Never owned a car before, $1700/month income, dealer or craigslist? (pay, rent)

[marcdel80]

Hello,
I live with my parents, no rent fees. Pretty much I just pay for my gym, supplements and cell phone subscription. I earn $1700/mo before taxes a taken out. I have never owned a car before.

Any advice on what to expect when purchasing your own car? What cars should I be looking for? What price range?

I was told to just visit a car dealership and get toyota, get your credit rating checked and then your pretty much at the mercy of the dealer. My credit rating sucks. Probably having $15-20,000 in bills/credit debt.

I basically just need to travel a few a days a week for my side business. I want to also eventually get two jobs to double my income (taking the bus wont allow me to work 2 jobs).


I am totally clueless about this. how much money should I save up in downpayment before doing this endeavor? I heard when they do credit check ratings then it lowers your score and also makes your car deals worse.

Thanks!

[marcopolo666]

You should ask your parents about how life works. Bank accounts, car payments, rent, etc. They are your closest references.

[sylentvoyce]

The other nice surprise you get with buying from a dealership is the full coverage insurance requirement.
that usually means a couple of hundred per month by itself. Then they take your down payment, tell you that you do not make very much money, and then stuff you in a clunker with inflated interest rates.

My advice; depending on how much you save up, you are almost better off just buying a used car outright with cash. If you can pull together 2 or 3 grand, you can easily find something that runs well enough to make the basic drive around your local area. You can get basic liability coverage and own your ride without some asinine bank obligations.

Good luck in your future pursuits!

[usayit]

Originally Posted by sylentvoyce

The other nice surprise you get with buying from a dealership is the full coverage insurance requirement.

This is not the dealership imposing... this is the underwriter of the loan. The dealer could care less... The underwriter is the owner of the vehicle (the title remains in their name until paid for in full) and they want to protect their asset.

If you went and got a loan yourself and purchased from the dealer, the same requirement for full coverage insurance would apply.

If you went and got a loan yourself and purchased from a private seller, the same requirement for full coverage insurance would apply.

At the OP's monthly salary with the amount of debt, expect to have many underwriters of the loan to deny or expect a rather sizable downpayment to offset the risk of loan default. With this financial situation, I'd simply save and buy a cheap used car in cash.

[marcdel80]

Originally Posted by marcopolo666

You should ask your parents about how life works. Bank accounts, car payments, rent, etc. They are your closest references.

Long story, but not as easy as it sounds. I can pm you for more if you wanna hear the story.

Originally Posted by sylentvoyce

The other nice surprise you get with buying from a dealership is the full coverage insurance requirement.
that usually means a couple of hundred per month by itself. Then they take your down payment, tell you that you do not make very much money, and then stuff you in a clunker with inflated interest rates.

My advice; depending on how much you save up, you are almost better off just buying a used car outright with cash. If you can pull together 2 or 3 grand, you can easily find something that runs well enough to make the basic drive around your local area. You can get basic liability coverage and own your ride without some asinine bank obligations.

Good luck in your future pursuits!

Ah! Where do you advice to shop? Craigslist? Point me on the right direction to research online. And how do I get a checkup to make sure that it works? I'm trying to find out what type of mechanic to befriend etc.. there has to be some resources online about this.

Originally Posted by usayit

This is not the dealership imposing... this is the underwriter of the loan. The dealer could care less... The underwriter is the owner of the vehicle (the title remains in their name until paid for in full) and they want to protect their asset.

If you went and got a loan yourself and purchased from the dealer, the same requirement for full coverage insurance would apply.

If you went and got a loan yourself and purchased from a private seller, the same requirement for full coverage insurance would apply.

At the OP's monthly salary with the amount of debt, expect to have many underwriters of the loan to deny or expect a rather sizable downpayment to offset the risk of loan default. With this financial situation, I'd simply save and buy a cheap used car in cash.

Ah makes sense.

