auto buying advice please!

[Shan]

I've never had to buy a car before, but I have sold 2 in my life - go figure!

Anyway, I need some advice.

I really have only about $1000 cash right now. I'm willing to spend up to $150/month MAX for payments/insurance. It seems these are my options:

A) buy a used car for around $4-5k, put $1k down, get a loan - payments will be in my budget
B) buy a $1000 car with cash
C) go without a car til the end of fall and save so I can get a $2000 beater
D) lease a car for 2-3 years (then I will have graduated and have a nicer salary)

Yeah, slim pickings I know!

I wouldn't need the car for commuting to work/school. I'd want it to recreate up the canyon so I don't have to bug friends relentlessly, drive to the airport from Logan, do road trips, get groceries.

4WD would be best, but I am not sure if that's feasible with my budget.

WWYD?

[Shan]

27 hits and no advice?? Don't make me call my dad on this one!

[Canyons12]

i would go with choice A, but a little cheaper than 4-5k. you can find a reasonable beater for between 2-4k. drop a grand on it, and have a fairly low monthly payment till you graduate.

a $1000 vehicle is usually garbage.

[Jaxx]

that is a toughy. with a $1000 down and buying a 4-5k car you will still have to have full coverage on the car so that means the insurance will be a little higher. With a lease the company makes you have atleast 100/300 liability limits on your insurance on top of the full coverage which adds to the premium as well. Although I recommend going with the minimum limits of 100/300 anyways most people don't do it.
If it were me I would put the 1000 down and pay the monthly payments. You also need to figure in cost of mechanical fixes/regular maintenance. Oil changes, tire rotation/balance ever 3,000 miles plus a tune up once a year. With a car in that dollar range plan on spending on average a $100 a month ATLEAST on repairs/maintenance, probably more.
If you really just need it for a couple years mabey it is worth finding a car in the 1000 dollar range and then using the $150 a month on repairs.
Call around for quotes on your auto insurance to see how much each variation will cost you before you buy it. Don't forget to budget in how much gas will be and make sure you work that into the budget. Good Luck!

[Sombeech]

How far will you be driving each day? Also, how many people would you like to carry?

I'd get a small reliable Toyota truck, 2 door, single cab. Decent gas mileage, good clearance, and you can throw your gear in the bed.

If it's strictly commuting to school, get a car, but if you want a little recreation, get a small 2WD truck.

[Udink]

I think I would go with option A as well. Look for a newer American car--they depreciate faster, but your payments will be lower because of it, and the newer you buy, usually the longer loan term your bank/credit union will give you, which also gives you a lower monthly payment. Insurance will probably be cheaper on a domestic car as opposed to an import in the same class.

That strategy worked for me--back in '04 I bought a used '02 Ford Taurus for under $6,000, and my monthly payments were only $125 for a two-year-old car. I still own it and I haven't had any major issues with it yet.

[denaliguide]

1) don't lease.

i would go with the option of buying a car for the 4 or 5 grand. less chance of having as many problems as with buying a $1000 beater. about 6 years ago i bought a 1990 4runner for 5k. its done well for me. you should be looking for a good 1995-99 whatever at around the price you can afford. 4wd is still a good option too. i don't know if you are a truck or car type. but i think the toyota and subaru's are good makes. 4runner, outback, forester, xterra, tundra, that type is what i'm talking about.

just make sure that you have a good mechanic check it out before you buy.

you will also get a better price from a private sale than a dealer. (my step dad owned a used car lot, which i worked at when i was a kid) dealers will try some tricks with financing and payment schedules. so watch out. don't spend more than you can afford.

the other idea of going without and saving up some more money is also a good idea. then you could still buy the 5k car and have lower payments.

don't neglect car auctions and bank repo's. they can have some great deals.

don't call me, but i am somebodies dad. i would tell them the same thing.

good luck

[Shan]

'Beech, I actually won't need it for commuting. People to carry? 1 usually, maybe 2-3 on occasion.

I had a 93 Saturn Coupe for many years. It was the best car ever, even got me out to Utah from Indiana! I sold it for $1200, and there wasn't anything wrong with it. I wish I had it now!

Do you really think $100/month on maintenance for a used older car? Good point on insurance, I forgot that you have to full coverage with a loan.

I also worry getting a loan on a car that is in that price range and it having "issues." You know something goes wrong and you still are paying on it.

[denaliguide]

i think $100 a month is not to far off. you may go 24 months of no major maintainance except oil changes and then BOOM! new $2400 engine.

[Shan]

Thanks everyone! This seems to be a different consensus than another board I asked this question.

I am in no hurry to get a car just yet. I mean I have to make spreadsheets and budget and calculate for hours on end, weigh options, etc. I don't take these decisions lightly! You should have seen me when I bought a house.

Another Q:

At which mileage would you step away from the vehicle? Any year to mileage ratio I need to know about?

