[peachspecial]

here is my situation..

i'm a full-time college student working a part-time job making about $600/mo.

i have about $11k saved and no credit history.

full-coverage for me will cost about $275/mo (my dad will help me out every month with about $120)

i was thinking about putting $6000 down and doing monthly payments with my job and the left-over $5000. i think i can get a better APR rate if i go through a bank instead of toyota.. and since i'll still be working, that $5000 should flow at a steady pace instead of depeleting within a few months time. my other bills include food, phone, cable, gas, and i guess a social life. is buying a new car a good choice for me? or should i just take that $11k and buy a used civic or something?

what else am i forgetting? what are my options? hope to hear from you guys... thanks!

 

[Azrael]

A new car would eat up your money really fast. I would be really careful about that decision. Depending upon the interest rate you get, you would possibly be looking at a payment of $250 or more. With ins at 275, that's more than $500 of your $600. Maybe you should find a job that pays more. When I was 16-17, I made $12 per hour working 20-24 hours per week. That comes out to about 1200 per month. I'd look for better employment before I bought a new car.

 

[basilisk4]

My suggestion would be either to stick with the car you have (if you have one) until you are out of school and have a real job, or buy something reliable in the $5,000-$8,000 range to last until then.

 

[lucidspoon]

I'm just going to play devil's advocate for a second...

I know exactly how it is wanting to spend money in college, since I just graduated in May. heh. I just did work-study all through college, so I only made about $300 a month, and I never had any money saved. ha.

I would say that your decision would depend on how much longer you're going to be in college and only making $600 a month. Maybe you could have a 5 year payment plan. After $6000 down, that could end up being only about $400 with insurance after your dad helps you out. And if you only have 1 year left, that $5000 could be used for that whole year, and you'd still have your $600 a month. Or if you have longer left in college, you could pay $200 a month out of your income, and the rest from the $5000, or something like that.

You might think about not putting as much down (I only had to put $500 down), because if you'll be able to make more money in a few years, you'll be able to afford the higher payments.

I would definitely suggest going through a bank to finance. Even my salesman told me that we'd get better rates through our bank. I'd also suggest co-signing with your dad, since you don't have credit, and it seems like he's willing to help out. That helped me get a better rate too, because the only credit I have is student loans.

But I'm sure you know how well you manage your own finances better than I do, so just work out a budget and see what you can afford. Ramen noodles and Natural Light can get you through a month of food and social life for about $20. heh.

 

[shifter]

Some suggestions even if you aren't going to buy a new car: it would be a GREAT idea to have a credit card under your name, like those you can co-own with your parents. Then buy little things and pay them with this card (since you have 11k sasved). By the time you get out of college, you will have a lot of credit.

Just be VERY careful not to over spent. many Americans get into serious debt because they over use their credit card. 20% APR with crdit card sharks is not fun.

I've seen people who has no credit card and pays off everything using debit or cash, at the end, then can't even get a good load. I don't have much money, but I pay everything (phone bills, food, etc etc) using credit, on time (remember, ON TIME), and I have the second best credit (5.40. Their best is 5.35) with Toyota financing. I might be able to get 4.0 or 4.9 from a bank, but that's like a few dollars a months I am saving.

Also, if you are young, depending on where you live, insurance can be very hefty. In the NYC area, if you are under 25, insurance can be 2000 to 2400 for a year, and that's one way basic coverage!! So you might really want to think about that before buying a car. Gas is also not cheap. 100 to 150 a month if you drive all the time.

Good luck.

 

[scion06]

Bank of america offers what is called a secure credit card. You put "x" amount in a savings acount there and that is what you credit line is. So like i just put 250 in a savings there and they gave me a 250 dollar credit card. When you are done with the credit card and pay it off you get your cash back. It is a great way to build credit. If you have co-signers and stuff like that it doesnt help your credit alot if at all any. So its best to get some credit going and keep saving your money up. That way when you go to finace your loan wont have to be that much cause if you have never had a loan you might not get approved for that much considering your income.

 

[Halewafa]

Well if you do buy it I also agree that you should go through a bank. I work at Washington Mutual and our rates are a lot lower then doing it through Toyota. Even though I work at this bank, Kern Schools had a better rate. We put the car under my moms name because I'm only 17 and she got her rate at 4.75%. I'm not sure if Kern Schools is a local bank or if they have them everywhere. But you should def. look into doing it through a bank.

