I just graduated and will be starting a job in a week at a salary of $65,000. After accounting for retirement savings and taxes, I should bring home about $3,500 per month.
Unfortunately, my 8 year old car with 177k miles on it has a transmission related issue, and the several dealerships and automotive garages I've checked with can't even find the available part needed to order. At this point I am considering just purchasing a reliable used car that I can drive for at least 5 - 7 years.
I have $90k in savings, and will be living with my parents. I know that just starting a new job I don't have any real job security, but buying a car is the only option that makes sense to me. My initial budget was no more than $10k for my next car, and with a 3% APR 60-month loan would be about 5% of my net income.
I had originally planned to just pay cash, but I've had people tell me to just take the loan and pay the interest. I have a credit score of 750, with a 3-year credit history.
I've already checked out: Buying my first car out of college
Should I take out the loan vs. paying cash? What is the advantage of the loan?