Not to put words in DR's mouth, but I think he would be okay with the loan but with the idea that that loan is going to be paid off in 12 months and not 35 to 60 months. Make the loan and it is something you will look to pay off VERY QUICKLY.

 

That's logical.

 

That was my intent originally. There are no hard rules that apply to every situation.

 

And before Wireman jumps in, this is an EVERYDAY situation involving a college grad who needs good wheels in order to do his/her job. I guess if you live in the city and work inside all day, you don't need a car loan. In today's world of virtual offices and constant travel (like me), a good car is a requirement. In some jobs, even if your old car runs perfectly, you can't show up in it. If you entertain customers, your 84 Sentra that runs like a top is going to be a problem.

What I'm basically saying is that I did my part and my kids will have to fend for themselves once they get out of college.

 

Hats off to you. I get it. However, that doesn't answer the question.

 

Would you tell your kid to now turn down that job that I mentioned simply because HE/SHE was going to have to get a loan? I realize its their decision. I'm asking what your advice to them would be.

Hats off to you. I get it. However, that doesn't answer the question.

 

Would you tell your kid to now turn down that job that I mentioned simply because HE/SHE was going to have to get a loan? I realize its their decision. I'm asking what your advice to them would be.

 

No, I'm saying they are adults now and decide for themselves if they want the loan or not. At that point, it has nothing to do with me. I can offer advice, but I'm not going to control my 25-year old son or daughter.

You HAVE to attack the highest interest debt with as much as you can. Why pay the minimum on the 18% interest while paying any extra you have towards the lower cost debt?

 

What is the minimum payment on a credit card debt of $10k to $12k? $50? $100?

 

Increase your income. Ref ballgames, deliver pizza, etc. whatever it takes. A debt total of $20k or less can be paid off in less than a year if you can get focused and aren't afraid to work at it. And if you pay off all of these debts in a year, interest rates don't play a very big part in any of the equation.

I'll still stand 100% behind the point that the "pay cash for your car 100% of the time" argument is great in theory but not at all practical.

 

It is statements like these that support why I continue to purchase stock in banks and loan companies. This mindset has made many people rich.

Increase your income. Ref ballgames, deliver pizza, etc. whatever it takes. A debt total of $20k or less can be paid off in less than a year if you can get focused and aren't afraid to work at it. And if you pay off all of these debts in a year, interest rates don't play a very big part in any of the equation.

 

Exactly right. I needed a little extra money, so I sold some stuff on eBay. You just do what it takes to get things rolling.:thumb:

No, I'm saying they are adults now and decide for themselves if they want the loan or not. At that point, it has nothing to do with me. I can offer advice, but I'm not going to control my 25-year old son or daughter.

 

I ask what your advice would be to your boy, you say you can offer advice yet you still haven't told us what your advice would be. That's what I'm asking.

It is statements like these that support why I continue to purchase stock in banks and loan companies. This mindset has made many people rich.

 

OK, my friend. You answer the question I've asked (many times) of Wireman.

 

You/your child/your friend/it doesn't really matter who has $1,000 in his account. He just got a great job offer that will require him to have a relatively new and nice car. He will take clients out for dinner in it. He will have to drive it a lot to see all of his clients and by doing so will double, if not triple, his yearly income.

 

Your advice would be what when he says "I only have $1,000 and I need a good car. What should I do?"

OK, my friend. You answer the question I've asked (many times) of Wireman.

 

You/your child/your friend/it doesn't really matter who has $1,000 in his account. He just got a great job offer that will require him to have a relatively new and nice car. He will take clients out for dinner in it. He will have to drive it a lot to see all of his clients and by doing so will double, if not triple, his yearly income.

 

Your advice would be what when he says "I only have $1,000 and I need a good car. What should I do?"

 

If you stretch any harder you're going to do the splits. Be careful.:banana:

If you stretch any harder you're going to do the splits. Be careful.:banana:

 

So let me get this straight. I question a supposed teaching. I give a real-world example. I ask what your advice would be multiple times. And all I get is the above?

So let me get this straight. I question a supposed teaching. I give a real-world example. I ask what your advice would be multiple times. And all I get is the above?

 

My advice would be get a nice looking, used car my son, because as soon as you stick the keys in the 2008 model, you will lose about $12,000 of value. Get a nice, used car with 30,000 miles on it. If you have to take out a loan then so be it. Since I put you through college, you should have a pretty good credit score. You should also have a good down payment since you worked a part time job throughout college and established a nice savings for times like these. If you can't buy the used car with your savings account, then get the best available loan and pay it as fast as possible. It shouldn't be that big of a problem since that is the only payment you have (no mortgage, no student loans, blah blah blah). :fight:

My advice would be get a nice looking, used car my son, because as soon as you stick the keys in the 2008 model, you will lose about $12,000 of value. Get a nice, used car with 30,000 miles on it. If you have to take out a loan then so be it. Since I put you through college, you should have a pretty good credit score. You should also have a good down payment since you worked a part time job throughout college and established a nice savings for times like these. If you can't buy the used car with your savings account, then get the best available loan and pay it as fast as possible. It shouldn't be that big of a problem since that is the only payment you have (no mortgage, no student loans, blah blah blah). :fight:

He living with you or in the backseat of the nice car?:jump:

He living with you or in the backseat of the nice car?:jump:

 

Maybe he should get an SUV...

He living with you or in the backseat of the nice car?:jump:

 

Rent is a recurring bill, much like utilties and is not considered debt. If he has that high-paying sales position that has been referenced 32 times on this thread, rent and a car payment are nothing.

My advice would be get a nice looking, used car my son, because as soon as you stick the keys in the 2008 model, you will lose about $12,000 of value. Get a nice, used car with 30,000 miles on it. If you have to take out a loan then so be it. Since I put you through college, you should have a pretty good credit score. You should also have a good down payment since you worked a part time job throughout college and established a nice savings for times like these. If you can't buy the used car with your savings account, then get the best available loan and pay it as fast as possible. It shouldn't be that big of a problem since that is the only payment you have (no mortgage, no student loans, blah blah blah). :fight:

 

Perfect. That's all I was looking for. So car loans are not ALWAYS the wrong choice.