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Do You think I should go for a car note?

Maintenance/Repairs
#1

I honestly don’t that much and I don’t see how people afford these newer cars that I see them driving in the road everyday. I have a 2004 dodge stratus that has had problems this year and I actually posted about it on here. It’s still using and it’s actually doing good, hasn’t overheated anymore but I wanted a newer car like 2015-2018 year but it’s expensive.

I’ve always wanted a charger but even the charger set is $19,000 and a monthly note of like $350. I wanted this 2016 sonata sport with 50k miles but even that was like $350 for monthly!

I told one of the workers that I worked because she drives a nice Ford Edge 2014. I told her that I want a newer car but I don’t know if I can do a note plus insurance. And she says that she think I should go for it and stop saying what I can’t do. She tells me when she bought a 2012 Nissan Altima she at first thought she couldn’t do it but paid it off in 4 years. She kind of gave me a little encouragement but idk. Am I better off. Just not paying note and keep riding old cars?

#2

Pretend you’re making car payments and transfer $350 into a savings account every month.

8 Likes
#3

Considering you apparently don’t make much money and the Stratus is “actually doing good, hasn’t overheated anymore” . . . I’d say you should continue maintaining the car very well, keeping on top of those fluids and plan on driving the car a few more years.

I’ve seen too many people get in over their heads financially, just because they wanted a newer car, but the old one was paid off.

I don’t mean to sound like a sourpuss, but I think the note AND the higher insurance costs might just get you in trouble

Who cares what your co-worker says . . . she’s not your financial advisor.

Several years back, I was in a similar situation. Most of my colleagues were buying cars that were much newer, bigger, more luxurious and a lot more expensive than my car at the time. Some of them were laughing at me, some were saying I deserve a better car. I did the math and realized I simply couldn’t afford the costs of a newer car.

Are you a home owner . . . ?!

Are you paying off student loans . . . ?!

If you’re not a home owner, you might want to think about saving up for a down payment, not throwing money away on car payments

If you’re paying off student loans, they should take priority over a newer car

It goes without saying that not everybody will share my opinions . . .

2 Likes
#4

Those lease prices seem high, a 20k Optima last lease was a shade over 2000, the 28k I think rav4 is a hair over $300. Buying a car next, retirement traveling putting on the miles and don’t want to worry about how many. Edit thought you were talking lease, not payment prrice. Leased the Optima as after 11 years total cost for our Windstar was $218 a month after 11 years and no major repairs.

#5

I can’t tell you what to do . I think if you have a credit union or bank you should talk to them .
Also make a list of you expenses that you have every month and see what you actually have left each month . Then also count on registration and insurance .
It appears that you have been driving a problem Stratus so maybe new is better then used in your case. I don’t think you will be happy with another cheap frustrating vehicle. Lower your sights , there are a lot of nice new vehicles that get good fuel mileage and are less then 20000.00 . You should consider a lease but that is not the best way to go but the monthly cost is lower and at the end you can buy it or just turn it back in.
Go to the Credit Karma web site and use it to see what range your FICA score is .

#6

Have you fixed that water problem . . . water getting into the car?

#7

You will find that most here don’t agree with me but I get a new car every 3 years and always have a car loan. What I don’t have are any car maintenance costs except oil changes. As long as the car payment fits into my monthly budget, I can afford it!

#8

How long of a term loan do you choose?

#9

Sure takes some adjustment after not paying anything for a while. We hadn’t bought a new car for a while and ended up with $800 when we did. Rod Knox has the right idea to see what you are comfortable with but as long as you don’t have a good late model trade, the payments will always be higher. Usually a note though refers to a fixed loan with the balance due in 6 months or 12 months time without periodic payments. Installment loans have monthly payments which include interest and principle.

#10

I lease for 36 mos.

1 Like
#11

I understand what you mean but
I already know I could spare. Currently i have around $700 after I’m done paying my other bills to myself without the car loan. So I’m guessing I’ll have around $300 to myself with at least a &350 but I’m just so scared that if I lose my job that my car would repossessed or something. I’ve know that to happen.

#12

sounds like you’ll be stretched too thin . . . keep driving the Stratus

If you take care of it, it’ll take care of you :smiley:

#13

You make a lot of great points and honestly you are right. But the thing is I work everyday, even if it’s not the best job. I just really want to drive a nice car that I can look at everyday when I come home from work and say i love it. Not just something to get me where I need to go and hope it doesn’t break down even if it more affordable. I guess that’s immature of me :confused:

2 Likes
#14

I hear that, warranty covers everything, no stops for tires, brakes, maintenance, but like I say we are going to be putting the miles on and not confident buy out price will be good enough to not loose money.

#15

If that were to happen, it’s not the end of the world. They can’t shoot you!

#16

I’d never buy a car that I leased. At that point it’s just another used car, out of warranty and well worn by my wife’s lousy driving.

3 Likes
#17

I hear you on that! Wife from NY City, speed up to a red stop light, take off like a bat out of hell etc. Gas brake gas brake me the bobblehead and she wonders why when we go out I usually want to drive.

3 Likes
#18

My opinion is that you will be facing a financial disaster with that low of margin . First you need to lower your current monthly obligations if possible .

#19

Don’t be working for the bank, work for yourself! And that means a loan OR a lease.

Put that extra money aside in a savings account for repairs or a newer car whichever comes first. You’ll be shocked how fast it grows.

1 Like
#20

The only positive thing is that, at this point my wife only drives 5,000 miles per year. She’s never driven my 62 Caddy, and I’ll keep it that way.

1 Like