Financial Opinions Needed - Financing a Car

[persian54]

Originally Posted by smohr33

It's possible. A friend of mine pays $98 a month +tax, 0 down, 12/36. Every once in a while they offer crazy deals.

I guess it's different on the east coast

Best deal I have seen here is $179+tax with 0 drive off



And do you know if that is 0 down or 0 drive off?

I remember they were doing smart cars for like $200 drive off, 100/month....
for the price of a couple sushi dinners you can get a car. crazy

[josephr25]

Honda is probably going to offer really good deals on the 2012 Civics now

[upstatedoc]

Originally Posted by smohr33

It's possible. A friend of mine pays $98 a month +tax, 0 down, 12/36. Every once in a while they offer crazy deals.

So what you are saying is that i could be driving a civic for every day of the week for what I paid for my car?

[Mr Tonka]

Originally Posted by smohr33

Put the numbers on paper and it will make more sense. Please don't take offense to any of this, I'm just a realist.

You have income of $3600 a year plus your internship. I have no idea what your internship nets you but say you bring home $10000 for both jobs after all is said and done.

If you're car payment is $450 a month, you're spending $5400 a year on just payments. Then you have to insure it ($1000+), and put fuel in it ($1000+). You're now spending 75%+ of your income for this car, and those are conservate figures as I'm sure you're insurace will be higher (assuming under 25, 300hp $30-40k car). You have $2500 left to eat, pay off student loans, spend on discretionary items, etc... Even if you're bringing home twice as much, you're still spending way too much of your income on the car.

It doesn't add up. This is basically a case study of why so many Americans are in debt. Go lease a Honda Civic for $100 a month to get you through college. You'll have a warranty, a safe reliable car, and money to live. You can always buy the BMW when you get out of school and get a good job.

This, live by the percentages. If it doesn't work, focus on what you need to do in order to make it work. Many times this will allow you to make several other things work as well.

50% of annual income spent on a car is a dicy situation. If things go bad you can damage your credit or whom ever is willing to sign on your behalf. The ownership of that car 1 or 2 years sooner is probably not worth that to you. It wouldn't be to me. (although it probably seems like it is now)

And as someone mentioned, 08-09 is and will be out of warranty very soon. Unless you're getting CPO which will give you an extended warranty. However, keep in mind that it's only a power train warranty, not the bumper to bumper, maintenance included warranty you'd like to enjoy.

[Snowbird]

Well, assuming you have no other responsibilities (rent, food, insurance or "girlfriend") and really want to get into it, I would suggest you lease it. So its under warranty and maintenance free till you have a real job and start making some money. Remember there are some stuff not cover under warranty and insurance. Gas, wheels and tire for example.

[kcdedric]

I'll chime in here because I was in a similar situation. I started out with a 1994 325i as my first car. I always kept it pristine as a thank you to my parents for buying it for me in the first place.

After completing nearly two years of college and proving to my parents that I could maintain good grades while holding a part-time job that would cover my car payments (~$1k/mo then), they gave me the go ahead to search for a car that was in a specific budget that I clearly detailed out for them. My payment had to be $450/mo or less and I had to cover insurance (under parents' names) and my gas. Ended up financing my car for 60 months @ 5% with $12k down (which came from my parents letting me use the $5k I got for selling my E36 plus $7k I scraped together from saving over the years and selling nearly everything I had that was worth something).

I couldn't ask for better parents for trusting me with the responsibility of a $33k car after just turning 20 . Since I've owned my car, I have had to sacrifice a lot...saying no to friends wanting to go to concerts, eating very cheaply, hardly buying any clothes, etc. Looking back a year and a half later, was it worth it? UNDOUBTEDLY yes! I don't really intend on selling my car (only trade would be a GT3RS), so having to spend the money now doesn't bother me at all.

Bottom line: If you're dedicated, willing to make sacrifices to stay above water financially, and convinced you have to have it then don't let anyone hold you back. Just make sure you don't regret it.

[Kielan]

Originally Posted by passing

you need a new mechanic if you spent 6k on regular (extended) maintenance items.

I do all of my own work, I've pulled the trans twice, replaced the flywheel once in hopes it would fix the chattering, it didn't, replaced it again when I did the clutch.


I can't tell you how many of these little things have gone wrong, electrical gremlins being the big ones.

