Car Shopping

[Beno Udrih]

No you don't.

How do you know what her debt is like? A lot of people's parents take care of undergrad debt if they can afford to, maybe she doesn't owe anything. Maybe her new job is going to pay her enough for her to be able to make an investment to build up credit. While defending Ashbeeigh is not on my list of top ten things to do on any day, it really irritates me when people tell other people what they "should" be doing with their money when they aren't privy to the entire context. Perhaps it was friendly advice, but if that's the case then it was rather ill-phrased.

Gay. She's just giving advice in a thread were the OP is asking for it.

[Jekka]

Student deals rock. I got a student deal on my Civic that I've had for seven years and 106,000 miles - it's automatic locks, but not auto windows. The car has been running great and I've never felt like I've needed a bigger car. Most smaller cars have much more trunk space than you would think. My family has had really good experiences with Honda (my Civic, my sister's CR-V, my mom's Accord, and the Acura she had for about ten years before that), and you don't have to get the most expensive package to have a good car that's going to last a long time.

SHE has told us many times of her $40,000 in college debt, HER responsibility to pay for it, and HER difficulty in finding a job. So until YOU know the context, you can STFU.

Wow, belligerent is not a pretty color on you

[SequSpur]

Actually it's true. You can get a better deal when buying at the end of the month. The dealer has quotas to meet and bonuses are dependent upon number of units sold.

BS, its a sales tactic. You might think you are getting it cheaper but in actuality its no different than the deal on the 1st of the month.

What if the dealership's month end for sales goals is the 10th? They are just pulling your leg.

[ducks]

Yeah!


And Ducks, you couldn't sell a match box car to a ged carrying special ed student you dunce cap.

dude I was top salesman for 3 years
workedfor the ford dealership in florida

[ducks]

BS, its a sales tactic. You might think you are getting it cheaper but in actuality its no different than the deal on the 1st of the month.

What if the dealership's month end for sales goals is the 10th? They are just pulling your leg.

my manager would make a deal at the end of the month just to do the deal

the salesman makes a bonus on how many he sells
if he is about to go to the next level the salesman works the manager more to
and the deal gets done
YOU have no Idea on what the you are talking about

the first day of the month is not the day to buy a car

[ducks]

BS, its a sales tactic. You might think you are getting it cheaper but in actuality its no different than the deal on the 1st of the month.

What if the dealership's month end for sales goals is the 10th? They are just pulling your leg.

why do you not stick to talking about bowling you might know something about that

[ploto]

Wow, belligerent is not a pretty color on you

Sorry it went over your head.

Do you even see the hypocrisy of telling someone that it is wrong for them to tell someone else what to do when what you are dong is telling THAT person what they should or should not do.

People who ask for advice should not get mad when people give it. If you don't want input, then ask no questions on an internet forum.

People are STUPID with money- plain and simple. And as for SUV's, I am sick of seeing one person drive around in a big gas guzzler that causes wrecks, pollutes the air, and is completely unnecessary. A 22 year old single female who just graduated from college, is in awful debt, lives at her parent's house, and is working a phone sales job does not need a $25,000 new SUV. It is a stupid, unnecessary purchase. The problem with people in this country is they have no clue how to save money. They throw way too much money at the cars they purchase.

[leemajors]

telesales jobs suck, and have a very high turnover rate. better to wait more than a few months, you may find yourself between jobs soon.

[PM5K]

Sorry it went over your head.

Do you even see the hypocrisy of telling someone that it is wrong for them to tell someone else what to do when what you are dong is telling THAT person what they should or should not do.

People who ask for advice should not get mad when people give it. If you don't want input, then ask no questions on an internet forum.

People are STUPID with money- plain and simple. And as for SUV's, I am sick of seeing one person drive around in a big gas guzzler that causes wrecks, pollutes the air, and is completely unnecessary. A 22 year old single female who just graduated from college, is in awful debt, lives at her parent's house, and is working a phone sales job does not need a $25,000 new SUV. It is a stupid, unnecessary purchase. The problem with people in this country is they have no clue how to save money. They throw way too much money at the cars they purchase.

