Savings Vs Debt Pay off? free advice please?

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<p>I think used with low milage is the key.</p>

<p>my MINI had 4500miles on it when i bought it. in March 2006. it was first sold in Aug 2004. I paid 25K at the same time the new 2006 similarly equiped were about 33-36K. </p>
 
<p>leasing is NOT always a ripoff if you know what you are doing. The key is to look for a lease subsidized by the factory with BOTH good money factor, and good residuals. </p>

<p>I have a purchased vehicle, and a leased car. The vehicle you know you will keep for a long time, it is a no brainer to pay it in cash or quickly pay it off, unless you get a factory subsidized loan independent of the purchase price. For the vehicle you know you won't keep for more than 3 or 4 years, it is best to find a factory subsidized lease with GAP insurance included. It is not easy to spot a subsidized lease and be able to negotiate a good price on car also. The basic BMW 3 series often offer some of the best leasing deals from the factory (good money factor at an equal. of 2%, and one of the best residual values). However, you can potentially get screwed by the salesmen on the price if you are not careful. </p>

<p>Like anything else, do your home work first. </p>
 
<p>ventouxbob:</p> <p>Yes, putting it on a credit card is a risky proposal for an average Joe. And this only works if you have a credit line 3 X the amount you want to borrow. Otherwise, you are correct your credit score will be compromised. Ideally you spread this $16,700 amount over 2 credit cards with $16K limits each. So balance on each credit card would be ~ $8350K. Then you use your 3rd credit card for regular purchases. </p> <p>Backup plan is to refinance the car. </p> <p>You can refinance used cars 5.29% for 80% of new car value up to 48 months with limit of $100K see <font face="Arial"><a href="https://www.penfed.org/productsAndRates/loans/vehicleLoans/usedAutoLoans.asp">https://www.penfed.org/productsAndRates/loans/vehicleLoans/usedAutoLoans.asp</a></font></p> <p>I should warn you, PenFed have very strict guidelines, they reject liberally</p> <p>I paid off my first new car in 12 months worth 1/3 my gross salary. Used zero interest rate credit card transfers, back when there was no cash advance charges. </p> <p>You are in good financial shape. Keep saving and be sure to invest in a Roth IRA, if you are below the income limit. If not you still can still contribute to a taxable IRA (not get tax deduction) but rollover to a Roth IRA in 2010 or use it for a down payment on your first home. </p> <p>Leasing is only advantageous if you have a cash generating business to deduct the leasing expense. Or you work for a car manufacturer like Toyota or Mazda. They have great lease rates which include maintenance and GAP insurance. One employee can lease up to 4 cars, for family/friends so start looking for friends in the right car company!</p> <p> </p> <p> </p> <p> </p>
 
<p>ventouxbob:</p>

<p>Yes, putting it on a credit card is a risky proposal for an average Joe. And this only works if you have a credit line 3 X the amount you want to borrow. Otherwise, you are correct your credit score will be compromised. Ideally you spread this $16,700 amount over 2 credit cards with $16K limits each. So balance on each credit card would be~ $8350K.. Then you use your 3rd credit card for regular purchases.</p>

<p>Backup plan is to refinance the car. You can refinance used cars 5.29% for 80% of new car value up to 48 months with limit of $100K. <a href="https://www.penfed.org/productsAndRates/loans/vehicleLoans/usedAutoLoans.asp">https://www.penfed.org/productsAndRates/loans/vehicleLoans/usedAutoLoans.asp</a></p>

<p>I should warn you, PenFed have very strict guidelines, they reject liberally. </p>

<p>I paid off my first new car in 12 months;worth 1/3 my gross salary. Used zero interest rate credit card;transfers, back when there was no cash advance charges. </p>

<p>You are in good financial shape. Keep saving and be sure to invest in a Roth IRA, if you are below the income limit If not you still can still contribute to a taxable IRA (not get tax deduction) but rollover to a Roth IRA in 2010 or use it for a down payment on your first home. </p>

<p>Leasing is only advantageous if you have a cash generating business to deduct the leasing expense. Or you work for a car manufacturer like Toyota or Mazda. They have great lease rates which include maintenance and GAP insurance.One employee can lease up to 4 cars, for family/friends so start looking for friends in the right car company!</p>
 
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