Taking out a loan?

cant_focus · Sun Apr 20, 2008 1:20 am

Am I stupid for getting the idea to take out a loan to get a turbo kit? I mean, I could just save the money and get it at like the end of the summer....but I'd rather take out a loan and install it now so I have it for the summer...I could pay the loan back within a year or less easy.... >.>

grocerygetter · Sun Apr 20, 2008 8:58 am

cant_focus wrote:Am I stupid for getting the idea to take out a loan to get a turbo kit? I mean, I could just save the money and get it at like the end of the summer....but I'd rather take out a loan and install it now so I have it for the summer...I could pay the loan back within a year or less easy.... >.>

Depends, heres a couple of things to consider.

1) This requires you being totally honest about yourself, do you have the discipline to pay back the loan and not spend the money elsewhere?
2) What is your current employment status like given the over all economy and the specific sector that you work in (do you want to take the chance of being unemployed and have an additional payment hanging over your head?) and could it affect your ability to pay?
3) What interest rate and how much more would it cost to buy it now on credit vs. buy it later cash?
4) How would this purchase impact future plans or your ability to overcome any financial unknown that may arise (example you break your tranny and haven't got the cash to pay for the repair now you are out the car and can't get to work and can't make the payments, yeah a bit extreme but you get my point).

A few things to ponder...

Brian

spots25 · Sun Apr 20, 2008 4:39 pm

honestly, taking out a loan to put a turbo kit on your car is one of the stupidest things you could do. It's fine to take a loan for a necessity, (ex: house, car, life saving medical procedure) but everything else is off limits. If you don't absolutely NEED it, you pay for it up front or go without

Deagle50ae · Sun Apr 20, 2008 4:55 pm

If you can get a low interest rate, deferred, student loan and the paying more than the monthly minimum is easy for you... go for it.

Putting money into a car in the form of modifications (especially an econo box like the focus) is stupid. but if cars are your hobby, than that's your justification.

Some people finance big screen TV's or boats or motorcycles, or even vacations and furniture. it's no different.

Patalrob · Sun Apr 20, 2008 8:00 pm

You could thinka bout Refinacing your car mybe.. Another thing to think about. I will be with my 07 just to get a lower intrest rate.

ZX2_racer · Sun Apr 20, 2008 10:56 pm

don't do it. Not worth it man. Just wait a few months and save a lot of money and you'll get it all together faster than you think.

focus_SWT · Sun Apr 20, 2008 11:13 pm

I take out loans just to build credit. I always have. If you can pay it back go ahead. I typically take a loan out for the full amount, but pay it back in less then six months to a year. I know can get any loan I want and any time, The bank loves me. But, i can pay it back.. A little trick devide the payment in 4. Then just have the bank deduct that from your weekly check. You wont miss 35. 40. dollars a week, but 160 at the end of the month you might.

streak · Sun Apr 20, 2008 11:14 pm

its not that big of a deal. as long as you pay it off on time. my old computer died and i didn't have the money to buy a new one. so i bought it on credit and paid it off. no big deal. i made my payments on time and then when i had extra money paid it all off. so in the long run it showed on my credit report as good. remember when you need credit in the future its always better to have a history that shows you pay well and on time.

the longer and postive credit history you have the better. having a credit history is actually very good. starting small can also be good. the key is to showing you can pay and that your a good investment for those giving the loan.

spots25 · Mon Apr 21, 2008 11:34 am

Deagle50ae wrote:Some people finance big screen TV's or boats or motorcycles, or even vacations and furniture. it's no different.

and that, IMHO, is stupid

Mon Apr 21, 2008 11:58 am

spots25 wrote:
Deagle50ae wrote:Some people finance big screen TV's or boats or motorcycles, or even vacations and furniture. it's no different.
and that, IMHO, is stupid

Different aspect and everything...Thats just how some people are able to make big purchases like that, Tv's Furniture, washer and dryers..stuff like that...

I could see why people do it. For my supercharger. I saved and saved so I could afford mine...I should have just done a major loan payment...LOL it just leads towards more money wasted on the car...

Y2k · Tue Apr 22, 2008 2:54 pm

o2designs wrote:
spots25 wrote:
Deagle50ae wrote:Some people finance big screen TV's or boats or motorcycles, or even vacations and furniture. it's no different.
and that, IMHO, is stupid

Different aspect and everything...Thats just how some people are able to make big purchases like that, Tv's Furniture, washer and dryers..stuff like that...

I could see why people do it. For my supercharger. I saved and saved so I could afford mine...I should have just done a major loan payment...LOL it just leads towards more money wasted on the car...

thats what i did when i had teh red, save the green and it paid off after a while, debt free...phew

5doorfury · Wed May 07, 2008 9:11 am

I am all for having good credit. But loans (as mentioned above) are tough with our economy the way it is. Think hard, and maybe consider saving half the money, and then taking out the other half on loan. Then you get the best of both worlds. Good credit, faster car (sooner), and a little less interest paid.