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New Car Loan

November 6th, 2016 at 05:08 pm

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.

4 Responses to “New Car Loan”

  1. LivingAlmostLarge Says:

    Good luck. Sounds like a wise more.

  2. VS_ozgirl Says:

    Definitely a good tip to spend what you'd prefer to spend rather than whatever the bank say you can spend. Good luck with the new car!

  3. Petunia 100 Says:

    It's really good to hear from you! Smile
    What is the current status of your credit card debt? You might be better off not paying extra on the car and continuing to hit the credit card debt as hard as you can instead.

  4. Sian Says:

    Thank you LAL and VS!

    Hey Petunia,

    I have two credit cards left to pay on with a total of approximately $9k. I'm paying more than double on one card and the minimum on the other. I want to get the lower amount gone first. My parents have actually stated that they will pay it off (I didn't ask them to, they offered) and they will pay off one of the student loans that I have as well. I've decided that I will continue to pay on the card along with them paying that to get it down faster. So the cards will be hit harder anyways.

    According to the math, my payments will be equal to about $230 a month but I'll be paying $250 a month to get it down more. This means my payments will only be about $55 more than what it is currently. Also my auto insurance increased and I will be getting a lower one with better coverage in Feb (waiting for 3 year accident to fall off).

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