OT- buy used car cash or finance new?

[dana1003]

we're in a situiation right now and not sure what to do..mu husbands car is on its last leg so we're forced w/2 options..take a chunk or our $ and pay cash(it took us a long time so save up this emergency fund-so we'd be using up about half) or finance something new at $300 month.? (leasing not an option-my husband drives 25oo miles a month..) financing would come out to more $ in the long wrong but does it make sense to get rid of a big chunk of $ at once.? im a SAHM so theres only one inome..we cant afford daycare..anyone with any advise id love to hear

 

[Darcy03231]

I would pay cash and then replenish the savings in the same amount you would pay for a car payment each month.

 

[dana1003]

I would pay cash and then replenish the savings in the same amount you would pay for a car payment each month.

ah ...very clever.didnt think to do that.that might work...we're booked to go to wdw in oct and hubby says if he has to buy a car we're not going..im trying to conveince him to do both

 

[belle&beast]

I would pay cash and then replenish the savings in the same amount you would pay for a car payment each month.

This was going to be my suggestion, too.

 

[mariettadisney71]

Finance You can always pay it off sooner and you don't have to drain the bank.

 

[Frantasmic]

Compromise.

Use 1/4 of your savings for a down payment. Then, finance the car for about 12 months longer than you really want to. This may increase your interest rate a bit, but don't worry. Then, pay off the car at the 300 dollars monthly you originally intended. You will get ahead in your payments so that you could skip a few months if you fall on rough financial times or you always have a smaller "regular" payment to fall back on if you need to for a month or two.

 

[dana1003]

yeah...draining the bank is what im afraid of. so some downpayment and tehn pay it off sooner than i can..that might work also

 

[eliza61]

We have an emergancy savings of 3 months living expenses. We never, ever touch that. So we would use any thing we had saved over the 3 month threshold and then finance the rest.

 

[bgirl29]

I too recommend paying cash and then paying yourself the car payment until you are back up to the original savings amount. I would post this on the budget board too, I bet you will get a lot more answers over there.