Hey Scotty!
I am a recent college grad that needs to get a car in the next couple of months before I start my full-time job. I'm looking for something around $15,000 with good gas mileage, but a lot of used cars at that price in today's market are older and have high mileage on them. Usually I would hesitate to buy new cars, as they depreciate very quickly after driving them off the lot, but while looking around at used cars, I've noticed that most decent cars are only within a couple thousand dollars of new cars currently on the market. With interest rates about to go up, car prices already inflated, sky-high gas prices, and a short time frame, I'm in a bit of a bind. Any advice for this situation?
Thanks for your time, and keep up the good work!
Someone suggested you to get an entry new car like a Corolla for 18k, but getting an actually “base” model is as hard as getting the top base model with features and color you want. The reason is car dealership rarely order actual “base” models because they want to say they add this and that to be able to work around the price. Another thing, the base model Corolla is 20k, not 18k.
I’d advise you to get a 2-3 years old Toyota or Honda if you want low mileage and high reliability. Mazda is also a good option. I don’t know about your financial situation. Do you have a decent paying job? Is 15k more than half of your savings? Never spend more than half of your saving on a vehicle, it’s not worth it.
I know people say “car payments are bad” but if you can get a good rate and deal, it’s a great opportunity to build your credit since you’re a grad student. I got a 0.9% rate on my brand new car. The total interest is only $400 the entire length of the loan. I did put down 12k down payment. But $400 isn’t much compared to the high credit score I’m building tbh.
something around $15,000 with good gas mileage
Get a manual Civic or Corolla.
Be sure to have it thoroughly inspected by a professional mechanic, before purchase.
If you’re open to hatchbacks, consider one of these -
You can get a nice used car for that price. I wouldnt go new for reasons you stated above, and I also think the market is too unstable atm. Just have a pre purchase inspection from a good mechanic before you buy.
I dont know how much your student loans are & what your salary may be, but it can be difficult getting ahead at a young age with student loans, car payment, and still living life a bit too (that's literally what I'm currently doing I graduated in 2020).
Don't start racking up monthly payment yet. (I'm reminded of an old expression ... don't count your chickens before they hatch ...)
Get something inexpensive and temporary for now. Work at your new job for a year. You need time to adjust.
If it's your first car ever, then it will also be a good opportunity to learn what to look for.
Used
