lazyaznguy

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JStrider

I worked all summer... and saved the money... and just paid for my car in full without taking out a loan....

a lot easier that way if you can do it that way...

as for your loan questions... i cant really help ya...

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maleficent

Leasing is really only a good idea if you don't put a lot of miles on a car, and you want to get a new car every few years. Leasing is very similar to renting a car for 3 years, at the end of the lease, it's not yours, you either have to make the balloon payment, to buy the car outright (generally several thousand dollars), or return the car, and expect to pay if you have gone over the mileage (usually very low per year) plus if there's any damage to the car.

Look at insurance options leasing vs buying as well...

You're better off buying a car. If the insurance rate is a little higher for your first purchase, well, know that you are on your way to establising credit, and the next purchase it will be a lot lower...

Depending on where you live, there are places that will help with financing for people with bad credit or no credit.. Look in the ads i nthe news paper. If you have enough of a downpayment, the dealer might even offer financinig.

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frozenstellar

save, and buy it outright.... theres more expenses to a car than just the initial purchase cost.

either that, or dont buy a bucket on wheels.

Jackebear

I think it's great you taking this step to adulthood and responsability. Since your doing this alone, I would go about saving a couple thousand and getting a good used car for a grand and get the liability insurance for another grand (or so).

Look into this insurance first...if you have to get it yourself, shop around. If possible, see if your parents will let you put it under their umbrella coverage. You can still pay for it if you have to but it will be a lot less. Still, it's going to be expensive since your only 18.

You don't need to show off so find a good used car as cheap as you can. I remember years ago I got a Honda Accord for $500 and it lasted for 5 years.

Good luck to you.

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kutulu

You can get a lease with no mileage restrictions. You'll have higher payments but it is possible. Another thing with leases to consider is that although the payments are much lower, they also assume high down payments at the start.

I say go for a loan. If you make your payments on time its a great way to build credit. This thread has a lot of advice on how to deal with the scumbags at the dealership:

http://www.tfproject.org/tfp/showthread.php?t=63147

amonkie

I thought I could share my experiences since I just bought my car about a week ago.

I'm just under a month shy of turning 21, and was able to obtain a 1.9% APR for 60 months on my loan, which was $12,030 after a $2,000 down payment by having my dad as a cosigner. I am the only one that will be making payments, and the bills and title are in my name. I'd done a bit of research into buying a used car, but with the cost of school and living expenses, I didn't have the ability to save up $5,000 to buy a car that had low miles, good engine quality and the ability to last a while. Especially since I've been driving my parent's car since my previous car died in April. I am also lucky to still be under my parents insurance, at least for another year or two. My monthly car payments are $215, and my insurance is about $120 a month.

If at all possible, go for as low an APR as you can. I've had established credit for a little over a year, and I was borderline on being able to be approved by myself. By having your parents as a cosigner, you decrease your risk of defaulting in the loan agency's eyes, and thus can qualify for lower APRs if they are offering them as a special or something.

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bermuDa

How old are you? I'm guessing this is your first car?

I don't think you really need a new car for your first one, it's just an invitation into debt, and the value of the car drops dramatically the second you drive away. You can get a decent, fairly new car for under 5 grand, and it'll serve your purposes (such as getting you to your job, school, etc) until you can afford a newer fancier ride.

my dad gave me my first car, it was only worth about 1500 anyways. a year and a half later it's still in great shape and running fine. best investment i ever made

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Zyeox

Yea I agree with checking out on insurance on car before you buy. I had a problem I bought a car and then got insurance. I had to pay 2100 every six months. Then they like to screw u and make u pay two months in advance. So yes check to make sure u can afford the insurance and car.

Also with having your parents as co signers helps alot. But when ever you miss a payment or you are late. It effects your parents as well as you. So dont screw it up. Also even if you pay the loan late. You have to pay a late fee. And if you dont pay the exact amount of the late fee what they do is add it to the end payment. So be carefull and good luck. Best way is to buy a car outright but that is hard to do unless your Bill Gates. "Z"

bermuDa

forgot about the insurance!

I was 18 when i got my car, and it was about 120 a month at the cheapest place I could find (for just basic liability and uninsured drivers). After a year I noticed that my rates had actually gone up a little, so I checked around. I got on my mom's insurance plan and now I'm paying more like 70 a month for way more coverage. If I had a newer car I'd be paying waaay more.

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Cynthetiq

also figure there's going to be some maintenance and of course gas for the car.

a smaller car usually means less power but better gas mileage, and usually lower maintenance costs.

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denim

Get a decent used car. To determine if the car is "decent", bring a friend who knows cars.

Avoid loans if at all possible. Starting out owing The Man is no fun.

k1ng

I agree with everyone's advice to get a nice used car. I looked around and did a lot of research before buying my first car ('97 VW Jetta GLX). I had saved $2000 and used that as a down payment and got a loan for the remaining $5000. My monthly payments are $146/month + $50/month insurance (full coverage (my dad is listed as primary driver)). $200/month for both insurance and loan payments is VERY reasonable. My car isnt a piece of junk either.

I'm very happy with the decision I made, especially after seeing a lot of my friends who make monthly car payments of $500 (incl. insurance).

The most important piece of advice I can give you is to do research before you buy a car. Google the specific make/model/year of the car you are considering and look for reviews. You may see that the specific year or model has a costly reoccurring problem, or something along those lines.

If you are buying a used car, be sure to have the car checked out by a mechanic YOU choose. Try to take it to a mechanic who specializes in that make of car. If the person is not willing to let you get the car checked out, then do not buy from them. I would also suggest buying an unlimited Carfax report account (www.carfax.com - $24 for unlimited or $20 for one time use). The report will tell you if the car has been in an accident, if it had any flood damage, body work, etc. The $24 is well worth it, in my opinion. Again, don't *only* go by the Carfax report, also have it checked out by a mechanic.

Good luck with your first vehicle purchase!

If you have any more questions, don't hesitate to ask.

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denim

Here are most of the links I accumulated while researching cars last year:

http://www.carfax.com/
http://www.kbb.com/blue.html
http://www.vehix.com/
http://www.consumerreports.org/main/home.jsp
http://www.jdpower.com/cc/index.html
http://www.edmunds.com/
http://www.economist.com/displaystor...ory_id=2172066

Do the research. You'll be better armed with info if you do it first.

phyzix525

getting a used car is a good idea, if you can save up the money and pay cash. If you cannot then a small loan is not too bad. If you are going to buy new then you are going to have higher insurance rates. Leaseing makes insureance even worse. I leased a new honda and have an older honda and my insurance was 350 a month. leasing is also harder to get if you have not credit, you will have to get a co-signer. Probably your best bet is to get a nice used car in the 8K range and get a loan through a credit union with your dad as a co-signer. That way you get good rates and not spending a lot of money on a new car the will depreciate faster. Also look into a honda toyota acura if you want the best car and best resale. but what ever you do don't buy with your heart, buy with your head, think about it and make a well informed choice. don't buy something cause the dealer says its good and will be gone tomorrow.and do you loans at another place, unless special offers are offered, like 1.9% from the manufacturer.

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denim

Yes, be very wary of the salesman. Take your dad with you if you can! Or your mom, if she's better at this. They can tell you when it's time to walk away, which is Really Useful. Remember, they've done this before and you haven't.