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New Car Loan

November 6th, 2016 at 09:08 am

I was looking forward to paying off my vehicle early next year. Until I found out that I have $2,800 worth of repairs that need to be done after sinking $1,000 into it. I only have $1,200 left to pay on it.

So at this point I've decided to get a used "new to me" vehicle.

It's interesting to me that the first time I bought a vehicle I paid $600 for a '95 Altima (bought in 2009) and bought it outright. Then that one died and I got a car loan for a $9k '04 Sorento (bought 2012) that I had to get a co-signer for because my credit was so bad.

The reason that I'm getting a new vehicle is that I've had it for a little over four years. But I've only driven it a little over two years (I was in Afghanistan and Korea). I've already sunk about $2k into it during this whole time. The clutch is about to go out, I need new oil valves, and the carrier bearing is basically spinning in place. So I'm getting a newer vehicle.

So I've gone through the process of getting a new loan. Pre-approval from my bank so I have buying power. I've already walked away from one place which I never have an issue with. I have found that I dislike negotiating, so I'm getting my vehicle (2011) from CarMax. Did you know that it can take up to 28 days to request a vehicle from across the nation?...

Also you have have 5 days to return the vehicle in the same condition that you received it. So that's enough time to get a mechanic to look at it, and I suggest finding shops that do a pre-purchase vehicle inspection.

Thankfully, when this vehicle comes in, my payments will only go up less than 40%. But I'll do what I did last time I had a six-year loan. Send at least $5 extra a month but I actually paid it weekly to hit that interest. I would have paid off the current loan at less than five years. But I think I will throw a little bit more this time.

I'm hoping that this vehicle will check out and that I will not have any issues for several years.

Tip: even if you are pre-approved for a particular amount doesn't mean that you should use the whole amount. Just because you're approved for it, doesn't mean that you can actually afford it.