Buying a car str8 cash or loan at age 22

serotonins

serotonins

formerly maroki
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Sep 13, 2012
looking to buy a vehicle soon

hearing mixed advice about buying a car 5k cash or buy a more expensive car with a loan...

i originally want to buy with cash cus f the intrest on top of insurance..maintenace..gas..car note...this wont build my credit tho for later on for a loan for a home, so im told

took this financial class that supposedly cost a few hundred n the instructer was saying u dont need credit


ive been building credit for a year not but i havent spend a lot cus im saving idk if the bank will even give me a loan

what yall think...?! thanks
 
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Question is how much money do you have? What is the interest rate?

If you only have $5-6k saved, and you can get a low rate, I would do half on a down and pay off in a couple of years.

I wouldn't deplete your entire saving unless the rate is high.
 
wj4 said:
Question is how much money do you have? What is the interest rate?

If you only have $5-6k saved, and you can get a low rate, I would do half on a down and pay off in a couple of years.

I wouldn't deplete your entire saving unless the rate is high.
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word.

Use other people's money... if the interest rate is good.
 
Well I've been reading some personal finance books and the last thing you want to do is get into debt. That will just suck the life out of you.

So I guess some sound advice would be to reevaluate your needs/wants in a car and consider buying used. Also set some extra money aside for surprise maintenance fees (you never know if these cars are in good condition or not). Perhaps look for a friend or a family member who's good with cars to help guide you as well. That's all I have for now. I hope that helps.
 
My brother recently purchased his first car five days ago. 2013 Honda Accord, loaded, 23k miles, 17k sticker, 5k down, consigned w/ aunt with excellent credit. I can guarentee you only bummy *** cars if you do cash with everything you have now and that car will be nothing but a money sucker. Like above, look at loan rates between a bank of choice and what the dealership is willing to work with and more often than not, the dealership can give you much better terms.

Winners all around; you show financial responsibility to future lenders with better rates, you build credit, you don't lose all of your money upfront with a trashcan, and you get a better car.

Just be responsible and smart with your money and big purchases will be easy and not daunting.
 
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TheKid3456 said:
Cop the M3, eat a 19 year old, and get no buns.
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 **** 
 
Forgot to add, you're only 22. Don't try to stunt...most people your age aren't ready financially and it can cripple you.

I had friends who went out and bought used S Class's and 7 Series's around your age. They looked cool until an expensive repair is needed. I also had friends who bought new entry level luxury cars (nothing wrong with entry level by the way), but the rate was so high that it took them a long time to pay off. Some of them eventually dropped out of college to work full-time at a low paying job just to keep up.

I would just get something cheap and reliable for the time being. It gets better as you get older...insurance is cheaper and better paying jobs (if you're determined in life goals of course).
 
maroki said:
looking to buy a vehicle soon

hearing mixed advice about buying a car 5k cash or buy a more expensive car with a loan...

i originally want to buy with cash cus f the intrest on top of insurance..maintenace..gas..car note...this wont build my credit tho for later on for a loan for a home, so im told

took this financial class that supposedly cost a few hundred n the instructer was saying u dont need credit


ive been building credit for a year not but i havent spend a lot cus im saving idk if the bank will even give me a loan

what yall think...?! thanks
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The **** kind of advice is that? :lol:
 
JJs07 said:
The **** kind of advice is that? :lol:
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riiiight, i feel like in america credit is very important. But i mean whats the point of credit if u dont even land a good job to pay off loans na mean thats another topic tho.

She stressed buying a car str8 cash a lot. Apparently number one reason why americans can not obtain rich or wealthy lifestyles is because of car payments, i believe it 100% she also showed us a youtube vid of some guy who ironically went broke and now is making money giving financially advice to ppl. his name is like peter maybe i cant remember he was giving points about how much money we lose on interest rates but i swear that vids was so basic n only in certain situations u can easily avoid

she said she owns a house and doesnt have a high credit score, jus an average score.

I am not dumb enough to buy a brand new car, i dont even need an 06 or above car IMO.

So of course i will have a friend who knows about cars to make sure the car isnt a piece of crap
before i purchase. There are both mixed advices in this thread same as i got from friends n coworkers. If its a close to nothing interest rate why not get the loan right? I jus dont want to pay 300 a month for pay note even know that wont hurt me
 
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In America, you won't be able to do **** unless you have good credit. Like you said, mortgage, future car loans, anything that requires a credit check or anything of that nature won't be an easy slide unless you have good credit.

I'm 22 and been working on my credit for a year or so now. Got 2 credit cards from Capitol One, 1 credit card for Ashley Furniture, and Credit Karma still says I have a "D" grade on how many Credit Accounts i have. I need to open more in order for my credit score to go up. Apparently the Credit Bureaus want to see you manage multiple credit accounts.

I would suggest a loan, as a car loan is the second biggest credit bump there is, right behind a mortgage. It'll help you a lot if you pay it right.
 
lol so they tell us save our money, but spend money to build credit im tryna save i dont even spend 200 a month on my credit card n i have two


murica
 
wj4 said:
Forgot to add, you're only 22. Don't try to stunt...most people your age aren't ready financially and it can cripple you.

I had friends who went out and bought used S Class's and 7 Series's around your age. They looked cool until an expensive repair is needed. I also had friends who bought new entry level luxury cars (nothing wrong with entry level by the way), but the rate was so high that it took them a long time to pay off. Some of them eventually dropped out of college to work full-time at a low paying job just to keep up.

I would just get something cheap and reliable for the time being. It gets better as you get older...insurance is cheaper and better paying jobs (if you're determined in life goals of course).
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:lol: but whats the fun in that? the best part about being young is making stupid frivolous purchases like that and then learning from them the hard way. its like a rite of passage.

that being said, if you want to be fiscally responsible OP listen to what wj4 said.
 
wj4 said:
Question is how much money do you have? What is the interest rate?

If you only have $5-6k saved, and you can get a low rate, I would do half on a down and pay off in a couple of years.

I wouldn't deplete your entire saving unless the rate is high.
Click to expand...

This

Don't spend all of your savings in one shot
 
maroki said:
riiiight, i feel like in america credit is very important. But i mean whats the point of credit if u dont even land a good job to pay off loans na mean thats another topic tho.
 
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What's the point of good credit? You need good credit to get dam near anything now a days...

-Cell phone plan

-Cable/Internet Service

-Apartment

-Car

-Opening a checking/savings account (they are checking credit now a days)

-To get a good job 

-To buy a house

All require credit.

Only people that don't know what they are talking about say that credit is not needed. Number 1 myth about credit is that you have to go into debt to get excellent credit. A $250 secured credit card is all you need to build good credit. Sounds like you wasted your money and got finessed on that "financial course".
 
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If I were buying pre-owned, I would find something in the 10k range and go half and half on the down/financing.

Only thing is, be careful about where you get the 5k for your down payment. Make sure you don't cut into your emergency fund (6 month minimum).

Also, a friend sent me this link (may have already made the rounds on NT), but if you're searching for a pre-owned vehicle, this is an interesting guide to consider: Long-Term Quality Index.
 
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