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Buying A New Car...

iHerzeleid

iHerzeleid

macrumors 6502a
Original poster
May 5, 2007
555
0
Well. Lets see. I'm 19 and thinking about buying a new car. I want a Civic EX and a steady job. I was thinking of financing for a new car with my dad as a cosigner in order to improve my credit rating and well I wouldn't mind a new car that doesn't have problems every two weeks.

What do you guys think? Should I go for it? Me and my dad were thinking of going 50/50. It will be 21k OTD and 10k in 3 years doesn't seem to bad.

Thanks.
 
Danger! Will said:
I think you should go for it. Don't finance more than three years. I'd splurge just a little more to get the Si. It's definately worth it.
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You mean other than the poor gas mileage and premium gasoline?

You're young, you really really need to look at whether you are still going to be able to afford payments three years from now. Will you be in school and maybe not be able to work as much and not afford the payments? What happens if you lose your job and need to look for another one? Etc.

Also, do you really need a new car? There are tons of nice preowned cars out there that you would save a nice bit of money purchasing instead of a new car. You're 19, can you really afford the extra $3000-$5000 that a new car will cost? You're looking at about a $300 a month payment, could you work longer and save some more down to cut that to $200 a month? Personally, I probably wouldn't buy it, I'd be too worried about ruining my parents and my own credit if I were unable to make the payment at some point. $300 is a good size payment, especially for a 19 year old, I'd either go for a used car or wait and save some more money to lower the payment.
 
rhsgolfer33 said:
You mean other than the poor gas mileage and premium gasoline?

You're young, you really really need to look at whether you are still going to be able to afford payments three years from now. Will you be in school and maybe not be able to work as much and not afford the payments? What happens if you lose your job and need to look for another one? Etc.

Also, do you really need a new car? There are tons of nice preowned cars out there that you would save a nice bit of money purchasing instead of a new car. You're 19, can you really afford the extra $3000-$5000 that a new car will cost? You're looking at about a $300 a month payment, could you work longer and save some more down to cut that to $200 a month? Personally, I probably wouldn't buy it, I'd be too worried about ruining my parents and my own credit if I were unable to make the payment at some point. $300 is a good size payment, especially for a 19 year old, I'd either go for a used car or wait and save some more money to lower the payment.
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Yea the Si is nice but the money saved on gas is even nicer.

I always have my parents to fall back on. As sad and unwillingly I am to say this I can always fall back on them, although this whole purchase is to build up my credit and well gain some financial responsibility. Anyways im not sure yet. Hondas keep their value so much that I do think its worth it to get a new one.
 
I would buy demo model or CPO. You get a better deal and sometimes a better warranty.
 
Normally if your car was reliable or $500-1000 dollars away from reliable, i'd say fix it and keep it.

Though I'm insane and would say spend more than blue book on a reliable car rather than get hit with a monthly payment. Doesn't take much to change a reliable beater's personality.

But, high fuel prices make the newer cars more attractive.

And used high MPG cars are overpriced, and in all likelihood may cost as much to fix as the car you get rid of.

While a Chevy Aveo is cheap to buy new, the MPGs suck.
 
Hey. Go figure, I'm 19 years old and just bough an '08 Civic Si about 4 months ago. I absolutely love the car, and planned ahead on buying it and therefore saved up enough for a hefty down payment on it. My mother co-signed for it, and so far all is well with it payment wise, and I love the car. BUT, it takes premium gasoline only. Therefore I wish I went with an EX. Sure the engine has 200hp, and its a blast to drive. But here in Canada i'm paying $1.58/L for gas when regular is $1.42/L as of today. Anyways, I'm paying $365 a month for it, and $206 a month for insurance with a perfect record and 15% "discount". The problem is that the Si is classified as a sports car for BC insurance as well. Anyways, I'm rambling, just thought I'd throw in my two cents on the Si Civic. I love my car, but looking back would have gotten the model down saving $2,500 on the car itself, about $30 a month insurance, and probably another $40 a month on gas. I'm sure you can do the math and see why it's more logical to go with the EX over the Si. Happy car shopping!
 
Figure out the total cost of ownership. Not just carpayments but insurance and gas. While you own the car gass will go up to $5 per gal. and then to at least $6. Work out a maintanance budget too.

Next if you at 19 then have you started colage yet? If not figure it will take up much, much more time than high school. Will you be able to work the same hours.

If this is just to build a credit rating you can do that with a $7K used car just as well. A car loan is a car loan. Also if this is to build credit do NOT have your dad co-sign it that just defeats the purpose because then it is his loan not yours. You are better off borrowing $7K on your own.

Whatever you spend on a car is just money flushed down the drain that you will never see again. At your age rather than spend $21K on a car why not $7K on the car and put the other $14K into education. If you step back and ask yourself "What will I have in five years?" the car option does not lok so good.

