Car update
Got a call today from the dealership from which we're thinking of buying a car, and we've got an appointment set up to look at a 2005 Ford Focus. Also, this morning, we did a credit pre-approval check with Ford Auto Credit. I thought we might be approved for $10,000 to $15,000 or so. We were actually pre-approved for around $32,000.
If we get the car, looks like payments will be between $240 and $270 a month. We shouldn't have any trouble fitting that into our budget. At most, we might have to trim back some extraneous lifestyle costs - a bit less eating out, and less spending at Pulp Fiction. Nothing we can't live without. We'll also have to adjust for a bit more insurance, but again, nothing that we can't handle. Our bills will still be covered, and we'll still have extra money just in case.
I think we can do this. If, for some reason, it turns out that we can't, well, then we won't. For example, there's a cash back rebate. Now, if that's a mail-in rebate, and it takes more than 30 days to process, then it's a no-go; we'd need the money for the sales tax. If it's an instant cash deal, then we'd take the $2,500 (the rebate on a 2005 Focus), put $1,000 towards the sales tax, and put the remaining $1,500 away in savings to cover the first few months worth of payments. (Alternately, we could pay off a couple of bills with it, which would free up about $70 a month.)
Really, though, the overall upshot of this is - if we can get approved for this, I think we can get approved for a mortgage on the house. Now, I don't know if we can cover the downpayment on a mortgage -- not yet, anyway -- but I don't know. If I said that I wasn't a bit apprehensive on that, I'd be lying. From what I can tell, though, we can get approved for a mortgage that could actually be slightly cheaper than our current rent payments on the same house. We'll see. Being a first-time home buyer can probably help.
If we get the car, looks like payments will be between $240 and $270 a month. We shouldn't have any trouble fitting that into our budget. At most, we might have to trim back some extraneous lifestyle costs - a bit less eating out, and less spending at Pulp Fiction. Nothing we can't live without. We'll also have to adjust for a bit more insurance, but again, nothing that we can't handle. Our bills will still be covered, and we'll still have extra money just in case.
I think we can do this. If, for some reason, it turns out that we can't, well, then we won't. For example, there's a cash back rebate. Now, if that's a mail-in rebate, and it takes more than 30 days to process, then it's a no-go; we'd need the money for the sales tax. If it's an instant cash deal, then we'd take the $2,500 (the rebate on a 2005 Focus), put $1,000 towards the sales tax, and put the remaining $1,500 away in savings to cover the first few months worth of payments. (Alternately, we could pay off a couple of bills with it, which would free up about $70 a month.)
Really, though, the overall upshot of this is - if we can get approved for this, I think we can get approved for a mortgage on the house. Now, I don't know if we can cover the downpayment on a mortgage -- not yet, anyway -- but I don't know. If I said that I wasn't a bit apprehensive on that, I'd be lying. From what I can tell, though, we can get approved for a mortgage that could actually be slightly cheaper than our current rent payments on the same house. We'll see. Being a first-time home buyer can probably help.