U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Personal Finance
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 03-29-2007, 03:09 PM
 
Location: Northern VA (for now)
23,006 posts, read 31,965,939 times
Reputation: 30400

Advertisements

just got my drivers license. trying to get a car at age 18. how much should i expect to pay up front to drive it off the lot? who will finance me? how does that tax tags process fee etc. work?
Reply With Quote Quick reply to this message

 
Old 03-29-2007, 04:16 PM
 
Location: Sometimes Maryland, sometimes NoVA. Depends on the day of the week
1,501 posts, read 10,542,127 times
Reputation: 1091
Buy a cheap used car with cash You are too young to be taking on debt, it will likely be very expensive, and frankly, shouldn't be used on something like a car that depreciated.

And for your questions, it depends on a lot of things. Do you have a good paying job? Do you have other credit? Debt is really a loan based on future income, not the object itself. Most areas have a used car lot that will give anyone a loan just based on having a job, but expect to pay super high rates. I had a friend who was paying something like 13% on a very well used car. You can buy a car without having to pay anything, they just roll it all into the loan, but its not a good idea because you will owe more than the car could possibly be worth. There are so many variables here, you will just have to investigate your options. If you have a parent who is willing the help, that will be best.

But again - just buy something used and drive it til it dies :-) My friend wanted a new car, but decided she wasn't quite ready for payments. She found a decent Nissan someone was getting rid of for $1500 about 2 years ago. She paid cash. Most car payments (for newer cars) will run you $300/month plus insurance. After 5 months, she broke even and didn't have to play extra to cover comprehensive insurance - just liability.
Reply With Quote Quick reply to this message
 
Old 03-29-2007, 04:46 PM
 
17,164 posts, read 22,182,489 times
Reputation: 31260
ruby is right, no matter how good you will look in a new car, it is foolish to buy one!! one of the worst investments you can make! find a car, thats dependable, even with high mileage, a honda civic, a toyota corolla, a vw, jetta, and even a ford contour(i have a 96 contour with 268k miles, and still gets 30mpg)
Reply With Quote Quick reply to this message
 
Old 03-29-2007, 05:14 PM
 
Location: Northern VA (for now)
23,006 posts, read 31,965,939 times
Reputation: 30400
yeah i'm looking at buying a used car more like an chevy impala or mailbu or a 95 nissan maxima. i wasn't considering buying new. i just need something than can handle a 20 min drive. i have an ok paying job and a 700 credit score.
Reply With Quote Quick reply to this message
 
Old 03-29-2007, 08:27 PM
 
Location: The Big D
14,874 posts, read 36,254,939 times
Reputation: 5787
Find a local credit union. See if your eligible for a credit union membership based on where you live, work or where your parents work or their professions. Most will require you to have an account w/ them but credit union accounts are MUCH better than your average bank so if you opened a savings account w/ $25-50 and left it there it would not get whittled away w/ fees in a matter of months. Since credit unions are owned by "members" in most cases their lending practices are a little different than a banks would be. Your parents or at least one parent may need to co-sign on the note though. This could be a good way for you to build up credit very easily. The only sad thing is the interest rate for a used car is higher than for a new car (ouch) and sometimes can end up costing you more in the long run.
Reply With Quote Quick reply to this message
 
Old 03-29-2007, 09:37 PM
 
1,868 posts, read 5,140,104 times
Reputation: 525
Credit unions are a better way to go.....but rate is a function of credit attributes not whether the vehicle is new or used. Each of the three major credit bureaus have their own proprietary scores but a 700 credit score without any credit depth doesn't guarantee you a low rate. You may not need a co-signer as there are
lenders out there who offer first time buyer programs through the dealerships. But you will be perceived as a high risk going in.
In your situation ...I don't think a credit union will help you.

