I'm looking to purchase a car (for evenings, weekends, vacations and perhaps some track use). However, I don't need one to get to work because I take the train.
I earn about $8150 a month before deductions, and net income is about $5000 a month. I have $18,000 of student loan at 1.5% APR which is paid on the gross income before tax, not net income. Rent and bills is about $1300 a month which leaves me with around $3500 a month cash. I put about $2500 a month into savings, including a Vanguard index fund.
However, despite all this I have just over $13,000 in savings as I had made poor financial choices in the past.
I'm looking to purchase a car for about $5000 and to insure, tax and fuel will be about $250PCM. I have three choices:
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Purchase cash and take out 40% of savings
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Take a loan at 3% APR over 12 months (I have a credit score of 999 and no other outstanding debts)
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Wait 6 months until I have over $25,000 in savings and then do 1
The downside with waiting is that I have a lot of friends who I like to do car stuff with (go the track, meets, or casual drives) and so waiting would put a restriction on social life.
Thanks!
Submitted September 02, 2018 at 09:50AM by SaltKiwi7 https://ift.tt/2wznQcT
