I need a new car but im broke

[beenz]

Buy your car cash. If you don't have the cash then save until you do.

Stay away from consumer debt and debt in general. The only real acceptable debt I'm my opinion is a house.

The beginning of this year I put $2500 into a 2002 car that's probably not even worth that. To me I'd rather put that into that car than have a car note.

Treat cars like an appliance if it does the job and is serviceable its fine.

Buying a new car cash isn't always the best use of one's capital. For instance, if my car cost 25k, why use my own money to pay for it when I can get a very low interest rate loan instead. This allows me to keep most of my cash to use for other stuff like investing when the cost of borrowing is so cheap.

Simply put if u get a loan rate that's .9% and you can take the cash and conservatively earn 3% on it, you're coming out ahead by financing the whip in this instance. Because you're making more money on your investment vs what you're paying in interest for the loan.

 

[winb83]

Buying a new car cash isn't always the best use of one's capital. For instance, if my car cost 25k, why use my own money to pay for it when I can get a very low interest rate loan instead. This allows me to keep most of my cash to use for other stuff like investing when the cost of borrowing is so cheap.

Simply put if u get a loan rate that's .9% and you can take the cash and conservatively earn 3% on it, you're coming out ahead by financing the whip in this instance. Because you're making more money on your investment vs what you're paying in interest for the loan.

You use your own money because the amount you're using to buy the car is very affordable to you and you've saved up to buy it. It's cost is negligible to you in comparison to your net worth. If you're worth a million plus for example you aren't rationalizing why you should borrow to buy $25,000 car.

If the amount of the car you're buying gives you pause to even consider financing I would look at a cheaper car. Many people use financing as a crutch to buy things that if they had to drop the full amount on in one go they wouldn't want to do so or wouldn't be able to afford to do so. That's what debt does to people it allows them to financially extend themselves further and not have to feel the result.

Personally I'm wouldn't be buying a car I can't put the minimum required level of insurance on and that if I totaled it I couldn't replace the car out of my own bank account. I self insure my old ass car. I'm rocking PLPD insurance that coat about $500 a year.

 

[Smukie]

Just dropped more on repairs than what my car is worth

Will those repairs last a while or do you have more to make?

If your money is that tight then I would work a second job and focus on paying off that 11k worth of debt. 9 times out of 10 your overpaying in interest. Once that's off your back hopefully you'll have room to start saving. Your credit is good so you should be able to get a low interest rate on a car loan from a credit union. I wouldn't buy anything over 15k tho.

 

[MillionMills]

Will those repairs last a while or do you have more to make?

If your money is that tight then I would work a second job and focus on paying off that 11k worth of debt. 9 times out of 10 your overpaying in interest. Once that's off your back hopefully you'll have room to start saving. Your credit is good so you should be able to get a low interest rate on a car loan from a credit union. I wouldn't buy anything over 15k tho.

Should last me until the end of the year, hopefully

I get OT at work during certain periods so that should help throughout the rest of the year

 

[Noriega]

Some of yall telling this breh completely wrong with this car note shyt, car notes are completely avoidable.

Save up a few stacks and buy a 90s or early 2000s Lexus, Toyota, Honda, or Acura off the lot or on Craigslist. I drive a 1992 Lexus ES300 with 268k, neighbor down the street has a 95' Acura legend with damn near 400k. Have had no problems besides regular maintenance.

 

[winb83]

Some of yall telling this breh completely wrong with this car note shyt, car notes are completely avoidable.

Save up a few stacks and buy a 90s or early 2000s Lexus, Toyota, Honda, or Acura off the lot or on Craigslist. I drive a 1992 Lexus ES300 with 268k, neighbor down the street has a 95' Acura legend with damn near 400k. Have had no problems besides regular maintenance.

My attitude is you really shouldn't be driving a car that you don't have that amount of money it's worth liquid in a bank account and the only reason you should be driving a car that's worth more than your net worth is if you're getting out of debt and if so is should be worth less than a few thousand dollars.

You'll always see people say they could take a loan and invest the money. Truth is if they're so concerned about investments and making money they could get a cheaper car for what they'd use as the down payment and invest all the rest plus invest the amount they'd be making in note payments over the years and make more.

The reality is this. The average person lives at the edge of what they can manage. Many of them are one disaster, sickness, or job loss away from immediate bankruptcy. People aren't investing the money they have in the bank that could pay off a car what they're doing it taking loans with what they feel are manageable payments for cars they don't have the money for in the first place.

 

[Noriega]

My attitude is you really shouldn't be driving a car that you don't have that amount of money it's worth liquid in a bank account and the only reason you should be driving a car that's worth more than your net worth is if you're getting out of debt and if so is should be worth less than a few thousand dollars.

