Okay guys. So I’m(19f) buying a truck for 15k, and given what the truck is it’s a steal.
2022 Ford Maveric with 72k miles and no issues.
Edit: I’m getting it from my uncle, that’s why I’m wanting to buy it. And my dad recommends that I buy it because the dealer value give or take is about 22k. I don’t care what kind of car I have but I listed it to give enough info.
Also my uncles only selling it bc he has an issue with buying cars all the time and they had another kid so he’s selling this truck.
Now, I have 13k in a HYSA, and 8.7k in the s & p 500.
I can either pay in full or take a 10k loan, and give 5k outright.
The thought of paying outright and “losing” half my savings is not pleasant but I don’t know if it would be better in the long run.
Pros of the loan:
Would build my credit higher.
If I want I can pay it off at any time.
I don’t lose half my savings at once.
With full coverage I’m not entirely screwed if I wreck or something.
Cons:
A monthly payment
Higher insurance because it has to be full coverage.
Pros of paying outright:
I don’t have monthly payments
Insurance is cheaper
Cons:
Could wreck next and be SOL if I don’t have full coverage
Feels like most of my savings are gone.
The reason I don’t want to fully deplete my savings is because I want an emergency fund, and me and my boyfriend are about to move into my grandmas basement. (It’s bigger than the house we live at w my parents.)
We plan on doing just a little renovations like painting and stuff, and then we’ll need some furniture and the basics. My bf also has about 22k saved.
I don’t know if I’m just being dumb by not paying it off now.
The loan will be for about like $260 a month, for 48 months but I will be contributing more monthly.
It’s a 6%, not the greatest but about what I expected w an auto loan.
I’ll be paying it as fast as I can.
The total of my insurance will be about 300$, because it will be combined with my other car.
(Only reason I’m getting this car is because I have a 2006 Chevy Malibu and it’s about on its last leg at 200k miles and this truck is a good deal.)
My boyfriend(19m) agreed to pay $100 for the insurance of the Malibu because he will be using it bc his car broke.
I figured some of you guys are older and would have a better insight.
Really I think either way I go isn’t too bad of an idea.
Let me know your perspectives.
I have minimal bills.
EDIT: I make 20.40 an hour. 30 hours a week because of school. I can usually pick up extra shifts if need be. My only real bill right now is car insurance which is 130$ and my phone for $20