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Ask Dave

Extra Cash

Dave can't believe that Sue wants a car note, when she just got out of debt!

QUESTION: Sue has a paid-for house, so she has some extra money. She has an older car, but she wants to get a car note to buy a new one. Dave says absolutely not.

ANSWER:  I don’t care if you don’t have a house note. You just got out of debt, so why go back in? Why do you want any kind of debt? If you have money saved up for retirement, that’s good, but it’s no reason to say that a car note is all right to have … it’s not. If the Rockefellers are doing all right with money, that doesn’t mean they want to run out and borrow money. Save up and pay cash for a car.