Owning a car is a fantastic feeling
Owning a car is a fantastic feeling
How I Got My Car Loans
From around 18 to 22 I had paid cash for my cars. They were definitely beaters, but they were fine for a college student getting around. After awhile I felt like I deserved a newer car since I worked so hard and people were telling me how cheap it was to get it. I looked around and found a used car for a good price, but it was still too much for my income at the time. The dealer had an easy solution: get a co-signer. So my mom agreed to co-sign (I love her, but I now know this was a bad idea) and I got the car I wanted.
Fast forward a few months later and I got into a wreck and my car was totaled by the insurance company. I got a check from the insurance company for a little more than $2000 (the difference between my car loan and its worth). I should’ve gotten a used car with that money and it would’ve been good.
Instead, I let ego and peer pressure to cloud my judgment again and I got another car loan, again with a co-signer. (When I say loaning money to family can be a bad thing, just understand I have been on both sides of the table.) The payments were lower than my first car loan, but the interest rate was high ( almost 14% I believe).
Having no car loan is a fantastic and while I do time to time want another car, I understand that getting a car loan is not the best solution. Tomorrow, I’ll share how we did it and how to pay for a car with cash.
Photo Credit: stevoarnold
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