Good morning, blog world!
I mentioned in my monthly update post that it's time to buy a new car. Unfortunately, that means I'm adding on a car payment in the midst of trying to get rid of debt. It's safe to say this is not a happy decision for me but unfortunately it is necessary.
As I look at what I can afford, I am completely torn. A newer, nicer, reliable car will likely last me 10-15 years, but it hits the max of my budget, which is already as tight as can be thanks to this spending challenge. This loan will last 3-4 years, which means I couldn't incur any further expenses for the next 3-4 years unless my income drastically improved and I would barely make a dent in additional debt payments with my paycheck alone.
However, if I look at an older car with higher mileage on it, it will cost me a few thousand less total but will likely only last 5 years max and the chances of it requiring repairs is obviously higher.
Thankfully, I have found a wonderful credit union who is offering 2.99% interest on any car loan I get, which is the best deal I've found so far. That's the only silver lining I have found so far.
I am frustrated to be adding to my debt when I am trying so hard to reduce it. I'm frustrated that I have worked several jobs for my entire adult life and yet I'm always pinching to make ends meet. I'm frustrated that in all my years of learning about finance, I'm still in this situation. There are so many times I could have been smarter and I'm kicking myself for not applying what I've learned. I'm scared that I will take on more debt, be in over my head and not be able to get myself out of it. I'm scared that I'll take out a loan and something horrible will happen to the car and I'll be in big trouble financially.
I am trying really hard to set aside my emotions and do the smart thing. But to be honest, I'm not sure what that is.
Have you bought a used car? What models are good? How much mileage is too much? What would you do??