Hot answers tagged

484

Based on what you've said, you shouldn't buy this car, and probably can't buy it anyway. You are saying you earn a total of $1200 a month and have a total of $600 to your name. After four months you will have just barely enough to make a down payment on the car by spending all your savings --- and that's if, as you say, you spend nothing between now and ...


289

There's an aspect to this question that I really love. In general, it's a question about consumer behavior that can be expanded to inquire about the purchasing profile of any luxury good. Who buys $500 pocketbooks, $1000 wristwatches, etc? I can offer one observation regarding the car. Two close neighbors, both couples drive cars valued well above what my ...


275

Your problem isn't that you have no credit. Your problem is that there is no way on earth how you can ever keep up with the payments for this $43,000 car, and there is no way on earth how you can repay this loan. I don't know if that is quite clear to you: Loans are not free money. They need to be repaid. YOU need to repay it. If you somehow managed to get ...


241

I did exactly that when I was 2 years older than you. Like you, I made $1200/mo. I was a bit more of a saver but the $3000 down was basically subsidized by my big hearted employer. I remember the payment, $264.75. Every month, little coupon book. Interest rates were a lot higher back then. But the real kicker was insurance. This thing was a musclecar....


153

How can people afford luxury cars? The same way they can afford anything: by finding it cheaply, saving for it, or adjusting their priorities. Company cars - either paid for by the company, or as part of a bonus/compensation/salary sacrifice scheme. I have friends who drive luxury cars, but they pay £200/month - not much more than, for example, finance on a ...


148

Let me get this straight. Your son went to a car dealer Your son negotiated a price Everybody signed paperwork Your son then went to the bank with the paperwork and got a cashiers check. Your son delivered the check to the dealership Everybody signed more paperwork Your son drove away with the car Now two days later they want more money. I would stand my ...


139

A while back, I sold cars for a living. Over the course of 4 years ,I worked for 3 different dealerships. I sold new cars at two and used cars at the last one. When selling new cars, I found that the majority of people buying the higher end cars honestly shouldn't have been—80% or more of them. They almost always came in owing more on their trades ...


132

BrenBarn's answer is pretty darn good—you would do well to follow his advice. My one point of contention is that I think you should get the car. How long will it take you to save up $43,668? Only 36 months at your current salary; if you can double your salary, then you can have the cash to pay for this car 18 months. So go for it, work like ...


116

So, what are the financial motivations of people who buy cars and let them to rot? Not every decision in life is based on financial motivations. Say, for example, it's 1968 and you're tooling around in a 1965 Mustang, then get married and start to have kids. The 'Stang is now highly impractical, but you love it and don't want to sell, so you stick it in ...


101

Negotiation 101, never be the first to say a number. You tell them you have a $300,000 limit and magically they want $300,000. Alternatively, they may just assume you carry the minimum.


99

If you are going to finance a used car, it is frequently best to arrange financing before you even pick out the car. The easiest way I recommend is to talk to a local credit union or two. They'll be able to tell you your interest rate and terms without having to talk to the dealer at all. Most likely, they'll be significantly better than the dealer at ...


97

The garage probably hasn't understood from your description that the car isn't driveable. Contact them again and tell them the car is under warranty, it is not driveable, and you want it fixed or want a replacement car. If they still refuse to come and get it, then tell them you will get a third party to tow it to them and charge them for the towing costs. ...


88

Between now and October, your $3,000 will earn $30 in your savings account. If you are late on a payment for your 0% loan, your interest rate will skyrocket. In my opinion, the risk is just not worth the tiny gain you are trying to achieve in the savings account. If it was me, I would pay off the loan today. A few more thoughts: There is a reason that ...


88

Can I continue with the transaction, This deal violates at least three of Autoscout24's warnings when buying a car: "Too good to be true" If you should come across a bargain that is far below the standard market price, you should check the offer critically and if necessary take a close friend along. [...] "To good to be true?" - It generally ...


82

There are two ways to improve your personal finances: Make more money Spend less money That's literally the secret. To afford the car, you either need more income, or lower expenses. Don't fret, though. It's good that you are learning this lesson early in life because a lot of people live paycheck-to-paycheck their entire lives without realizing that some ...


