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nicsdebt

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Should I buy a new car?
I have a credit score on Credit Karma of 567 (up 16 pts from last month!) I was hired at a new job that pays double what I used to make. I start next week at the new job 67k a year. I'm looking at a Nissan Versa SV 2012 for my 40 mile roundtrip commute, brand new negotiated down to $14000. I don't have much debt. interest rate through Cap One of 7.48% for 60mo payments are $316 plus insurance of $104. Should I buy it to or wait?

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How about a newer used car?

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I've read many financial advice books over the years and the late Charles Givens had some good advice that even he followed.  He was a multi-millionaire BTW.  He bought cars (including the limousines) that were one to two years old.  Such a vehicle is substantially less expensive because someone else "ate" the depreciation and they will stillbe good for up to 10 years more. 

Eight years ago, I bought a Buick Rendezvous.  The retail price of a brand new vehicle was $32,000.  The vehicle was a year old and had 24,000 miles on the odometer.  The dealer wanted $19,900 but, since I was able to pay cash (had recently sold a mobile home) I offered $17,000.  They accepted the offer and I'm still driving the vehicle with no problems.  The finance officer tried to get financing for me (they do make money that way) but my credit score was the pits so the cash offer was doable.

If you have a vehicle that is still running quite well, I'd suggest keeping same and saving up for the newer vehicle.  If your current vehicle is almost on it's last legs, buy a decent used vehicle.  And make sure it is something you can afford by going to your bank for a pre-approved loan, if you can get it.  Your current credit score could hold you back from getting a loan or any financing at a decent rate and, maybe, not at all.

With this newer job, you want to be aware that "last hired, first fired" still holds in the economy, so the higher income might not be something you want to plan on being a reality until after you've passed the probation period. 

Hope your new job proves to be a good career for you.

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