How can I make my car financing situation work?

[Jeff7]

They would have appeared as an inquiry to make sure they didn't need to get a hefty deposit from you.

Ah.
I did need to put in a deposit to get the electric service going, though I think it was <$100. At that time, the only thing on my credit report would have been a student loan, not yet in the repayment period.

 

[thomsbrain]

I think it is a big mistake to finance that much money right now until you build up your credit. I financed a lightly used car out of college but my credit score was 802 and I had $7000 in cash to put down because I saved for six months after getting my job. My credit union gave me their lowest possible at the time, 5%. The only reason I got a newer car was because I had to use it for work, not just as a commuter. I miss my old beater. Could have afforded more car, but paying it off in 18 months felt good, and left me without enough cash flow to eventually pay for my weekend/track car.

 

[RearAdmiral]

A fiat 500 is that expensive??

 

[exar333]

I may be opposite of others on here, but a 16k car loan isn't a lot. It would be a good way to build credit and have a car that would not drastically depreciate either. If the loan amounts fit in your budget comfortably, go for it.

When I finished college, I needed a reliable car desperately and bought a similarly priced vehicle with a factory warranty. The piece of mind was good, and having a car I could count on was really nice.

Edit: That said - I would definitely not finance above 10%. Look for a different car in the same price category if you can get a financing deal...

 

[XZeroII]

This is just me, but I don't like financing cars. If you don't have the cash, don't buy new. Especially if you just started a job. If your job is really that good then get a beater and buy your new car in a few years when you have some savings. Think about it...the interest is going to cost you a few thousands of dollars. Think about what you can buy for thousands of dollars. If you buy now, you'll just be throwing that money away.

 

[HardcoreRobot]

have someone who can cosign? parent? siblings? other family?

i bet texashiker would

 

[m0r1san]

What kinda car are you running now? Reliability of 200k+ car really depends on the car, maintenance history and your driving style. If none of those areas are weak points.. just keep the car until something catastrophic happens to it. People do this all the time. If uncertainty about car repairs frightens you, do yourself a favor and start learning about cars and welcome to the eye-opening world of knowledge and peace of mind.

If you really want the fiat 500 - wait a couple years and pick one up for under $10k used. You'll save a lot of money this way.

Another thought ... I doubt there are many people living outside the US that would finance a car right out of college. We have the biggest debt market in the world and it's frightening.

 

[Phanuel]

And another piece of advice if you're set on getting a new car, don't get a Fiat 500, or a Fiat in general.

You should be aiming for something reliable, not an unproven chic euro car which fails to nail the value for money in any category it could reasonably be compared to against any other smallish import car.

 

[heymrdj]

What kinda car are you running now? Reliability of 200k+ car really depends on the car, maintenance history and your driving style. If none of those areas are weak points.. just keep the car until something catastrophic happens to it. People do this all the time. If uncertainty about car repairs frightens you, do yourself a favor and start learning about cars and welcome to the eye-opening world of knowledge and peace of mind.

If you really want the fiat 500 - wait a couple years and pick one up for under $10k used. You'll save a lot of money this way.

Another thought ... I doubt there are many people living outside the US that would finance a car right out of college. We have the biggest debt market in the world and it's frightening.

I just want to point out, that amid one of the largest housing recessions ever, with more and more people forced back into crackerbox 1br rentals (like me) with street parking, fewer and fewer people have this choice evne if they really wanted to. I would love to get back to wrenching but there's no economical space to do it and no where to store the tools when you're not using them. It sucks but the sad state of what it is.

 

[Ferzerp]

That's some pretty good advice. If you're hurting for money, I'd not try to buy in to an image of any kind. You need reliable and cheap. Don't buy something you hate, but you need to make sure you stay within your means.

You may feel like you make plenty at your new job, but you are just starting out. Give it some time.

 

[the DRIZZLE]

I just want to point out, that amid one of the largest housing recessions ever, with more and more people forced back into crackerbox 1br rentals (like me) with street parking, fewer and fewer people have this choice evne if they really wanted to. I would love to get back to wrenching but there's no economical space to do it and no where to store the tools when you're not using them. It sucks but the sad state of what it is.

Good point. I have the luxury of wrenching at my parents so I only do really minor work by my apartment. But where there's a will there's a way. A guy did a full transmission swap in the parking garage when I was an undergrad.

