Is a car a good debt or bad debt

Former Member

I'm contemplating buying a car. I can afford the monthly cost from buying one but I don't want to be in debt from buying a car since I already have one that has no problems at all. The man has a savings account for cars only. As in, he only buys a new car when he has enough to pay for the new car he wants in cash, so he has no debt. He just bought a new beemer and that makes me feel like shit with my cheapo car. I really want a new fancy car, but I dont want to spend that extra on interest and not have the money up front. Any opihnions?

Former Member

Debt is debt, and if you can afford the repayments, then the debt shouldn't bother you, just so long as you pay it off.

Or you can put aside what you plan to be the repayments until you have enough for the car...

Former Member

Well, debt isn't always just debt though. With cars you have HP arangements where you don't own the car until after the last payment. I have a car on HP but it's not a great arrangement, if you can do it another way- do. You're just being a flashy git though, buying a new car when your current one works! Save your money for when you're studying.

Former Member

Aside from getting him to buy it for you, which would seem like an emminent proposition, do you not have the same sort of "car supermarkets" over there in the US that we do here?

Most of them will do you fairly good deals, like 0% interest, or interest that's much lower than a card or bank, if you have a reasonable deposit.

There's no magic way of doing it though, and I don't see anything wrong with commiting to a schedule of payments, so long as you can keep them up. Of course, if you're going to college that might interfere with paying maybe?

Former Member

It sounds as thou US car buyin is diff to UK. As long as you can afford the repayments and still afford to do all the things you wanna then i don't see the prob. Think its a good idea to set up some kinda payment plan so u kno exactly how long its gonna take to clear the debt, and sort out ur finances so u can stick to it.
You do have a car that works thou so u don't need it, but i understand its nice to upgrade n i'd prob b doin the same!! Theres not much point havin this flashy new car thou if you can't afford to go out anymore after buyin it!!

Former Member

I agree with what everyone else has said. Don't bother getting into debt for something you don't need. You can still drive the BMW when you wanna feel flashy......if he lets you.

Former Member

if the car you have is fine then don't get another!

get some new wheel trims or something. when i bought some for my car it made it look so much nicer!

Former Member

There's no such thing as a good debt or a bad debt.

If you can afford the repayments, and you think its worth it, then go for it. I don't think its worth buying a new one if your current one works, but you may think differently.

Former Member

its ok imo,but do expect to loose money,cars do not hold value for very long.allways a bad investment.....but then again its what you want out of life.

Former Member

I'm not allowed to drive his cars I'm what you would call... it was either a risk, or a very shitty driver, can't remember. I guess I'll wait, after all, my car, though 5 years old, has only 70,000 miles and I only drive about 1k a month. It can last. Thanks Plus, in a few they'll have all those mini cars out and I love cute little cars. Right now the corola or civic interested me, but think, smaller :hyper:

And there is such thing as a good debt and bad debt. House, good. Credit card, bad. College debt, ok.

Former Member

Smaller Civic? Think about a Honda Jazz if you want a cute car:



Or smaller corolla? That'll be the Toyota Yaris then:



Both ultra-reliable apparently, and fun.

Former Member

Ugly, and I've never heard of it, but thanks Thats what I am going for, minus the hatchback. Hatchbacks are the devils work... or a blind mans... I think the yaris is a Chevy Aveo which I was t hinking about but I've heard its unreliable.

Former Member

It's not a chevy. The Yaris came second for about three years in a row in the Top gear reliability test (in the UK). It was the only car in the top ten that wasn't about £40k+. I don't think they do small cars that aren't hatchbacks. Suppose a small car in America doesn't mean the same thing as a small car here though.

Former Member

I'm With Stupid wrote:

It's not a chevy. The Yaris came second for about three years in a row in the Top gear reliability test (in the UK). It was the only car in the top ten that wasn't about £40k+. I don't think they do small cars that aren't hatchbacks. Suppose a small car in America doesn't mean the same thing as a small car here though.

Oh I got it mixed up, it was something with a D or something the Aveo was. I'm stupid your smart. the Yaris is what I was looking at, one of the new (to us I guess) minis!!! I want it, but not hatchback I know they do it as a sedan, as I've seen it

Former Member

my_name wrote:

Oh I got it mixed up, it was something with a D or something the Aveo was. I'm stupid your smart. the Yaris is what I was looking at, one of the new (to us I guess) minis!!! I want it, but not hatchback I know they do it as a sedan, as I've seen it

I'm gonna be learning in a mini soon, cos my driving instructors buying a new car. Should be fun.

Former Member

Oh I'm so jelous! And they do make a sedan! http://www.toyota.com/vehicles/future/yaris.html?s_van=GM_Homepage_Yaris_txt (I got scared for a minute... though looking at it here makes it look ugly still... not as sedany as I'd like it ) Going there actually made me take it off my list...

Former Member

It's bad in the sense that it will only ever lose you money, whereas with a mortgage your house is more likely to increase in value.

Apart from that debt is debt.