Just turned 18, I drive a 2010 Jeep Patriot and want to explore this great country of America. I earn just a little under $2K a month, I don't have bills, and doing community college (So low cost college). I have all this money saved up for a new car down payment. I want new because I want something I can drive for 10+ Years and I want to explore this country of ours and I don't feel safe in my jeep. I've looked into many companies and I love a lot of the cars I find, I'm averaging $250 - $300 a month payments on a brand new car with a co-signer for credit, putting a $5000 down payment. I don't want to make the mistake and put myself in debt, that's why I'm looking to get a second job making an extra $100 - $200 a week just to be safe. I know getting a new car at 18 on my own is dumb as it is, but with all my cards laid out I believe I can do it. Any advice from the wise car people out there? And I don't want a "You Stupid Teenager ... ... ... " post. I want to hear actual opinions on how to go at this situation.
I've been there and done that.
My first car was a ratty (I mean RATTY) 4 cylinder 1984 Mustang. When I had to give it to a family member, I was determined to get another Mustang. I had a decent job, no debt, and no rent/mortgage. I bought a new (at the time) 2001 Mustang GT coupe, fully loaded. My payments were $550/mo and my insurance was $600/mo. Put gas and maintenance on that, and I spent every dime I made just on my car. After about a year of that, I sold it and for the next 20 years bought almost exclusively used vehicles for a fraction of the price.
Perfect example is the car I bought right after selling that one. I purchased a 1999 Mustang GT 35th Anniversary coupe. Bear in mind, this is in 2001 so you are talking about a used car that is just a couple years old. I paid $28k for my new 2001 GT when I bought it. I bought that 1999 GT at Carmax for $13k with 14k miles on it. And I drove it 130k miles and 6 years until it was paid off with zero major problems. Just regular maintenance and a clutch around 110k miles. My payments were $215/mo and insurance dipped to $300/mo. HUGE difference.
I would seriously look at your used options first. Even in today's market, used vehicles will still be cheaper than new. And ask yourself if you really want to spend all the money you took so long to save up on something that is going to cost you money for the next 5 years. I bought a 2020 Accord 2.0T last year for around $30k new. A week ago I bought a 2021 Ridgeline for $40k new. That is a lot of money and these are not what I would call anything special...just work horse cars. And I negotiated for hours on both. I wouldn't even consider spending that kind of money at 19. The ONLY reason I spent it now, at 40, is because as @InThrustWeTrust said I'm in a very different financial position than I was 21 years ago and I can afford it without issue.
TL;DR: Listen to what you are hearing. I don't think you are a dumb teenager. I actually believe the opposite and you are smart for asking advice BEFORE making a major life decision. I just hope you heed some of the things you've been told here and avoid going into that debt. Trust me, you will be in debt soon enough with the rest of us. Enjoy not having any while you can.
Good point. You've worked hard to earn all that money. Don't be so eager to immediately flush it down the depreciation toilet. Invest that money into your future instead.
@Mod_man Not many months ago, my aunt bought a new Toyota Rav4 Hybrid since it has all the government rebates. Now, she couldn't afford to buy insurance. I guess you will always have to think before you really buy it. I was going to buy a new Honda Ridgeline as a second car in the future because I probably invest in renting one story houses just like my dad (passive income). My parents used the Honda Odyssey to carry simple tools. I think it's the perfect car for this situation.
Anyway, congrats on your new Honda Ridgeline. My aunt is low income if you're asking about the government part.
Thanks. Yeah you have to really consider all the angles when you make a vehicle purchase. There are a lot of expenses other than the payment, if you have one. Even if you pay cash, you have to think about possible repairs, still have insurance, gas, etc.
@Mod_Man you can fit in mustangs at 6'9?
@end Can you get in the car when visiting lol?
@endrit15 Yes I can fit. Some are more comfy than others, but I fit fine. The F-Body GM cars are a much tighter fit to be honest. I don't really fit them.
@legendayslayer Yea I was even able to fit in the back seat of new mustang back seat. I did need to visit the doctor afterwards, but I still squeezed in there. I can fit in any car because I am only like 175 pounds, even though I am 6'5"
@end I don't recommend sitting back there lol
@legendaryslayer I know, but my dad was test driving it and my brother sat in the front seat. That 2020 gt was such an eye catcher. The rumble of the v8 was fake, I think, but it was so exciting to test drive, though.
