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Pay cash, you’ll be fine.
Very proud of you for shopping frugally.
Let's grind so we don't have to grind as much in our 30s!
1. Yes it’s a reasonable budget. You can get a great used car at that price.
2. Pay cash. You have the savings and it will bounce back fast given your frugal lifestyle
Pro
Succinct. I appreciate that
GREAT PLAY! Nothing wrong with those who do, but a lot of people spend crazy amounts on a car. For me cars are just to get from point A to point B. I live in Chicago and was recently able to negotiate a private sale from 16.5k to 13k, that seemed to be the sweet zone where we found a couple options that were in great condition and wouldn’t have expensive repairs looming. I recommend doing a down payment and just churning out a long term low interest loan with tiny payments. Then keep that extra cash invested or in a true emergency savings or put it towards a down payment. At some point you’ll probably just wake up one morning (when you’re earning more or just got a fat bonus) and say F’it and just pay off the car OR if you buy a home you’ll be glad that you didn’t spend all that cash on buying a car in one large payment and you’ll be able to spot a bigger down payment on the home
You’re doing the right thing by looking at that price range for your situation.
The way I approach buying a car is to think in terms of writing a check for the whole thing. Once I have my number I stick to it, shop, and then usually put down half, and finance the rest as long as I’m getting a low APR.
Depends on what interest rate you can get. I got 0% so it made sense to finance it, but that’s unlikely for a used car. I’d pay cash unless you get a sweet interest rate.
Most used car loans are above 5% APR. You should also factor in insurance premium differences for cars you’re considering, and how they vary based on cash vs. finance purchase.
Price is dependent on what you’re getting. Go Japanese and shop local FB and CL deals. People will let go a car for 20%+ less than asking if you know how to make it easy before EOY.
What car are you thinking? Agree on cash for you.
Used car market seems a quite inflated at the moment, maybe a short term lease (1 year) would be an idea to wait until prices are more reasonable, if you want something right now.