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[quote=Anonymous][quote=Anonymous]I’m 29 and just got a six figure job. This is a big deal for me. I want to avoid lifestyle creep, but I do need a new car.... it’s on the border of “need” versus NEED.

I also have six figures of student loans to pay. Now if Biden can get the $50K forgiveness that would be huge, but I need to make a choice between paying the amount adjusted to my income, or paying more to catch up with interest. I also don’t know what the future holds for student loans or if another big break is on the table.

I don’t plan on taking on any more expenses. My rent is still $1300 and I’ll stay here until I move in with a partner.

But my car... is actually the same car I passed my drivers test with. I grew up with it. There is some sentimental attachment and it’s about to hit 200,000 miles. So the new car is becoming less of a want and more of a need, and I’d rather not hit the point where I break down on the Beltway. There is also the fact that there are zero percent rates out there right now and it would be the best time to buy.

But the financially responsible thing to do could also be to max out payments on those loans. What would your choice be?[/quote]

Do not get suckered by the 0% rates. Nothing in life is free. The 0% loans wrap the costs into the price of the car.

200k miles is a lot for a car. All things being equal buying a used car is cheaper. The problem is often you are not as attached to a used car and therefore may not be willing to own it for 10+ years and 200k miles. Buying a nice new car that you love now might help you avoid lifestyle creep later on. Given your numbers I would totally splurge on a 30k new car that I love. Finance it (comparing rates at credit unions, banks and the dealer as well as the cost of the car with the different financing options) and pay it off in 5 years so you have built a little credit history and then keep driving it until it dies.[/quote]

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