Ketteringo
Banned
The situation: I am currently driving one of my parent's cars (1989 Chevy Celebrity, paint is peeling and it has had some reliability issues) and they are covering the insurance, as it is only $40-50 a month. I have driven it since I got my license 3-4 years ago and it was a great car to learn on, but I am getting very sick of it. It is somewhat of an embarrassment as I work in a professional business environment. I am interested in upgrading the current piratemobile and buying a car in my own name. I've been researching the car market (used vs. new, reliability, etc.) and based on that I've started to look at cheaper new cars and the one that I have pretty much decided on (if I go for new) is a 2003 Mazda Protégé 5 (I decided on a hatch, because I need to move back and forth to school every 3 months). It has a lot of options on it that I don?t need (leather, cd changer, autodimming mirror), but as the stock is very limited I don?t have the choice for a cheaper one. The MSRP is $19,400, but with the close out prices, rebates, and the discount I get through work I would end up paying $15,000-15,500 (depending on my negotiating skills ) out the door!
My finances: I am a 19 year old sophomore in college. The school is a co-op school so I work for 3 months, and then go to school for 3 months. I currently get paid about $650 a week (before taxes) and then after 401k (6% and work matches half ) and everything take home is just over $450/wk. This leaves me with around $5,000 at the end of every work term. School is ridiculously expensive, $25k a year with room, board, books etc. but I don't have a choice, as it is the only school that offers this great co-op work program, and in its defense it is one of the best private engineering schools. My parents pay 5k, scholarships are 2k, then everything else is left up to me and loans. My parents make too much so I don?t qualify for any need based scholarships or additional subsidized loans, but the last private loan I got was through Sallie Mae at around 2.8%. At this point in time if I spend absolutely no money and take out as few loans as possible, I can get out of school with a low $30-35k in loans (govt. and other). If I buy this car, it would be right around $50k. Coming out of school I should have a guaranteed job at the company that I co-op with (barring any financial disasters that make the company cut their co-op program, or have a hiring freeze) at a $50,000 a year salary.
My question: Should I buy an older used car for maybe $5k (old accord I am thinking), and then have to pay for any repairs it might need, and pay a higher interest rate (likely 5% through my work CU) and then buy a new car after I graduate and have loan and car payments? Or should I go for this car that is a great deal (25% off?!), and have the 4 year 50,000 warranty with roadside assistance and pay 3.5% interest? If I went for the new car, I would be keeping it for a pretty long time (at least 6 years), probably until I pay off my student loans.
I am going to the dealership tomorrow to look at the car, see if it is big enough and whatnot, and if it is still available!
Pics of my current car, they are 6-7 months old so the car has less paint and more rust now
http://idonk.com/DSCN0956.jpg
http://idonk.com/DSCN0957.jpg
http://idonk.com/DSCN0958.jpg
Cliff's Notes:
1. I drive a crappy old car
2. I am in college, but work full time making $$, and have a pretty much guaranteed job after graduation
3. College is very expensive ($25k a year)
4. Should I buy a new car or another crappy used one?
My finances: I am a 19 year old sophomore in college. The school is a co-op school so I work for 3 months, and then go to school for 3 months. I currently get paid about $650 a week (before taxes) and then after 401k (6% and work matches half ) and everything take home is just over $450/wk. This leaves me with around $5,000 at the end of every work term. School is ridiculously expensive, $25k a year with room, board, books etc. but I don't have a choice, as it is the only school that offers this great co-op work program, and in its defense it is one of the best private engineering schools. My parents pay 5k, scholarships are 2k, then everything else is left up to me and loans. My parents make too much so I don?t qualify for any need based scholarships or additional subsidized loans, but the last private loan I got was through Sallie Mae at around 2.8%. At this point in time if I spend absolutely no money and take out as few loans as possible, I can get out of school with a low $30-35k in loans (govt. and other). If I buy this car, it would be right around $50k. Coming out of school I should have a guaranteed job at the company that I co-op with (barring any financial disasters that make the company cut their co-op program, or have a hiring freeze) at a $50,000 a year salary.
My question: Should I buy an older used car for maybe $5k (old accord I am thinking), and then have to pay for any repairs it might need, and pay a higher interest rate (likely 5% through my work CU) and then buy a new car after I graduate and have loan and car payments? Or should I go for this car that is a great deal (25% off?!), and have the 4 year 50,000 warranty with roadside assistance and pay 3.5% interest? If I went for the new car, I would be keeping it for a pretty long time (at least 6 years), probably until I pay off my student loans.
I am going to the dealership tomorrow to look at the car, see if it is big enough and whatnot, and if it is still available!
Pics of my current car, they are 6-7 months old so the car has less paint and more rust now
http://idonk.com/DSCN0956.jpg
http://idonk.com/DSCN0957.jpg
http://idonk.com/DSCN0958.jpg
Cliff's Notes:
1. I drive a crappy old car
2. I am in college, but work full time making $$, and have a pretty much guaranteed job after graduation
3. College is very expensive ($25k a year)
4. Should I buy a new car or another crappy used one?
