Loan vs. Credit Car for Car

darkidoe

worried_jim wrote: »

But you'll be driving a car as you do and not sitting on the bus.

You can sleep on the bus but not while driving in your car. :P

MEM62

becky701 wrote: »

Hi
Thank you for your advice

I'd love to save up, but unfortunately that could take years.

After your advice I'm thinking a loan is the best way to go

Thanks!

Two things to consider; firstly, if you cannot afford to save, you cannot afford to meet loan repayments. (And how are you planning to finance the running of the car? Tax, insurance, servicing and repair costs etc all have to be considered) Secondly, borrowing money and paying interest on an asset with a value that falls like a stone is one of the worst financial decisions you will make.

It's easy to get sucked in by shiny car syndrome but you I think that it is likely that will regret the decision to borrow such a large sum for a car very quickly. You will be making payments long after the car is worthless.

Kidder81

I'm with MEM62.

Obviously I know nothing of your situation so feel free to ignore my advice, however when I was younger I borrowed money for cars and have regretted it.

Rather than 7k, I'd look to pay 2-3k for a perfectly nice car and not pay so much interest to the bank. Owning a car outright, even an older one, is much more satisfying than working out how many payments you have until you loan is finished. Don't get caught up in the debt cycle which affects far too many people.