have a finance question..

[isaldjgxi]

hey i am wondering if financing a car is a good idea. I make around 1100 a month and pay 550 for rent. i checked yahoo finance for the maxima, and it sed i can get it for 60 months at a monthly price of 295. Im just wondering why people say financing a car is a bad. Would it be because of the interest?

[maxhopper]

Well the longer you finance the loan for, the more intereset you are paying (giving to the bank). If you are financing it for 60 months, what happens after the warranty is gone in 3 years, and something needs to be replaced on the car? Are you going to be able to afford the repair while still making payments? If you do get financing, do not get it done at the dealership. Go to your bank, and talk with a loan officer there about your options. They will be up-front with you.

[MinisterofDOOM]

Also, if you are attending school at a college or university, find out if there is a student credit union. You may be able to get a better loan through your university credit union than through a bank.

I make almost the same exact amount as you, but pay slightly less for rent. I was considering picking up an '04 Maxima or an '03 Z and financing. I decided against it, for various reasons, including the one Maxhopper listed. The main issue with spending half your money on a car is that if there is an emergency (car repairs, or any other repairs, or you are injured or ill and have to go to the hospital) and you need money, you're automatically down to 600 dollars. That's not a lot...especially after food and gas and such.

Sorry, not trying to be preachy or dissuade you from buying the car, I've just seen this question asked a lot lately, so I figured I'd cover most of the bases at once. If you can afford it and it's important to you, go for it. A new car can be a good investment, and a great way to improve credit.

[audtatious]

$295/mo for an '04? Doubtful without a lot of money down...

Will you be paying your own insurance? I would check the rates with the '04.