To buy or not to buy?

[B.def]

I'm currently looking at a 07' Cadillac CTS 3.6L Lux. Edition.
Thier "internet price" is $14,896 which is almost a thousand dollars lower than
a private parties selling price. I am very interested in this car and have always
been a fan, but I am a full time college student working towards a Computer
Engineering degree. With a four years $9,000 loan I can get payments at around $225-250 with a 6% interest rate.
While I'm working part time making $8.15 an hour 30 hours a week during school and 40 out of school,
would you recommend making this kind of commitment. My income at 40 hours a week is about $510 bi-weekly checks. Going down to 30 will bring it to around $350 bi-weekly.

The only payments I currently make is small meal purchases, $75 gas bi-weekly, and a $50 monthly phone bill.

My calculations say my budget per week will be around $85.
Also with the loan I would accumulate around $1500 in interest.

If you were in my position and you loved this car, would you do it? I need some supportive minds. Thanks guys.

 

[Tristicus]

You're a college student...buy a beater/something less expensive for now, and when you land an engineering job, buy a used CTS-V.

 

[punjabiplaya]

do you already have a car?

why waste money and strain yourself when you can just get something better when you graduate?

edit: take advice from someone who made the mistake of doing it

 

[MagnusTheBrewer]

I'm trying to imagine on what planet this would be a good idea. Don't put yourself further in debt. Don't bank on your future earnings.

 

[B.def]

I won't be in debt as long as nothing bad happens.
I am currently driving my moms car while I find a new one and only have $5,000 saved up.

 

[exdeath]

I won't be in debt as long as nothing bad happens.
I am currently driving my moms car while I find a new one and only have $5,000 saved up.

That's what everyone who's ever filed for bankruptcy or is underwater in credit card debt has said.

Driving a cheap crappy car isn't fun, but it will be you who has the last laugh when you get what you really want down the road, don't have a car payment, and all your friends are struggling to keep paying their car payment on a car that is now inferior to yours.

You also aren't banking on up keep. What happens when you need an expensive repair? How about when you need $800 in tires when you aren't expecting it and you notice steel belting poking out the inside edge of the tire one day?

You didn't mention mileage or anything either. But I already know it's over 100,000 miles (2007 CTS for $14k?), which just makes my previous point all the more important.

You are sitting pretty good right now with a savings, and you are talking about blowing that entire savings as a down payment on a car, leaving you with zero "oh shit" money, just to reduce the monthly payment to something you'll still have barely affordable. Bad idea.

If you are itching for a car and think you can swing the payments while working and going to school, that's no big deal man, but get one that you can afford payments on with $0 or no more than $2500 down so you still have at least half your savings.

 

[Tristicus]

I won't be in debt as long as nothing bad happens.
I am currently driving my moms car while I find a new one and only have $5,000 saved up.

5 grand can get you a pretty good ride. Save your cash. Seriously.

 

[MagnusTheBrewer]

I won't be in debt as long as nothing bad happens.
I am currently driving my moms car while I find a new one and only have $5,000 saved up.

Reread what you just wrote. It aint all sunshine and daisies in the real world.

 

[B.def]

Ok ok. You have changed my mind in the whole thing, but for $5,000?!
I've been looking for almost 5 months now for a decent 03+ Eclipse or a 04+ Grand prix with "decent" miles. What do you recommend for 5k?

 

[Tristicus]

I paid $1.5k for my 1996 Mustang V6 with 105k or so miles. Granted, a head gasket blew, but that is because of my driving and because the engine sucks at them. You could get a decent 2000 Honda or something for a low price and just drive it into the ground then keep it as a second beater car when you save up enough OUT OF SCHOOL to get the down payment on the new CTS-V.

 

[exdeath]

Ok ok. You have changed my mind in the whole thing, but for $5,000?!
I've been looking for almost 5 months now for a decent 03+ Eclipse or a 04+ Grand prix with "decent" miles. What do you recommend for 5k?

Don't have do that either. Get something that you can finance for $200 /mo or less with only one or two thousand down.

Financing a car while in college isn't what the big deal is.

It's selling your shirt and everything else you own just to get the payment down because the car is too expensive that will leave you with nothing. You would be trading ALL your asset for debt and liability on a depriciating object.

Preferebly you'd find a cheap beater than runs and didn't cost you anything, but I will accept that it's not reasonable for a college student. Everybody wants a nice desireable car. Been there done that, everyone want's to have the nicest newest fastest most expensive car in college, esp when everyone elses parents are buying them $50,000 cars and you're on your own.

