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I am not trying to start an argument. No it was not 35,000 it was 32,000.
Maybe I was the quota they needed. Who knows.
The point I am trying to get across is to try. If it does not work, fine. At least you know what you need to do to make it work.
Since the OP is military I am sure he knows how critically your finances are looked at. Once all the numbers are on paper I am hopeful he would not bite off more than he can chew with a car payment and insurance that takes up an entire paycheck.
Let me rephrase my post....I would advice that you make sure you have a budget in mind which includes a savings plan and future planned purchases in the next 3 years and any changes in housing. If you are able to buy the car, save adequately and pay the car off in a term that you are happy with, then maybe.
Here is situation I have seen before, having been in the military also. A car, really nice car, is purchased. It's great. The payment isn't a problem, "I can handle it." Though it doesn't leave a whole lot left over.
The insurance payments roll in. Then gas prices add up. End of the year new tires are needed. By the way, I'd really like that new stereo and Plasma....."I can put it on a card....I can handle the payments."
Now it's time for transmission servicing, alignment services. "hey, let's go to Vegas/Cali/etc...." no problem.
The point I am making is this: the cost of a car is not limited to the payment. It includes insurance. Fuel, maintenance, tires, potential repairs after manufacturer warranty, etc.
When you squeeze you budget just for a car, eventually most people want other things....electronics, computers, Plasma, stereo, etc. And if you are spending a large portion of income on car payments, it may become easier to put other things on cards to make the more meager amount of income left over go further....the minimums.
I am not saying that you will fall into this rut, I am just advicing that you consider your finances not just today, but next year and the following....consider savings, investments and cash reserves....other purchases you are likely to want to make in the next 1,2,3 years and the true cost of ownership of the car.
What if you get serious in a relationship and want to get married or move into an apartment or other housing. While you may get some housing compensation or food compensation, it is not 100% of the cost.
What about vacations? Or other things you might want to do. If you are set on getting the car, you are set. I am only providing food for thought, because "having" is sometimes not as great as the "wanting" and once the initial high wears off and the payments keep coming in and choices are limited....ouch.
If you can save $7000 in a few months, why not wait a little longer and put much more down so that you have a lower payment? If you managed to drop $15k down by really saving up, you would have better finance options, better rates and a much more manageable payment that will no squeeze you so much. Being in the military, single, on base housing, chow hall, no med costs, etc. is the perfect place to SAVE.
I had a friend who never spent a dime, when I was at Fort Bliss, or it seemed he didn't....but one day he shows up with a new car. He had saved up, every penny, then paid cash. Then he turned around and put the equivalent of a car payment every month back into savings. He didn't pay any interest, got a great deal. Now this may be more extreme than most will go, but it is an example of the opportunity somebody has in the military.
Whatever you decide, good luck
Thanks for advice everyone. I think if i still try to buy this car i'll save up a larger down payment so money won't be so tight after the car payment, insurance, gas and so on. You are right, being single and in the dorms has presented me a great oppurtunity to save money and i'll want to be able to continue saving money after I purchase a vehicle. I have to admit that everyone's advice here has caused me to re-think buying the vehicle. I'll want to make sure I can afford the car and all its expenses and still have money left over for all my personal expenses and money to save as well.
Thanks again for everyones advice
I might as well put in my two cents, am a senior airmen in the airforce also last year i was making about 900 a check, 1800 a month and now i make 1500 a check and 3000 a month. and this is after taxes what am getting at is people in the military their pay fluctuate every year they earn more and more. so if you find a bank to approve you (USAA is great) you should be okay with the payments and everything else. thats just my two cents
And you should be testing for staff soon, and moving out of the dorm. that is a huge pay jump
@Anonymous wrote:
what price range of a car would you suggest for my income?
Well,start with your net pay after deductions. Subtract 10% of gross for savings, subtract all living costs, etc. Divide the remaining monthly amount by three because the payment is only part of the total operating cost for a car, and because you must have some breathing room to handle life's surprises. Anyway, after dividing the remaining monthly amount by three, go here to calculate what the loan amount will be for that payment:
http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx
Personally I like to be the second owner of a car,buying them around four years old and keeping them until they are around 10 or 11 years old (so I'll probably replace my current 2000 Toyota Camry in 2010 or 2011). I could actually buy a car right now without going into debt but I prefer not to tie up that much cash in a depreciating asset!
Mike:
seeing as the car you areinterested in does not have any manufacturer incentives, and the fact that you are AD Military:
join USAA. thy have a member servive regarding car purchases that can get you a pre negotiated discount