Hi Scotty,
I've started a new job working in union (cement and plasterers local 797). Problem is I need to finance a new vehicle as I currently don't have one. I'm looking for either car or truck and don't want my payments over $450. I managed a $605 payment on a truck for 2 years before selling it to CarMax. Yikes !! It was stressful and was a ram truck 2019 hemi big horn. I worked many long hours to keep it before selling it. Not a fan as I've seen your take on them 😉
Any who, a little background of my current situation. I work Graves at Amazon and currently picked up a second job in union. Obviously, I'm gonna have to either eventually get rid of Amazon or work flex to reduce my hours. My parents I live with to make ends meet and my father has Parkinsons disease and starting to get dementia. We have alot of appointments to the doctor's office that I have to coordinate with my mom so I'm willing to get a car if need be! I really want a truck but was wondering what you would recommend. I know the Toyota Corolla is a very economical choice. I've tried getting a pre-owned but no luck and buying used old stuff is getting harder to come by. Basically, time is not on my side is what I'm saying. Ive been taking bus commute which really sucks.
Any recommendations? Willing to make payments around $400-$450 credit score is around 650. Thanks Scotty!
Big fan,
Jerry Tennant
So first thing is when purchasing a new car don't talk about what monthly payments you can make; you need to specify how much OTD you can realistically afford. By OTD I mean "out the door" price which is car price, taxes and fees, title and registration. So yes what is the OTD you can afford?
Do not buy used in this market because it's very overpriced. Now if you are willing to buy a for example 10 year old car then yeah go used, but if looking for a car that is 2-3 years old then new is a better choice.
Your credit score isn't great, but it's not bad either. FICO considers 650 as fair credit. Interest rates are increasing so with a fair credit score you won't be getting the best possible loan rate out there.
As for what car to buy consider the Corolla or Civic, or if suv then Corolla Cross or for something bigger the Rav4. Go for their base models because what matters is a reliable car, not bells and whistles. In this market in order to buy a new car at msrp you have to find a dealership willing to sell at msrp and then put a deposit on an incoming unit and wait for the car to arrive. Patience is the key.
So given all of these (and I know it's a lot of different info so let me know if you need further clarification on anything) see what makes the most sense and then move forward. I have personally never gotten a car loan and bought whatever I could afford paying cash. Now I do understand not everyone has the option and luxury of doing this, so see what makes the most financial sense for you. To buy new with higher payments (and remember insurance is going to be more expensive too because with a loan you have to have full coverage) or buy an older used car.
Have you considered leasing? Long term it isnt the best solution, but monthly payments will be alot cheaper.
Id also recommend getting something easy for your father to get into.
Many cars and mainly Japanese brands are not leasing well in this market so if OP can spend a bit more monthly and buy a new car it'll be better financially speaking.