80

Keep in mind your household income is in the top 20%, which does not translate to wealth. Given a healthy income, and no debt, other then a small house payment, you probably have a decent amount of free cash flow. This could easily be used to buy a car on time… which a lot of people do. Congratulations on being different. Having said that, living as you ...


80

I recommend you wait until you get to Pittsburgh before you decide. Start without a car, and then you can take some time to decide if not having a car is too inconvenient. In addition to buying and maintaining the car, you might have additional expenses and hassles such as parking. You won't know until you get to Pittsburgh how bad the parking situation ...


72

Step 1: Start saving like you said you would. You said you could stop spending, and start piling up your paychecks into your bank account. Start doing that now. Step 2: Become an authorized user on your parents account. Get a credit card in your name, but don't carry it or use it. You are not spending money, remember? This will build your score without ...


70

Contact the lien holder (the bank) and they'll have a procedure for you. Usually, you complete the transaction at the bank after agreeing on the purchase price: you will cut a check to the bank to pay off the loan, and then write a second check to the seller for whatever extra amount should go to him. The bank will handle the paperwork for transferring the ...


66

No you can't buy direct from Toyota. Largely because of many states' laws (assuming you're in the US) requiring a dealer relationship for car purchasing, read about Tesla's struggles with direct to customer sales. Secondly because Toyota corporate simply isn't set up to sell a car directly to a customer. I know there are services that help people through ...


62

My mother worked for one of the major American car rental companies. She talked about this topic with me and my answer will summarize the talk. Does the fact that they sell the car mean during this time suggest that they know the car's cost of further maintenance or other costs will be higher? Or is there another reason they sell at this time which, ...


59

Since this hit HNQ, I'll move this warning to the top to make sure everyone sees it: Do not buy more car than you can afford. Figure out how much you're willing to spend ahead of time—make sure you include tax/title/license fees, insurance, and a fund for emergency repairs—and don't go above that. Even if that means you can't get the luxury car, have to get ...


57

It isn't just GEICO that tells you this, every US car insurance company instructs their customers to not mention the amount of coverage. Your job is not to negotiate. Your job is to collect the specified information and to hand the claim process over to the insurance company. That is also why they tell you not to admit fault. When you start discussing the ...


55

The comments are getting too much, but to verify that you are not insane, you are being bullied. It sounds like this is a sub-prime loan, of which you are wisely trying to get out of. It also sounds like they are doing everything in their power to prevent you from doing so. For them you are a very profitable customer. This might take some legwork for you,...


54

I assume this happens to everyone in the US, and I believe the reason is simply due to competition. Here are my data points: I was with Allstate for 17 years, and the rates were pretty consistent for a long time, then about 6 years ago every 6 months my rate would go up slightly. After 2-3 years of that I called and I asked why? I was told it was due to the ...


53

As well as paying 8% interest on your loan (i.e. $800/year), you're also wasting money on the car: depreciation, insurance etc. So it's worth a lot to you to get out of it. Set against that is the risk of having to borrow the $3000 you'll be taking from your emergency fund at a higher interest rate (say 30%?) for at most 6 months, which would only cost you $...


52

Having lived in Pittsburgh for a number of years as a college student, I can say that having a car isn't totally necessary. The public transportation is good (but not great), and there is a lot relatively close to the university area. The city's not very large, so taking a taxi / Uber / jitney almost anywhere won't cost much unless you get stuck in rush hour ...


51

$160 a month is less than $40 a week (except in February when it can be exactly $40 a week). At the Ohio minimum wage of $8.55 an hour, you should have something like $8 an hour left after FICA taxes (and not pay income tax until working more than twenty hours a week). That's only five hours a week. Five hours is a single shift, not even a full day (eight ...


50

If land is cheap with low opportunity cost for an alternative use (maybe you could pull an extra half bushel of corn or soybeans per year off a parking spot, or maybe not), so what? At least you don't need to mow that patch. If the vehicle starts to mechanically deteriorate (flat tires, dry rot on tires or hoses, condensation in the gas tank), you now have ...


49

In addition to those who are wealthy (not the same as high income), there are also a certain number of people whose professional livelihood is enhanced by projecting wealth/income they may or may not have. For example, some consultants, lawyers, financial advisors or other salespeople. The same is true of luxury homes for industries where entertaining ...


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