I've got 10,000 set aside for a car right now. My question was whether I should get a second hand car for 10000 and pay straight up or should I put it as a down payment for a new car and take a loan on the rest. Also should I get financing for the loan from the dealer or get it off my home equity. I was interested in buying a sedan. Please help me, detailed responses highly appreciated.
2007-07-21 14:50:32 · 5 answers · asked by Crashovdr 4 in Cars & Transportation ➔ Buying & Selling
its way better if u just buy a USED car, because 1- every1 hates having to pay banks all these loans and stuff, 2- if u get a new car, after u take it out of the garage, the price will drop really bad, but if u get a used car, and u just take it somewhere and do a test to make sure everything is good, u save a lot, because the price has already dropped. trust me, if u get a brand new car right now for 20,000 bucks, after just ONE month it will be like maximum maximum 18,000
2007-07-21 18:40:02 · answer #1 · answered by theundertakerisbest 1 · 1⤊ 0⤋
I personally would just buy it with 10k cash unless it was a relatively close number for financing. And if you were to take out a loan definitely home equity, when i got mine it was 3%. Instead of a 14% car loan. And as for the sedan thats up to you, i dont know what amenities you want or what you need- awd, ac, moonroof,etc. Personally i love the new dodge avengers (pricey though) but i also like the nissan altima which is affordable if preowned is a great choice. Good luck.
2007-07-21 22:00:41 · answer #2 · answered by coreboy7 3 · 0⤊ 0⤋
With dealers giving away 0% loans and discounts off the price for paying cash. You should be OK either way.
If you take the zero loan then you lose the discount off the cost of the car.
I would go with paying cash, then you have a clear title, and no payments. Save the home equity loan for something else.
If you lose your job, or have health problems then you won't have to meet any car payments and won't have to worry about the finance company taking your house away because you didn't make a car payment. good luck.
2007-07-21 22:06:57 · answer #3 · answered by Fordman 7 · 0⤊ 0⤋
If you buy a used car, you are buying someone elses troubles. They trade them in for a reason. you don't know haw hard they were on the vehicle, and the "warrantys" you can purchase for used cars are a rip off most of the time. If you decide to buy used, I'd make darn sure it is worth the money, and that I got a price low enough to allow me to do any major repairs that pop up right away. Buying a new car menas, YOU get to break it in right, you get a VERY good warranty from the manufacturer, you help build good credit, and with dealer financing so low right now, It's hard to pass up. I just bought my wife a ford Focus, with dealer special it was $99.00 down and payments are LOW. In fact, I was so pleased, two days later, I went back and bought the sportier model for my daughter. Save that home equity for emergencies. Don't lower you're equity in the home right now, it is a very unstable housing market. Wait a while to let it self adjust, you may find yourself upside down on the home and that's not a good position to be in in todays economy.
Good luck
2007-07-21 22:05:05 · answer #4 · answered by randy 7 · 0⤊ 0⤋
find a used car for 5000. take the other 5000 to the casino!
2007-07-21 22:09:00 · answer #5 · answered by ? 6 · 0⤊ 0⤋