Help me decide what my first car should be

[Anonymous]

So, I'll start off with a few important details.

I am currently 22 years old, living at home, working a job that pays me $9 hourly, working 40 a week. I have no rent obligations (which I am very thankful for, and of course I realize is a priveledge) or anything of the sort. I currently have no credit, as this is my first job, I just started a few weeks ago. For understanding, I made some... poor choices in the past. In line with the short experience, I cannot apply for credit as I have not worked long enough.

Now that I have cleared up my current situation, I'll get right into it: I want a Used 2015 Ford Mustang GT.

In addition to my living situation, I also have the extremely good fortune of only having to pay half the payments (this was an offer from my father, not a request. To many of you I probably seem like I'm spoiled. I certainly do not have the attitude, so I just consider myself fortunate). So, the supposed Mustang would therefore only cost me half of the price (anywhere from 14-15k total not including gas, insurance and services). As I do not have credit, I am unsure where and how to go about getting a quote on the vehicle. The finance calculator on the dealer's site suggests that for 60 months, with 9% APR (brother is in a similar situation, his truck is 9%) the payment would be $561 a month, or $230 monthly from me. Factoring in Insurance, which I am also unsure of, as well as monthly gas costs I'd basically be out $7-800 a month for this car.

This is not at all unreasonable for me, but I also realize this is not accurate. The truth may be that the cost is very unreasonable, but it's such a beautiful car that, of course, I'd like to dream.

Rather than continue dreaming, I want an opinion, viewpoint, advice, anything at all from people who are experienced and can give me either hope or give me a proper dose of reality. I daydream about the stang, but I understand that it's a lot of car, and a big responsibility.

Would also like to note that I've seen some people around here mention that some come into the forums, ask a similar question, don't get the answers they wanted and take it out on everybody. I can assure you all I will do no such thing.

[Anonymous]

Unfortunately if you have absolutely zero credit there would be no way for you to be approved for a car with a price tag of almost 30k on your current pay, unless if you had a sizable down payment (Most like at least 50% of the purchase price). Your father would have to be the primary borrower assuming his credit and income qualify, and you can probably be on as a co-borrower to help build your credit.

Even if your parents are helping pay "half" of the payment, unfortunately the lender is NOT going to take this into consideration if you are the borrower on the loan, as stated above it would have to be under your parents if they qualify for the car.

Insurance for that car, at your age is going to be astronomical. You should open a credit card or two, build your credit for a few years and hopefully increase your income. If you can do that, you can eventually get a car like that but at this time you are absolutely setting yourself up for disaster. Take it from someone who has been down this path with other vehicles when I was your age.

If you need a vehicle to get back and forth to work, save up some cash and buy something for around 3-5k while you are building your own credit. Hate the be the bearer of bad news, I understand the want for a nice car but trust me it was much more rewarding once I was actually able to afford comfortably. Good luck!

[iced]

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@Anonymous wrote:

So, I'll start off with a few important details.

I am currently 22 years old, living at home, working a job that pays me $9 hourly, working 40 a week. I have no rent obligations (which I am very thankful for, and of course I realize is a priveledge) or anything of the sort. I currently have no credit, as this is my first job, I just started a few weeks ago. For understanding, I made some... poor choices in the past. In line with the short experience, I cannot apply for credit as I have not worked long enough.

Now that I have cleared up my current situation, I'll get right into it: I want a Used 2015 Ford Mustang GT.

In addition to my living situation, I also have the extremely good fortune of only having to pay half the payments (this was an offer from my father, not a request. To many of you I probably seem like I'm spoiled. I certainly do not have the attitude, so I just consider myself fortunate). So, the supposed Mustang would therefore only cost me half of the price (anywhere from 14-15k total not including gas, insurance and services). As I do not have credit, I am unsure where and how to go about getting a quote on the vehicle. The finance calculator on the dealer's site suggests that for 60 months, with 9% APR (brother is in a similar situation, his truck is 9%) the payment would be $561 a month, or $230 monthly from me. Factoring in Insurance, which I am also unsure of, as well as monthly gas costs I'd basically be out $7-800 a month for this car.

This is not at all unreasonable for me, but I also realize this is not accurate. The truth may be that the cost is very unreasonable, but it's such a beautiful car that, of course, I'd like to dream.

Rather than continue dreaming, I want an opinion, viewpoint, advice, anything at all from people who are experienced and can give me either hope or give me a proper dose of reality. I daydream about the stang, but I understand that it's a lot of car, and a big responsibility.

Would also like to note that I've seen some people around here mention that some come into the forums, ask a similar question, don't get the answers they wanted and take it out on everybody. I can assure you all I will do no such thing.

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Assuming you can even get financed, which is far from certain...

Do you plan on living at home for the next 5 years? Does your budget have enough flexibility to adjust if your gas consumption goes up or if gas prices rise back to $4 a gallon? Do you have budget for repairs and maintenance such as tires? Those don't last very long. Are you confident you'll keep the same job for 5 years or be able to move up to a new job easily? If not, do you have savings in case you have to make your share of the payment while unemployed? Insurance will still be high for several years.

Theres a lot to consider and be ready for when doing something with long term repercussions.

I get that it's really fun to be living dreams in your 20s, and it's your choice, but I also remembering really lacking in foresight at that age too. Think about your long-term plan because once you do it, you'll be living with this decision for a while.

[StartingOver10]

A payment in the $500's for your first vehicle is just too high - even if your parents are willing to pay half.

Do the responsible thing: get a cheap used car for your first vehicle. Spend less than $10k. Get used to driving. The auto insurance on an expensive vehicle will be cost prohibitive given your age and driving experience.

