Comments on: How should I go about with finances—want to buy a new car? http://www.mobilemerchantaccount.net/how-should-i-go-about-with-finances-want-to-buy-a-new-car-2 The Best In Telephone Credit Card Processing Sat, 11 Feb 2012 07:52:20 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Alex http://www.mobilemerchantaccount.net/how-should-i-go-about-with-finances-want-to-buy-a-new-car-2/comment-page-1#comment-1242 Alex Wed, 12 May 2010 17:26:00 +0000 http://www.mobilemerchantaccount.net/how-should-i-go-about-with-finances-want-to-buy-a-new-car-2#comment-1242 Keep at least $1,000 in an emergency fund in case of job loss, car accident or medical emergency. Chances are the interest rate on a car loan will be higher than what you're paying on the student loan, so it doesn't make sense to borrow at a higher rate to pay off the lower rate debt. Also, I think lenders would be more likely to approve an auto loan if you've made a down payment. I would figure out how much you can afford in a car payment each month since you know your income and bills including the current debt. Use $1,600 as a down payment, and put the rest in savings. Talk to your bank or credit union about your options and what loan terms they would offer before applying at a dealership. Look online for loan calculators to see the required monthly payments for different loan amounts. You have a great credit score, but lenders look at the entire credit report and other factors to determine what interest they will charge. Keep at least $1,000 in an emergency fund in case of job loss, car accident or medical emergency. Chances are the interest rate on a car loan will be higher than what you’re paying on the student loan, so it doesn’t make sense to borrow at a higher rate to pay off the lower rate debt. Also, I think lenders would be more likely to approve an auto loan if you’ve made a down payment.

I would figure out how much you can afford in a car payment each month since you know your income and bills including the current debt. Use $1,600 as a down payment, and put the rest in savings. Talk to your bank or credit union about your options and what loan terms they would offer before applying at a dealership. Look online for loan calculators to see the required monthly payments for different loan amounts. You have a great credit score, but lenders look at the entire credit report and other factors to determine what interest they will charge.

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