Buying a new car (first timer)

Discussion in 'Off Topic' started by Weapondrift, Feb 27, 2009.

  1. mike250rs

    mike250rs New Member

    Joined:
    Nov 24, 2007
    Messages:
    14,284
    Likes Received:
    0
    may also check out bank repos. May take some leg work but they will usully be more than happy to make a fair deal
  2. Weapondrift

    Weapondrift New Member

    Joined:
    Feb 1, 2008
    Messages:
    5,739
    Likes Received:
    0
    I spoke to my dad this afternoon about this scenario. He meantioned for me to put 15k aside in the event that I lose my job and THEN start saving for a car. *sigh* I have 5k in the bank right now but still...it took me FOREVER to get to that point.

    The downside...because I have 0 credit my APR will be 11% on a 14,000$ car. :(
  3. EQBob

    EQBob New Member

    Joined:
    Sep 24, 2007
    Messages:
    3,416
    Likes Received:
    0
    Yeah, the financial folks say 3-6 months of living expenses (Bills + food, gas, etc) is what you should have. Can be a very difficult road to actually get there.

    On the bright side, if you decide to do that first, you can use that time to build up credit and maybe lower your APR. Charge a weeks worth of groceries on your credit card, then wait two days and electronically pay it. Stuff like that. There are known techniques for raising your credit profile.
  4. gnath9

    gnath9 New Member

    Joined:
    Feb 10, 2009
    Messages:
    857
    Likes Received:
    0
    When walking the lot keep in mind that these cars are "floor planned" and after 90 days the Dealer has to start makeing payments on them. The older they get the higher the payment is. So look for an old stock # on the car. They will deal more on those because they are costing the dealeship to have around.

    I bought a Brand New 07 Ford Focus for $11,400.00 dallors. Its a great car. I have had it almost 3 years and it has not had a single problem. It was my first "new" car and I will drive it until it dies.
    My Dad always bought new and took great care of them. He got a new truck in 72 and then another new truck in 85 and that truck is still running today.

    So my thoughts are... If your not going to commit to "til death do us part" then dont waste your time looking for a virgin.

    P.S.
    maybe your Dad can co-sign for you to get that 0%
  5. Weapondrift

    Weapondrift New Member

    Joined:
    Feb 1, 2008
    Messages:
    5,739
    Likes Received:
    0
    I had actually never heard of planning that (the "nest egg") I did some research last night and discovered if I was to save 228$ a month, I would have my 15,000 in 3 more years...*sigh* thats a long time

    Im trying not to get my parents involved for the simple fact that I am 30 and should be old enough to do things on my own instead of relying on mom and dad. Nothing offensive, just that I would rather me pay for this by myself
  6. EQBob

    EQBob New Member

    Joined:
    Sep 24, 2007
    Messages:
    3,416
    Likes Received:
    0
    Obviously, I do not know your situation, but the above thinking *may* represent something of a falsehood. Saving for several years to buy a car outright may not be the smartest move. For one, it certainly doesn't help your credit rating in the meantime, or even later on, when you want something larger, like a house. Maybe saving for 6 months to get a down payment and then doing a loan for the rest is smarter. It will certainly do more for your credit rating long term.



    Take a hard look at your budget. The magic number banks will use is approximately 30% of your income in total debt (house, car, student loan, credit card, etc).
    • If you're over that percentage, you chances of getting a loan are greatly reduced, especially in current economic conditions. Solution: pay off what you owe, consolidate, etc.
    • If you're under that percentage, figure out what $$ figure that percentage is of your income and where your current debt $$ figure is and the difference is what you can "afford" right now. Afford being stated in terms of a bankers opinion, not yours...your feeling on what you can afford may be higher or lower. IF it's higher, you can try to convince the banker. Show job history, long-term residence, monthly budget, a plan, etc. If it's lower, nothing to prove.
    Now...that still may not get you the greatest percentage rate, but you know...so what.

