My husband wants to buy a used car he owes about 20,000 on his car interest included. He wants to buy a car cash that costs 12,000. Do you think it makes sense?
2006-12-04 04:30:19 · 21 answers · asked by Sexy PR Mom 2 in Family & Relationships ➔ Marriage & Divorce
Oh he is selling the one that he has now and then will buy the other one
2006-12-04 04:31:00 · update #1
Sounds like he's ultimately trying to lessen the burden on your family. By getting rid of a luxury class car or a more economic one. As long as he can at least break even on the sale, you both will be in better shape. less payments, less insurance, better MPG, etc. Good Luck!! He's got the best interests in mind for the both of you. You don't drive a car for status, you drive a car to get where you are going...
2006-12-04 04:36:36 · answer #1 · answered by ndngrlz 4 · 0⤊ 0⤋
I've driven a $2500 car for almost 100K miles over the past 4 years now, with few if any issues.
So, if he's looking to get out from under a car payment, he doesn't need to spend that much money to get a decent car.
You can get a reasonable car for $2500 to $5000 that will still be reliable.
I'm curious by how you've described the he currently has. Most loans don't require to pay all the interest, and typically have a payoff lower than the total of the loan payments.
I just hope he is not "upside down" and owes more than the car is worth.
But, if he has $12K cash, then he should be able to get out from under the car payment and improve cash flow.
It's hard to give a good answer without more information.
2006-12-04 04:43:19 · answer #2 · answered by camys_daddy 5 · 0⤊ 0⤋
You've indicated he wants to buy the used car cash? By selling the current car as long as that sale is able to pay down the loan he currently has...otherwise whoever he has the loan with is going to need collateral to replace the vehicle he's selling and which still has a loan against it.
If he can only get $15,000 for his current car...he'll only pay down the loan by perhaps a few thousand dollars...therefore the car he decides to purchase will have to have a value of a min. $17k
He might wish to check with the lending office before he does this just to ensure that they won't give him a problem.
If selling the current car allows him to pay down the loan to almost zero...then that's great and I'd then say go for it provided the car being purchased is mechanically sound, in good shape and is worth the money.
2006-12-04 04:38:17 · answer #3 · answered by dustiiart 5 · 0⤊ 0⤋
Oh honey I wish my husband sold cars when he bought new ones. He currently has 4 cars none older then 2003 however due to our financial situations they are all paid for. If he wants the second car and you can afford it why not? My husband bought himself a rather expensive Xmas present last year that sits in the garage covered on carpet with under 300 miles on it. He bought it because he wanted it, then he has 2 cars that he uses when he goes to work one is his summer time car the other his winter car {4wd we live where it snows alot} and his 4th is the "family" car {plus I have my own 2004 SUV bought new paid in full upon purchase as are all our cars}. As a married couple you have a say in this purchase and if your like most couples odds are you will want to look at the long term cost of insurance and so forth and your ability to maintain it.
2006-12-04 04:36:24 · answer #4 · answered by texas_angel_wattitude 6 · 0⤊ 0⤋
Yes, this makes sense if he can sell the first car for the amount he owes on the loan. Sounds like he would like to get rid of a car payment, which is a good thing--frees up the money for something else, like savings.
2006-12-04 04:35:58 · answer #5 · answered by draws_with_crayons 3 · 0⤊ 0⤋
I believe that as long as he sells the one he has now, first, then it makes sense. But if he is just planning on trying to sell his car later, then you may end up owning one car and making payments on another plus insurance premiums. Good luck.
2006-12-04 04:34:50 · answer #6 · answered by loser 4 · 0⤊ 0⤋
Well, buying a car with cash is much cheaper than with a loan. Just pay with cash down.
2006-12-04 04:33:22 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I am a sales rep. for a Ford dealership, is he going to trade it in?, if so he will need to get in something newer to even hold the en-equity. If he is not trading it in he should put the 12,000 on his current car and refinance. If not he will pay for it later.
2006-12-04 04:37:14 · answer #8 · answered by simplek 1 · 0⤊ 0⤋
Your husband isn't a very smart fella now is he? How did you end up with such a prize winner. Girl unfortunately if he's mind is made up it is decided. I am the same way when I want to purchase something. But to make more debt on something that will bring nothing back in return is dumb. please tell me your husband is not an investor!
2006-12-04 04:37:09 · answer #9 · answered by george 4 · 0⤊ 0⤋
is he selling the first car for the full pay off amount? They yes, its a good idea, the 12000 car will save him $200 on his payment if he gets a good interest rate.
2006-12-04 04:32:53 · answer #10 · answered by parental unit 7 · 0⤊ 0⤋