Annnnnd we already determined that it is smarter to buy a 5k car private party. The argument was whether a 5k car will still be worth 3k in two years and I’ve clearly demonstrated that twice.
As with everything in life, that all depends on the circumstances. A well cared for car to a private party? yes. A poorly cared for car on a trade-in? no.
I guess?
I paid for my Formula Firebird cash at 18 with money I earned from working and it was 11-12k?
You guys go waste money on leases at 18, I’ll be driving my cars that I own.
When I was younger I bought a 2002 Neon with 25K on it for $5,000, drove it for a year, then sold it for $5,000 with 48,000K on it. There are good cars out there, you just have to look closely at them.
I love how people here think that everyone has $5K just sitting around in the bank to buy a car. Seriously, guys… not everyone is at the same point in their life as the rest of you.
A Loan payment on 5K at 8% over 4 years is less than half what the guy who bought the Focus is paying. If that’s what she can afford, then have at it.
Turbotsi - clearly your car values are impossible by listening to these guys…
/sarcasm
Just curious where did you finance the car from?
HSBC
This was private party or dealership?
Private party, from a guy in Brockport.
And I never said don’t buy a private party car :lol:
3-4 years on a lot of these older cars in Buffalo is a lot of time with the weather etc.
The idea here was be aware of setting your self up for a 3 year car payment not factoring in repairs/having no warranty/buffalo weather and see what you end up with at the end of 3 years.
Car payments doesn’t represent the total cost of ownership at all.
I am preeetttyyy sure you said buy one, but pay cash only.
I think it’s a lot harder to find a $5k car worth rolling the dice on than you guys realize, especially for someone that will have to pay a shop to fix anything and everything.
Oh, and all you guys scoffing at leasing do know what leasing is right? It’s not renting. It’s purchasing the part of the life of the vehicle that you intend to use, rather than buying the whole thing and getting whatever is left back when you’re done with it. If you and the dealer agree on a reasonable interest rate and a reasonable value of what the car will be worth when you’re done with it then it doesn’t cost you any extra. It just keeps you from having to buy the whole car when you’re only going to be using, say, 20% of its life.
Sure, usually it’s tipped a little in the dealer’s favor meaning that the car is worth more than what you agreed on when you’re done, but you can always buy the rest of it at the end of the lease.
Leasing is just another way to purchase a car. Like any other situation sometimes it makes sense, sometimes it doesn’t.
The only time leasing makes good financial sense is if you plan on perpetually leasing cars. Nothing wrong with that if you want peace of mind and make good money, but IMO it is not how you should start out. Established people lease.
Lots of people roll negative equity from ending upside down on previous bad car purchases into lease to end up at 0 instead of negative.
---------- Post added at 09:14 AM ---------- Previous post was at 09:12 AM ----------
When I was younger in a similar situation I ended up with a $1000 beater then saved for the next year and half to get big down payment for something else.
^Smart dude. Best advice in this thread.
actually YOU lack the ability to read. there ARE posts in here saying that you cant get a good car for under 5k. and as stated before, there is nothing wrong with financing a 5k car, YOU JUST HAVE TO NOT BE STUPID WHEN PICKING THE CAR to not end up losing on it. ive owned about 14 cars now and have only lost out on 1, that one the motor went from a spun rod bearing, rebuilt the motor and still sold it for more then i paid however i had a decent chunk in it from rebuilding it. otherwise, ive either broke even or made money on those cars. as for mileage, low mile older cars are out there. my dads car is a 92, he bought it in 2006 with 62k miles. the reason he got it so cheap is he bought it for what the dealer offered the previous owner on trade in.
im done. too many stupid people.
Too many people arguing about the used car market 5-10 years ago. :tup:
Lets break it down this way.
$5,000 used car financed at 8% for 48 months = $122/mo or $5856 total with interest
Leased car with zero down at $250/mo for 48 months (maybe assume 2 24/mo leases, whatever) = $12,000
That is $6144 more over the same length of time. Yes she might have to put some work into the car, but I highly doubt she will be spending over $6 grand unless the motor or transmission goes amongst other things. Plus the used car will still be worth something… at least a $1000 private party, most likely more in 4 years. Also, don’t forget to factor in insurance will probably he higher for the leased car as well.
In the end, I guess you just have to choose what type of risk you’re willing to take.
More realistic is a $169 a month lease(2yr) on a Civic + 1900 down is $6000ish
Which is very close to the $5800(car + intrest) and that’s assuming 0 repairs
At the end of this you will have built up credit and assuming you didn’t have cash laying around for random repairs no CC debt from the car breaking down etc.
Can you even take a 4 year car payment on a $5000 car? I figured 2-3 years is pushing it on that amount
In the end its all about what works best for the individual younger people tend to not look at the big picture deprecation/repairs/what the car will be in 3-4 years.
If it was me I would just find a $2000 Civic beater and rock that