- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Is buying a used car with a student loan a good idea?
Posted on 7/10/11 at 6:35 pm to DownshiftAndFloorIt
Posted on 7/10/11 at 6:35 pm to DownshiftAndFloorIt
quote:Is that even legal? Can't your entire student loan balance be immediately demanded for payment if you get caught doing this?
Is buying a used car with a student loan a good idea?
1
Posted on 7/10/11 at 8:10 pm to DownshiftAndFloorIt
based on your numbers and gas at $3.50, you will save $300 per month in fuel by buying the car. The note (on a 3 year loan) is about $250 at 6.8% and $225 at 0%. This only leaves $50-$75 for insurance an maint and thats just to break even. I don't think its worth it based on those numbers. If you decide to buy the car, let interest rates be your deciding factor on where the money comes from.
This post was edited on 7/10/11 at 8:14 pm
Posted on 7/10/11 at 8:48 pm to DownshiftAndFloorIt
quote:
It's a 94 with alot of miles
then buy a new truck
Posted on 7/10/11 at 8:50 pm to DownshiftAndFloorIt
quote:
I'm a complete idiot about finances
quote:
So am I an idiot or what?
You can find your answer contained in the two quotes above.
Posted on 7/10/11 at 8:51 pm to LSURussian
quote:
Is that even legal? Can't your entire student loan balance be immediately demanded for payment if you get caught doing this?
Transportation costs are an allowed expense with your student loan.
Posted on 7/10/11 at 9:06 pm to Golfer
I appreciate the responses people 
Getting rid of my truck is not an option. I need a truck for work and I like the one I have alot. Part of the car idea came from saving wear and tear on my truck because I just don't like new ones. I'm very much partial to my old truck. It's pretty unrealistic to think that I can keep putting these kind of miles on it and make it through 2 more years of school without having the transmission blow up and leave me in a bind.
Part of my thinking that I need advice on is the interest thing. Would the interest on a student loan likely be much lower than if I tried to borrow money from another means since I have no credit? I was also thinking it would be good because I (think) I could lump the payments with what I will owe from the loans to pay for my last 2 semesters of school (I will not have TOPS my last year). I'm not sure how all that works.
Getting rid of my truck is not an option. I need a truck for work and I like the one I have alot. Part of the car idea came from saving wear and tear on my truck because I just don't like new ones. I'm very much partial to my old truck. It's pretty unrealistic to think that I can keep putting these kind of miles on it and make it through 2 more years of school without having the transmission blow up and leave me in a bind.
Part of my thinking that I need advice on is the interest thing. Would the interest on a student loan likely be much lower than if I tried to borrow money from another means since I have no credit? I was also thinking it would be good because I (think) I could lump the payments with what I will owe from the loans to pay for my last 2 semesters of school (I will not have TOPS my last year). I'm not sure how all that works.
Posted on 7/10/11 at 9:07 pm to skidry
quote:
skidry
Thanks for the math. Makes it look pretty unappealing. I'm very much on the fence about it.
Posted on 7/10/11 at 9:17 pm to DownshiftAndFloorIt
You have obviously made up your mind so try to get a loan less than 6.8% interest you are paying on the student loan.
Posted on 7/10/11 at 9:18 pm to Golfer
quote:Even to the point of buying a second vehicle? The gubmint sure is easy with us taxpayers' money.......
Transportation costs are an allowed expense with your student loan.
Posted on 7/10/11 at 9:24 pm to saderade
quote:
You have obviously made up your mind
I am leaning a whole lot toward bad idea right now.
Posted on 7/10/11 at 9:27 pm to DownshiftAndFloorIt
Have you found a loan less than what you are paying for the student loan?
Posted on 7/10/11 at 9:29 pm to saderade
quote:
Have you found a loan less than what you are paying for the student loan
No. I haven't really looked. If a student loan is not a good way to do it then I'm just not going to do it. I don't HAVE to have it, and I would like not have to pay on it until I finish school.
Posted on 7/10/11 at 9:30 pm to DownshiftAndFloorIt
quote:
Thanks for the math. Makes it look pretty unappealing. I'm very much on the fence about it.
A car might not be a bad idea if you can realistically save $300/mo in gas.
Don't spend 8 grand though. How 'bout an '01 Civic for $4,500? LINK
That will get your payments down to around $150/mo (depending on rate/term), which leaves you another $150 for insurance and maintenance.
Also remember that Civics hold their value pretty well. You can sell it after school for a few thousand still.
This post was edited on 7/10/11 at 9:31 pm
Posted on 7/11/11 at 2:04 am to DownshiftAndFloorIt
Have fun paying the interest on that student loan.
Posted on 7/11/11 at 3:52 am to DownshiftAndFloorIt
There's not much inherently wrong with using a student loan for whatever the hell you want. It's basically just another personal loan, just a subsidized one. However, you can get a much lower rate by getting an auto loan b/c the car will be collateral, that would be the better way to go.
My main concern is just getting a car. Those things are money pits no matter how you pay for it.
My main concern is just getting a car. Those things are money pits no matter how you pay for it.
Posted on 7/11/11 at 8:55 am to foshizzle
quote:
auto loan
I figured this wasn't even an option. I thought the only way somebody like me could get one would be with a high interest rate because I'm young with no credit.
I'm probably just gonna pass on it. I figured it wouldn't be that bad because I'm only going to have $12k of student loans out when I finish school if I don't buy this car, and I know people who come out over $40k in the hole and appear to be doing just fine. It doesn't look like I was thinking properly though. Like I said, I've never borrowed money for anything, so I'm new to all this.
Posted on 7/11/11 at 8:31 pm to DownshiftAndFloorIt
quote:
I would like not have to pay on it until I finish school.
this car will cost you 20k when its all said and done....
This post was edited on 7/11/11 at 8:32 pm
Posted on 7/11/11 at 9:25 pm to Gutterman81
quote:
this car will cost you 20k when its all said and done
I've been thinking about it and the more I think the stupider it sounds.
Posted on 7/12/11 at 8:16 am to Gutterman81
quote:
this car will cost you 20k when its all said and done....
IF he only makes minimum payments, sure. But if he saves the money saved on gas, and pays that towards his loan, it won't be bad at all.
Page 2 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News