New kid, questions about buying first car...

[Gz Up]

Hey everyone, I have been lurking these forums since I was 18. (21 now) Back when I wanted a 300zx, sadly I got an 02 accord as my first car :face palm: But I have questions regarding financing my own vehicle. I'm looking into purchasing a 2004-06 Infiniti G35 Coupe, but I'm kinda skeptical because I never really knew anything about financing.

I'm not sure how I will feel about a long commitment, i would like it to be short and sweet. (under 36 months) I want to save up at least 5k and use it as a down payment, but how is it financing and modding at the same time? Anyone finance and mod their cars? Mainly because I don't make a ton of cash, (about $1.1k/month) any suggestions/ tips? Would be greatly appreciated.

[Jesda]

I do not suggest financing at your age, especially at that income level. Full coverage insurance will be COSTLY and interest for a first-time borrower will be high. Buy a cheap cash car (2-4 grand) and set your money aside for education, job training, or whatever opportunities come your way.

Expect a $200-$250 payment, $100-$200 for full coverage insurance, and then there's gas, leaving little room for rent, food, and modifications.

If I were a specialty lender, credit union, or bank I'd likely want at least $2000 pretax income.

[Gz Up]

Forgot to mention, I'll be on my moms insurance, just chipping in every now and then.

[Jesda]

If you finance a car in your name, the bank will require the insurance to be in your name with full coverage.

The only way you'd be able to insure it under your mom is if the loan and the car were in her name too.

[AZhitman]

^ That.

A good rule to live by, if your folks didn't already beat this into your head: Never buy something on credit that depreciates.

Payments on a house are fine... everything else should be cash-flowed. It's a radical idea in 2014, but take it from us older guys, you'll never get ahead in life financing things that will be worth nothing in 10 years.

With all that said, welcome aboard! BTW, here's a list of our teens' first cars - All were great purchases. Reliable, cheap to insure and fix, and pretty inexpensive on Craigslist if you shop smart:

2000 Mazda Protege
2006 Mazda 3
2006 Toyota Corolla
(and probably a 2009 Nissan Cube)

BTW, if you're complaining about having an '02 Accord as a first car, we need to sit down and have a talk. Behind the garage.

Welcome aboard, man - Glad to have you here!

[RicerX]

Jesda knows his stuff.

As much as I remember wanting to do something like this, my dad got me a loan for my first car - a cavalier for $6,600. I worked at Target to pay for the car and drove that car through the rest of high school and most of college. I hated that people around me had nicer cars and I was stuck with a cavalier, but it served its purpose and got me through most of school.

Take it slow and put in the hard work to get yourself to a better place to finance a car or better yet - pay cash if you can. Good luck!

[krash]

Jesda forgot to put on his salesman pants yesterday.

[Gz Up]

Jesda knows his stuff.

As much as I remember wanting to do something like this, my dad got me a loan for my first car - a cavalier for $6,600. I worked at Target to pay for the car and drove that car through the rest of high school and most of college. I hated that people around me had nicer cars and I was stuck with a cavalier, but it served its purpose and got me through most of school.

Take it slow and put in the hard work to get yourself to a better place to finance a car or better yet - pay cash if you can. Good luck!

I understand that I'm really young, but I think 5k down on a 8,000 - 10,000 car isn't that bad. And I'm a member of a credit union in which I want to avoid dealers at all costs (CROOKS). I will most likely get a private party auto loan.

[krash]

If you save up $5k, you can buy a pretty fun used car with cash paid and done.

[metalmagician]

I financed my first car at 18 years old. It was a Pontiac vibe for 10k and I put 2k down. I paid about 200 a month plus insurance was 105on my parents plan. (my driving record ist very good) now I didn't work a high paying job at the time either and I was able to afford it and be ok. As far as upgrades and modifying, I did everything myself. Exhaust, intake, front splitter, mud flaps, etc. I didn't put a lot of money into it. So as a first time financer you will have to get ur parents to cosign for you. And going with a 7-10 year old car may not be the best idea because most banks won't finance an "old car". The whole commitment thing isn't bad really but if you have 5k already then you can get a nice car with that dough. 240sx, na 300zx, mr2s, all these cars aren't out of the question

[Chris.m]

Are you handy with repairing / maintaining cars?

If so, you could buy a older more upmarket car for quite a bit cheaper (pay in full) and work on it yourself.


