113

You are talking about spending about a third of all your money on a car and committing to do so for the next 4 years. As an 18 year-old you have a tidy disposable income and few expenses. But the one thing that is certain is that your circumstances will change, even over the next 4 years. It is a terrible idea. As a simple example, you could: a) buy ...


100

Multi-Level Marketing is viewed as unethical for (generally) two reasons: Many MLM's require you to 'buy in' at a certain amount, often paying some of that buy-in to the person who recruited you. For the worst examples, this turns into a pyramid scheme where the main value proposition isn't an underlying product, it is purely an opportunity to scam as many ...


94

Some folks have touched on this, but I wanted to make sure I emphasize this. Getting a college degree does not require going into massive debt. In fact it doesn't require debt at all. Here are some options (this is US-focused): Get your core classes out of the way at a community college. Community colleges are a significantly cheaper way to earn college ...


85

Why are there claims that MLMs are unethical? Because they work much like a pyramid scheme. Members don't make money by selling product, but by recruiting others into the scheme who then recruit others who then recruit others etc until, hypothetically, someone is going to sell the product. Hypothetically. Practically, members buy a lot of product up front ...


84

You really have only three options (leaving out somehow legally forcing them to pay, about which I know nothing). I'm also assuming you're in the US. Somehow get enough in scholarships and grants to pay for your tuition and living expenses. Take out loans, which as you say may put you deeply in debt. Put off college for a while, and work until you have ...


54

Personal experience- I did the math. I had enough. I bought the car. I LOVED that car. I had FUN. Nothing went wrong. I paid everything I had to as it was due. Luck was on my side. At the end of 5 years it was paid off. I had a 5 year old car. My buddy had a similar job paying about 10% less. He didn't buy the car. Instead, he bought a cheap ...


53

It seems everyone has left one conspicuous option unspoken: Don't go to college. Let me be clear. I am not saying you should not go to college, but it is important to remember that not going to college is a viable option. There are many many well-paying jobs out there that do not require a college degree. The important thing to remember when preparing for ...


45

While technically true, a card issuer can cancel your card for almost any reason they want, it's highly unlikely they'll cancel it because you pay your bills! There are many, many people out there that pay their bills in full every month without ever paying a cent in credit card interest. I wouldn't ever purposefully incur any interest on a credit card. ...


44

Remember, the card company gets a percentage at the time of purchase, as well as any interest you let them collect from you. Yes, they're still making a profit on our accounts, and they can always hope that at some point we'll run up a high enough bill to be willing to pay some interest. They may kill completely inactive cards, since they need a bit of ...


44

While ultimately this is a matter of opinion, the major factors in this decision are the cost of what you'll replace it with and how important reliable transportation is to you. $1470/year is not an incredible sum to keep a car on the road. Any newer car will also have maintenance and repair costs, higher insurance cost (most likely) and either require a ...


42

CC debt is My Hair Is On Fire!! debt, because the interest rate is so high. So... yes, you should pay that off first (unless you like subsidizing my 1.5% Cash Back Rewards and "Fat Cat Bankers" while slowly impoverishing yourself).


38

The answer, of course, is "no" to the Audi. But you already knew that. I applaud your willingness to ask the question. Here is a decent article: Opinion: The road to riches is this simple: Drive a crappy car


35

The most important question is: What's your buyout price and what's your car worth? If your 3 year old car has less than 5K miles on it, most likely it's worth more than your buyout price. If it's a car you would consider purchasing with 36K miles on it, then you're getting a great bargain if you can pay the same amount for a car with 5K on it. If you're ...


30

Divorce records are public. Go to the county Clerk's office and read through all the documents (Divorce Decree, Property Settlement, etc). It'll be depressing, but that'll show how much your father is sending to your mother. Note that both sides might be telling the truth. Depending on where you live, housing expenses can be shockingly high, and teens -- ...


25

I have a few recommendations/comments: Consider keeping your current car. The buyout amount for your lease is often negotiable. Tell the dealer you are NOT going to be leasing or buying a new car from them, but you are interested in buying out your BMW if they are willing to negotiate on the buyout amount. They will say, "no deals" and then you schedule to ...