[tallsteve]

I used to be a car salesman not too many years ago. I would also go with option A but the problem will be in finding a good, reliable car in that price range because EVERYONE is looking for the same deal in that range. They are tough to find and go fast when available. The advice on insurance is sound and also keep in mind that a 4WD vehicle will also cost you more for insurance. I would try and find a front-wheel drive sedan or small truck. American will be cheaper but will have almost no resale value when you're done with it and will be harder to unload particularly if you buy a 2WD regular cab small truck. The advantage of American is parts are usually cheaper than foreign. Learn to do the maintenance and simple repairs yourself or get help from a friend.

[Jaxx]

I say $100 a month because I speak from experience. I have a 97 rodeo and I just replaced the right axle on it. it was $79 for me to buy it at checker and install myself. I saved a couple hundred doing it myself. little things come up and after you have a mechanic diagnose and fix it it can add up. If you can fix it yourself or know someone you trust to fix it you can save alot.
Dont even get me started on my 2000 Suburbans automatic airbag shocks needing replacement. The part from the dealer is $516 for me to buy one shock and install it myself, ouch!

[Deathcricket]

How far will you be driving each day? Also, how many people would you like to carry?

I'd get a small reliable Toyota truck, 2 door, single cab. Decent gas mileage, good clearance, and you can throw your gear in the bed.

If it's strictly commuting to school, get a car, but if you want a little recreation, get a small 2WD truck.

Agreed with Beech. If you just wanted a commuter car you'd be golden, but the 4wd really limits your options. I would totally go toyota unless you're mechanically inclined, then I would get an old Jeep.

I did a quick browse on autotrader and if I was you I'd shoot for something like this. $3500, lots of miles but that won't be so bad on a toyota or honda.

http://tinyurl.com/5esppv

My Honda (car) has 151k miles and has broke 2x (I beat the crap out of it, ask anyone who's driven with me), and my dad has a toyota pickup with 280k miles that has only broke 2x also (but he babies it). I'm sure with a little more looking you could find something decent.

Good luck!

P.S. Sorry everyone for screwing the syntax up, guess i need to learn how to make tiny URL's :P

[Jaxx]

deathcricket: tinyurl.com

Also on the insurance. If you like a certain car just call around for quotes on it. When you find the best deal just call them back if you find a different car you are interested in and see how much it is. Some cars will surprise you.

[Shan]

I'm not dead set on 4wd, I was just thinking for the snow. What do you car drivers do for the snow? My little Saturn was like an ice skate/death trap, and it scared me. Maybe that was the cheap tires.

[tallsteve]

Another Q:

At which mileage would you step away from the vehicle? Any year to mileage ratio I need to know about?

From a dealers perspective 100,000 miles is still the magical number because the general public thinks it is. Realistically though, the way cars are built today, they will last well over that with good maintenance practices. I have buddies that are still driving Toyota's with well over 250,000 miles on them. I have a 1990 Subaru with 180,000 that my kids use and it's still running strong and have never had any major repairs. The car body is rusting away in spots and will most likely die before the engine does. I just last week sold our '94 Suburban with 166,000 miles and the only thing wrong with it was a leaky radiator. I know of no 'magical number' where you should walk away from the vehicle.

[Iceaxe]

no way in hell i could even could the numbers of cars and trucks I have bought and sold.

I would advise against buying a car with the options you listed.

With option A, you will be upside down (owe more then the car is worth) on the loan at some point in the life of the loan.

Option B: No such thing as a servicable $1000 car.

Option C: No such thing as a servicable $2000 car.

Option D: Don't lease, you end up with nothing in the end.

none of your listed options are finacial sound. And whatever you do do NOT tell the salesman this "I'm willing to spend up to $150/month".... you will end up paying to much for a pice of junk that you can't afford. Always deal in dollars with a car salemen. Only after you agree on a price should you talk financing.

My last bit of advice to anyone buying a car..... the cheapest car you can buy is a new one.

You're welcome.

[Deathcricket]

(Thanks Jaxx)

1k down on a $3500 car won't put him to much in the hole though will it? that would leave him with $2500 owed and if he can get a 5 yrs loan (lets say) he should be ok?

I would just get financing somewhere else. Talk to your bank maybe? I'm sure they would give you a loan for that amount no prob.

My car is front wheel drive and it does awesome in the snow, but granted I'm in cedar city ATM so I'm probably not hitting the kinda stuff you guys are up there (6-8 inches max). It was high enough to get over the bumper a couple times so I had to stop every once in awhile and drive around the mound I created. But going off road and having only 3-5 inches of clearance is pretty scary. So if snow is your main concern I wouldn't worry too much as long as you have FWD. Offroad clearance is another matter though. If that's your main issue, get a truck for sure!

[Shan]

Well unfortunately Ice, I cannot afford more. After my snazzy masters degree then maybe! My Saturn was very reliable and it went for $1200.

Does getting a loan for $2500-3500 almost seem silly? Maybe I'll just go without as long as I can and save up. I still have tuition to pay for and I'm paying cash for that.

[Iceaxe]

Maybe I'll just go without as long as I can and save up.

I think that's what I was trying to say.... 'I would advise against buying a car with the options you listed."

If you save up more money then to options change.....

Didn't mean to offend....