I'm thinking e46 BMW 3 series or W203 Mercedes C Class - IMO they look as "cool" as a G35 but cost a lot less.

You should be able to get decent examples in the $6000 - $8000 range and if you do your homework and find the right car, the running costs won't be too bad.



BTW I'm 21 and have both a 2001 Nissan Pathfinder LE and a 2001 BMW 530i. I do all the maintenance/repairs on the cars, and source parts inexpensively on the internet. The running costs of the Bimmer are actually cheaper than the Pathfinder.

If your not handy with cars and would need to take it to a shop - Ignore my advise completely

-Chris

[WDRacing]

Are you handy with repairing / maintaining cars?

If so, you could buy a older more upmarket car for quite a bit cheaper (pay in full) and work on it yourself.


I'm thinking e46 BMW 3 series or W203 Mercedes C Class - IMO they look as "cool" as a G35 but cost a lot less.

You should be able to get decent examples in the $6000 - $8000 range and if you do your homework and find the right car, the running costs won't be too bad.



BTW I'm 21 and have both a 2001 Nissan Pathfinder LE and a 2001 BMW 530i. I do all the maintenance/repairs on the cars, and source parts inexpensively on the internet. The running costs of the Bimmer are actually cheaper than the Pathfinder.

If your not handy with cars and would need to take it to a shop - Ignore my advise completely

-Chris

As a BMW guy, I'd recommend AGAINST buying one without a big repair budget and the ability to do ALL of your own work. If you come across something you can't DIY you're going to take a beating no matter where you take it to get fixed. With a monthly income budget of under 2k, I seriously suggest NOT buying anything BMW. If a Pathy is more expensive to maintain, that doesn't somehow justify buying a Bimmer, it means don't buy either.

There are just WAY too many better options out there for the budget minded person.

I currently have 3 cars in my name that were all paid for with cash. My Ins is cheap and I don't have any monthly bills hanging over my head. The advice Jesda and AZHitman gave you is priceless. Consider it a recipe for success in all things related to finance and life. If you can't buy it cash, you don't NEED it.

IMHO, you'd be far better off buying something you like with that 5k and then taking out a small personal loan to customize it. That builds your credit and you get to drive something you enjoy. Don't take-on unnecessary debt man. Debt sucks. Once you have it, it's hard to get rid of.

WD

[WDRacing]

Here's a first gen Miata with under 50,000 miles for 5k. I had a silver one just like this. I've owned a crapload of cars, including 2 Skylines and a pretty nice BMW. The Miata was by far the funnest car I've ever owned. Cheap to maintain and cheap to modify. Hell, all you really need are some sticky tires and you can take it directly to the track.

http://www.autotrader.com/cars-for-sale ... 3927&Log=0

Here's a 2nd Gen Miata for the same money but with a few more miles.

http://www.autotrader.com/cars-for-sale ... 2789&Log=0

[Kompresshun]

Also, most banks will not finance a loan that's less than $12,000 without a huge interest rate, even with a down payment. Plus they probably won't finance you without a co-signer, because you likely have no credit established. I sold cars for two years and trust me, lenders and dealers stick it to kids your age.

Listen to what the guys are trying to tell you above. Financing a car at your age is a bad idea.

If you sit down and do the math, if you have $5,000 now you can save up another $5,000 in a little over a year if you save the amount you'd be spending on the car payment and the insurance. Plus you'll be spending more on fuel too.

I've been there before and it was the worst mistake I've ever made. I didn't even have money saved up when I financed my first vehicle. The Accord may be boring right now and you want something cooler, but trust me - suck it up for a year or so and you'll be in a better place. An Accord is a nice, reliable car.

Ditto on the Miata too. I've had everything from Mustangs, to Camaros, to Zs, RX7s and ect - it's literally the best and must fun car I've ever owned in the past 14 years. That's out of 26 cars I've owned.

[Chris.m]

As a BMW guy, I'd recommend AGAINST buying one without a big repair budget and the ability to do ALL of your own work. If you come across something you can't DIY you're going to take a beating no matter where you take it to get fixed. With a monthly income budget of under 2k, I seriously suggest NOT buying anything BMW. If a Pathy is more expensive to maintain, that doesn't somehow justify buying a Bimmer, it means don't buy either.

What big budget repairs, that you haven't been able to repair yourself, have you encountered with the 540i?

Chris