When I said figure out "total cost of ownership" that depend a lot of how much you drive. I live close to work so my 16mpg Ford Pickup is actually economical even at $5 per gal. gas. The reason is that I pay zero per month in payments and burn only 1/2 tank a week. A new car, even if it got 35 mpg would not be cheaper over all than my 16mpg truck. It is almost never worth buying a new car just to save on gas. Not until gas hits $12 per gal which it will inside of 8 or so years.
 
I am 25 yrs, and here is what I would say. Buy a nice used car. something perhaps 4-5 yrs old. The premium you pay for a new car is HUGE. Being so young, you don't want to have to worry about your car every two mins. Plus, statistically your more likely to get in a accident at a young age, not saying you will but it's always possible. At your age I just don't think it's worth it.
 
Ok Ok guys you won me over.

Im 19 going into my second year of college. Double Majoring in Political Science/ Psychology with a minor in Computer Science. I have a 525i 1990 with a semi coolant problem but I figured that I would fix that. It's a steady ride and I love it but i figured that the cost of buying a new 4 cylinder car will outweigh the cost of owning a 6 cylinder BMW. so meh. ill save up my money. thanks for setting my head straight guys :)
 
iHerzeleid said:
Ok Ok guys you won me over.

Im 19 going into my second year of college. Double Majoring in Political Science/ Psychology with a minor in Computer Science. I have a 525i 1990 with a semi coolant problem but I figured that I would fix that. It's a steady ride and I love it but i figured that the cost of buying a new 4 cylinder car will outweigh the cost of owning a 6 cylinder BMW. so meh. ill save up my money. thanks for setting my head straight guys :)
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I think thats a good decision for now. If you save up a few thousand, get your parents to go half way in, and buy a used car you could probably end up with no payments or payments in the $100-$200 range, which would probably be a lot more manageable for someone of your age who is in school. If you really want to build credit you might apply for a student credit card and use it for your normal purchases that you can pay off, that way you're building credit and saving money for your car.
 
I agree with Erik, there are always better deals to be found on CPO or Demo cars. If you are still slightly interested in a Civic, I've seen a few '06 models going for $15k. My friend test drove an Si yesterday and it was nice, but the premium gas thing sucks.

Also if fixing your BMW doesn't work out, try looking for an older Civic. A friend of mine has an '02 EX w/110k miles and it's never given him a bit of trouble. Good luck.
 
blurredline said:
I'm sure you can do the math and see why it's more logical to go with the EX over the Si. Happy car shopping!
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You see some people would do the math, the majority buy on impulse -- which is another way to say sucker for a lease and welcome to the wonderful world of a monthly rental fee for a vehicle for life.
 
ryannel2003 said:
I agree with Erik, there are always better deals to be found on CPO or Demo cars. If you are still slightly interested in a Civic, I've seen a few '06 models going for $15k. My friend test drove an Si yesterday and it was nice, but the premium gas thing sucks.

Also if fixing your BMW doesn't work out, try looking for an older Civic. A friend of mine has an '02 EX w/110k miles and it's never given him a bit of trouble. Good luck.
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've noticed its not always a great idea with cars like Lexus's that cost $50k new and 30k miles later they are worth $45k.

Here is some extreme proof of why to buy CPO.
I was at the Land Rover Dealer yesterday bringing my mom's car in for an oil change. While waiting I perused around...

New 08 Range Rover 4.4 HSE: $80,000 w/50k warranty
CPO 06 Range Rover 4.4 HSE: $49,000 w/26,000 miles and warranty until 75k
CPO 04 Range Rover 4.4 HSE: $29,000 w/28,000 miles and warranty until 75k

What's the best deal?
 
ErikCLDR said:
've noticed its not always a great idea with cars like Lexus's that cost $50k new and 30k miles later they are worth $45k.

Here is some extreme proof of why to buy CPO.
I was at the Land Rover Dealer yesterday bringing my mom's car in for an oil change. While waiting I perused around...

New 08 Range Rover 4.4 HSE: $80,000 w/50k warranty
CPO 06 Range Rover 4.4 HSE: $49,000 w/26,000 miles and warranty until 75k
CPO 04 Range Rover 4.4 HSE: $29,000 w/28,000 miles and warranty until 75k

What's the best deal?
Click to expand...

I'm picking up the 04. All I want to see is what previous services have been done and the terms of the warranty, then I want you to go down $2000 on the price and its sold.

CPO is an awesome way to get a car. I was looking at a CPO Honda yesterday that was warranted through 2013: 3 years of regular warranty left and 2 years of CPO or 100,000 miles. Usually not too much more expensive either.
 
