[USER]

K peeps. I know how savvy you all are with money. I need your advice. My rav may be getting written off. I will need to replace it with another with a newer model if it comes to that.

I’m looking at sending close to 30k, maybe closer to 37k.

I can dip into my savings for 10k, borrow 10k from my parents and use around 12 ish from icbc payout, then finance maybe around 7ish k through the car company.

I’ll still have around 5k left in my savings and I’ll pay the remaining 7ish k to the car company somewhat quickly.

My parents have offered to lend me any money I need and I won’t have be required to pay them back quick, but I’ll definitely be on the ball with paying them back.

I’ve never financed a car before nor have I had so much savings. Granted my savings is only 15 k but that’s a lot for me. Am I crazy for owing money for a vehicle?

I have zero debt, debt actually scares me and a credit score of mid 800’s.

Any advice on what to do? Ravs have my heart and I put a ton of kms on my vehicles.

They’re reliable and can go well past 350,000 kms if treated well.

[Annette]

I don’t think you are crazy for financing a car. I recommend you do this fast cause the tariffs might make the whole thing cost prohibitive.

Also, I understand loving the Rav BUT I think you should do some research on the newer models, Toyota has made some changes my mechanic is not happy about.

Mine is a 2016 so I have a long way to go before I need a new one.

[Carla]

I have never bought a new car, despite having a good salary and good savings. I think you are wise to say debt scares you.

You could be making money on that savings instead of paying interest.

I would 100 buy a $12k car or maybe use $5k from savings.

If electric works for your driving, you can get a 2022 Bolt for that, and the bonus is that the fuel costs are like 80% less (in CA anyway, where gas is over $5/gallon).

[John]

Why do you think you have to have a newer vehicle than the one being written off?

Assuming it was fine before the accident right?

[Teresa]

Why buy new? I bought an older Honda CRV at a dealership that came from a regular customer that traded in. Had all the records as proof of regular maintenance.

I have had it 7 years and it has been a wonderful vehicle.

Has 245k on it and runs like new.

[Kristina]

If you end up financing part of a vehicle, look at your bank or credit union for their rates first, before you look at the car.

I believe they are typically lower than the dealer unless the dealer is running a promotion on financing.

[Cely]

I would consider getting a car you can afford in cash. I would not take out a loan for it. A car goes down in value.

I would not spend good money on something that looses value.

Invest in a car you can afford to pay in cash for.

This keeps you out of harms way financially which is very important with the rising cost of living.

[Dennise]

There are things to consider besides total money spent (interest vs no interest). I was a freshly graduated person, zero savings, living 2 hrs from friends and family, pre-uber, and my job required driving throughout the day.

As a grad gift my parents gave me a beater car to drive until I could afford a different car. 2 tows/repairs in short time I decided to replace.

I couldn’t afford expensive surprises but could budget a monthly car payment as going forward I knew my paychecks would cover, maybe pay off early. My circumstances determined I get super reliable car.

I bought new, the cheapest car I could get that would fulfill my need.

In addition to reliability I got a warranty, easily carried me until I could afford any upcoming maintenance.

Your situation could be different than mine but you say you drive in rural areas… consider how you would get to work if your car was indisposed. Can you afford a rental?

Would a large repair cause lifestyle/healthcare issues, are your parents or friends a reliable safety net, is your job reliable (unlikely layoffs), can you pay off loan early, are you or do you have a person knowledgable about car engines to check out any used car options (not everyone takes care of their cars, some Rav’s might not get much past 100k), etc.

Zero debt is always a good goal but doesn’t fit every situation.

If you consider anything other than a Toyota, check the bumper clearance, not spec clearance… I bought a GMC Acadia for snowy road conditions and got stuck in my driveway… hadn’t considered that the bumper would be as low as a regular car.

I have since noticed this is the case in many SUV’s snd crossovers.

Good Luck to you, I’m sure you’ll find something that works best for you!

[Maxine]

I love my Corolla, and would like a Rav. Mine was 268K km before I loaned to my kids for 3 months. Very dependable.

Looks like you have a decent plan for finance. Best of luck finding your vehicle.

[Mindy]

Can you tell us why you ‘need’ another RAV? We get by with a Toyota Camry/Honda Accord.

This is just my humble opinion, but I think sometimes people use the excuse of either kids and their stuff and/or hobbies to justify a bigger vehicle.

I know this really doesn’t answer your question, however, I’m just looking at this as an opportunity to purchase a car for cash and then pocket some change.

I might be looking at this in the wrong direction.

[Margo]

Just my input but I love my 2016 crv. Not one bit of trouble with it. Good luck in your search.

[Kimberly]

sign up w your state’s farm bureau. so, Colorado Farm Bureau, etc. $35 membership fee then crazy awesome banking terms.

I had them for my home ins, car, now renter’s, used them for crazy low really awesome hotel in miami last month.

The membership helps offset lots of different benefits.

people think it’s just for farmers but it is so much more.

[Mary]

Also, look around a lot of the car.Companies are struggling to have sales and so they’re offering really low interest rates. 0% sometimes!

[Mary]

Can u buy used? 1-2 years old and save The ten thousand dollar parking lot instant depreciation? That’s what we do. You could save more than $10000. The savings.

Is so important. What interest rate are They offered on the car?

If above 3 too much.

You may want to get an account for $5-25 dollars At a credit union, cuz they Have better interest rates.

[Shirley]

My sons are auto techs. When I needed to get another car they told me to go to Carmax. Carmax DOES NOT buy cars with issues and list all issues their used cars have down to scratches and any repairs they made.

They also make good on issues they missed.

I paid cash for my new to me car 5 years ago and have no regrets.

I agree with everyone. A car loan is not necessary or a good decision.

[Author]

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