    Really...I mean it. If you are establishing a credit history, driving a reliable vehicle (new or not), without repair problems and with safety features, you feel good, and you can manage the payments without eating hot dogs and beans 6 nights a week, who cares if the interest rate is 4% or 9%. I've had car loans from 0 to 11.25. My first car was 11.25%. I never missed a payment and it established my credit history. The difference between say 7% and 11% on $300 is 11 dollars a month. Are you willing to pay $11 a month to be happy, be safer, and invest in your future? That's 2 meals at McDonalds or 11 of those ridiculous cups of coffee at Starbucks (or at least so it seems, to a non-cofee drinker <G>)

    Certainly not trying to hammer you here....on the contrary...trying to illustrate some things. While all the pundits say debt is horrible, the banking industry is built on debt assessment and debt history to be willing to give you money. If you have no debt and no history of debt, you don't get no money. Also, your name isn't Buffet (that's an assumption of course). So in order to get debt, you have to pay more (higher interest). It's a screwy system at times, but it's the system.

    Once you have debt and you fast forward 20 years to age 50, then you morph into paying debt down and off. Between 30 and 45 the trick is smart and consistent management of debt to set you up for the longer term.

    A good article can be found below.

    http://money.howstuffworks.com/personal-finance/debt-management/improve-credit-score.htm

    These are just some of my thoughts. Long post. Worth what you paid for it <G>
  7. EQBob

    EQBob New Member

    Joined:
    Sep 24, 2007
    Messages:
    3,416
    Likes Received:
    0
    And you know what...that's ok...*IF* the payment on that doesn't pop you above the "magic" number of approximately 30% debt ratio.

    Also, sometimes, you get a better loan at a credit union than a bank. Also, there's nothing wrong with going through the dealer financing arm and seeing what they'll give you.
  8. Weapondrift

    Weapondrift New Member

    Joined:
    Feb 1, 2008
    Messages:
    5,739
    Likes Received:
    0
    See, that what i talked to my dad about (buliding credit). I meantioned to him the idea of a secured credit card or 90 days same as cash. his remark was a sound remark but still makes me sceptical. He told me that the X amount of money that you put to getting a secured credit card is actually X amount of money that you are not putting into savings. Which is a valid point, but how am I going to establish any kind of credit if i am not making an effort, ya know?
  9. EQBob

    EQBob New Member

    Joined:
    Sep 24, 2007
    Messages:
    3,416
    Likes Received:
    0
    He's got a point, but he grew up in an earlier era where things were different. You would probably do far better building credit with jsut a loan than you would with anything else...just don't miss payments....take a real hard look at budget first.
  10. Weapondrift

    Weapondrift New Member

    Joined:
    Feb 1, 2008
    Messages:
    5,739
    Likes Received:
    0
    thats why I was considering a secured credit card. tho I know very little about it, what i do know is that if you give X amount of money to the bank (min 500) that is your limit. What you do is charge here and there and put your purchases on the cc and at the end of your month you pay it off. How a secured cc differs from a normal cc I do not know, but I will do some research tonight on the subject
  11. EQBob

    EQBob New Member

    Joined:
    Sep 24, 2007
    Messages:
    3,416
    Likes Received:
    0
    So what did you ever decide to do?

    Just curious...if you don't want to relate, that's kewl too.
  12. Weapondrift

    Weapondrift New Member

    Joined:
    Feb 1, 2008
    Messages:
    5,739
    Likes Received:
    0
    I decided to hold off for awhile and save my money...trying to get 15g in the bank is alot harder then you think it is. lol
  13. Weapondrift

    Weapondrift New Member

    Joined:
    Feb 1, 2008
    Messages:
    5,739
    Likes Received:
    0
    4th quarter 2nd down

    ok so here is what i have decided to do:
    I am definatly going to buy a used car instead of a new car. Reading and listening to everyones advise I see this as my best option.
    However, this is what i am trying to figure out...is it better for me to get a used Honda civic sedan for 14k with less then 30000 miles and finance the rest? Or should i get another car for 10k and finance that??

    I can do the payments each month, however i will have to make some sacrifices at first, possibly my cellphone, DEFINATLY my internet plan on my cell phone (which I never use) and idk what else lol.