 

[peachspecial]

thank you so much for the feedback guys! the truth is, i've got this far in life by just paying in cash and debit and never built up any credit for myself. i was never in any debt being buried in bills and it was a good feeling.. but i guess i'll try to apply for a credit card or two and keep up with the payments on time--all the while looking for better employment (wish me luck finding a part-time job that will pay well enough to finance a car eh?? >_<) so i guess no tC for me. well not for now anyways. if you guys have any more advice or words of wisdom, please share!

 

[shifter]

Originally posted by peachspecial@Aug 4 2005, 12:12 PM
(wish me luck finding a part-time job that will pay well enough to finance a car eh?? >_<) so i guess no tC for me. well not for now anyways. if you guys have any more advice or words of wisdom, please share!

Well, you dont have to over spend on credit card. Just the same things you used to pay by cash and debit, use your card to pay them. But the thing with card is some people don't realize they had over spent. If you are careful then its fine.

You can still buy the car if you get a good financing and makes enough for payments. The reason we advice on getting a credit card is so that you can get a good loan later on in life for everything else. But if that's already fixed, then it's no problem.

Check if you can get a loan, then calculate how much the insurance will be. See if your job is enough to cover both monthly payment and insurance, and some extra. If you think you can do it I don't see why not.

If not, get a good condition used Corrola or Camry, or Accord or Civic for around 7k and drive them for a while and see how it goes. If it's too much of a burden, I don't suggest getting a new car.

Now that reminds me, I have monthly payments and hefty Brooklyn car insurance from now on

 

[basilisk4]

Originally posted by peachspecial@Aug 4 2005, 04:12 PM
i was never in any debt being buried in bills and it was a good feeling.. but i guess i'll try to apply for a credit card or two and keep up with the payments on time

I know what you mean. I held off on getting a credit card for a few years because I wasn't interested in spending money I didn't have or screwing up my credit.

One thing I wanted to add to what other people have said about getting a credit card -- you don't have to use your credit card a lot to build credit. All it says on your credit report is your limit, the highest balance you've ever had, and whether your payments have been late. So, you could just put something that's a few hundred dollars on there once, pay it off right away, and then put it in a drawer. Just a suggestion for the credit card averse.

 

[easyrider]

Yeah, I was going to suggest also, that if you get a credit card, leave it at home when you are not paying on something you would ordinarily buy, and have a written list of all those things that will now be paid with the cc. That way, you will not be tempted to use it on items you wouldn't ordinarily buy. And having one of them plastic things in your wallet is sure tempting! Things you want suddenly morph into things you need.

 

[Shark_bite]

if you were looking for a good used car, similer to the tc, look at civic's, celica's, whatever. just look for quality cars similer to the tc. then when you feel ready for the tc you can get it. debt sucks-you can get a lot of good cars for 11,000 then when you feel more secure finacially get the tc. or even better get a junkie car on the ultra cheap, make it look worse and get on pimp my ride!

come to think about it, that wasn't that funny...

 

[lo bux racer]

Originally posted by basilisk4@Aug 4 2005, 01:55 PM
I know what you mean. I held off on getting a credit card for a few years because I wasn't interested in spending money I didn't have or screwing up my credit.

One thing I wanted to add to what other people have said about getting a credit card -- you don't have to use your credit card a lot to build credit. All it says on your credit report is your limit, the highest balance you've ever had, and whether your payments have been late. So, you could just put something that's a few hundred dollars on there once, pay it off right away, and then put it in a drawer. Just a suggestion for the credit card averse.

Another good plan to build credit with a card is to pay a regular bill with the card, and pay it off monthly. I've been doing that with my cell phone bill and my newspaper subscription for years now. It's convenient for me, and I pay it just as if it showed up in the mail as a separate bill. It shows continous payment and isn't doing anything you wouldn't do anyway.

 

[peachspecial]

:::update:::

i got laid off today!! forget the tC, i have a whole other list of problems now. but thanks for everything guys.

 

[Halewafa]

Wow that sucks, sorry to hear that...