Do you think an airman with a rank of E-1 could afford a Mini Cooper?

Question

Please only answer if you really know what you're talking about.

Answer 1

Only if you have saved for a large down payment. The Mini Cooper's MSRP starts at $17,450.00. If you do not have previous car credit, your interest rate will likely be above 15%.

If you were to put $4000.00 down, and go for a 60 month loan, your monthly payments would run around $357 a month (at 15%), not including full-coverage insurance. Depending on your age, and driving experience, marital status, location, etc., that could get expensive.

An E-1 makes $1178 a month gross, and after taxes, it could be quite less. Then you have that $357 a month car payment, probably $150.00 (guessing) a month insurance payment, that leaves you with around $500 a month.

Personally, I'd buy used, or wait until I was promoted a couple of times, and had saved a bigger down payment.

Answer 2

I'm an E-4 and had an Acura right after I graduated tech school. Granted I signed a 6 year enlistment and tacked on right after I graduated but I was able to afford it. As an E-1 however I would consider something that got good gas mileage. I dont know anything about coopers, but if it does get good gas mileage, it might be a better buy in the long run than say a truck.

If you buy one used as an E-1, it might be tight but you probably could afford one. Considering the next ranks come fairly quickly, your debt could be aliviated within 1/2 a year to a year.

Answer 3

Afford, no. Technically make payments on one, probably. Given that an E-1 is typically 18-20 years old, a more realistic car would be a motorcycle or something in the under 10k range. I see too many young soldiers sucked into buying more car than they can afford because of (pick one) I wanted it. It looks cool. The salesman said I could afford it. I don't have any other expenses. I will get promoted soon and make more money anyway. Better to start paying into the TPS plan as early as possible and be able to pay cash for the car you want later.

Answer 4

I would bet that there is a dealer near your base that will tell you that you certainly can. DON"T BELEIVE IT!

These guys are schiesters of the 1st order. Get you locked into a long term loan that you can barely make the payments on and with it's long term and hig rates, you really get ripped off in the end.

Another thing to think about - that car will cost a lot to insure as well. Can you afford that along with the car payment?? Getting into financial difficulty is something the USAF frowns upon.

Save your money for a while. Get a sizable down payment. THEN buy a good used car. Rank will come and with it, pay raises. A little pataince now will pay off down the road.

Answer 5

An E-1 officially makes so little he would be living under the poverty line in almost every county of the USA. The only way an E-1 can drive a Mini Cooper is either by paying for it cash, stealing it or signing a predatory car loan.

Answer 6

No way you can afford it. Even if you can afford the initial payment, upkeeps, insurance, and fuel cost is gonna kill you.

At least wait till you are an E-3. That would be easier on your paycheck and you don't have to scrimp and save just to maintain a car. Get a second hand Mini if possible. The money is put to better use if you save it up to get a place of your own instead.

Answer 7

E-1 means the airman is still in Basic or in their Follow-on Training -- and in any case, the purchase of a vehicle of any type would be FOOLISH at that time.

Answer 8

Only if daddy chips in.

If I remember right (1959 dollars) every two weeks ! had $3.95 left after I picked up my laundry and I got a hair cut.
Back then an E1 got $78.00 ('course a new car was only $1,500)

Answer 9

It would be hard, but possible. Perhaps the easiest way I could think of is getting car loans and insurance through USAA, as they will probably be the cheapest.

Answer 10

If you have no other expenses, or a big downpayment then I guess so, but if not then it will come with a big payment leaving you with not much money for fun and gas!