pay cash or try and get a loan?
12-24-2009, 03:42 AM
#41
Drifting
ok guys, ive managed to save about 13,000 over the past year. ive tried to get financing online a few times earlier this year with no luck. i also have about 10k in credit debt.
now here are the options:
pay off my credit cards and try and get a loan, which will be tough these days. if i dont get approved i can start saving a little quicker since i dont have to pay any credit card bills every month. only downside to this is its winter now and vettes are not a winter car. im afraid if it takes too long to save up i will miss out on some savings.
second option is to buy a car cash, no monthly payment and just stay on track with my debt.
what do you guys think
now here are the options:
pay off my credit cards and try and get a loan, which will be tough these days. if i dont get approved i can start saving a little quicker since i dont have to pay any credit card bills every month. only downside to this is its winter now and vettes are not a winter car. im afraid if it takes too long to save up i will miss out on some savings.
second option is to buy a car cash, no monthly payment and just stay on track with my debt.
what do you guys think
Next figure how much interest you are paying on your debts.
Now figure how much your $13,000 can earn for you i.e. possible equity over a period of time if you bought a home. or invested in the market, ect. ( example; I invested in a rental home 15 years ago with less than $5000 on a $72,000 price. renters paid the mortage, I got the tax breaks, put some sweat into it and sold it for $540,000. )Home prices are the lowest in 30 years and they will inflate.
Now figure how much you are paying over time for this Vette with a loan. Loans are easy to get now , fact easier now than it should be. A Vette is not an investment .
My advice ( I retired at 40 y/o) is to payoff your debts and invest the rest. I assume that you are young and have time. (another story; got out of college and all my friends got jobs and bought new cars. I drove vintage muscle cars and invested the same amount of money my friends spent on their new cars into realesate and the stock market. I took the equity out of one home and bought another and another till I had six (6) rentals. I got out of the stock market and realestate in 2006 when my wife retired from her career. My father's advice to me , which I followed was to invest, let your money make money for you. My father retired with four children at 54 y/o, he and my mother traveled till he passed away at 80 y/o. You can not earn enough on a salary or hourly wage to retire but investments can earn staggering amounts of money.
12-24-2009, 08:52 AM
#43
Le Mans Master
Member Since: Sep 2006
Location: Life is a game/Golf is serious. IA
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little update guys, paid off all the cards!
total amount of debt paid was $9273.47
It really sucks to see that much money disappear in less than an hour and having nothing to show for it, but its great feeling that i have no more bills except my living expenses now. i have a truck for work that is paid off so all i gotta do is save for a few more months and i might be able to grab one cash.
i was even thinking to try and get a loan anyway, link it to a bank account with sutomatic payments, and build some credit some more.
total amount of debt paid was $9273.47
It really sucks to see that much money disappear in less than an hour and having nothing to show for it, but its great feeling that i have no more bills except my living expenses now. i have a truck for work that is paid off so all i gotta do is save for a few more months and i might be able to grab one cash.
i was even thinking to try and get a loan anyway, link it to a bank account with sutomatic payments, and build some credit some more.