If you buy a car in cash, it needs to be way less than $5000. If you finance, don't spend more than half your savings on the down.

 

[MagnusTheBrewer]

Ok ok. You have changed my mind in the whole thing, but for $5,000?!
I've been looking for almost 5 months now for a decent 03+ Eclipse or a 04+ Grand prix with "decent" miles. What do you recommend for 5k?

Stop worrying about specific models and find a cheap econo box. Just because you have $5000 doesn't mean you have to spend it. You're a student. Basic transportation is all you need. Save the 'wants' for when you're earning a real paycheck.

 

[B.def]

True, I really respect all your guys' opinions, but I am a car guy. I "want" something reliable, but also sporty and fun to drive. Something I am proud to drive. Not anything that looks like poop, but will last like 10 years. I've looked at cheap Honda civics, but everything under.. ehh.. 7k look like crap. Any other ideas. My friend bought his 00' Eclipse for around 4k with around 100k on it and only payed around 4.5k. That's the kind of deal I wish I could find.

Edit: Also I heard you can find a lot of 04 Tiburons for around 7-8k, would you recommend that car? Again thanks for all the inputs guys. You are very helpful.

 

[exdeath]

True, I really respect all your guys' opinions, but I am a car guy. I "want" something reliable, but also sporty and fun to drive. Something I am proud to drive. Not anything that looks like poop, but will last like 10 years. I've looked at cheap Honda civics, but everything under.. ehh.. 7k look like crap. Any other ideas. My friend bought his 00' Eclipse for around 4k with around 100k on it and only payed around 4.5k. That's the kind of deal I wish I could find.

Get an older Miata or MR2 or Mustang or BMW or something that is both economical, but fulfills your need for something sleek and sporty, and is also timeless so that you'll still get to "look cool" even while driving an older car amongst a crowd of spoiled rich kids.

Hell even an old VW Bug would be considered "cool".

Keep looking, be patient, wait for a good deal, but don't lure yourself into a high mileage or salvage title unless it's a REALLY good deal and you get an amazing car you would otherwise not afford for several years. Just make sure it was upkept and repaired properly.

If you can find another '00 Eclipse for $5k, go for it. Put $1000 down, have $100 a month payments, and still have $4000.

PS: I see not one mention of monthly insurance premiums in your OP. You do realize anything like a CTS or Eclipse is going to cost more a month for insurance than the car payment, at your age and this being your first car?

 

[exdeath]

Hmm come to think of it, if it was repaired properly and the only thing wrong with it is the word salvage on the title that might not be a bad idea for a serious bargain hunter.

Thats if you really really absolutely cannot stand being the one without a cool car and you can't be talked out of it.

Could get some really nice cars otherwise outside your budget for well under $10k just because they had a fender bender and have the word "rebuilt" on the title but otherwise were repaired properly, drive straight, and look new and otherwise have no outstanding issues.

Just keep in mind the cost of parts and maintenence will be in line with the original cost of the car. So just because you might be able to get a brand new looking M3 for $9k doesn't mean you should.

Although there is this negative stigma around "salvage" titles, people DO buy and drive otherwise perfectly repaired and running cars that have been in an accident at some point. Alot of people who say no to salvage titles are probably forgetting the time their own car was hit and repaired x years ago. At the very least, driving a brand new XYZ that was wrecked and fixed to like new can't be any worse than a rusted out Geo Metro with a clean title for the same price. If people didn't drive cars with accident history, there would be no such thing as a body shop.

Though you need to know what you are getting into and know that you're getting a deal on a car that insurance just replaced no questions asked at the fuss of the owner for perfectly repairable damage, and make sure you don't end up with a nightmare with signficant unrepairable suspension issues. Many cars are stained with the term "totaled" for life simply because the air bags deployed even if the only damage was replacing the front bumper.

I just saw an ad in my mail from a dealership giving away numerous makes and models of brand new cars for over 50% off MSRP and KBB because of hail damage. As in brand spanking new 2011 Ford Focus , Mazda 3/6, Hyundai Sonatas for $5-6k, 0 miles perfect mechanical shape with warranty and all, just dings in the roof and hood.

Come to think of it, my Camry has accident history on it that I forgot all about (didn't when I bought it, I was rear ended many years ago). But it was fixed like new, and it's a invaluable beater that I have no intention of ever getting rid of or selling it so it doesn't matter.

