Buying a car...

[Runes911]

Well some of you may have remembered my thread about the used car I was going to get. It seems that they didn't have anything I was interested in. So I propose a question to all of you:

I wreaked my car a month ago, the money from insurance will go directly to my loan. The amount left on my loan will be ~$1,200. I was given $3,000 from my wife's parents. (I HATE accepting money from others but that is another story) Anyway, it looks like I will have to get a new car. I want to know: Which would make the monthly note lower?

a) Useing some of the $3,000 to pay off my current loan, the left over being a downpayment

b) Useing all $3,000 for a downpayment and tacking on the old loan into the new one.

c) It doesn't matter, both scenarios will have the same outcome. (monthly note will be the same)

 

[Lonyo]

How much do you need to spend on a new car?

 

[mugs]

Which interest rate is higher (you probably can't answer that yet)?

Are you even allowed to keep the $1200 loan? I don't know much about that because I've never been in the situation, but you no longer have the car as collateral.

Assuming there is no legal reason you can't do it, use the money toward whichever loan has the highest interest rate.

Edit: I re-read your post again, I think your answer is C... either way you have a loan for the same amount at the same interest rate.

 

[Mermaidman]

I would pay off the old loan for no reason other than to have one less thing to think about.
And I don't understand why do you HAVE to get a new car?

 

[LordMorpheus]

Originally posted by: Mermaidman
I would pay off the old loan for no reason other than to have one less thing to think about.
And I don't understand why do you HAVE to get a new car?

he might mean new as in new to him - at any rate, in your situation I wouldn't even consider buying new.

 

[Runes911]

Originally posted by: mugs
Which interest rate is higher (you probably can't answer that yet)?

Are you even allowed to keep the $1200 loan? I don't know much about that because I've never been in the situation, but you no longer have the car as collateral.

Assuming there is no legal reason you can't do it, use the money toward whichever loan has the highest interest rate.

Well I thought they would pay off the old one and tack it onto the new one.

Originally posted by: Lonyo
How much do you need to spend on a new car?

I am trying to find one in the range of 9,000 - 13,000

Originally posted by: Mermaidman
I would pay off the old loan for no reason other than to have one less thing to think about.
And I don't understand why do you HAVE to get a new car?

New doesn't exactly mean brand new.

 

[AdamK47]

d) get the GTO