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Is it wise to buy a car with LOC?


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Depends.

 

Do you qualify for a 0% auto loan even if you have the LOC? I don't know if you would, since that's a pretty big liability so a bank might not want to extend further credit, but it might be worth speaking to someone who would know.

 

If you can get auto financing lower than prime (usually promotional deals on new/last year cars), doing that is better than paying prime on the funds through your LOC. If you can't get an auto loan lower than prime, but need a car anyway, it'd make sense to purchase one using your LOC.

 

Edit: If you want to buy new/newish, anyway. You're unlikely to find really low financing on used cars, except maybe at a dealership for lease returns or something, but I could be wrong.

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I sold my IS250 2007 last month as I no longer liked it. I was thinking of making a down payment with some of the LOC on a condo/house and rent half of it. Maybe this way I'll end up with partially paid house and get some rent money from tenants. I don't mind getting a car that is few years old. 2009+? Something about 10-20K. I'm just trying to be smart with the LOC and potentially make it work for me in the long run.

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I wont pretend that I am a car expert, but for a 10-20 k budget I think a new hyundai would be good! My parents recently 'converted' to hyundai (they were honda or Toyota only people) and they LOVE IT. We got a santa fe and when our civic dies they want to buy an elantra. They found that you get a lot more luxury for your $$ when you buy hyundai (before we would only ever buy used hondas or toyotas that were 'basic' but for the same price range we bought a fully loaded hyundai - leather heated seats, trim, satelite radio, sunroof etc) and when you buy new they come with great warranty so its more worth your while to buy new (especially 'last year' cars). We have had it for about a year and a half and havent had a SINGLE problem or complaint. And if you DO end up having any problems you dont pay because of the manufacturer's warranty.

 

 

But an Accent would be a nice compact car to get (very fuel efficient too!) Like a FULLY loaded Accent (leather seats, heated seats, keyless entry etc) is about $18k (2013) and you could probably get it for much cheaper if you get a 2012.

 

OR you could go for elantra, a bit pricier than accent but its won a bunch of awards (best small car Canada 2012 and North America I think?) I know of 3 friends/family friends who bought elantras this year

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I sold my IS250 2007 last month as I no longer liked it. I was thinking of making a down payment with some of the LOC on a condo/house and rent half of it. Maybe this way I'll end up with partially paid house and get some rent money from tenants. I don't mind getting a car that is few years old. 2009+? Something about 10-20K. I'm just trying to be smart with the LOC and potentially make it work for me in the long run.

 

What kind of LOC do you have (for which program)?

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I wont pretend that I am a car expert, but for a 10-20 k budget I think a new hyundai would be good! My parents recently 'converted' to hyundai (they were honda or Toyota only people) and they LOVE IT. We got a santa fe and when our civic dies they want to buy an elantra. They found that you get a lot more luxury for your $$ when you buy hyundai (before we would only ever buy used hondas or toyotas that were 'basic' but for the same price range we bought a fully loaded hyundai - leather heated seats, trim, satelite radio, sunroof etc) and when you buy new they come with great warranty so its more worth your while to buy new (especially 'last year' cars). We have had it for about a year and a half and havent had a SINGLE problem or complaint. And if you DO end up having any problems you dont pay because of the manufacturer's warranty.

 

 

But an Accent would be a nice compact car to get (very fuel efficient too!) Like a FULLY loaded Accent (leather seats, heated seats, keyless entry etc) is about $18k (2013) and you could probably get it for much cheaper if you get a 2012.

 

OR you could go for elantra, a bit pricier than accent but its won a bunch of awards (best small car Canada 2012 and North America I think?) I know of 3 friends/family friends who bought elantras this year

 

I'll second the Hyundai suggestion. We bought a 2012 Accent (GL - it's the middle model) in January, and we love it. The roadside assistance - you get 3 years - came in handy when I stupidly ran out of gas a little while ago.

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A lot of people do here because it's very very hard to do clerkship without one. I am not thrilled about the notion (I never even got my learner's) but I'm probably going to have to get on board with that too.

 

I never did - it is surprising how much cheaper it can actually be to take cabs rather than buy a car :) Particularly if you arrange your electives to be at a site close to your house.

 

I love NOT having to getting a car ready in Winter at 5am for the surgery rotation.

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this is all hypothetical!

 

I'm premed. Just got my scores for MCAT so will be applying this cycle.

 

So keeping things hypothetical, the answer to your question is MD. 200-250K LOC prof loan?

 

If I buy a hyundai, my father will disown me. I really like the Scion FR-S.

 

It's a nice car but the insurance just kills it.

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this is all hypothetical!

 

I'm premed. Just got my scores for MCAT so will be applying this cycle.

 

So keeping things hypothetical, the answer to your question is MD. 200-250K LOC prof loan?

 

If I buy a hyundai, my father will disown me. I really like the Scion FR-S.

 

LOL. Worry about getting into med school before you worry about using a LOC to buy a car...

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LOL. Worry about getting into med school before you worry about using a LOC to buy a car...

 

Yeah, I think buying a car with your LOC is a good decision. If I were you, I'd buy a Toyota, because form my experience they're very reliable; and not very expensive (if you can get one used).

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So, those who can't drive should do what?

 

Learn? I'd hate to have to take a cab to do everything and it gets expensive i.e. $20 cab ride would be $20 gas I'd have to do a crapload of errands with....plus why wouldn't you want your own car to go anywhere you please whenever you please? I don't want to rely on anyone else to get me from point a to b when I need to get there stat.

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I never did - it is surprising how much cheaper it can actually be to take cabs rather than buy a car :) Particularly if you arrange your electives to be at a site close to your house.

 

I love NOT having to getting a car ready in Winter at 5am for the surgery rotation.

 

Rob, you don't drive????????? that's bonkers!

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