Took out a loan...

**itsahumanzoo** · 06-25-2007, 05:39 PM

Well, DH and I have been discussing for some time now getting a second car. We wanted to get a minivan for me, and he would keep driving the Yaris. After a lot of research and discussion, we decided it was not a great idea to have two financed cars. A used minivan is out of the question because we want a factory installed DVD player in it, and we'd rather have the warranty of a new car.

So instead, I found a old used volvo on craigslist. The guy wanted $900 for it, but we talked him down to $750. We got a personal loan through the credit union for $2000. $750 of that was to buy the car, and the rest is for whatever work we need to put into the car. Whatever's leftover will be the first payment back on the loan. This is now DH's car, and I have the Yaris.

Now that we have two cars, our next plan of action is to trade my car in for a van. But first we'll pay off the personal loan. We also want to pay off our credit cards so we don't have too many payments per month. That also gives us some time to save up money to pay as a down payment. I don't want to be upside down on a car again, so I want to save up as much towards the van as possible.

Any advice would be appreciated!

**wanderlusting** · 06-25-2007, 06:57 PM

No advice but that sounds like a good plan!

**Mom23boys** · 06-25-2007, 07:27 PM

I think you already have a great plan in place. Congrats on the new-to-you car!

**yvettesm** · 06-25-2007, 07:46 PM

I dont have any advice, I was just cracking up when I read your post because we've been looking at volvos on Craigs List and we also live in So. Cali, so I probably saw your volvo when I was searching!!

**itsahumanzoo** · 06-25-2007, 07:51 PM

Whoops! Beat you to it! LOL!

**dcompton** · 06-25-2007, 09:44 PM

I think you made a wise decision, and congratulations on being among the few who have the willpower and wisdom to settle for something less until getting what you really want is more feasible. You have probably bought yourself a lot of time and saved yourself a lot of stress.

**FrugalMomof3** · 06-26-2007, 12:12 AM

I agree with everyone, glad you found something without breaking the bank (so to speak).

**kaykwilts** · 06-26-2007, 07:46 AM

I am going to differ from the flow and say that buying a new car is never really a good idea unless you are financially able to buy it in cash and it doesn't hurt your financial future. New cars go down in value like a rock. Best bet is to buy a used one that is a year old.

**PrairieRose** · 06-26-2007, 08:27 AM

My best advice would be to keep the cars you have and drive em till the doors fall off for financial peace.... . You may payments on the one (after you get the personal loan paid off) but if you keep it for years and years and drive and maintain it well you could easily drive it until you're completely debt free. It's easy to get new car fever but if you think about it, in most other countries people drive really small cars with large families and never think about trading. Hang in there, you'll be on better footing in no time since you've decided to take control of your finances.

**Buckeye5** · 06-26-2007, 09:51 AM

I too, am glad that you found something. I hope you will enjoy it.

**Luv2BeFrugal** · 06-26-2007, 01:33 PM

Sounds like you made wise decisions! Great job!

**nodmicks** · 06-26-2007, 03:01 PM

I just have to go off course her and ask how do you like the Yaris???? I am planning to replace my car(hopefully it will hold out another year or more) and a yaris is on the possiblitiys list.

Our car plans are no loan if possible. Likely used (let someone else take the hit) and if it croaks beforewe cauld pay cash(I sure hope not) no longer that a 2 year loan. I might be an odd ball but I think long loans are just nuts.

I think you were very wise to buy the volvo!

**itsahumanzoo** · 06-26-2007, 04:05 PM

I like the Yaris a lot. It is very reliable, and the gas mileage is extremely reasonable. The only downside I see with it, is that it is very very small. Right now we have a small family, but I nanny a two year old, and we are planning on having another baby in the near future. I definitely won't be getting 3 carseats in that car! I'm not in a huge rush to upgrade to a van, but it would be nice.

**nodmicks** · 06-26-2007, 04:10 PM

Thanks for the info! If the ins reasonable? I know some compacts like Dh's kia are kinda high. 3 car seats would be alot!

**Jaded** · 06-26-2007, 04:13 PM

Sometimes, you have to go into debt to get ahead. If I'm going to get the job I really want, I'm going to have to buy another, more fuel efficient car, and some new clothes. I'll probably look to get a home equity credit line sometime soon.

I hate to do it, but I believe it will pay off in the long run.