Monday, December 10, 2012

The New Vehicle

I did it! I went ahead and got the car I wanted. I found a used one on eBay so I went and looked at it. After spending 3 hours at the dealership test driving and working through the financing I decided to get it. It is a 2013 Hyundai Elantra Limited. It had 8900 miles so I saved $3,000 off when compared to buying a new one. The price may seem a bit high but it has all the features I wanted like Proximity Key and Navigation. I love the car and I think it was the right purchase:




I ended up financing $21,600 and that includes taxes, title and registration. The interest rate is 2.99% for 60 months (800+ debt score). The payment is $407 dollars. I plan to pay $500 per month to pay this down a little faster. This loan had no money down so the money from old car went to pay off most of our credit card debt. I put a little bit of that money in savings so it can be used as an emergency fund, I never want to fall in to credit card debt again.

I know financially this may not make sense but our credit card debt got a little bit out of control. The rates on the cards ranged from 12.99% to 14.99% so 2.99% is a lot better. Feels like a huge weight was lifted off my back. I kept sending money to the cards but the balance never went down. Over the next few months I plan to save at least $500 from every paycheck. I already started this new 'habit' this month and sent some money to our Discover online savings account.

HS

7 comments:

  1. Congrats on being able to bring down your credit card balance!

    I know how discouraging it is to send in monthly payments (more than the minimum) and the balance goes down minimally due to all the high interest rates. I literally feel depressed when I check my credit card balance.

    The car looks pretty cool but I hope you can pay down $21,000 fast since although the interest rate is lower, the balance is higher, which may come out to being the same.

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  2. I agree but keep in mind before previous car was paid off I was paying a car note and sending the CC's tons of money.

    HS

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  3. This is pretty slick. I like the way you did all this and got a car you like out of it, too. I assume your car loan had been paid down enough that you had plenty of equity in the car, since you were able to pay off debts with the equity and put some cash away, too.

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  4. Nice car. Congratulations. Glad it all worked out for you.

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  5. Very Nice. Come by work and lemme see it :)

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  6. Sounds like a good deal. Now, put away the CC!!!

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  7. I don't know. This seems like it was a "want" more than a need. Would it have been possible to continue driving the car you sold? I don't think it's a great idea to assume more debt right now, which is what a car loan does.

    And maybe I'm weird but "equity in a car" sounds very wrong to me.

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