[Cloudy Dayz]

Originally Posted by marcdel80

Long story, but not as easy as it sounds. I can pm you for more if you wanna hear the story.



Ah! Where do you advice to shop? Craigslist? Point me on the right direction to research online. And how do I get a checkup to make sure that it works? I'm trying to find out what type of mechanic to befriend etc.. there has to be some resources online about this.

Pay cash, buy on Craigslist. Research the model before you buy. If possible have a mechanic check the car before you buy it. If it's cheap enough, maybe you can skip that part. But expect that it probably will need some repair work, before you even drive it. Budget at least $200 a month for insurance, registration, and gas. Maintenance and repairs will be extra, probably a lot extra. How much is anybody's guess.

[joosoon]

Given your situation, it sounds like you're going to be buying a car from a private party since as someone already mentioned, the type of loans you'd likely qualify will be written by the bottom-feeders in the finance world, if that. So rather than go straight to craigs' or autotrader, just ask friends and coworkers if they know anybody selling a car for a decent price. Word of mouth decreases the probability that someone is going to rip you off.

Originally Posted by marcdel80

LAnd how do I get a checkup to make sure that it works? I'm trying to find out what type of mechanic to befriend etc..

Honestly, why bother? It's going to cost you money just to get a shop to put a car on a lift and what if they do find something critically wrong with it? Assuming you're doing this with a complete stranger as the seller, you're not going to parlay that info into a deep discount and use it as leverage against them. They'll just wait for the next guy to come along instead and you'll be out that money altogether.



You're better off letting the internet do some work for you. Once you find a car you're interested in, just google the year/make/model and it's practically a given you'll see what typically goes wrong with it and what to watch for. That's free.

[Ruth4Truth]

Buy and old Toyota or Honda for around $3000- $4000. That will get you one that has around 130-150K miles on it. This will last you years and years. Save up, and pay cash. Have a mechanic check it out before you buy; most sellers will allow you to do that. Buy from a private party, not from a dealership. Look into car insurance, gas costs, and maintenance costs (regular oil changes, etc.).

IMO you can't afford to own a car, even if someone gave you one. Insurance and all the rest can be expensive, and if you get in an accident, your insurance will go up. And if you have your money tied up in a car, you'll never be able to move out on your own and support yourself, unless you get a better-paying job.

[joosoon]

And if you do buy a vehicle from a used lot, remember that the price you think you've negotiated informally isn't going to be the one on the long form. Watch out for all the add-ons you didn't ask for, inflated VLF, "prep" fees, etc. Don't pay for any of it. Don't sign until you know for sure what you're actually buying.

[Elna Rae]

Originally Posted by joosoon

Given your situation, it sounds like you're going to be buying a car from a private party since as someone already mentioned, the type of loans you'd likely qualify will be written by the bottom-feeders in the finance world, if that. So rather than go straight to craigs' or autotrader, just ask friends and coworkers if they know anybody selling a car for a decent price. Word of mouth decreases the probability that someone is going to rip you off.

Marvelous advice!

Honestly, why bother? It's going to cost you money just to get a shop to put a car on a lift and what if they do find something critically wrong with it? Assuming you're doing this with a complete stranger as the seller, you're not going to parlay that info into a deep discount and use it as leverage against them. They'll just wait for the next guy to come along instead and you'll be out that money altogether.

Horrible advice!

Paying for a pre-purchase inspection on a used car, dealer or private party is the best money you'll ever spend. And sellers often negotiate the price down once they see in black and white what problems exist with their car. Most sellers aren't trying to "rip people off", they're just naive about the actual condition of their vehicle.

Obviously you are well aware of your debt problems; don't go into further debt with a car. Save and pay cash. You'll be surprised at how much you can get for $3k, especially if you're using it primarily for short, local commuting. Strike up a relationship with a shop (again, seek a referral from a friend, associate, or family member.), ask them if they know of any cars or if they would assist with finding a good one. When they find out this is your first car purchase I believe they will be tickled to help you.

Good luck.