and only had to pay the note, school, and miscellaneous bills ($200) and someone else payed your insurance and rent, would it be a fair decision of foolish is the long run? ($2200 monthly income)
2007-12-07 10:31:28 · 7 answers · asked by charmed 4 in Business & Finance ➔ Personal Finance
ANY car loan is a foolish decision in the long run. A $30,000 car will be worth about $15,000 in 2 years. Putting the payments in a JAR would give you enough to buy the SAME car in less than 2 years.
Edit: I just noticed your income. You can't afford a MORTGAGE payment as high as the payment on a $30,000 car.
2007-12-07 13:49:30 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
Sure it's fair but it's foolish on your part. There is no reason why you can't buy a cheap car now and indulge when you are established in life. I think a $5000-$10,000 car is reasonable. $30,000 is outrageous.
Any car you buy should only total half of your annual salary.
If a cheaper car is bought then that's more money to invest and grow because time value of money is at it's peak. The older you get the more you have to put away to catch up to retire if you don't start young.
2007-12-07 18:41:43 · answer #2 · answered by Veritas et Aequitas () 7 · 0⤊ 0⤋
30 grand is a lot of money, especially when you consider that by the time you pay for it (probably 5 years) it may only be worth 15 grand (if that). Plus you'll probably pay 15 grand extra in interest. So in reality you're paying 45 grand for a car that in the end will probably only be worth 15 and will seem old and boring in 5 years. Buy a car thats 2 or 3 years old with low mileage, invest the rest. Believe me you will appreciate it when you are older.
2007-12-07 18:58:39 · answer #3 · answered by Barcadcadacada 6 · 0⤊ 0⤋
You don't make enough to drive a $30K car.
You don't mention any down payment, but the payment would be way too high.
Why not do something responsible and save for a house.
If you buy or lease that car you can forget about the American Dream.
2007-12-07 19:26:32 · answer #4 · answered by beckoningsubstitutes 5 · 0⤊ 0⤋
You might qualify, but don't you hope to get out on your own in 5 years or so? It seems odd to me to buy a car that costs more than your annual income. I suggest getting a little bit cheaper car that is still reliable, but will leave you open to live for more than a car payment.
2007-12-07 19:05:00 · answer #5 · answered by moonman 6 · 0⤊ 0⤋
Extremely foolish.
If I were your financial planner, I would say your income give you the sensible choice of a $2000 to $3000 car assuming you have no other debt.
2007-12-07 19:53:35 · answer #6 · answered by Anonymous · 0⤊ 0⤋
if you can pay cash for the car, get it. if you must finance, you can't afford it.
2007-12-07 20:46:02 · answer #7 · answered by Anonymous · 1⤊ 0⤋