Damn, Jekka got totally 0wned, especially when she said he didn't know about her situation when he clearly had a better idea than she thought he did.

You forgot to mention it's a job she hasn't even started, a job she's not excited about starting, and a job she has no intention of keeping long term...

[ashbeeigh]

People are STUPID with money- plain and simple. And as for SUV's, I am sick of seeing one person drive around in a big gas guzzler that causes wrecks, pollutes the air, and is completely unnecessary. A 22 year old single female who just graduated from college, is in awful debt, lives at her parent's house, and is working a phone sales job does not need a $25,000 new SUV. It is a stupid, unnecessary purchase. The problem with people in this country is they have no clue how to save money. They throw way too much money at the cars they purchase.

I'm only quoting your post because it puts everyones thoughts in one paragraph. I'm "shopping." I'm not buying yet. I was asking for opinions. And obviously, that's what you think. Perhaps I'll end up with some $8,000 2002 Chevy Malibu with 135,000 miles that will need to be replaced in a year. Who knows. I see your side, I understand it. I even lean towards it. I never said I was going to spend $25,000, probably closer to $20,0000. I would never buy a 11/18 car. That is lame. I'm not that environmentally unfriendly or unconscious of my wallet. I've said it plenty of times, my budget is set. I know where I stand, and I know where everyone who is against my "shopping" stands. Not until I come back with a bump and say "Look at my new car!" can the actual bashing start, imo.

[ashbeeigh]

I honestly was not asking for financial advice in this thread. I was more asking for advice on the vehicles and dealerships. I'm glad it was kept on topic. Thanks for the help, it was much appreciated, y'all. I just don't need to be defending my decisions or reasons. I just asked a few questions.

[Extra Stout]

People are STUPID with money- plain and simple. And as for SUV's, I am sick of seeing one person drive around in a big gas guzzler that causes wrecks, pollutes the air, and is completely unnecessary. A 22 year old single female who just graduated from college, is in awful debt, lives at her parent's house, and is working a phone sales job does not need a $25,000 new SUV. It is a stupid, unnecessary purchase. The problem with people in this country is they have no clue how to save money. They throw way too much money at the cars they purchase.

When I was fresh out of school, I bought a new car for $18,000 (back in 1999). It is a decision I regret, even though the price I paid was about $4000 off sticker. That $330/month car payment didn't exactly break me, since I only had $8,000 in college debt, but I essentially threw away at least $6,000 given that the vehicle was larger than what I really needed, and that a used vehicle a couple of years old, which already would have depreciated, would have served my needs at least as well. A wiser friend who bought an old compact pickup and drove it around for a few years ended up in a better financial situation when he got married years later.

Buying a new car is a decision frequently made by college graduates. It fills a psychological perception of a certain rite of passage. But rarely is it a wise choice.

"I've already taken that into account in my budget."

The question is not so much whether a person can make the payments. The question is whether such a purchase is the best use of available resources. In the specific case of a college graduate, it would be wiser to make the early amortization of college debt a higher priority, since those payments can be a real limiting factor several years down the road when trying to save for a house and for children.

"But I plan on keeping it for several years."

A two-year old, smaller vehicle also can be kept for several more years until one's needs change. The issue is that early amortization of a large debt starting right now continues to pay out for years because of the interest saved. Many people get into the trap of thinking short-term, "can I pay my bills every month?" The more mature way of thinking incorporates long-term considerations, i.e. "how much am I going to end up paying for this in total?"

It took me until my late 20's to start to understand that my ability to afford something I want is not in and of itself justification to buy it, and that saving seemingly small amounts years in the past pays me back many times over today.

[Oh, Gee!!]

take public transportation instead

[Holt's Cat]

Well said, ES.

[Holt's Cat]

Many buy a new vehicle ultimately to impress someone else. It's an American obsession. Another obsession is name brands. BMW and Benz have all but diluted theirs in the US with their $30K compacts.