ErikCLDR said:
New 08 Range Rover 4.4 HSE: $80,000 w/50k warranty
CPO 06 Range Rover 4.4 HSE: $49,000 w/26,000 miles and warranty until 75k
CPO 04 Range Rover 4.4 HSE: $29,000 w/28,000 miles and warranty until 75k

What's the best deal?
Click to expand...

Wow, that car sure depreciates quickly. :eek:

iHerzeleid said:
I have a 525i 1990 with a semi coolant problem but I figured that I would fix that.
Click to expand...

You initially said you currently have a Civic EX.

Koodauw said:
I am 25 yrs, and here is what I would say. Buy a nice used car. something perhaps 4-5 yrs old. The premium you pay for a new car is HUGE.
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Agreed, although I'd aim for a 1-2 year old car. The savings would be huge, and you'd get an "almost new" car.
 
iHerzeleid said:
I always have my parents to fall back on. As sad and unwillingly I am to say this I can always fall back on them, although this whole purchase is to build up my credit and well gain some financial responsibility.
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First off, don't let anyone make you feel bad because your parents are able to cast a safety net around your purchases for a while. It's nothing to be ashamed of, and any bashing you might incur because your parents are able to do this are done by the jealous type who try to portray normal families as snobbish elitists. I have not seen this done in this thread, but I have seen it in others.


I, too (along with Abstract), am confused why you said you had a Civic EX and then said you have a 5 series. Maybe a typo...

The money you save on gas probably won't make up for the price difference of getting a new car unless its an extreme circumstance of your old car needing huge repairs to run well again. Probably a wise decision to keep your current car.

Good luck with whatever your decision is.
 
Badandy said:
First off, don't let anyone make you feel bad because your parents are able to cast a safety net around your purchases for a while. It's nothing to be ashamed of, and any bashing you might incur because your parents are able to do this are done by the jealous type who try to portray normal families as snobbish elitists. I have not seen this done in this thread, but I have seen it in others.


I, too (along with Abstract), am confused why you said you had a Civic EX and then said you have a 5 series. Maybe a typo...

The money you save on gas probably won't make up for the price difference of getting a new car unless its an extreme circumstance of your old car needing huge repairs to run well again. Probably a wise decision to keep your current car.

Good luck with whatever your decision is.
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oops i meant to put "want" but i decided to stick to the 525i. its a nice car and i wont use it enough to justify a new 21k purchase. the way i see it.. more mac monies hha.
 
When buying a new car, look at its MPG and monthly cost for everything needed to own that car. See if the MPG is better, see how much you drive, see how much money you will save in gas getting that new efficient car. Now look how much you will lose in money each month owning a new car. Compared to just sticking with your existing car. See where your "break even" point is in owning a new car vs fixing and driving your existing car. Is it 5 years down the road? Is it 15 years down the road that you break even? Remember to factor in MPG of both cars with fuel costs for both cars as gas prices increase.

Doing this math when I was thinking of buying a new car that got better gas mileage (buying it solely for the better gas mileage, trying to be greener. Existing car is paid off, around one step above minimum required insurance for Texas.), really put it into perspective. Assuming gas stayed at $4 per gallon, and factoring in cost of insurance and maintenance (again assuming no accidents or major problems) it was going to take ~8 years to get to the break even point for gas savings. This was assuming everything was static, and we all know that will never happen.
 
ErikCLDR said:
've noticed its not always a great idea with cars like Lexus's that cost $50k new and 30k miles later they are worth $45k.

Here is some extreme proof of why to buy CPO.
I was at the Land Rover Dealer yesterday bringing my mom's car in for an oil change. While waiting I perused around...

New 08 Range Rover 4.4 HSE: $80,000 w/50k warranty
CPO 06 Range Rover 4.4 HSE: $49,000 w/26,000 miles and warranty until 75k
CPO 04 Range Rover 4.4 HSE: $29,000 w/28,000 miles and warranty until 75k

What's the best deal?
Click to expand...

None of the above. Worst reliability record ever. My company (and lots of others) won't even offer warranties on them.
 
ChrisA said:
Figure out the total cost of ownership. Not just carpayments but insurance and gas.
Click to expand...

Yeah, males under 25 sustain a hefty insurance penalty. My insurance dropped nearly 50% after I turned 25 way back when.

Abstract said:
Wow, that car sure depreciates quickly. :eek:
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Urban myth claims that a NEW car loses 1/3 it's value as soon as it leaves the dealer's lot.:rolleyes: That's true of nearly every car, except the Prius.:( I was looking for a Prius a few months back to replace my aging 98 RAV4. The 2004-2006 models cost 80-90% of a brand spanking new 2008 model.:mad: Now I'm saving my pennies, waiting for the 2009 model. It's supposed to have a new hybrid system that's more fuel efficient:cool:, powerful and cheaper:) (a mere $2000 premium instead of the current $4000).
 
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