How much cash do i need to afford an used 14000$ bmw?

Question

How much cash do i need to afford an used 14000$ bmw?
i do not have enough right now. im wondering how i should finance. i got 5000$ and only make 730$ a month(part time 17 hrs
). i can spend all my money on the car becuase i dont pay for living expense. im only 20 years old. i dont plan on getting another job because of college. wha would be a good downpayment area?

Answer 1

I'm only 22 and I can see your being wasteful. Should take that money and save it and put it on a down payment for a house. Then when you have that house paid off buy your car. Maybe take that money and start paying student loans off or pay for more schooling...unless you got a free ride.

Due to the fact you have no real job. I'm guessing you're not going to get many banks to finance you, unless you have a co-signer. Even if you do get a co-signer you're only 20 and high risk. You'll have to get a loan for 9,000 and all the other taxes that come along...maybe warranty. They'll bring it to about 11,000...you'll be paying about 300-350 a month. But remember you'll pay interest first, and no principle. Depending on 3 or 5 year loan. Now you have to remember about car insurance. Since a bank is financing it you'll have to get Full liability coverage. That will hike up your payments to the roof. Hopefully you have been a good driver and have a bunch of discounts. If not, you'll eat up every bit of your monthly wage for this car. Forget eating, and gas. You'll probably go back to begging parents for Ramen soup money. Ha ha, sorry man like I said I'm 22, been there 2 years ago. Thankfully I didn't go thru with it.

Answer 2

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RE :How much cash do i need to afford an used 14000$ bmw?
How much cash do i need to afford an used 14000$ bmw?
i do not have enough right now. im wondering how i should finance. i got 5000$ and only make 730$ a month(part time 17 hrs
). i can spend all my money on the car becuase i dont pay for living expense. im only 20 years old. i dont plan on getting another job because of college. wha would be a good downpayment area?
Follow 3 answers

Answer 3

You need $14,000. Don't be a fool. Don't start out life in debt just to get stuff you don't need to impress people you don't know. Too many people live their lives just getting by because they do this. I know you will be a millionaire before 30 so you don't have to worry about it. But until that happens do the right things. Spend what you can really afford. Save a little each week. Learn how to invest. The overwhelming majority of people don't do this and the overwhelming majority of people never attain financial freedom. You've got the most valuable asset there is. Time. Finish school and get a job before you get a nicer car. If your parents co-sign for you they are doing you a grave diservice.

Answer 4

You'll usually get better financing if you put something down, but I wouldn't spend all of it because you'll probably need to spend a couple of thousand on maintenance in the first few months to get the car in shape. People usually don't sell the car until something's broken or is about to break.

So if it was me, I'd spend $3000 down. If you buy from a dealer, you'll spend most of that on taxes and dealer fees, so your loan is probably going to be around $14,000 (2,000 for taxes and fees, if not more). Use this link to calculate payments:

http://www.bankrate.com/brm/auto-loan-calculator.asp

The traditional used car loan is 5 years, but can range from 2 to 7 years, depending on the banks' programs and your credit/income. If your credit is really good, the bank will probably give you a rate of around 8%, which would give you a payment of $284/mo. If your credit sucks, your rate could easily be 18%, giving you a payment of $356/mo.

You'll still have money left over, but remember, you'll also have to buy comprehensive insurance, to cover the car in case of accident, theft, etc., so the bank is covered for it's money. Insurance on a beamer can cost you quite a bit when you're young, I wouldn't be surprised if it costs you $300-400/mo, in which case, you'll be spending your whole check on your car.

So before you go shopping for a loan, I'd check with your parents to see if they'll put the car insurance under their name with you as a second driver (it's much cheaper that way). Then I'd have your parent find out how much that year/make/model would cost to insure. Once you know that, you'll know if you can really afford this thing.

By the way, if your parent is cool with co-signing for a loan with you, you'll usually get a much better rate. You'll want to put your dad's (or mom's ) name first on the loan, this gives the loan the best appearance and results in the best rates. You'll be equally responsible for the loan regardless of who goes on the loan first, but you'll get the best rate if the person with stronger credit and income is listed first. If you have good credit or your parent with good credit is co-signing with you, you'd want to check a credit union for their rates, they can usually beat the banks' rates, as auto loans are their product of choice. Just because you're buying from a dealer (if that's what you're doing), doesn't mean you have to get the loan there.

Finally, I'd get pre-approved for the loan first, then go to a dealer, but not tell them you're getting financing somewhere else. They make some of the money on the financing, so they are less likely to get you a decent deal if they know that they aren't making any money on the interest. Once the price is negotiated, then you tell them you'll probably finance it yourself.

Hope this helps. E-mail me if you have more questions. I used to work for a major bank for 4 years and did a few auto loans.