Should I buy a brand new car?

Question

I am a full time college student. I make about $1000 a month. I drive a paid for car...thats kind of falling apart. (My parents old family vehicle) its $150 a month in gasoline! I live at home because I am going to a local community college. I have no bills at all, except gasoline. My parents say as long as I am a fulll time student they will pay for car insurance. But if I buy my own car they will not pay for insurance because it will be to high on someone as young as me. I am debating on whether or not to buy a brandnew car? I have no credit so that is another factor. The car I am looking at is at the MOST $20, 000. What would be a good down payment? Should I just stick with my old beast, or buy something more efficent and have no spending money? Or would I still have spending money with the amount of money I make? Thanks for any ideas of suggestions you may have.

The reason I want a new car is because the car I want is a TC SCION which is around 18,000 brandnew. However, I have looked at used ones and they have around 40,000 miles on them and they are 16,500!!! Why not just get a new one?

Answer 1

Buying a brand new car anymore is a waste of money because as soon as you drive it off the lot it depreciates 5 grand on the spot. Meaning you have already lost that money in the car. Buying a car that is used is a better use of money. Get a car that is a year or two old and you will save money and have a new car.

Answer 2

What ever you do...do-not lease. You pay to borrow a car, have a limit on mileage and have to turn it in when its over and you have absolutely nothing out of the deal. If you really want a new car then understand the downside of paying for a new car/insurance and no spending money.

Another idea is buy a much older can that has somewhat low mileage. Think about a much older honda accord SE/EX. They are the top of the line and depending on the year you can probably get one for $4,000 at most. Much smaller payments or same payments for alot shorter period of time.

I have a 91 honda accord ex and it is just fine. Also consider a civic/camry/corolla/altima/maxima and there are alot out there. If you stick to the Asian made cars most of the time they dont break so they will run for much longer. Also buying an older model means you can buy what was top of the line and its still a very nice car.


Hope This Helps

Answer 3

Drive the old car until the monthly repair bills become more than a car payment, then get a newer used car.

Shop around on the web and the want ads, find a car that has depreciated the least then offer them a lot less. Tell them that for an extra grand you can get a new car just like the one they are trying to sell you and that is why no one has bought their car yet. Bring the research with you. They will cave.

Answer 4

If they refuse to pay the insurance on any other car you buy, just keep the old one. Far as gas mileage goes, that is a very poor excuse to buy a new car. Say you sell your parents old car for $5000 and go buy a $18,000 Scion. $18,000-$5000=$13,000. $13,000 will buy a LOT of gas.
It is never a good idea to buy new cars. Most first generation millionaires buy a 2-3 year old car with low miles that they pay for in cash. Whats good about this is you drive a car that looks new for about half the price it cost new.

Answer 5

I've had my car for 11 years and I bought it used. I saved my money and paid for it in cash. When the engine finally gives up I probably will replace it with a new engine and not a new car loan. I personally think that new cars are a rip off but if you must have a new car then you need to put at least 20% down so you won't be too upside down on the loan. I think you should wait until you have stable and more income before you start your life having car payments. Be patient and smart it will pay off in the future.

Answer 6

Hey beautiful, First of all you need to get credit. This is one of the most important things you can do for yourself. Find a student credit card and make sure you never miss a monthly payment. This is the easiest way to build up credit and it will help you long-term mainly if you want to get a loan. I got my first credit card as a sophmore in college and it saved me throughout college, without it I wouldnt of been able to eat.
Getting a car is a big responsiblity especially if you are going to be making car payments and paying insurance. You need to create a budget, which will help you determine roughly how much you will have to pay every month and if this will work with the amount of cash coming in. If you would like I can create a loan amortization chart for you which will easily show you interest and principal and scare you to S*** because of how much your gonna end up spending. I would avoid bills, and SAVE your cash. You might be able to sell the (old family vehicle) for a fuel efficient car. Car insurance for individuals under 21 is extremely high usually 2 or 3 times as much as someone over 25. Figure out how much everything is gonna cost and then figure out how much you wanna save. Then youve got the amount your willing to spend. Does it fit your budget?
Email me with questions [e-mail]

Answer 7

I agree with John; get a new car.

Depreciated? Who cares about depreciated? I mean, you are first to step in that car, and you may never sell it any time soon.

A Brand new car comes with a premium of 7 years warranty, so anything goes wrong you can have it repaired under your valid warranty... Plus, used cars are not the answer. When you buy a used car, you are buying someone else's problem. I always stay away from used cars, especially when they're over 40.000 miles.

You are a college student, so I am sure in no time you will be on track; that's why you are in college from the first place..

Used cars do not save you money... However, lets say a brand new car costs $10 and a used car costs $5. You may end up spending $15 to repair your used car, while you MAY never need to spend a dime repairing your new car... I am a well experience person when it comes on to cars, and I suggest my children to stay away from used cars.

Answer 8

I bought a program car. My car was rented by Avis. It had about 26,000 miles on it. I never had a problem. I would buy a program car again. I got a 5 month old Pontiac Grand Am in 1998 for $12,000. I was making $8/hour and had car payments of $263. I paid my insurance myself and my own gas. My family and I pay half on car repairs on every car in the drive way because we all drive them or ride in them equally! Maybe your parents would continue to pay insurance at the hoopty car rate and you pay the difference until you get a grown up job. Good luck!

Answer 9

Been there done that, don't buy a new car, you probablly won't be able to afford the down payment, the sales tax, the license or the insurance (full coverage). Keep driving mom and dad's car until it dies, or maybe find a better fuel efficient car for one payment you can afford, then sell your car, mom and dad will be more apt to pay insurance on a used car. It's a JUNGLE out there, stay at home and let mom and dad help for as long as they will.

Answer 10

Do what I do, take what your parents give you because in the end youi'll regret it. If they say that they will help pay for the insurance now then don't get a new car. also if you really want to get a new car don't get a new new car, just find a decent priced nice car. For instance I use to always get the hand me down cars and i wanted a new car but it was in the 20,000 to 30,000 but I kept on searching and found a Toyota Corolla 03 for $9,000. This car is WONDERFUL great on miles, and it looks like a new hip car. compared to those boxy cars others drive.