I think the specific issue with borrowing money to fix the car is collateral. You can borrow against home equity (who has that these days, lol?), for example. But, to simply borrow money with the promise of paying it back a later date is unsecured debt. It is hard to qualify for unsecured loans at modest rates these days (as well it should). The vehicle repairs would cost more that the wrecked residual value, so even if there was no note on the car, it probably wouldn't secure the financing. Since the OP has a beater (hopefully with a heater) he should consider parking the Crossfire for the winter and commit to saving the money to get it fixed in the spring.

From the conservative approach, I have no problem with taking on debt for property, primary auto, or education in fields with strong potential. But to each his own.

 

Steve, I am going to have to strongly disagree here. I have great credit, am under 30 years old, own my own house and cars, and have some debt, and my credit score is higher because of it. I am talking about using credit cards, but paying them off EVERY month, and having a mortgage payment and currently, a car payment as well. This credit allowed me to save several hundred dollars a month on my mortgage because of my good standing, the interest rate was super low.

If I never had any debt, yes, I would not have any debt, but when you are going to make a large purchase, lets say a house, because that is the only thing you did not pay cash for, you get hung out to dry on the rate, if they will even give you a loan at all. Some banks do not care if you have cash in the bank and no debt, if you have no credit history, you are screwed.

It is all about being responsible, and we agree on that.

 

I'd have to agree with Boiler -- Being responsible is what is most important. Some people have a hard time with that part. Most of us have to rely on credit from time to time just not let it get up to your eyeballs then wonder what has happened.

 

i guess we have to agree to disagree. when i bought my house i borrowed the money for it. the only thing i will borrow for. i have zero credit cards and i put 60,000 down on a 115,000 house. my interest rate in 2005 was 5%. bank didnt care at all about my credit rating. they cared about my ability to repay the loan. good job no debt big downpayment = house. that simple.
as for renting a car my debit card worked just fine last month when i rented a car in fl. even got my AAA discount!
blackcrossfire in theory you are correct. what you failed to realize is that if you lost your job tommorrow and it took 3 months to find another that paid 15,000 per yr less would you be able to pay all the debt owed? thats were a majority of the country failed to relize and fell into that black pit of borrow borrow. still gotta pay it back job or not.
as it is america folks are free to do as they please. for me ill stick to the old theory of save and pay cash. no stress and i get to have my toys and hang with the gang on here. just works for me!

 

I don't mean to hi-jack this thread, but have any of you seen those places that lease "custom" wheels? That is just crazy!

 

yes with all that said some of us do not have the opt to save 60k or to save a large amt like that any time soon. I am 21 i own my own home. "mortgage" yes i borrowed money, and im happy i did. if i didnt i would still be renting, and thats crazy. i could not see paying 600 a month for a town house when i could have my own house for 350 a month.. yes i currently have debt, a payment on my xfire and on my arua. the banks look at every thing your debt to income, ur payment history and your job history. now days i find that the banks are extra tight and that they are not going to lend out any money on less there sure u can pay them back..
because i have my debt, and im paying on time it is raiseing my credit score. currently it is a 750. i am proud of my debt and my score .. just my 2 cents

 

I jut saw an ad on TV." MAACO" is offering no interest financing currently.

 

i seen that ad to

 

Boiler up, You are right on. When I was younger I had to take out a loan I didn't need just to establish credit. It was secured so the interest was really low but my bank approved 100% financing on a new car I never bought after that loan was paid back.

I am debt. free now but realize credit is an asset. If I should choose to buy a business or make another investment my sterling credit score AND credit history are paramount.

 

I was just answering the question. When I was in my late teens, and early twenties, there weren't any credit cards, and low interest loans without colateral...you needed colateral...they wouldn't just loan you money...so, you saved and paid cash...we should all get back to those times....I have borrowed, and hedged my way through life, but if you do this, you better have some substancial savings in case something bad happens, like getting sick, or losing your job...I haven't had any of that yet, but it can happen...nothing wrong to borrow, but, it is always better to save and pay cash...in the long run...I too, will borrow, and use the bank's money if the interest rate is below what my money can earn.....0% loans are the best....lol