You really should be thinking of something cheap and economical, but I know being young and in college is alot of pressure when all your friends have cool cars, esp for being a "car guy", so here's another option if you absolutely can't resist.

Id say even better would be find that killer deal before it's repaired and do it yourself (Halik and his S4 with a bad head gasket/valve come to mind), since you're a "car guy", and really have something to be proud of that you did yourself, but that's going to be impossible between school and a job, and you'd have to both afford the car in cash and the repairs, since almost no place will finance a non running or damaged vehicle.

 

[Zenmervolt]

True, I really respect all your guys' opinions, but I am a car guy. I "want" something reliable, but also sporty and fun to drive. Something I am proud to drive. Not anything that looks like poop, but will last like 10 years. I've looked at cheap Honda civics, but everything under.. ehh.. 7k look like crap. Any other ideas. My friend bought his 00' Eclipse for around 4k with around 100k on it and only payed around 4.5k. That's the kind of deal I wish I could find.

Edit: Also I heard you can find a lot of 04 Tiburons for around 7-8k, would you recommend that car? Again thanks for all the inputs guys. You are very helpful.

I've had 9 different cars in the past 13 years. 4 of them Porsches. The only time I spent more than $9,000 on a car was when I bought a brand new '06 Mustang. For $8,000 you can get a car in stunning condition. Hell, for $5,000 you can get cars in great condition.

Taking out a $9,000 loan with a monthly income of only $700-$1000 is just not a good idea. If you're really set on having a $14,000 car in college, save up for a year and pay completely in cash (if your estimates of your budget are correct, you should have no real trouble saving $9,000 in 12 months).

Look, I've been there. I lived on ramen in college to afford my 924S and that was only a $3,500 car bought without a loan. Wanting a nice car is fine, but you'll screw yourself up royally if you jump into excessive debt to make it happen.

In your shoes, I'd be looking at cars like these:

2001 Focus

1997 Firebird (if I could afford the insurance)

1998 Camry (dead reliable and should easily last another 10 years)

2003 Kia Rio (solid reliability and lower miles with better gas mileage)

1998 Olds Intrigue (yeah, it's a baby boat but it's comfy and reliable)

1999 Olds 88 LS (yeah, full-size boat, but extra comfy and generally owned by older people who don't abuse their cars)

ZV

 

[jlee]

+1 to the above. Find something cheap and reliable, and once you're out of school and employed, get what you really want. It'll be worth the wait.

How much winter/snow driving is this car going to see?

 

[Fenixgoon]

You're a college student...buy a beater/something less expensive for now, and when you land an engineering job, buy a used CTS-V.

this.

 

[chin311]

I wouldn't do it. Like everyone else said if you have 5k in cash you can find a great car for your needs until schools done. I'd probably shop for an unmolested prelude, sporty and reliable.

 

[96Firebird]

You're a college student...buy a beater/something less expensive for now, and when you land an engineering job, buy a used CTS-V.

This is what I told myself, but then you have student loans to pay for once school stops. I had planned to buy a nice car, get a nice place, all that good stuff when I graduated. But, I have $42k looming over my head, which I would rather pay off quicker than drive around in a nice car. Then, up next is a mortgage. I feel like I will never be able to afford a nice car when I have all this other debt in the future...

 

[JCH13]

You're a college student...buy a beater/something less expensive for now, and when you land an engineering job, buy a used CTS-V.

This.

 

[NoCreativity]

Exdeath makes an excellent point about insurance. Grab a vin from a car you are interested in and get a quote. You will probably be surprised at how much it is for the types of cars you are looking at.

You could also look at leasing. I have been seeing some good lease deals around lately, <$200, zero down for a Chrysler 200. Similar for a Buick and Camry. Boring cars, but you won't dip into your savings and won't have to worry about any maintenance bills.

 

[desy]

Used luxury cars depreciate the fastest from new so there are ALWAYS deals on them. The rich buy them to say I have the latest toy and when its no longer 'the latest' values crash
If it was me though I'd get an 2003 or newer Focus The 01-02's still had the crappy engines

 

[mmntech]

Luxury car, luxury priced maintenance, and premium gas. Cost of ownership will be high. You're better off buying something like a Fiesta, Fit, Yaris, or Accent. Wth what you're willing to spend, you could buy a new one outright.

 

[Howard]

Get ready to replace the timing chain if you buy it.