Should I buy this newer car? ?
I have a 2001 Lexus
Just recently saw a post for a 07 Lexus online. I like the price and miles... actually looks like a great deal so I’m going to test drive it with a buddy of mine who’s a mechanic later today... it’ll cost 5 grand and I only have about 4700 saved up right now. I have a 649 credit score. Not great... DO YOU THINK I COULD GET APPROVED FOR A LOAN FROM NAVY FEDERAL CREDIT UNION? Or any alternatives?
Please only thought out; constructive answers...
Also I’m in the Military active duty
- Coffee DrinkerLv 72 months agoFavorite Answer
Is there something wrong with the 2001 Lexus that is causing you to look for a newer car, or are you just wanting an upgrade? Lexus is built by Toyota and has a reputation for being very reliable, so I wouldn't get rid of one just because its "old" if its in good condition. You might just be trading an old reliable car for a less-old car with some unknown problem.
Also, if the $4700 you have saved is ALL of your savings then do NOT spend it on a car. You need to build up an emergency fund first, then start a separate fund for car replacement. Blowing every penny of your savings on a car is a really, really bad idea.
If I were you and the 2001 is running good I'd just keep it. Pile up savings, build an emergency fund then start setting aside money for a new(er) car once you have at least $5000 (preferably $10k) for emergencies.
Also, banks don't usually finance small amounts and don't like to finance old cars. They just don't make any money on such small loans and they don't want to repossess an old car that would probably only bring $1000 at an auction if you don't repay the loan. There's just too much administrative costs and too little profit. Your credit score doesn't help any. They also figure if you're stretched so thin financially that you can't come up with the extra $1000 or so to pay the difference, then you're stretched too thin to repay a loan.
The fact that you're active duty military just makes this even more of an obvious choice - you will likely have to move around a lot and may even be deployed overseas for extended periods of time. If you just have an old car then when you deploy you can just sell it, save your combat/deployment pay, and buy an upgrade when you get home. One of the worst things you can do to a car is let it sit untouched for months at a time, so by doing this you avoid owning a car that's just collecting dust at home while you're deployed (if you get deployed).
Thank you for your service to this country, but I really think that based on what you've described your best bet is to just keep your current car for a while, save your money, and plan on upgrading to something newer when you have more stability in terms of both your finances and your location.
- Anonymous2 months ago
1. Your money, your choice
2. You will have to ask the credit union in question
3. Find the extra $300 somewhere
- BillLv 62 months ago
Say this to the seller if the car is sound, "I like your car. Will you accept $4500 for it?" And the game begins...
- Jay PLv 72 months ago
It's a pretty safe bet that if someone is asking $5K for a used vehicle, they have an actual lower price they're willing to go down to.
If you like it, offer $4500 ( or something similar ), and if they don't accept, you at least have some negotiation room to maybe go up to $4700.
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- BarryLv 62 months ago
Offer them $4700. If they decline, walk away.
- Anonymous2 months ago
Keep what you have. Save $5000 and its only 6 years older. Credit score needs to be above 700 and anyway, very few places bother with loans so small even with an 800 credit score.
- pit bulls biteLv 72 months ago
you will need to do something with the old one.............i would stick with the one you have
- regeruggedLv 72 months ago
If your car is running OK, keep driving it until the doors fall off.