As of right now, I find myself spending just about the same money on my car just trying to keep it going, hence why I thought of doing this. I have some time to decide just exactly what I am going to do, and I'm not in a huge rush to sell my car. I can keep saving in the mean time. I do know however that this car is just not rewarding in any way to own, I've lost the joy in driving it. It sounds stupid to say but having a car I enjoy is something that I've always turned to cheer me up, nothing quite as soothing as you and the car windows down on a blast on the back roads, I'm sure some of you know what I'm talking about.

[CliffJumper]

Just to , I'll repeat what everyone else said:

Don't do it. There are plenty of fun cars that are cheaper, and you can upgrade once you actually have the cash from your future job in the bank.

Or, at that point, may be you'll feel that traveling around the world or buying investments (home or otherwise) is a better use of your money.

[cuiter23]

I was basically in the same position as you. I have a part-time job as well going to school full-time.

I had an agreement with my parents that I would pay the down payment ($5k) which I saved up all summer and I would pay half the finance every month as well as gas. They are paying for my insurance. My finance is roughly $350 every month so I guess $175 per month is reasonable. Gas is another big factor but for you, coming from an e46 shouldn't be a big problem.

Personally, I do enjoy a nice ride and that is why I went with my decision. I do not see why not go for it in your circumstance if that is what you value more and if you're able to afford it. If you think about it the other way, the money you will save from not buying the car will be of perhaps greater use.

[cuiter23]

Originally Posted by munchkins

This. If you're really 101% sure that you'll do everything just to have that car against all odds then go for it. It's atleast you've tried as experience teaches good lessons. Goodluck!
________________________________
http://www.loans-portal.com/no-credit-check-car-loans/

+1 on this too, a student life should all be about experiences. Financing a car is definitely a good way to feel responsible for something that is yours.

[persian54]

What I don't get is people who have to struggle to make a 3-400 payment and think it's the right thing to do to get a car with that payment

3-400 should be something that doesn't affect you, let alone something you need to struggle for.

This means your income should be at least 2-3k/month if you want to spend 3-400 just on payments, since insurance, gas, maintenance, possible tickets, tires, mods, etc etc aren't exactly cheap..

Now, when I was 16, my net income was a measly $800/month, so I leased a C class for about $380/month. Which was about half my income, but I wasn't responsible for gas, insurance, and other maintenance stuff (my parents took care of it since I was paying for the car myself; they had bought a mid 90s S class for my brother when he was 16 so it was only fair they covered these things for me).

I don't regret it cause it was nice having a brand new Mercedes as my first car and being able to pay for it myself. But if I was anything but a high school student, it would be rather financially unwise to do it. I had no responsibilities then...parents still gave me an allowance, they covered a lot of my food, etc. So it was fine. but as someone who is going to be an adult, you really need to put money aside and NOT waste it on a car.

[amanda hor$t]

at 24 i had an m3 (paid off by then) and was making payments on a 996 carrera. i just really liked cars.

the intangible factor: got it out of my system. most people i knew (who also really liked cars) have been and continue to lease/trade-in every few years.

i stopped making car payments when the lease on the 996 ran out, and haven't seriously considered getting another car since.

[persian54]

Originally Posted by veloziROTHTOR

at 24 i had an m3 (paid off by then) and was making payments on a 996 carrera. i just really liked cars.

the intangible factor: got it out of my system. most people i knew (who also really liked cars) have been and continue to lease/trade-in every few years.

i stopped making car payments when the lease on the 996 ran out, and haven't seriously considered getting another car since.

I'm 24 now and I don't see myself growing out of this cycle anytime soon. the longest I've kept any car is 2 years so we'll see....

[Hawkeye]

I would wait at least until you are out of school. Not worth sacrificing fun while you are still there. The car will be around when you graduate.

[PSUSMU]

Don't do it. Party more in college, and save $ for the real world after you graduate.

[jlstyle]

Junior in college was when I first got myself a brand new S2000.
Back then, I didn't have much place to spend money and I was making pretty good money off tutoring so I went ahead with it.
To this date, I cannot forget the feeling buying myself a brand new sports car and driving it. One of the best memory.

[xg3]

bought my first used Z4 at 24.

Financially doesn't make sense... mentally awesome.

Would I do again? Yup, there is something money can't buy. And that is an awesome car when you are most capable of enjoying it.

[Hawkeye]

I bought my first brand new z4 at 23, and looking back I should have waited. Don't get me wrong, I love my car, I just would have had so many more options for other stuff had I waited even just 1 year.