The whole reason for me wanting a "new" car at some point in the next 24 months is that I really, really do not want to take my current car with me when I move. It's a '99 with close to 200k miles which is too big, too wide and too long. It will have all 4 windows working after this weekend, as I paid my dad $250 to order the windows online and keep the rest of the money. He found them for $160, all 4 of them, and he will change them himself, which saves a ton. The stores wanted $130... for ONE window motor. Can you believe that?! It'd be about $520 not counting the labor! But I digress.
This car isn't really mine. It's my dad's. He just unofficially gave it to me after my old one, which wasn't really mine either, died in Oct 2011. I want something that's mine, and something I can rely on. Something with air conditioning would be awesome too! I've never had a car with air conditioning.
Imagine me laughing at myself at thinking that getting a mere $8,000 is a daunting task! Just wait until I need a mortgage...
As much as I hate the idea of payments, it may be my only solution in a way that collaborates with all other goals. Yet, as much as I can tweak my budget, I cannot accommodate a standard car payment (about $350/mo). So for the time being, this topic gets shoved to the back burner after reaching the too-familiar impasse.
How did you deal with your first really big purchase? Did you just wait all the way until you could indeed afford it all or did you bite the bullet and jumped before you had all your ducks in a row?
I bought my first car when I was 17 for $10,000. I took out a loan and my parents cosigned for me. I fully paid for it myself though.
ReplyDeleteI have done it both ways. I bought a car outright when I was 20. I paid for the majority, and my parents agreed to pay the rest. But fast forward 7 yrs later..and I was pregnant with twins....and we had to buy another car. We had nothing....except $500 they gave us on a trade in. And then we had $350 a month payment with babies on the way.
ReplyDeleteAnother example...my fertility treatments. We didn't have all the money we needed. So we financed some. I think it comes down to what you can live with.
I agree a bit. I just *really* do not want to live with car payments, but I'm tired of broken cars.
DeleteI kept my crappy '99 Contour (that I purchased in '00) going until last year. It was in horrible condition, but fairly low mileage as I hate driving. I was looking for a newer car but kept balking at having to spend the money (I hadn't had a payment since '04). Fortunately or unfortunately, depending on how you look at it, my car was totaled by a drunk driver one evening while I was at a family Christmas. It was parked on the street. I was finally forced to get a newer one. I bought an '09 Vibe for $14000 with a payment of $256. Check credit unions (I only bank at them) for good rate. Also, they tend to be more forgiving and make an effort to work with you if you have any financial difficulties.
ReplyDeleteI've been trying to keep an eye at credit unions (I don't belong to any, since a lot in my state have restrictions, like military only or state employees only). I'd definitely rather give my money to a credit union than a major bank.
DeleteI got my first car at 19. It was a lease. The reasons (which are probably not the best in the world but since I didn't know anyone with a car I had no experience with buying 1) were:
ReplyDeleteA) The low payment (219/month)
B) Bumper to bumper warranty during the lease period (did I mention I knew nothing about cars)
We recently got DH a new to us car....and my advice on this:
A) Get pre-approval. It saves time.
B) Dont' be afraid to negotiate. We got 3k off just by saying things like you can do better or nope that's still out of budget.
C) Shop at the end of the end. Most dealerships have quotas/sells figures they need to meet at month end and getting a deal is a little easier.
Our car payment is 260 on a 2009 Nissan Versa Sedan w/25k miles and a bunch of bells and whistles (men and thier gadets) :-)
Good Luck!
**Sorry it should say end of month**
DeleteI can understand the "men and their gadgets". I'm not a very good negotiator, but I think I have time on my side in that I can just walk away if the deal isnt prime.
DeleteIf transportation is a must for you and I think it is you will need a car. Look at good used cars, maybe craigslist. We were able to find our youngest a car with 22,000 mile for 8,000 and her payment is 195.00 for 4 years. It can be done. Good luck
ReplyDeleteWow! 22k miles for 8k is pretty good! I think that'd I'd pick the longest payment period and just pay it off within a year or two. I dont want that looming over my head.
DeleteI'm with you. We will NEED a new car in about two years. And we also really want to buy a house. I don't know how it will be possible to do both. There just isn't enough money to go around. When I bought my last car, I just bit the bullet and ended up with a $434 car payment that severely hampered my debt repayment progress. Not getting into that mess again.
ReplyDeleteI keep jonesing for a new car too!! I keep thinking about the new Honda Civics ... but I stop myself from venturing into the car dealership. New car payments, C&C insurance, registration, maintenance ....it all adds up. I am sticking with my old vehicles for the next few years and then will assess the situation. Personally, I think it's best to buy a car that's a year or two old, pay for it with cash and take a good mechanic along with you when you buy it from a private party. Forget stealerships. Research the used car you're thinking of buying online to get an idea of reliability/known problems. The car forums are great. That's where I found out that my own car had known engine defects and that's why I got rid of it.
ReplyDeleteAlso, I rent cars for long trips out of town and, when I move from this here desert, I will move to a place with good public transit (subways,trains) with a high Walk Score. Cars will always be a financial drain, no matter how one looks at it.
It seems you have already gotten a lot of really good comments on the topic. My first car basically came from a loan. They payment was something I could afford on a month to month basis so I was willing to make the sacrifice at that point. After a while the payment started to annoy me though and I paid extra towards it when I could to get rid of it faster.
ReplyDeleteFast forward now to where I have no more debt payments but not a lot of savings and I'm struggling with even smaller purchases like a tablet.
In the end, you will have to do what you are comfortable with. Payments aren't as bad as we make them out to be in the PF community if you really plan them out. Of course there is always a better method, but sometimes you have to weigh the best option for now, make a plan and make sure you can handle it.
I'm going to be looking for a good used pickup truck soon and giving my compact car to my daughter to help get her set up with an economical car to drive as she begins to look for a full-time job after she graduates from college in April.
ReplyDeleteBut my first big purchase was my condo. I cobbled together a down payment by cashing in 2 small life insurance policies, removing everything I had from my RSP (we can do that here is Canada for first home purchase only) and also borrowed from my dad. It was quite the wheeling and dealing but so glad I did it. Now, 18 years later it is paid for and will help to support my retirement when sold.
That's pretty cool, heh. I think some IRAs (mine specifically) allows you to take up to $10k you've contributed after 10 years for a 1st house down payment. I opened this particular one, just in case I do need that extra padding to complete a down payment in the future.
DeleteIf you need a car and you’re on a tight budget, I think the best chance for you to get one is to look for a used car. It’s wise because you’d have an idea about its reliability from its previous owner. It can also have a lower/negotiable price compared to a brand new one.
ReplyDeleteAsheley @Infinitiofannabor.com
"I want something that's mine, and something I can rely on." - I understand your hesitation in getting a new car, especially after considering your financial status. On the other hand, I hope that statement would motivate you in doing everything that you can to purchase a car for your very own. It might need a little budget adjustment, but it's an investment that's worth the sacrifice. A year has passed already, and I hope you've already bought a new car or almost there. Cheers!
ReplyDeleteSarah Erwin @ Baldwin Subaru