Good idea or not???

[10can]

I am wanting to purchase a used car at the beginning of 2008. I figured by waiting until 2008 the prices on the 2005 and 2006 models would go down.

I'm not sure of my actual FICO score at the moment but on my credit card account it shows a score of 677.

I have $8,000. in credit card debt right now but I can at least pay $4,000. of that off my the first of the year.

Would it be better to just keep paying off this debt over the next 6 months and then at the first of the year apply for an auto loan or get a personal loan now and pay off all credit cards and pay the loan down to $4,000. by the first of the year then apply for an auto loan?

Other than $7,000. in Student Loans I have no other debt.

Thanks

[terry1156]

If you want the car in 2008, but don't need it, I would hold off until the credit cards are paid off. That little sacrifice will help your finances a great deal in the future.

It's hard to know since we don't know the % of the credit card interest rate, but I'm assuming that it is high. If that is the case and you know you can get a car loan for a better %, then paying off the credit card is the move to make.

[Tree0164]

I would focus on paying off that 8k of debt.

Do you have a budget? Stop using the cards as well.

Throw that $4k at the 8k as soon as possible

Transfer to lower interest rate cards if possible

[jamai]

getting a loan now will incur higher interest because of your current credit score, you should wait til you've paid down the debt a little.

[Daniel_Shop]

Why don't you buy a Motorbike?

I have a lot less monthly expenses and more status than a used car.

Me and my wife have 1 Motorbike and 1 Car... so, I have a lot of fun with my moto

what do you think?

[buzz]

I would recommend paying the credit card to a lot lower than $4000, even pay in full. An additional benefit would be that your credit score should go up significantly, possibly well into the 700's. I recently paid off a 0% balance and my credit score jumped from 696 to 758.

Lower debt and a higher credit score should have a profound effect upon your auto loan availability and rate.

[Harrison]

I would advice you to pay off your credit card debt first. Since you are going to buy a car, which will increase your liabilities and expenses, I think you better reduce your credit card debt first.

Harrison

[Daniel_Shop]

A car does bring too much expenses. I strongly recommend don't buy a car but make a very careful financial flow calculation.

A car can cost even up to $1.000 a month. Insurance, car payments, gas, spare parts.... it can reach $1k a month overall.

My moto does cost me no more that $80 per month and I use it all day.