Should I buy a $50,000 car if I already have $95,000 in student loan debt?

"I recently graduated from college and want to get a car.

The vehicle costs $50,000, and I have $7,000 for a down payment. However, I have $95,000 in student loan debt.

Should I finance this car?"

Answer
“With so much student loan debt, you might not even get approved for a car loan. If you do get approved, can you afford $43,000 in additional debt?
To avoid getting further into debt straight out of college, your best move is buying a used car with the $7,000 cash.
In doing so, not only can you get a reliable set of wheels but also you will have no car loan debt.”
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Eric Schad
Answered on Jun 07, 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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