BehindBlueI's
Grandmaster
- Oct 3, 2012
- 25,968
- 113
Do you give up a rebate to get the 0% interest? Typically you do.
If you should buy new or used varies. Used prices have gone up and its not the truism it used to be. *IF* you keep a vehicle long term, say 10y or 200k miles, you'll likely find its a wash in terms of cost. Buying a 3 year old car will mean you're in the market again 3 years sooner, paying sales tax again, and the depreciation curve flattens out quite a bit. If you flip every 5 years or less, yes, you're taking a beating. Figure in plates and insurance and you're probably still losing some money to buy new and keep for long term, but not as dramatically as it used to be.
Go to truecar.com and see what you can realistically buy the vehicle for. Make sure you are getting all the rebates you qualify for and that trading a rebate for financing makes sense. Then if you have the money and want it, go for it. You lose money every time you go out to dinner, too. It just depends on what you value in life.
If you can't comfortably make the payment, pay it off in 48 months or less, and while doing so still contribute 10% to retirement and maintain an emergency fund, then pass until you can.
If you should buy new or used varies. Used prices have gone up and its not the truism it used to be. *IF* you keep a vehicle long term, say 10y or 200k miles, you'll likely find its a wash in terms of cost. Buying a 3 year old car will mean you're in the market again 3 years sooner, paying sales tax again, and the depreciation curve flattens out quite a bit. If you flip every 5 years or less, yes, you're taking a beating. Figure in plates and insurance and you're probably still losing some money to buy new and keep for long term, but not as dramatically as it used to be.
Go to truecar.com and see what you can realistically buy the vehicle for. Make sure you are getting all the rebates you qualify for and that trading a rebate for financing makes sense. Then if you have the money and want it, go for it. You lose money every time you go out to dinner, too. It just depends on what you value in life.
If you can't comfortably make the payment, pay it off in 48 months or less, and while doing so still contribute 10% to retirement and maintain an emergency fund, then pass until you can.