How far would you go for your car?

[whiteballz]

Hey guys,

Really quite a strange question, and it comes from a strange place because of some circumstances I currently am in.

Some of you guys may have seen what happened to my E30 on a wet, overcast and slippy afternoon.

Due to this I have picked up a 1996 Liberty sedan that while sedate and comfortable has done 317,xxx kays and is beginning to drink fuel and rattles / squeaks from the suspension and shocks. I picked the car up months ago for $1500 and is still cheap to insure and run but is hardly an enjoyable drive.

I'll admit I got very nervous when anything surprised me from the left hand of a car while driving. This is a reaction from the accident and I got quite spooked at intersections and blind corners for a number of months.

Only recently I realised I felt comfortable again.

So in so many words I'm looking at getting "back in the saddle"' so to speak.

Unfortunately my insurance company didn't come to the party and the accident was deemed my fault. I have a $9,500 debt currently and am paying it off at $325 per week. Thankfully I have recently signed on in the company as a full time employee (rather than full time contractor) and have gained a pay rise as a result.

The debt company is offering for me to pay $6000 of my debt in a lump sum, and if I do this they will wipe the remaining $3500+ off the debt. So in short almost 40% off the total debt.

With this in mind I may get a loan to cover this and save myself money in the long run. Now here is where it gets tricky.

I'm itching to get into another import (Silvia or Skyline) and I realised if I'm getting a loan why not just borrow an extra ~$7000 and have an enjoyable car again seeing as I'm already going to be borrowing money?

I'll make it clear I DESPISE loans but with my new job and that debt effectively cut in thirds I'll be able to afford the lesser repayments far easier than currently keeping just over half my pay per month on my current repayment scheme.

So in short - Should I get a slightly larger loan and get the car I've always wanted, Or should I just get a loan to cover the insurance debt (saving ~$3500 money) and save up for the car/trip to the US in 2012? potentially delaying the car for 3 years?

Keeping in mind Its not a large loan, totaling perhaps $13,000 Give or take depending on the car.

What would YOU do to get back into a car and way of life that you love?

[Kitdy]

I hate owning money. I can't tell you what to do, but I wouldn't take the extra loan money.

[f6fhellcat13]

I think that that is a pretty large sum of money and that you should be hesitant to take it out. Sure a nice car would be quite fun to have, but that's gambling that you will keep the job and such. On the other hand, it's only money. I guess it's just when you want to make sacrifices, whether it's now or in three years. I personally would wait, keep the Scoobie until it dies or you find something cheap and fun to replace it. Then, in a few years instead of having money going to paying off debts it can go towards something fun.

I hate owning money. I can't tell you what to do, but I wouldn't take the extra loan money.

Goddamn commie Canucks.

[S.O.S]

I'm in debt. so i wouldn't qualify as one to offer good advice.

Then again. you do learn from your errors. so i learnt these things.

Don't get comfortable with what you think you can pay back.
And if you feel it's easy, you could be on the track to living off borrowed money.

I was and still to this day a person who wouldn't borrow $5 to save my life. But i still went into debt.

In your situation, the other driver was a cock. but with this debt you can balance it all up. $9,000 @ $325 p/w will take you 27 weeks. But borrowing $6,000 over 12 months is about $120 in repayments p/w. Interest without charges would be around $450 extra, pay more even less. that's $205 extra in your pocket weekly.
So you could take a $14,000 and still pay less. maybe have your cake and eat it too.

[Ferrer]

I personally wouldn't do it. At least for a used car. And even less if I'd just had been made a full-time employee.

I would just make a loan for what I owed, repay it and then decide.

[fpv_gtho]

Speaking as someone who just put themselves $10K in debt on a personal loan to help get another car, i'd say so long as you can comfortably afford it, do it. Paying $325 a week to the insurance compary is ALOT of money, do they want it all back in 12 months or something? My loan is less than $70 per week over 5 years.

[clutch-monkey]

if I'm getting a loan why not just borrow an extra ~$7000

because owing money sucks as kitdy said
see how you go paying off the smaller loan first imo. then extend it if necessary.

[wwgkd]

because owing money sucks as kitdy said
see how you go paying off the smaller loan first imo. then extend it if necessary.

This. I hate owing money, I'd learn to enjoy whatever sh*tcan I was driving (jump it yo) until I could pay off what I owed. Plus, if you take out the loan, and have another run of bad luck (loose your job and/or your new car goes the same way as your old) then you're really in trouble.

[clutch-monkey]

yep try and envision worst case scenario rather than just best case imo.

[whiteballz]

This. I hate owing money, I'd learn to enjoy whatever sh*tcan I was driving.

I've done that in my past four cars.

And actually been airborne in my Silvia.

I've already decided I'll be holding off at this time.

[Blue Supra]

Sam. from someone who borrowed a lot of cash for my S14 I can tell you this.

DONT DO IT.

It will only grow, once the bug bites and you want this and that for the car (cooler, kit, etc) you will have no problem justifying it to yourself (i already have a 12k loan, whats another 3k?) before you know it its 25k and youve got a 13k car to show for it.....

Dont borrow money. Its taken me YEARS to get debt free and now im loving it. Having actual savings that I can tap into instead of credit is fantastic. Drive the beater until it blows up, accumulate cash in the mean time whilst paying out whatever you owe as quick as you can. It sucks short term but long term its better.

[2ndclasscitizen]

Now, stick with me here because it's going to sound a bit crazy, but how about this: Don't crash.

[pimento]

Now, stick with me here because it's going to sound a bit crazy, but how about this: Don't crash.

Bzzt.. does not compute. Have Silvia, will drift into a tree.

[whiteballz]

Bzzt.. does not compute. Have Silvia, will drift into a tree.

**** you.

I never hit a tree in the silvia...just everything else around it.

[pimento]

Tree can be replaced with other solid objects...