You'll always see people say they could take a loan and invest the money. Truth is if they're so concerned about investments and making money they could get a cheaper car for what they'd use as the down payment and invest all the rest plus invest the amount they'd be making in note payments over the years and make more.

The reality is this. The average person lives at the edge of what they can manage. Many of them are one disaster, sickness, or job loss away from immediate bankruptcy. People aren't investing the money they have in the bank that could pay off a car what they're doing it taking loans with what they feel are manageable payments for cars they don't have the money for in the first place.

I totally agree with you, I know too many dudes my age (18 to mid 20s) who are drowning themselves trying to finance some garbage ass Dodge Charger or Chrysler 300. Then they're upset when the repo man comes through and takes their shyt.

Car notes and all that leasing BS is straight financial cancer. My older sister came into a lil cash a few years back, told her buy a reliable, older Jap car. Instead she buys some 2014 Nissan for 13k and is struggling to keep up with the car note.

I don't make big dollars just yet, but even when I do I'm never financing or leasing a vehicle.

 

[MillionMills]

I mean I make good money and can go get me a lil Kia or Hyundai for <14k and I know I'd be able to pay it off at some point because of my job + OT + side hustles. I just am so anti-debt I cant bring myself to do it

I also dont want to go buy another beater and have the repairs cost more than the damn car's value

These recent repairs should last me a while so I'm gonna stack some bread while I drive my current car and maybe put a hefty down payment on a 2014-2016 car thats under 15k

 

[beenz]

My attitude is you really shouldn't be driving a car that you don't have that amount of money it's worth liquid in a bank account and the only reason you should be driving a car that's worth more than your net worth is if you're getting out of debt and if so is should be worth less than a few thousand dollars.

You'll always see people say they could take a loan and invest the money. Truth is if they're so concerned about investments and making money they could get a cheaper car for what they'd use as the down payment and invest all the rest plus invest the amount they'd be making in note payments over the years and make more.

The reality is this. The average person lives at the edge of what they can manage. Many of them are one disaster, sickness, or job loss away from immediate bankruptcy. People aren't investing the money they have in the bank that could pay off a car what they're doing it taking loans with what they feel are manageable payments for cars they don't have the money for in the first place.

I was unemployed for the last three months. I am literally at my first day of work for a new job today. However during that time, I had the resources to survive, pay all my bills and live without barely touching my savings. It could have been a lot worse

 

[Noriega]

I mean I make good money and can go get me a lil Kia or Hyundai for <14k and I know I'd be able to pay it off at some point because of my job + OT + side hustles. I just am so anti-debt I cant bring myself to do it

I also dont want to go buy another beater and have the repairs cost more than the damn car's value

These recent repairs should last me a while so I'm gonna stack some bread while I drive my current car and maybe put a hefty down payment on a 2014-2016 car thats under 15k

That hefty down payment could be cash for a older luxury car breh. My 92' Lexus has a sunroof, big ass trunk, even heated seats for these cold ass Chicago winters. I've put $600 worth of maintenance into my car so far this year.

 

[MillionMills]

That hefty down payment could be cash for a older luxury car breh. My 92' Lexus has a sunroof, big ass trunk, even heated seats for these cold ass Chicago winters. I've put $600 worth of maintenance into my car so far this year.

This is what I'm tryna avoid

 

[Noriega]

This is what I'm tryna avoid

$600-700 a year for maintenance vs. $200+ a month for a car note

Dk how it is out in Cali but here in Illinois, if your car is 1995 or older you don't have to worry bout emissions testing either. That's $$$ I keep in my pocket.

 

[MillionMills]

$600-700 a year for maintenance vs. $200+ a month for a car note

Dk how it is out in Cali but here in Illinois, if your car is 1995 or older you don't have to worry bout emissions testing either. That's $$$ I keep in my pocket.

The $200 will cease once its paid off and then your not spending anything really outside of an oil change...decisions decisions

 

[winb83]

This is what I'm tryna avoid

$600-700 a year for maintenance vs. $200+ a month for a car note

Dk how it is out in Cali but here in Illinois, if your car is 1995 or older you don't have to worry bout emissions testing either. That's $$$ I keep in my pocket.

All cars have maintenance cost. Standard wear and tear stuff that over time you have to take care of. That shouldn't be included in with irregular breakdown type stuff. For example if you bought new tires all cars are gonna require that at some point. If maintenance isn't done the you get to having to dump huge amounts of money into the car to address stuff that was ignored.

 

[Grizzly]

fukk riding in style for right now....buy a 96-99 Corolla off Craigslist so you have something to take you from point A to B...that should run you about a stack

then keep putting money to the side until you have enough to get what you really want.