Typically to drive off the lot...it's a $1000.
Reply With Quote Quick reply to this message
 
Old 03-30-2007, 04:04 AM
 
Location: Northern VA (for now)
23,006 posts, read 31,965,939 times
Reputation: 30400
already have a membership with a good credit union (City of Alex CU).
Reply With Quote Quick reply to this message
 
Old 03-30-2007, 06:01 AM
 
Location: NE Florida
17,835 posts, read 29,413,907 times
Reputation: 43270
Alanboy395
Before you go car shopping, go to your Credit Union and ask them how much you would qualify for. But remember you don't have to spend the amount your qualified for.
As others have said don't forget to add in the insurance cost to your monthly budget. I would call your insurance company to find out the different rates on the cars you are interested in.
Do your "homework" on line check out what the different cars are really worth. The 'mark-up" on used cars is a lot more than new cars. I have seen $3k to $5k over what the dealer has paid for trades. You do not want to start out "upside down" One of the nice things about financing through a Credit Union they will not lend more than the car is worth.
Karla
Reply With Quote Quick reply to this message
 
Old 03-30-2007, 10:16 AM
 
436 posts, read 489,178 times
Reputation: 243
Quote:
Originally Posted by Alanboy395 View Post
just got my drivers license. trying to get a car at age 18. how much should i expect to pay up front to drive it off the lot? who will finance me? how does that tax tags process fee etc. work?
Good idea to pay as much upfront as you can, and consider those monthly payments for insurance. I'd first look at cars for sale in your neighborhood through local ads & word-of-mouth. I'd pass on sport models with higher insurance costs. You can get different rims/tires later when you have the spare cash if you're into that. I think it's quite possible to get a nice, reliable used vehicle for $5000-$6000. You will pay more for a vehicle off a dealer lot in general, and the warranties are usually nothing so great for the extra cost. With a older vehicle a little scratch or dent isn't the end of the world as it is with a newer vehicle. Ever watch the boomers parking their new sport coupes in the back of the Walmart parking lot to avoid dings? Funny! When I was your age I bought a used Datsun 510 because of lower insurance rates, better gas mileage, and the reputation those little cars had for lower repair history. Have the prospective vehicle gone over c-o-m-p-l-e-t-e-l-y by an independent shop with a good reputation - I bet you know this stuff already. There has been talk on the internet about some vehicles being marketed around the country from places that had water damage. If I was young today (nothing beats being young), I'd look at the Honda Civics, Nissan Sentras, and the smaller Toyota models first not only because of their reputation, but also because they have decent crash test scores.

Last edited by brian_2; 03-30-2007 at 10:37 AM..
Reply With Quote Quick reply to this message
 
Old 03-30-2007, 12:16 PM
 
Location: Northern VA (for now)
23,006 posts, read 31,965,939 times
Reputation: 30400
Default too small

Quote:
Originally Posted by brian_2 View Post
Good idea to pay as much upfront as you can, and consider those monthly payments for insurance. I'd first look at cars for sale in your neighborhood through local ads & word-of-mouth. I'd pass on sport models with higher insurance costs. You can get different rims/tires later when you have the spare cash if you're into that. I think it's quite possible to get a nice, reliable used vehicle for $5000-$6000. You will pay more for a vehicle off a dealer lot in general, and the warranties are usually nothing so great for the extra cost. With a older vehicle a little scratch or dent isn't the end of the world as it is with a newer vehicle. Ever watch the boomers parking their new sport coupes in the back of the Walmart parking lot to avoid dings? Funny! When I was your age I bought a used Datsun 510 because of lower insurance rates, better gas mileage, and the reputation those little cars had for lower repair history. Have the prospective vehicle gone over c-o-m-p-l-e-t-e-l-y by an independent shop with a good reputation - I bet you know this stuff already. There has been talk on the internet about some vehicles being marketed around the country from places that had water damage. If I was young today (nothing beats being young), I'd look at the Honda Civics, Nissan Sentras, and the smaller Toyota models first not only because of their reputation, but also because they have decent crash test scores.
thanks for the suggestion. I'm a big guy 6'3-6'4 trust me civics, sentras won't work. i got a listing for a 99 chevy malibu with all options for 6k just slightly over kbb value. i would consider a larger sedan like a camry, maxima, taurus, or impala. my price range is more 4k-8k. i'm very confident that i can find something that can get me around NoVA and the occasional trip down to HR for that price. thank ya'll for your help. keep the suggestions coming!!!!
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Personal Finance
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top