    My current car even in the condition it is in has a definate buyer for 1300$. Im hoping to use the money for my current car to use on the TTTF (tax,tag,title, and fees).
  14. EQBob

    EQBob New Member

    Joined:
    Sep 24, 2007
    Messages:
    3,416
    Likes Received:
    0
    I'm not sure there's really an answer to your question, because you've provided incomplete information. As a whole, the Honda accord is a great car, with proven reliability, fuel efficiency, etc. But without a specific year, knowledge of options, condition, etc...it would be hard to determine if 14K is a good price. Also, you just mention "another car", so I don't know if you have anything planned or scoped out on that front or not.

    I'd like to ask a dumb question if I could. From the previous thread about street racing, speeding, etc...you obviously already have a car and in this latest post you say you've decided to buy a used car instead of a new car. If you already have a car that is reliable and trustworthy, why the "upgrade" to a newer, used car? Of course, the answer may be none of my business, and that's fine. I only ask because if I recall from the previous postings on this topic, I think I was under the impression you didn't have a car.
  15. Weapondrift

    Weapondrift New Member

    Joined:
    Feb 1, 2008
    Messages:
    5,739
    Likes Received:
    0
    the other car i am looking at is an 04 acura tl with 23k miles on it.
    The Honda I am looking at is an 04 - 06 civic sedan (sorry the accord was written in error) the civic is an ex with less then 20k miles on it cloth interior, etc.

    You are not asking a dumb question at all :)
    The current car I have (the afterformentioned in this thread) has 200+k miles and im at the point where the miles outweigh the price, if I sell it now I can at least get something out of it instead of waiting a few more months. I already have a buyer for this car and I would like to sell it before it breaks down on me.
  16. Weapondrift

    Weapondrift New Member

    Joined:
    Feb 1, 2008
    Messages:
    5,739
    Likes Received:
    0
    Done finally!

    ok so since monday I have been to 3 dealerships and looked at everything from a certified 06 accord to a base model camry and yaris. I dint like the toyotas to be honest. Ninjaap, if you can read this one of my biggest complaints on the toyota was shutting the trunk on a brand new one required an act of God.
    So the dealership ran my credit...13.45apr so i had to actually lease, because my credit was so bad I had to go on a joint lease 3yr 12000 mile lease to be exact. I ended up getting an 09 accord (base model) which is still really nice. Since my dad is the co applicant he had to go in both with my insurance and on my lease. Since my dad lives out of state the car will be titled in Alabama but garaged here in Georgia. my question is this...Sherri maybe you can answer this: Hypothetically, if I get pulled over for some reason and the tag is in alabama what do i tell the cop? The car belongs to my dad? It does but it doesnt.... this confuses me.
  17. EQBob

    EQBob New Member

    Joined:
    Sep 24, 2007
    Messages:
    3,416
    Likes Received:
    0
    What does that mean really? <G>. My wife's car is an 09 Camry XLE and shutting the trunk is no different than it has been on any Toyota we'e ever owned, which includes Corollas and Camry's and a Tacoma, although that obviously doesn't have a trunk, being a pickup <G>
  18. sherri

    sherri Active Member

    Joined:
    Jun 29, 2007
    Messages:
    10,117
    Likes Received:
    0

    As long as you have the registration card (which should be in both your and your dad's name), your license, and a valid insurance ID card, you should be fine. In NY, the registration needs to match the insurance. Also, in NY, the insurance is based on where the vehicle is garaged. I would check with the insurance company to make sure they do not have a problem with this, but they shouldn't!

    And, congratulations on the new car!
  19. cindra

    cindra Active Member

    Joined:
    Jan 17, 2008
    Messages:
    2,992
    Likes Received:
    0
    Congrats, Weap, on the new car! Hope you have a million trouble-free miles and the smiles to go with em! :laugh2:
  20. txter

    txter New Member

    Joined:
    Oct 27, 2007
    Messages:
    2,749
    Likes Received:
    0
    if it ever came up, i would tell the cop what you posted. that your dad had to co-lease it with you and his name is one everthing. im sure your not the only one to have done that.

    congrats on the new car

Share This Page