Car loan question

[cpbaby]

Im currently driving a 90 Pontiac Bonneville with over 203k miles on it. It has been under water COMPLETELY twice and the back window tends to leak when it rains. I LOVE this car. However, I am a realist and I do know its dying slowly, and I need to be looking for something new(er).


I have went and drove several vehicles. Tonight I went and looked at a 93 Ford Explorer with 4X4(locks in and out). It has 100k miles and (bestill my heart) is PURPLE! THe interior is in immaculate condition and is a BEAUTIFUL vehicle. It does have more miles on it than I would like, BUT I have been looking at 3 and 4 yr old cars with close to that, if not more, on them.


So, we talked, hes asking $4500, but will take $3800. I saw the registration papers and its valued at $5750. Im thinking real hard about trying to buy it.

Now, what I need to know is, I have no money, I am POOR. I recently started a new job, and I also have a part time job. SHould I try to get a regular car loan through mybank(which I dont figure I will qualify for without a co-signer since I havent worked sterady in over 2 years) or should I try to get a Home equity loan for $4000. If I get the home equity loan I wont have to keep full coverage insurance and I can take the interest off my taxes.


Does anyone have any other ideas? I have NEVER bought a car before, so Im kinda lost.

[jaybird]

If you can qualify for the home equity loan, I would go that route. The interest rates are better, you can carry liability only on the vehicle instead of full coverage and you have the interest deduction for income taxes. BUT, if you go with the home equity, (unless you already have an open-end h.e. loan) you likely would have to pay for an appraisal, a title search and some points (or other closing costs) If I were you, I would call your bank and ask them what they suggest. BUT REMEMBER, they are in the business to make money, and might steer you toward a higher interest contract.

Good luck.

Also, go to edmunds.com and check the value of the vehicle yourself. You can also check at Kelly's Blue Book's website.

[missymommy]

Look into the fact that explorers atleast my hubbys and my FIL (FIL still has his) the tranny goes at about 100,000 miles. I am not sure that it is a common problem, but since I knew 2 ppl that owned them in one family and the same thing went wrong at the same amount of miles I figure I would let ya know. Hubbys went, that is why he got rid of it. FIL has had his rebuilt 2 times.