go to any major car manufacturers website they usually have a blackbook estimator online for you to use. stay firm at your asking price, dont cave. but you cannot realistically expect to get more than the black book says unless you sell your car outright.
2006-10-22 09:14:24 · answer #7 · answered by frediks10 3 · 0⤊ 0⤋
Zero. Why acquire new debt for a car?
2006-10-22 12:11:20 · answer #8 · answered by J. C. 6 · 0⤊ 0⤋
The truth is you may need to look it up on bluebook.com by make and model to see the car's value.
2006-10-22 09:07:12 · answer #9 · answered by Jessica M 4 · 0⤊ 0⤋
25 % of your income should go to car.
40 % house and home
20 % entertainment
10 % savings trust me the other 5 % will go missing.
2006-10-22 09:13:36 · answer #10 · answered by Viakin 2 · 0⤊ 1⤋