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Alternatively, there are individuals who live month to month and having tired of beaters and decide this looks affordable. While clearly a false economy, some

Alternatively, there are individuals who live month to month and having tired of beaters and decide this looks affordable. While clearly a false economy, some individuals may have other motives, like status seeking. This doesn't mean they are rock-headed. Like all of us, they could have a blind-spot where a decisions made may not be in our long term economic interests.

scarface74 7y ago
I think if you are living paycheck to paycheck and don’t have disposable income, it may make more sense to buy a cheap new car with a warranty than a cheaper used car. It’s much easier to get a car with a $350/month car note where you won’t have unexpected repair expenses than getting a $200/month car note on a car without a warranty and then have an unexpected expense. Now we have a credit card with the car shop we used that has a six months/no interest program. I use that even if I do have the money. But if we had bad credit, we could get a car loan much easier than an unsecured credit card. I am at a point in life now where I can afford an expensive car repair bill and it just stings a little bit. When I was first starting out decades ago working at night as a computer operator while I was in graduate school during the day, any unexpected expense meant a call to my parents. Many people don’t have that luxury.
- alphabettsy 7y ago
  Yea, except for the part where you’re paying 12,000 more over the course of a 7 year loan and the new car warranty ended at 4 years leaving you with a higher payment and you still can’t afford repairs. It can be rationalized with emotions, but not financial sense.
  - scarface74 7y ago
    If you don’t have access to cash or credit to take care of car repairs, the last thing you want is to be paying a car note on a car that you can’t afford to have fixed. As far as four vs seven years. You’re hoping that you can figure something out in four years.

scarface74 7y ago

I think if you are living paycheck to paycheck and don’t have disposable income, it may make more sense to buy a cheap new car with a warranty than a cheaper used car. It’s much easier to get a car with a $350/month car note where you won’t have unexpected repair expenses than getting a $200/month car note on a car without a warranty and then have an unexpected expense. Now we have a credit card with the car shop we used that has a six months/no interest program. I use that even if I do have the money. But if we had bad credit, we could get a car loan much easier than an unsecured credit card. I am at a point in life now where I can afford an expensive car repair bill and it just stings a little bit. When I was first starting out decades ago working at night as a computer operator while I was in graduate school during the day, any unexpected expense meant a call to my parents. Many people don’t have that luxury.

alphabettsy 7y ago
Yea, except for the part where you’re paying 12,000 more over the course of a 7 year loan and the new car warranty ended at 4 years leaving you with a higher payment and you still can’t afford repairs. It can be rationalized with emotions, but not financial sense.
- scarface74 7y ago
  If you don’t have access to cash or credit to take care of car repairs, the last thing you want is to be paying a car note on a car that you can’t afford to have fixed. As far as four vs seven years. You’re hoping that you can figure something out in four years.