QuestionHi Ray,
I'm a recent college graduate seeking my first car. I worked during college enough to save $5,000 for a car. My problem is that I don't know if financing new, used, or leasing is best for me. The following are factors which are influencing my decision:
- I currently work P/T $10/hour for research experience in my field of interest, but I am seeking another job to work in addition to this for extra pay.
-I have $40,000 federal and private student loan debt in student loans that I need to start paying in December/January. I understand everyone has student loans these days, but I am hoping I can afford to take on a car loan.
-I plan to attend graduate school after my current year off. Depending on which program I am accepted to I may be in school from 2 to 5 years. I guess I'm hoping to save enough to pay while im in school during my year off. I'm probably being overambitious about this possibility, but if I buy a used car that is around $5000, I probably won't even need to finance.
-I currently live at home with my parents and I would go under my father's insurance policy. (He told me that the insurance would be cheaper if the car title/VIN is under his name, rather than mine. Is this true?)
-Im 21 and I received my provisional auto license in May of this year.
- I have been watching my credit and its a litttttle above 700, probably bc I've been religiously been making payments on a credit card since I was 18 and I recently applied for another just so I can increase my credit score.
There is so much to consider in getting a car, that I am having trouble deciding what is best. Although I don't plan to get a car until I get another job, I want to be sure of what is best for my current situation when the time comes.
Also, my zip code is 08817.
AnswerI appreciate your detailed post leaving me with no area's of concern " I wish every questionaire would come across like you ".
Your dad is right on both counts about the Insurance and title in his name, your time will come soon enough, but till then dad rules,,,lol
You are hoping to afford a car loan - then take into account, not showing full time employement for a period of at least a year will work against you, unless dad comes to the rescue with loan being in his name or as a co-signer.
furthermore you will be faced with Insurance cost, car payments, and your student loan starting December. " don't missunderstand me here, I admire your accomplishments with your credit score and being able to save $5000.
Summary,,, If I was in your shoes with $5000. I would find a reliable car for that amount and have no preassure job to worry about payments,,, now if you want to go that route I will help you find a vehicle that will hopefully see you through for a few years.
Ray
Study my website for some pointers how to buy a car http://www.usedcartips.org/ should you have further questions, I will be here for you.
