Reply to Example of how not to borrow for a car

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[quote=Anonymous]http://online.wsj.com/articles/the-new-rules-of-borrowing-1410541812

[quote] Michelle Day, of Damascus, Md., and her husband received a $30,000 car loan with a 1.99% interest rate from the Germantown, Md.-based Mid-Atlantic Federal Credit Union in April. Ms. Day, 34, a university business development manager, says she received an email from the credit union touting its deals and was intrigued by the low rate. The couple made a down payment of around $1,000 on a Honda CR-V.

"When I saw the 1.99%, I said I totally have to give that a shot," she says. "It was a no-brainer."[/quote]

So...let me get this straight. You borrow $29,000 and only put $1,000 down, meaning that your payments will range (for between three to five years) from $830 to $508 (or lower if you stretch it over 5 years, which would REALLY be stupid). But if you could really afford that $30,000 vehicle, why wouldn't you just put down a larger down payment?

I sense this woman has spending issues. Then again, she does work for a for-profit college.[/quote]

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