When Buying A Car

[FritzJ92]

I want to buy a Used Scion tC I make about $300/bi week, and I plan to put 2K down on a tC valued at 8500 or below, and the rest will be financed. My dad doesn't want to co-sign, he says I wont be able to afford the month payments w/ Insurance. He claims dealerships will not sell me a Used car, unless i'm going to put full coverage on it. No matter how much I put down. Can someone clear this up for me?

 

[Hefe]

Your dad is partially correct. The dealership may still sell you the car but they will force place their own full coverage and include that cost in your loan if you do not provide your own coverage.

Every lender will require full coverage to protect their interest in the vehicle.
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Also, your coverage from an agent will be less expensive than letting the lender place the coverage.

 

[xrac]

I want to buy a Used Scion tC I make about $300/bi week, and I plan to put 2K down on a tC valued at 8500 or below, and the rest will be financed. My dad doesn't want to co-sign, he says I wont be able to afford the month payments w/ Insurance. He claims dealerships will not sell me a Used car, unless i'm going to put full coverage on it. No matter how much I put down. Can someone clear this up for me?

Your dad sounds like a smart man. You probably can't afford it on what you are earning. If a repair of any size comes up and they will you will not be able to afford it.

 

[GreenSky]

Someone making $600 a month shouldn't even think about finacing a car.

Buy a beater for the $2,000 you have saved, or fix up your current car.

Then go out and find a better job before you go into debt.

(You could also call Barney Frank and ask him which house you can buy.)

Rick

 

[russelltw]

All of the above statements are correct. Just ask all the people that bought houses based on what the mortgage lender told them they could buy. Those are the same people who are filing for bankruptcy or are being foreclosed on now.

I sell auto and home insurance. I am amazed by the people who call in after they have driven off the lot and are shocked by how much their car insurance premiums went up. "I just traded in a 2000 for a 2010 and added comprehensive and collision, why has it gone up so much". Often, they tell me they can not afford that increase in auto ins premium and the new car payment (insert EXTREMELY tight budget - ie living check to check). So my question is "can you afford that new car?"

About 2-3 days later, they call and cancel their life insurance (hey, the wellfare of the family can not stand in the way of daddy/mommy having that new car...). Insert boat, jet ski, or any other shiny expensive toy in place of "car" above and it's still true. Sad. This happens about 1 every other month. It's always someone in their 20-40's. I guess the older generations have a little more sense.

I am sure the car dealer is telling you that you can afford it; but I am sure he needs to make a sale.

The faster you learn that all debt is bad debt, you will be a much wealthier person when you are older. The last few generations are addicted to instant gratification.

For those that want to argue good debt verses bad debt: just ask those people going through home foreclosures how that good debt is working for them.

thanks
[jumping off the soap box]
Good luck, but if you are like most of those clients I have had this talk with; you will be driving around in your new car payment for the next 72-84 months. They have people/friends/people they don't like/neighbors they needed to impress...Enjoy!

That's why this country is in the shape it is in.

 

[Insurance-Guy]

All of the above statements are correct. Just ask all the people that bought houses based on what the mortgage lender told them they could buy. Those are the same people who are filing for bankruptcy or are being foreclosed on now.

I sell auto and home insurance. I am amazed by the people who call in after they have driven off the lot and are shocked by how much their car insurance premiums went up. "I just traded in a 2000 for a 2010 and added comprehensive and collision, why has it gone up so much". Often, they tell me they can not afford that increase in auto ins premium and the new car payment (insert EXTREMELY tight budget - ie living check to check). So my question is "can you afford that new car?"

About 2-3 days later, they call and cancel their life insurance (hey, the wellfare of the family can not stand in the way of daddy/mommy having that new car...). Insert boat, jet ski, or any other shiny expensive toy in place of "car" above and it's still true. Sad. This happens about 1 every other month. It's always someone in their 20-40's. I guess the older generations have a little more sense.

I am sure the car dealer is telling you that you can afford it; but I am sure he needs to make a sale.

The faster you learn that all debt is bad debt, you will be a much wealthier person when you are older. The last few generations are addicted to instant gratification.

For those that want to argue good debt verses bad debt: just ask those people going through home foreclosures how that good debt is working for them.

thanks
[jumping off the soap box]
Good luck, but if you are like most of those clients I have had this talk with; you will be driving around in your new car payment for the next 72-84 months. They have people/friends/people they don't like/neighbors they needed to impress...Enjoy!

That's why this country is in the shape it is in.

This is so true. I hear the same thing all of the time. Couldn't have said it better!

 

[FritzJ92]

There is always one A-Hole. But thanks for the advice. I live with him and have no bills at all so my money just gets saved. Would you recommended me looking for a cheaper car like x<7000 (because that means less monthly payments) or get a cheap car and hope it last Mr through college

 

[VolAgent]

Get something cheap and hope it lasts through college. Continue to save, you'll appreciate the savings much more down the road than what you were driving in college. If nothing else, you'll have great stories later about the beater you use to drive.

 

[Crabcake Johnny]

Greensky gave the best advice; take the 2G and buy a car with cash. All dealerships have wholesale cars they'll be more than happy to get rid of.

My first car was a '67 Catalina and I got my license in '84.

 

[FritzJ92]

alright, I guess i'll go on craigslist and see what 2K can buy, I'll ask my dad to see if he is willing to give a extra 1/2k on top of what I have, and hopefully get something that will give me 4+ years