[duncan228]

It took me until my late 20's to start to understand that my ability to afford something I want is not in and of itself justification to buy it, and that saving seemingly small amounts years in the past pays me back many times over today.

Same here.
Your entire post was well said but I think this is the bottom line.
In your early 20's it's very hard to seriously think about the future.
You're young, you're invincible.

It seems like lots of us made similar money mistakes at that age.
I suppose that's a right of passage as well.
People have to make mistakes to learn from them.
All our experience is simply advice, our own hindsight of things we should have done differently.

My 17 year old has shown me that he needs to learn things for himself. What was right for me may not be right for him.
And because I do have experience, I know that he'll learn from mistakes he makes.

[Extra Stout]

For example, if a person were to elect to purchase, say, a Honda-certified 2005 Honda Civic for $13,500 instead of a brand-new SUV for $20,000, the $6500 saved... actually, make that more like $7500 (thanks to saved interest), could be applied to amortizing college debt. That early amortization would result in a few thousand dollars of additional savings in avoided interest. The person theoretically could have an additional $10,000 in pocket when trying to buy a house in five years. Having that available for down payment will make a difference in the interest rate one gets. One point off an interest rate is a couple hundred dollars a month, and means immediate equity. It also could be the difference between needing private mortgage insurance or not, and that's another hundred or couple hundred a month.

I don't know about you, but to me having four hundred dollars more a month in disposable income would be a big deal. You just have to think in terms of, "where do I want to be when I'm 30?"

[CuckingFunt]

It seems like lots of us made similar money mistakes at that age.
I suppose that's a right of passage as well.

Thank (deity of choice) I took a job at age 19 where I had to run credit checks for a living. It scared me into being VERY responsible financially.

[Extra Stout]

Continuing on, assuming one buys the house at 28, and is squirreling away that $400 a month, by the age of 40, the person who buys the Civic is nearly $70,000 ahead of the person who buys the new SUV, and that's not even counting interest on the savings. If the savings go into a low-load mutual fund making returns in line with the S&P 500, the amount is probably more like $100,000.

[Holt's Cat]

Few think that way. Most tend to judge their financial position simply by their income and figure if they are making more they are doing better. And if they are doing better, by God, it's time to shop. This unvirtious circle tends to repeat itself.

[Extra Stout]

And I think I've just explained in a few posts the difference between people who become affluent and those who don't, or people who can finance schools for needy children in Mexico and those who can't.

[duncan228]

Thank (deity of choice) I took a job at age 19 where I had to run credit checks for a living. It scared me into being VERY responsible financially.

I didn't get my wake up call until my mid to late 20's.
Had I been smarter when I was 20, my 30's would have been financially easier.

You were smart to pay attention to the scare.
I don't know that many of us pay attention at that age.

[Holt's Cat]

I think it starts with people being able to control their impulses to buy stuff. You don't need that new truck, boat, laptop, etc....as much as you think you do. Making wise personal financial decisions in America 2007 is not easy. Now, more than ever, anything you could possibly want is at your fingertips. And access to credit has been relatively easy for so many over the last 5 years. If you worry about what other people think about what you own you are precisely the sucker retailers, banks, and credit card companies love to entertain.

[CuckingFunt]

I think it starts with people being able to control their impulses to buy stuff. You don't need that new truck, boat, laptop, etc....as much as you think you do. Making wise personal financial decisions in America 2007 is not easy. Now, more than ever, anything you could possibly want is at your fingertips. And access to credit has been relatively easy for so many over the last 5 years. If you worry about what other people think about what you own you are precisely the sucker retailers, banks, and credit card companies love to entertain.

It's a combination of both philosophies, really. There's no reason to deny yourself luxuries and toys as long as you do so wisely.

My aunt and my mother have probably earned the same amount of money throughout their adult lives, yet my aunt is comfortable and has a lot of nice things while my mom lives paycheck to paycheck and very rarely indulges in new purchases. It's all about making smart choices and thinking ahead.

[duncan228]

It's all about making smart choices and thinking ahead.

And that ends that.