Is a $10,000 car loan a terrible idea?

"I'm looking for a used car for about $10,000. I want something reliable that I can hopefully drive for the next five to 10 years. I have great credit and only have $6,000 left in student loans.

Is getting a car loan a terrible idea?"

“If you have problems with overspending or you constantly need the latest, greatest thing, car loans might be a waste of money.
For people who overextend themselves and buy a brand-new car for $50,000 and sell it for $20,000 a few years later, then, yes, a car loan might not be the best idea for you.
However, you don’t appear to be frivolously spending money or doing anything to hurt your credit or put you in financial distress. And, because you plan on owning the car for quite some time, it doesn’t sound like a terrible plan at all.
If you can comfortably afford it, go for it.”
Eric Schad
Answered on May 28, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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