Follow ups from my car thread...
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Scorpion, the $8,500 figure came from the "book" value of my bank when I asked what their loan rate would be. (She was checking if the value of the car would exceed the loan, ltting the car be the collateral.) Honestly, because the car is gas-efficient, looks sharp and has a few of the "Extras" I wouldn't be shocked if I could actually get $10K for it.
That said, I want to buy it and not trade. It runs well, is a handy car, and I figure that once it is paid for, it'll be a great "secondary" vehicle when I'm a married man. I can see driving it for another decade if not more.
The concern about extending the purchase out five years is valid, but based on my driving habits, I would think it would just be nearing 110,000kms/68,000 miles and most Toyotas last easily that long, so I'm not too worried about problems.
Finally, I'm not at all worried about the local economy or my employment, so I don't mind holding the debt (it's my only "major" debt as a renter) and I also believe that the market - once settled - will easily beat the 5% annual rate over the next five years, especially when the tax situation comse into play like mafic suggested, which quite honestly, I never even thought about before.
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