Auto purchase
I need to buy an additional car- a four seater, since we have a grandchild due soon. I have a small two seater that I want to keep. I owe $4,000 on it. Is it wiser to pay it off, so I have no car loans, or put the $4,000 towards the new (used) car? I am sixty-eight, married, own my own business with good credit. Other than the house mortgage, we don’t have lots of debt.
Terry Says
Used car prices are very high these days. So my first suggestion is to go to www.KBB.com –Kelly Blue book– and check out the prices. Then figure out whether you can really afford TWO cars. I know you’re thinking about where you will put a car seat to drive your grandchild. But how about swapping cars with the child’s parents for the times you get to drive the baby around! They will already have the car seat installed!!
I know you asked about which is the better “deal”. But financing a used car is an invitation to a ripoff from a dealer — unless you belong to a credit union. If you do, check on their financing rates. Then negotiate a price as if you were paying cash (based onthe KBB statistics). Then you can do the financing at your trusted lender if you decide to get two cars.
