Quote:
Originally Posted by Vaughanabe13
How do you define "Car payment" though? Say I have to spend 2K on my Maxima every year. That comes out to $166 /mo.
If I buy a 10K car with only 2K down and 3%, and assuming I have to junk my car and don't get a trade in value, that means a 3 year loan will be about 250/month for 3 years or 145/month for 5 years.
However, if I buy that same car with 0 down, that means 292/3yr, 180/5yr. What kind of loan duration are we talking about here, and what down payment, because there are a variety of different ways you could look at it. And that's not including any potential maintenance I would have to do on the new (used) car.
Also I'm just throwing it out there that I won't be putting winter tires on my Z because A) the road salt is really bad here in the midwest, and B) I go snowboarding and need a big enough vehicle to haul 2 boards and gear.
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Well, that's when it becomes a personal decision. If you can't purchase a vehicle that you want for $2000 per year or less (using your numbers), then continue with your current set up until the situation changes. It's a general rule of thumb, if you understand what we're saying, then you can take that information and adjust it to fit your needs.
Maybe stay the course and stick some extra money under the mattress when you don't have to spend it on repairs. Then you'll have more available cash to use towards a new(er) car when the time comes.