Should I take out a 3,000 private loan to buy a really cheap car with it and use it to get to school everyday? Because the school is basically in the middle of nowhere so I would have to take 3 transfer buses, two trains, and then walk the last 17 min to get directly to the school. Then redo the whole process over 2x a day for 5 days a week. It will take me 3hr 17 min with public transit and 45 min by car.
But my main confliction stands from my mother telling me that I could go to jail for taking out a student loan to buy a car with it? But my only purpose is provide transportation for me to get to and from school. This will be my first time taking out a private loan so I am uneducated about the whole thing. That's why I wanted to ask everyone on this site first before I go off what my mother says.
In the end I think you would save by getting a separate auto loan (unless the payback time frame is the issue). The rate on my car is less than my federal student loans, plus, the longer it takes to pay the loan back, the more interest you will have to pay for it in the end. Make sure that whatever car you choose to by that it is in relatively good condition. Today there are very few cars going for 3K that are in decent shape. If it breaks down every other day you won't be using it to get to school and you'll be constantly getting it fixed, costing you even more money.
I think there is nothing wrong with an auto loan if you have stable income and buy a car that you can afford. I'm currently financing my car and it's going to be paid off 2 years earlier than expected. The op does not work so how would she make the payments? How about the op credit history? Car loans are little more harsh in the sense that missing 1 or 2 payments can end up getting your car repossessed. With the op current situation, I don't think it will be smart to get an auto loan even if she did get one, the loan interest would be terrible.
I was actually in a car accident last November where my ex-boyfriend collided into another car by trying to hurry up and make the light. I suffered a broken bone and a fracture in my rib cage (which took about 6 months to heal completely) and received an abrasion on my back and two on my upper arms. I will be receiving 10,000 or more in October from his issuance. So would it just be smarter for me to wait until October to buy a car and just use the public transit for now?
Yes, If you are truly going to be receiving that money in October then you should wait. Start researching cars now ,figure out price range and stick to it.
johsonmichelle
527 Posts
I think there is nothing wrong with an auto loan if you have stable income and buy a car that you can afford. I'm currently financing my car and it's going to be paid off 2 years earlier than expected. The op does not work so how would she make the payments? How about the op credit history? Car loans are little more harsh in the sense that missing 1 or 2 payments can end up getting your car repossessed. With the op current situation, I don't think it will be smart to get an auto loan even if she did get one, the loan interest would be terrible.