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Posted in Auto Loans
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Question By
GlennPoP

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Should I take out a loan to purchase a new-used car, a brand new car, or don't do it at all?
I'm 20 years old and don't have any auto loan history. I would be looking at a vehicle in the $15,000-$21,000 price range, and am comfortable putting $4,000 as a down payment. To be quite honest I'm a newbie when it comes to auto financing and I understand a wrong move here can most definitely hurt me in the long run. I do have an unsecured credit card, but under a cosigners name (have had it for about a year now) and Credit Karma gives me a score of 741 across the board.

Thoughts and opinions? Just thought I would ask the more educated populace here :)

Thanks!

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Since one of your options is; not do it at all - I'd pick that one. Anytime you pay interest; it's wasted money. The only time interest doesn't matter is on a mortgage loan, if you file long form, to deduct the interest.

If you need a vehicle, then pay cash for as much as possible. There are lots of pre-owned vehicles with warranties out there.  A new vehicle is going to depreciate the moment it's driven off the lot.

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