Car Buying Advice Needed!?

Question

I and my wife own a 2000 Chevy Cavaleir. Car has 110,000 miles on it, but is in really good condition and runs well.

We are wanting to purchase a close to new car. However, we don't have a down payment EXCEPT using our car as a trade in.

Our gross income is $2000/month and we pay $700/month for rent. We would like to get financed but know that our rent payment and our "poor" credit doesn't help our chances.

Do you guys have any advice for me and my wife. We would like to make a purchase rather soon. Any advice on financing or any other options would be greatly appreciated. Thanks.

Answer 1

Look into getting a new car. Banks look at those as a better investment because if you default the car is still worth quite a bit and they can take it back and resell it to still make a profit. You can usually get a better interest rate. Yahoo autos is actually a pretty good site for finding the right vehicle. You chould be able to get into something for around $200 a month for a smaller car, brand new. Thats probably how much you would have to pay for a slightly used car, those are a better deal if you have the cash upfront and dont have to pay the interest. Yahoo Autos has 35 cars under $15,000.

Answer 2

If the Cavalier is in good shape and runs well, I would continue to drive it. With your income and credit, I really wouldn't think that digging yourself a debt hole is in your best interest. What is fueling your desire for a newer car?

Try to develop the financial discipline for payments in advance. For the next six months, make a car payment to yourself. Determine how much you want to pay each month for your next car and put it away in a savings account with a local credit union. If you can do this, then get a car loan from the credit union using the money you saved and the value of your existing car as the down payment.

Answer 3

Dont do it.

Drive your 2000 Chevy Cavalier until it is DEAD and cant be driven anymore.

The average car payment in America is $468.00. If you put $468 in a mutural fund for 30 years, earning a modest 12%, you would have about 5 million dollars.

You should SAVE your money. Put every dime you would put towards a car payment and save for your car... then when you have a few grand in the bank, pay CASH for your car.

If you make some sacrifices now, and "live like no one else", in the future you can "live like no one else" and have lots of money in the bank, good credit, and a good looking future.

If you buy a car now, you will be raped on interest, and you will be poor forever.

If you gross income is $2,000 per month, your take home is probably around $1500

Minus 700 for rent.

You are left with 800

200 for food
150 for utilities
100 for insurance
100 for gas

You are left with 250.

PUT THAT $250 IN THE BANK... PLEASE.... you can not stretch your budget anymore... the slightest bad thing happens in your life and you will be screwed.

Make sacrifices now.... drive the Piece of crap car, live on beans and rice, save some money, buy crap cars for awhile... before you know it, you will have tens of thousands of dollars in the bank, and you can buy a car FOR CASH AND make a down payment on a home.

Car payments are what keep the middle class in the middle class. And they make poor people poorer. I paid off my car a few months ago, and it feels great. I am currently saving for my next car, and when my current one completely dies, I will be paying cash for the next one.... dont give that interest to the bank... keep it!

God bless and good luck!

Answer 4

To be honest, it's probably not in your best interest to get an almost new or new car right now - not until your credit is better at least.

I think you'd be better off trading in your car for perhaps another 2000 Cavalier that has less miles on it, that way it won't cost you too much money. Good luck.

Answer 5

That's rough. Personally I gave up on financing cars and just buy older ones now. Then again, I have a garage where I can work on them.

Make sure you don't get another domestic. No matter how nice they are, they will devalue to the point that you'll just dig a deeper hole next time you're in this situation.

I'd go Toyota Corolla or Honda Civic because they keep their value. As far as the trade-in goes, you're probably stuck taking whatever the new car dealership gives you.

Answer 6

All i can tell you is that on eBay you can only get around $2000 on a 2000 Chevrolet Cavalier with that millage, and you can buy a 2004 Chevrolet : Cavalier with 44863 milles, at $3550 with a two months sacrifice, or a 2003 Ford : Focus ZX3 with 47957 milles at the same $3550, or I don`t know, try eBay Motors for other prices :)

Answer 7

Typically if you take your car into a dealership, they are going to low ball you on trade in value. Why? Because they need to make a profit - usually a FAT one on a trade in. My advice is to sell the current vehicle and get as MUCH as you can out of it and then use that money as a down payment.

Do you plan on leasing or buying? Leasing is nice - lower payments - BUT one caveat is that you're forced to either buy it out at the end of the lease or you must take on another lease. Plus if you go over your lease's mileage allowance, typically you're going to pay $0.30 per mile penalty. Not much for a couple of hundred miles but say you're 5,000 miles over? That's a $1,500 penalty!

Your payments will cost you more if you buy outright BUT that's the way of the world. Leasing is geared to keep the folks in Detroit and their credit companies in big $$$$$.

Have you looked into buying a used car from a private owner? Or buying from a rental car place like Avis or Hertz?

Sometimes the Buy Here, Pay Here lots aren't all that bad if you can get the owner to understand that you'll continue to buy from him in the future if he treats you right. That's your only leverage these days is the promise of coming back to buy more in the future. But since most consumers lie as much as the sales rep does, then no one believes anyone and it's a wolf eats wolf world.

Answer 8

$2000 a month, are you both still in school???
These people are giving you good advice, if the car goes fine and is safe, stay with it.
I doubt any legitimate finance co or bank would look at you with those figures

Keep up with the Joneses when you can afford it, meanwhile stick with the older, reliable car.

Answer 9

I think I would keep the Cavalier, and buy another inexpensive used car, if you need two. Otherwise, you'll put yourself in a financial bind, unless your income is going to increase very soon.

Answer 10

Do this tip. Negotiate the price down a bit, but act like your not too interested, remember if you seem too interested they will screw you over. Just be like yeah im also looking at a Explorer down the road, if you cant meet my offer offer of XXXX$ then ill buy it.