Author Topic: Need advice on car purchase  (Read 1755 times)

Bikesy

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Need advice on car purchase
« on: August 31, 2014, 04:52:15 PM »
Age: me 28, dw 27

Income: gross 76k salary + 25k in various bonuses

Spending: roughly 40k per year

Savings: 10k EF, 2k checking, 6k hsa

Investments: 62k in iras, 3k taxable

Debt: 0


Currently my wife and I have one car.  98 Camry with 175,000, runs fine and we will keep it until it dies.  We recently moved to a new state away from our family and friends and my wife wants to find a job.  My commute is 18miles one way 4 days per week.  DW would likely need to commute 5-10miles into town (we live in a rural area).  And to throw a small monkey wrench into the situation we recently found out we will be having our first child come march!

I don't want to debate car vs no car, but I would like some advice on how to purchase a car should we decide to buy one.  We would be looking to spend 5-8k.  So how do we do it?

1) Cut back on the investments for a couple months, save up some paychecks and pay cash

2) Take money from EF, pay cash, and cut back on the investing for a few months to replenish

3) find a cheap loan sub 3% so we can continue to pile money into our investments.  Pay off whenever.

4) probably doesn't matter since it's a $6,000 car.


Thanks for the help!

thedayisbrave

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Re: Need advice on car purchase
« Reply #1 on: August 31, 2014, 06:09:24 PM »
Congrats on the exciting news!!!

Honestly I think all your options are pretty sound.  When you say "cut back on investments" is that IRA contributions or taxable contributions? I'd be comfortable cutting back on taxable contributions to stock pile some cash, but not so much on IRA contributions.