Save for a better vehicle for the next one - after you have had enough driving experience and you are over 25 years old (when your insurance rate drops). 

Hopefully, by then your employment improves. Using 50% of your gross income toward a vehicle purchase is the definition of irresponsible. Even with your father volunteering to pay half, show him that you have researched the alternatives and prefer to not spend more than $500 per month on a rapidly depreciating asset. It is far better to take those funds and invest them for your future. Don't get in the habit of throwing away $$ just because you can do so now. JMO

[Anonymous]

I do not mean to come across harsh, but I like to keep things real, so here it goes:

At 22, living at home earning $9/hour, do you really think you have earned a car of this caliber? Have you finished college? Do you have a down payment for this car? Can you really rely on dad to pay half the payment for the 5 years of the loan? What if something happens to him? What if you and he have a falling out? Do you really want such a hot car with strings attached? That dream car is going to be all the more sweeter if you do it completely on your own.

If you listen only to your heart, I suggest that you call your insurance company to determine what your insurance rate would be for this car. I am assuming you are male, so male, under 25 with a V8 powered pony car...and you will need full coverage (collision and comprehensive) and depending on your state you may have to have a $500 deductable (rather than a higer deductable for a lower rate). The rate may make your head spin. As another poster said, at 25 the rates go way down (provided you have a clean driving record). This phone call could very well pop the bubble of your dream-which will help you deal with reality.

I strongly suggest getting basic transportation, finish school or learn a trade, build your credit and save for a down payment. Once you have moved out of your parents house, whether on your own or with roommates, then you can decide on buying your dream car. Remember that tastes and needs change, so at 22 you may find that overly curvy Mustang a hot car, in as little as a year or two you may change your mind and you may be stuck with that car for a while as it will not be worth what you owe on it. 

I do not want to bash you for being young or a Millennial, but you said in your statement that you "want" this car. There is a different between wanting and needing. And unfortunately, Americans in general and seemingly more prevalent in younger Americans, there is this notion of instant gratification. You want that car now, at 22, with dads help. I am telling you from experience, when you put the entire down payment on the car, finance it in your name and make every single payment by yourself, you are going to appreciate it more, take better care of it and it will be one of the most satisfying experiences of your life. 

[Anonymous]

Wanna thank you guys for the responses.

I'm glad I asked some well informed people first before making a big decision that I may have regretted. So, as is the smart thing to do, I have started shopping around for a used car under the price of $10k. The Mustang is clearly too much car for me atm, and I sure wouldn't know what to do with a GT without some experience with a faster car. I even considered a V6 for some time, but then I'm just making unecessary sacrifices.

Wanted to say I also appreciate the honesty and straight-forwardness. It really brought me back down to Earth.

I'm sure I'll be much more pleased, as CO_NATIVE said, with a car such as a GT when I can handle all of the expenses myself. I'll work a few years, build credit, hopefully be making more money and then decide where I want to go next.

Cheers.

[Anonymous]

At least I'm glad you asked B4 you leaped
Many of us have been there, rites of passage, friend.
In fairness 22, today isn't as far along maturity wise as has been demanded of prior generations, so things seem newer and expectations are outta whack based upon today's value proposition.
Not totally any one person's total fault but I'm very happy you decided to seek advice about the water before diving in, bravo.

When, I was about your exact age
I went into a dealership and was approved for a
Cherry Red badass Toyota Supra Celica ( which in the early 90's was, again BOSS) I said Mitha freaking hot as RED didn't I?

Anyway, I remember it like it was yesterday
The payment would have only been $167/mo
I was like NO PROBLEM...For THAT ride?
Wrap my ish up
Wrote the downpayment check and roared the freak out of the lot

I just had to get my INSURANCE set up

That's where the hiccups started
Being a young new to the state driver (in college, in a different state than I got my still relatively young license 16 to 21 is only 5 years driving experience...Divide that by 2 states and you're seen as a novice driver)

Add in the fact of being an unmarried male under 25
Wanting to drive a 'race car's = you're SCREWED LOL

The insurance quotes were double my freaking car note...I never touch that car after that, told the dealership to come pick it up from my apartment complex, which they did and sent back my check.

That was ages ago but I never forgot and understand the itch but life is a long time and you can't put yourself in nutty financial positions over SIMPLE ish like a car

You just can't do it
Trust me there will be SO MANY things in life you'll "want" ...Bad
but again there will ALWAYS be another thing then another... Can't let those desires put you in freaked up positions ...Just for a 'thing' ...Again one of many things
Oh and btw once you're over 25 and making some money it feels sweet to AFFORD whatever you want , still gotta pay insurance but doesn't hurt as much 😎

Thanks for reminding me....Good times 😊

Anyway IMO with your income and work stability
I would not even budget as high as 10k
IMO your Max should be more like 5k

I know you don't want to hear that BUT being
REAL you are 1 argument away from having to pay some rent, it's just the truth...You're 22 at any moment, it could be THE moment living arrangements HAVE To change.

This is a 1st job
It's $9/hr
Hours could get cut, changed, last one in first one out

Way too many new variables in your young life to take on a 10k debt
You have ZERO experience in making PAYMENTS
IMO 10 grand, let alone 5 grand is again IMO too big a commitment to make as the 1st bite at the Apple.

I prefer a car one can pay for or a cheap enough payoff that a few deliveries or Uber days can kill the debt very quickly

Please consider a smaller financial commitment, you can't be comfortable IMO committing to that much debt, when you have little to no experience making payments and a new shakey employment situation coupled with an open to change quickly housing situation.

Best of Luck