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TheRealMafoo on 11 July 2010
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sethnintendo said:
TheRealMafoo said:
sethnintendo said:

I went to local credit union and got a bellow 5 percent interest rate (recently borrowed 2k more on car (to get ahead of bills) and reduced interest to below 4 percent interest).


What kind of car do you drive where you can get 2K more money for it?

Just asking, because you can buy a car outright for 2K, so you could have sold the car for at least 2K more then you owe, bought a 2K car, and not had a car payment (if you have one).

Yea, I could have went that option.  I drive a 05 Honda Civic EX Special Edition.  I owed about 5k on it.  I wanted to get spare money to actually get ahead on my bills instead of making it paycheck to paycheck.  I could have sold it for about 7-9k (Kelly Blue Book has value around 10k at most).  Then bought a car for 2k.  Basically, I am looking at it for long haul.  Civics have good reliability and I like mine (standard transmission, color (color of dirt/ beige), and is in decent shape (hasn't messed up on me yet/ runs great)).  I could have sold car and wiped out my car loan debt then bought a 2k car (it just seemed too much of a hassle to me (plus I didn't want to get a lemon car and have to start repairing it) and would rather just keep mine since it is running perfect and has about 52k miles on it (all from me))).  So I borrowed 2k more on car (increased payments by about 40 dollars a month and time frame of paying back loan (increased it by 6 more months), but I did least get them to reduce the interest rate to bellow 4 percent.  Basically, I was lazy and it seemed like a decent deal at the time for amount of effort.  I just wanted to get some breathing space in between bills which I managed (have rent paid off till September now).  I wont go too much into my fiances or lack there of but I was kind of screwed for awhile (living paycheck to paycheck).


Glad you got ahead of it all. That is a very reliable car. There is value in knowing you have been the only owner.

I just hope you used that money to pay outstanding dept, and not for the purpose of paying month to month bills. If it was to extend a lifestyle that cost more then your income, it's a gamble that by the time your 2,000 runs out, your income has not improved. So if in september, you run into the same problem, you have done yourself no favors. You are in the same boat, but with less assets (because you leveraged the car). You will in fact be, worse off.

You sound like a smart guy though, so I asume you got it all covered. This is more for other people reading, so they know borrowing to sustain a lifestyle that's outside there income level, is a very bad idea.