Nice. I hope you have a good time in the Mustang @end.
@legendaryslayer it's not mine I just like testing cars out
Guys, start your own topic please. Stop cluttering this guy's question, and mod_man's answer with your chatter. Thank you.
I want new because I want something I can drive for 10+ Years
My actual opinion: If you buy a low mileage car that 1-4 years old, it can still last 10 years , but it'll cost significantly less money. Save the new car wishes until after you graduate and have established a career. It's not very wise to work yourself to death just to support a car whos value is going to plummet like a stone while you're still in college.
I know getting a new car at 18 on my own is dumb as it is,
It really is, and your story did nothing to change my mind. (and you know what Scotty would say)
I am not sure what your question is but I would definitely recommend buying used. Scotty is a muli millionaire and he has never bought a brand new car. $5000.00 can get you a decent car. Yes, at $5000.00 it would be older, but you would be debt free and have no car payments. Plus car payments are a huge pain. Also, you would be surprised at how long cars can last. Look at Scotty's Celica.
$5000 was my patriot and I've put about $3000 into it, new alternator, clock spring, fixing engine problems, etc. I want something with less than 35K on it, I'd call that "Newish" which I have no problem with buying.
That was your problem, buying a Patriot. If you buy a good car for $5000 you will fare much better.
Being debt free, why on earth would you want to take on the debt of a depreciating asset at 18?!
Let me tell you right now, the new car feeling is going to wear off in about 2 weeks when you find your first scratch on the brand new paintwork. And then you’re gonna wish you just bought used, with pre existing blemishes..
Infact, get yourself a decent Civic with the $5000, beat it up, modify it, all the while saving up for your brand new car maybe in the near/not too distant future.
All the best!
I would go used and look at cars (not CUVs or SUVs which are in higher demand and cost more). Good example is a Toyota Corolla or Honda Civic. See below for years to avoid:
(these prices won’t hold anymore in this market, which is a sellers market, but still gives you an idea of what to look for.)
https://carkiller.com/scottykilmer/qa/used-cars-what-reliable-cars-can-i-buy-for-10-grand/#post-72951
You should also consider the insurance of a new car and compare it to a used one. You don’t have that much driving experience and if we assume it is a clean record, you still gonna pay good money for a new car insurance.
Clean driving record, Never been pulled over, no wrecks, But I do understand high insurance and I'm looking at different companies.
Scotty has never purchased a new vehicle. I have once in my life and never will again. You would be much better off getting something 2 years old with low miles. Or a 10 year old Toyota. Definitely will be cheaper on insurance. Especially at 18 years old.
Buy a car that is a couple of years old for half the price. It will have lower insurance, still have good technology, still have a lot of life left in it, and you will have money to spare for other things too.
If you want a car without the paranoia of it breaking down, go Toyota or Honda but going for a brand new one would be a little extreme and expensive. I have enough cash on me to buy a brand new Toyota Camry XSE V6 cash right off the lot if I wanted to and I still went and bought a used 2019 Camry SE earlier this year $6,500 down, financing the rest. I still bought used because I see no point in buying a brand new car when the ones that are 2-3 years old are basically the same thing. The car I had before was a 2013 Civic and I bought it from my grandpa when it was 5 years old but still had only 10k miles on it. You can find some great reliable cars out there that are 5 years old with low miles and still have it last you through college or even until your first kid is born.
Well I gonna be the same situation as you for the next three years. I sort of doubt my parents would give a car for normal driving. I would buy a low mileage car myself. My uncle gave one of my cousins a Honda HR-V for 80,000 miles around $8000. (@mountainmanjoe and @mod_man I hope it was a good deal.) I always think lowering the value of it is always a good idea. But I think too greedy lol. This is unrelated , but never take your car in college. It's because you don't want your roommates to borrow your car and then it ends up in an accident.
I wouldn't call you a stupid teenager. You're willing to take all the answers from peers like us. I appreciate it and keep asking questions when necessary.
That's a pretty good deal in my opinion. Could certainly do worse.