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I'm buying the car next month and my 9k scholarship refund will be coming that same month. So not really spending on expected income. My mom wanted me to live with her and we have a big home close to the school I'll be attending so no big deal there. The 5k is coming from selling my current vehicle, it's unreliable and uncomfortable so there's no way I'm keeping it.
You asked if you are financially healthy enough to buy a car. The answer is NO (which seems to be the unanimous opinion here). Take the $9k and pay it towards your debt. Buying a new car at this juncture is probably the worst decision you can make. Keep driving what you have, keep up with the maintainence and repairs, and if you need to replace it, buy a cheaper used car with cash.
I'm buying the car next month and my 9k scholarship refund will be coming that same month. So not really spending on expected income. My mom wanted me to live with her and we have a big home close to the school I'll be attending so no big deal there. The 5k is coming from selling my current vehicle, it's unreliable and uncomfortable so there's no way I'm keeping it.
If you are close to the school, just wait for your scholarship check and buy a ~$7k used car and keep the rest, plus old car proceeds, for other expenses. Even if you do have one or two stranding breakdowns over the course of 4 years, it won't kill you.
The other thing about used cars is that doing your "homework" before you buy can go a long way at preventing those types of breakdowns. You can easily get a car for that amount with less then 125k miles, especially private party. Then stay on top of the maintenance, and you are highly likely to be fine.
Living close to school also should limit the miles you put on it each year. At 8k/year, 4 years is only 32k miles you'll add to it.
Unfortunately bunch of posts in automotive form were telling you the truth.
Yeah, but there are also plenty of snarkly people who don't think financial advise should be part of an automotive forum.
The OP should really delay the decision to buy a car for 6-12 months until he has the chance to adjust to law school and understand the intangible costs (books, food, parking, etc). He could then use part of the initial stipend to pay off all the credit card and medical debt. Whatever is left over from his stipend can then be put into savings and potentially used for a larger down payment on a cheaper car down the road (<20k). He's driving a Fiesta, so it's not like he is car-less.
That being said, I remember what it was like to be that age. You just want things immediately and don't think about the big picture. My dad taught me most of what I know in personal finance, and I have him to thank for me avoiding consumer debt at that age. I didn't buy my first new car until I was in my early 30s and had decent income. I carried a car note on it for only 6 months before paying it off. Previous to that I was driving a 15 year old beater throughout graduate school that I hated, but it served it purpose well.
I would be a hypocrite if I told you not to do it. When I was 19 and in college, my car reached the point it was not financially feasible to fix and I needed a replacement. After it left me stranded on the roadside in the middle of nowhere (there is a lot of nowhere in Idaho) for the 2nd time, my parents cosigned for me to buy a brand new Saturn (although it was only $15k, not $22k). 17 years later, I'm still driving that car.
I've got a year's worth of expenses saved up for an emergency fund and am planning to retire in my 50s and I barely consider myself financially healthy enough to buy a new car. I won't until I absolutely can't avoid it. But when I reach that point, I will likely buy new. But I hope to get another 17 years out of my current car first.
Having said all of that, I still am going to be a hypocrite and say I wouldn't recommend it. The only reason I needed a car in college was to drive back to my home town. You already live in your home town. Do what most poor college kids do if they don't have a car. Ride your bike or take the bus. Or baby your current car along. You'll come out ahead, even if you put $1000 a year into it through college.
I would be a hypocrite if I told you not to do it. When I was 19 and in college, my car reached the point it was not financially feasible to fix and I needed a replacement. After it left me stranded on the roadside in the middle of nowhere (there is a lot of nowhere in Idaho) for the 2nd time, my parents cosigned for me to buy a brand new Saturn (although it was only $15k, not $22k). 17 years later, I'm still driving that car.
I've got a year's worth of expenses saved up for an emergency fund and am planning to retire in my 50s and I barely consider myself financially healthy enough to buy a new car. I won't until I absolutely can't avoid it. But when I reach that point, I will likely buy new. But I hope to get another 17 years out of my current car first.
Having said all of that, I still am going to be a hypocrite and say I wouldn't recommend it. The only reason I needed a car in college was to drive back to my home town. You already live in your home town. Do what most poor college kids do if they don't have a car. Ride your bike or take the bus. Or baby your current car along. You'll come out ahead, even if you put $1000 a year into it through college.
It's not hypocritical, it's wisdom.
Most of us have been young and made dumb decisions.
I'll be surviving on scholarship money + outside funds which will amount to 9k a semester. I'll also be working full time in the summers. Also I'm living at home so no living expenses.
Nope, sorry, you can't afford the car.
It seems that lawyers, in particular, are very prone to overspending and overconsuming. Then to make matters worse, they compare themselves to other overspending lawyers in their peer group. I hope you won't be joining that miserable club. Because buying the new car at this point in your life is putting you on that trajectory.
You're broke. You have no income (no, scholarships are NOT income). Now is not the time to buy a new car (especially a NEW car, as opposed to a "new to you" used model).
Wait until you've graduated and have a full-time job before you buy a new car.
^^This^^
And keep the car reasonable.
Personally, I STILL wouldn't buy a new car until I really had significant net worth. But buying a 22K new car when you have a good paying job would at least be in the realm of reasonable.
It's a high t2 school that sends about 17% of it's class to big law firms each year. I understand the field is difficult but I literally have nothing to lose. The education is entirely paid for so no loans. Also getting a good paying job with my liberal arts degree is next to impossible so there's really no opportunity cost by attending law school. I'm not living a life of luxury or anything, I just want a decent car.
Doesn't matter. You can't afford it. You're getting into the mental habit of counting on future income to pay for something you can't afford today (In old fashioned terms, you're "counting your chickens before they're hatched). That habit doesn't magically stop even if you land a good paying job. It's a classic mental habit that will keep you in the hamster wheel, with little flexibility, for life, if you let it. And it doesn't matter what your income level is. You can always spend up to or more than you make.
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