How to Save for a Car?
FreeMoneyFinance has a great article on purchasing you next car with cash. I would love to be in a position to follow that advice. The last thing we need to do is add to our current debt situation. So, I need to consider what options do we have.
Currently, we are paying off a 5 year loan on our minivan. The loan began in May of 2006 and we have another 3.5 years left to payoff. The monthly payment is about $275 with the remaining balance hovering at $11,000 at 6.9% interest. My car, a 1993 Corolla, probably has a coupe of years left on it. The next inspection date is July, 2009 and I don’t see it doing too well at that point.
At that time we will still have 1.5 years left on our current loan, and at this rate, no savings for a large purchase such as this. So thanks to FMF, I have something else to add to our list of financial worries.
Filed under: Cars
