Car Note for a 16 year old?

Question

I'm 16, I just started working for 6.50 an hour, I work exactly 8hours and 30minutes MONDAY-FRIDAY(5 days) a week. I still live with my parents, so i don't have to pay rent, food or nothing, just my clothes and stuff i want. My goal is to buy a car $15,000 Lincoln Navigator. Do you think with the money I'm getting would be enough to pay the $15,000 car note. Don't think I drop off of school just to buy a car, I still go to school after work, getting my GED to go to collage. And don't tell me to save the money, because i don't like saving money, I want to be riding. PLEASE HELP!

Answer 1

Okay, you work eight hours and thirty minutes a day? Is this a nine hour shift with a thirty minute break? I'm just going to pretend it's an eight an a half hour shift with a thirty minute break, so really you're getting paid for eight hours.

8 hours/day * $6.50/ hour = $52/day
$52/day * 5 days/week = $260/week
$260/week * 4 weeks/month = $1040/month
After taxes you'll probably be bringing in like $800 a month

The answer is yes, you would definitely be able to afford the payment on that car.

However, can you get a loan? You're sixteen with probably no previous credit history. You'll probably need a cosigner. That's somebody who signs the loan with you and they put their credit on the line along with yours. You'll probably still get a pretty poor interest rate. You'll probably be paying $400/month for that car for five years which is $24,000 with interest.

It's up to you, to answer your question, you could afford it, but you will most likely need a cosigner to get the loan.

You don't want to hear it, but I would probably by a less expensive car. When I was your age I was driving a 3000GT VR4 and now I'm driving a 350Z. I never once got a girl because of my car, and neither will you. And deep down inside that's why you want a cool car like that, isn't it?

Answer 2

At 16 years old, absolutely no one will finance you. They cannot legally bind you to the contract. You could sign and not pay another dime and they would not be able to do anything.

I hope you plan to live in that Navigator by the time you are 18, because your parents can, and probably will give you the boot. You might be making $8.00 an hour by then, and be bound to a $300 a month note for a piece of junk SUV that loses $5000 in value the second you drive it off the lot. Then you have rent, food, car insurance and what not.

Save up and buy a townhouse. Rent out a few rooms to your idiot friends and pay almost no rent. Buy your gas guzzling, expensive to insure SUV shortly thereafter. Then take out an equity loan in a few years and pay off your Navigator. If you are smart now, you can afford a hell of a lot better car in the future. Buy it now and you will be driving it till it blows up. Wait a little and get a newer one and trade up every few years.

Answer 3

No, you can't even come close to affording it. Even if you never spent a single dime on anything else, it would take well over a year for you to save $15k (which, by the way, isn't what a Navigator costs. Try more like $50k new, $25k-30k used). That does not even include the cost of tax, title and license. You are too young to legally enter into a contract, so no one is going to sell you a car on credit. You'd have to save up the cash first, which, frankly, is going to be pretty much impossible for you.

Then there's the insurance. You make about $260 a week BEFORE taxes. As a 16 year old male, you wouldn't even be able to come close to affording insurance on what you make, especially once you factor in gas, maintenance and repairs for the vehicle.

Sorry, but this is just not going to happen for you. I know you don't want people to tell you to save, but realistically, the quickest way for you to afford a car like this is to set adside money towards your education and work your butt off in school so that you can finish college and get a job that pays you enough to get whatever car you want.

Good luck!

Answer 4

Take your money and invest it so that it can make you more money. Stay in school and get a good education and then buy a car that is quality and good on gas. A Lincoln Navigator is not it. You need to be over 18 to be allowed to sign a contract. A bank note or loan is a contract. Think before you act. It's nice to have a set of wheels but ask yourself why are you doing it and what would be the better set of wheels. Don't let peer pressure get to you where you make a mistake.

Answer 5

Forget the Navigator. Your language skills strongly indicate you need a bit more education before worrying about buying a car. Your math skills are also lacking. If not, you would realize $6.50 per hour won't buy a $15,000.00 car without some serious saving. Also, a GED at 16 will not get you into any reputable college.

Answer 6

It is illegal to enter into a contract with a minor in any state that I know of. Now what I do know that is legal to enter in on is a public utilities and say a rent-to-own appliances. This theory is because retailers and service oriented business cannot sue a minor unless its under these basic two criteria.

Answer 7

Don't waste that money on a car. Put it towards college, and buy a old beater car.

As a 16 year old, statistically speaking, you'll probably total your first car....so don't waste so much money on a car that likely won't get trashed.

Answer 8

You cant get a car loan until you are 18....Sorry its the law!!!

Answer 9

Have fun.