22

Remember who you're asking: Personal Finance and Money. Many of us are older (meaning "parents"), and financially conservative (meaning "live below your means" and "don't spend a lot on a car until you have a healthy net worth".) What would your opinion on this be Were I your age, making your amount of money, I'd also want something shiny, fast and new. ...


21

First, it's clear from your story that you very likely should be able to receive some financial aid. That may be in the form of loans or, better, grants in which you just get free money to attend college. For example, a Pell grant. You won't get all you'd need for a free ride this way, but you can really make a dent in what you'd pay. The college may ...


21

My wife and I have six children who are in college or have graduated. So far, with almost no financial help from us, they have earned 4 Bachelors degrees, a Masters degree, and an Associates degree (with a Bachelors degree and a PhD in progress). On their own, they covered the cost of housing, living expenses, tuition, books, and fees. The only thing we ...


20

This may or may not answer the question, but is far too long for a comment. Many people's parents do not pay their children's tuition in full in the US. I'm writing this as if your parents will not be contributing a significant amount. If you can convince them to do so, bully for you. This doesn't have to wreck your life (unless you foolishly let it). Your ...


20

You're asking several related questions - about credit scores, how to use cash, and how to buy a vehicle. If we break them all down and start with what to do with your $5k in cash - it makes sense to use that to pay down credit card debt, since it's likely costing you an arm and a leg in interest right now. Even if you decide you need a vehicle badly, and ...


18

There is similar question By 18 years of age, I want a brand new car that's $43,668 But because of the deposit and young age I think it deserve new answer so more people can use it. Your whole plan is based on two assumptions: you're not spending a lot of money on bills your work situation is stable. So let's go through basic calculations. You're ...


16

I'd go with option #3 and pretend that the first two options were never even on the table. All things are negotiable, especially in dealerships! A dealer will NEVER send you away if you are willing to give them some money. The dealer is lying to you about option #3 because he thinks you will lease another car even without the incentive (maybe you already ...


15

Dealer financing should be ignored until AFTER you have agreed on the price of the car, since otherwise they tack the costs of it back onto the car's purchase price. They aren't offering you a $2500 cash incentive, but adding a $2500 surcharge if you take their financing package -- which means you're actually paying significantly more than 0.9% for that ...


14

Credit card companies are businesses. Businesses will make any decision that makes them money. So does it make them money to cancel your account? Cancelling your card means they no longer receive the fee from the merchant when you make a purchase. Cancelling your card means you will be less likely to get one of their cards in the future, meaning their ...


13

There is no rule that says the dealer has to honor that deal, nor is there any that says he/she won't. However, if you are thinking of financing through though the dealership they are likely to honor the deal. They PREFER you finance it. If you finance it through the dealer the salesman just got TWO sales (a car and a loan) and probably gets a commission ...


13

I love John's answer, but I just can't help myself from adding my 2 cents, even though it's over 5 years later. I sold cars for a while in the late 90s, and I mostly agree with John's answer. Where I disagree though, is that where I worked, the salesperson did not have ANY authority to make a sale. A sales manager was required to sign off on every sale. That ...


13

Is an MLM fundamentally unethical? The way to make money in an MLM is to recruit other people to join the organization, who recruit others, etc. You then get a percentage of their sales. People at the bottom level make little or nothing. People at the higher levels are rewarded, not primarily for selling useful products, but for recruiting people. I ...


12

By protected you mean what exactly? In the US, generally you'd get a promissory note signed by B saying "B promises to repay A such and such amount on such and such terms". In case of default you can sue in a court of law, and the promissory note will be the evidence for your case. In case of B declaring bankruptcy, you'd submit the promissory note to the ...


12

Here's one option - figure out how much of a car payment you can afford, and start saving that today. Take your repair costs out of that fund. Continue saving until you have enough to and buy a used car with cash. I would not lease. Leasing is a way to make expensive cars affordable for a short period of time, but you get nothing else in return (it is ...


11

If you want the new car, pay cash for it. Here's why: By paying cash for the car, you immediately save $2,500 off the price of the car. That is not insignificant, it's 8.3% off. By paying cash, you'll never be upside down on the car, and you can sell the car anytime you want. You said that all you need to do is beat the 0.9% interest rate with your ...


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