 

[fleshconsumed]

So let me get this straight. You:

- Just graduated from college
- Have only been at your current job for 1 month (likely your first real job out of college too)
- You have student loads
- You have Credit Card debt
- You do not pay rent because your buddy lets you stay at his house rent free (which might change suddenly)

And on top of this you want to commit to a $17K auto loan at 13%?

Really?

Stop, and think for a second of what you about to do.

[...]

You already have a beater that drives, doesn't matter how old it is. Buying new car just because your current one may break down is not worth taking a huge loan at 13%. Nevermind that you're buying an unreliable econobox FIAT that gets crappy mileage on a premium fuel.

The best course for you if you really want a new car is to tough it out and continue living on college budget for 6-9 months and pay for your next car in cash. Since you're living rent free, this allows you to save money at a much faster rate, depending on your take home pay, your student and CC payments, and how much you go out, you can save $17K in 6-9 months. You will be a little bit more established at your new job, and you won't have to pay crazy 13% rate.

 

[m0r1san]

I just want to point out, that amid one of the largest housing recessions ever, with more and more people forced back into crackerbox 1br rentals (like me) with street parking, fewer and fewer people have this choice evne if they really wanted to. I would love to get back to wrenching but there's no economical space to do it and no where to store the tools when you're not using them. It sucks but the sad state of what it is.

Yeah, this is the reality for a lot of people. It sucks. I was fortunate enough to have friends garages/tools when I was starting out.. and now have my own (small) setup.

But really, just knowing things about your car without actually working on it yourself can save lots of headaches. I would hate to be at the total mercy of my mechanic's knowledge if my car were to have a problem. This is where taking a little time to learn about their car can really help the situation. #neverstoplearning

 

[Via]

It just doesn't seem like the right deal for your situation.

And never fall for the "just refinance in a few months" line. No one can guarantee that'll happen.

 

[KCfromNC]

This is just me, but I don't like financing cars. If you don't have the cash, don't buy new. Especially if you just started a job. If your job is really that good then get a beater and buy your new car in a few years when you have some savings. Think about it...the interest is going to cost you a few thousands of dollars. Think about what you can buy for thousands of dollars. If you buy now, you'll just be throwing that money away.

I love financing cars in the current zero-interest rate environment. Give me money for 1% for 5 years and pay you back with lower-valued future dollars? Yes, please, where do I sign?

But that assumes that you have the money to buy with cash and the credit score to get those rates. The OP has neither, so is making the correct decision to wait until their situation improves a bit.

 

[JCH13]

I just want to point out, that amid one of the largest housing recessions ever, with more and more people forced back into crackerbox 1br rentals (like me) with street parking, fewer and fewer people have this choice evne if they really wanted to. I would love to get back to wrenching but there's no economical space to do it and no where to store the tools when you're not using them. It sucks but the sad state of what it is.

Garages are nice, but parking lots and streets work just fine for most wrenching needs. I wouldn't want to drop an engine on the street; but brakes, oil, spark plugs/wires, and other service items and repairs don't need much space. I live in an apt and do a good bit of work in the parking lot.

 

[heymrdj]

Garages are nice, but parking lots and streets work just fine for most wrenching needs. I wouldn't want to drop an engine on the street; but brakes, oil, spark plugs/wires, and other service items and repairs don't need much space. I live in an apt and do a good bit of work in the parking lot.

This is true, but it still becomes a hassle. I have one main closet with a tool set, oil disposal pan, jack stands, and one of those lay on your back runner things to go under the vehicle and that thing is slam full. Other than basic maintenance you're going to be hard pressed to store enough tools in order to completely disassemble and repair a subsystem of a car.

But I did just completely replace the washer fluid system of my truck in my apartment parking lot.

 

[olds]

DOH! Necro

13% interest. #@#*! Are you crazy?

You're freaking out of your mind even considering it. It's generally bad move purchasing new car straight out of college. Financing at 13% says you're a moran.

That and buying a Fiat.

 

[JCH13]

New poster... Odd user name (who uses their full name?)... 4 y/o thread necro... Hooray spam bots!

 

[BurnItDwn]

It appears that we never found out what his "old car" was, and never learned if he went and bought the Fiat 6 months or a year or whatever later....

Hopefully da guy is doin ah'ight