“Just bought a 2005 Chrysler 300C with $1,000 down, and a 6.5% interest rate for 60 months. “
There shouldn’t even be financing on cars.
Save your money and pay cash.
Of the more than a dozen cars that I’ve owned I paid cash for every one of them.
I borrowed for my first car, but I have paid cash for the next three (and plan to pay cash when I replace my wife’s car after it gives up the ghost).
To get a good downpayment (and we are talking about $3,000) I walked to work for five months (from Feb. to Aug.) in the Quad Cities, IL/IA. I felt I was taken advantage some by GMAC in the loan process (they included the extended maintenance in the contract along with life insurance and did not tell me). I caught it during the review process on the paperwork and threatened to walk out (now days I would have walked out without blinking). They pulled it out, and I took the loan. I still got burned by the prepayment penalty (Rule of 78) when I paid ahead on my car to finish the loan.
I did not have a car during college, and I survived by using my feet and buses. I had absolutely nothing when I came out of college.
Let’s see if I’ve got this right:
No cash -> no car - no loan for you!
No car -> no job -> no income -> no money to buy car to get job.
Looks like a bad loop here.
Save your money and pay cash.
(scratching head) If he just got a job, and was previously unemployed, what money was he supposed to save?
> There shouldn’t even be financing on cars. Save your money and pay cash.
Hear, hear!
> Of the more than a dozen cars that I’ve owned I paid cash for every one of them.
Me too, though only on about half a dozen. In fact, I’m well into middle age, and have never owned a new car.