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First Time Auto Loan

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Anonymous
Not applicable

Re: First Time Auto Loan

Some banks and credit unions will actually get you a deal on a car -- ask at all your banks and see.  Also, check with Costco if you're a member.  The gal I date (she's closer to your age but super credit smart) used Costco to negotiate a fantastic price on a car that even I couldn't match with my skills.

 

If that doesn't work, use NADA and KBB's websites to see what's fair for the car you want but know those sites exist to help dealers, not consumers.

Message 21 of 31
Anonymous
Not applicable

Re: First Time Auto Loan

hhaahha love the lingo. But thank you very much, i appreciate all of your feedback and advice. You have the most most insight ive seen thus far. my mind is more at ease and now i have a better idea of what too look at and expect. thank you very much ABCD2199Smiley Happy

Message 22 of 31
Anonymous
Not applicable

Re: First Time Auto Loan

Sure thing!  Report back with your results and good luck on getting the car you want and can afford!

Message 23 of 31
Anonymous
Not applicable

Re: First Time Auto Loan

I will! 

Message 24 of 31
Moneyklutz
Frequent Contributor

Re: First Time Auto Loan

I really don't want to rain on your parade but a car is never an investment...it's always an expense.

 

The advice given by Steeler is something you might consider before falling into the trap of indebting yourself for many years to come. When I was your age I walked into a Datsun (Nissan) dealership late one night and several hours later drove out in a brand new 4x4 king cab truck on top of the world with a huge grin on my face.

 

The payments were within what I could afford, but the vehicle, even brand new, had hidden costs (higher insurance and registration) that I'd never considered.

 

I faithfully payed every month the $372 for 6 years and eventually clocked over 180,000 miles on the odometer. Counting oil changes, tires, shocks and everything else imaginable that broke after the warranty ran out... my total actual cost was utterly ridiculous especially considering that interest way back then even on a new vehicle was 14%+

 

I eventually traded it in on a used CJ-7 jeep and was thrilled to get $1500 for it. The Nissan was tired, worn out and in need of many more repairs. Sadly I did not have the money to spare to fix it.

 

The lesson I learned though is that ALL vehicles are simply an expense to own. Just like buying a new pair of Levis...they rarely appreciate in value and other than making you feel special for the moment, you really can't ever get back the money you spend up front.

 

Find a good used Honda or something similar and make that 5k work for you. Each monthly payment you don't have to make will pay for a ton of repairs in the end. What you don't need in repairs you can sock away in the bank or find a way to invest it. 

 

It's hard to see others your age driving around in newer vehicles and not want the same, but all the money you start saving now, really comes in handy when you most need it for the things life will unexpectantly toss your way later.

  

Message 25 of 31
Anonymous
Not applicable

Re: First Time Auto Loan

Yes, i do see your point. but im not getting a new car , im getting a certified pre-owned, trying to stay within reason. because cars are expensive~

the max im spending on price of car without tax title and fees is 16,000. i already have found the one i want its a 2015mazda6. i already have a used car i payed for in cash, that thing was ehhh. i paid 3900 and after fixing the engine mounts and transmission mounts on top of what i have already like replacing the power steering belt and engine sensor, ill have spent almost 6 grand on just that piece of crap. beggers can't be choosers so im getting something not new but not completely used and abused. im guessing with my doown payment and the car not being unbelievably high i should pay about 250 a month, plus insurance is another 230. I think its reasonable

Message 26 of 31
Anonymous
Not applicable

Re: First Time Auto Loan

But yes i do understand, cars can be an expense but they are also a necessity unless walking is optional. but with sacramento getting around is hard.  i  could make it work with another used car but what ive spent in repairs on my 2006 kia optima i could have spent on making a car payment. id rather have that then getting my car pushed by my dad to a parking lot because the engine sensor went out 2 months after i bought that thing with my own money (no help whatsoever).  than getting told 500 bucks is the cost to fix. To me its not worth it in repairs, but thats just me  

Message 27 of 31
Anonymous
Not applicable

Re: First Time Auto Loan

Thank you all the same for your input Moneyklutz. But, my first used car did it for me, never again. If i would have gotten the honda id probably wait a few years, but had to have the kia...not entirely crappy but whoever had it before me sucked

Message 28 of 31
Moneyklutz
Frequent Contributor

Re: First Time Auto Loan


@Anonymous wrote:

Thank you all the same for your input Moneyklutz....


You bet. 

 

My advice is given freely with the hope that it will help others make good choices, but also with the respect that it is not my choice to make.

 

Go get that car if that's what your heart desires... been there, done that and most likely will do it again someday.  =)

Message 29 of 31
Anonymous
Not applicable

Re: First Time Auto Loan

Oh, and VERY IMPORTANT

 

Get an insurance quote on the car BEFORE YOU BUY IT.

 

At 20 years old, it is unbelievably easy to have insurance that exceeds the amount of your car payment!

 

My niece is your age and I think is paying $275/month for insurance *with* a clean driving record.

 

I think her car payment is only $200.

Message 30 of 31
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