Quote:
Originally Posted by steve8820
When I buy again 12-18 mos from now the car will certainly not be as nice as the one I have now. That is why the decision is tough. However, the objective is to reduce our expenses so I am 99% sure I am selling.....
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I agree with the selling part. It's the re-buying part I'm interested in. Will you pay cash or borrow again? How much car could you pay cash for?
The reason I ask is that I believe through credit most people make bad financial decisions. My personal view on car buying is that: If I'm not willing to save long enough to pay cash, I can't afford the car. Borrowing introduces risk and over buying. Not that it's the end of the world to borrow, but having some amount of resistance to risk is a good thing.
We are buying a car next march, we will be paying cash and may even borrow 6 months of payments out of our EF, then paying it back before saving for the next car.