TheGeek April 19, 2007 Share TheGeek Member April 19, 2007 I need a new car. My car broke down last night and I was able to fix it. But it left me wondering how long my car will last until it breaks down again. I am thinking of making a $4,000 car loan. I am wondering if its worth it, I mean, do you guys think its worth it to go into debt over a used car? And if so, what car do you think I should keep an eye out for? The loan I am looking at is through a bank, not a dealership. I just don't have the money right now to get another car. Here is my reasoning for getting a loan: 1. If my car breaks down, then I will have to get a rental until I get the loan, and then pick out a car. Costing me more money in the end. 2. If I get the loan now, pick a car while using the car I have now, I can sell the car I have now keeping the new one with the loan. Is it worth it? Link to comment Share on other sites More sharing options...
ZesteR April 19, 2007 Share ZesteR Member April 19, 2007 Talk to you parents.. if they can front you the money and you can promise (SOMEHOW) to make a consistent monthly payment to them.. It would be MUCH better for you, since it is a used car you are looking for. I'd say.. save urself the hassle and try to get your parents to help out. They dont hit u with fees or interest and prob. pay them off at you own abilities. Offside, this will not help your credit b/c it's just between you and ur parents. Link to comment Share on other sites More sharing options...
TheGeek April 19, 2007 Author Share TheGeek Member April 19, 2007 My parents don't have the ability to front me 3,000. So, any advice on the car loans? Like things to look out for? Link to comment Share on other sites More sharing options...
[LaW]Maverick April 19, 2007 Share [LaW]Maverick Member April 19, 2007 Also check out Capitol One Auto Finance...they gave me a great rate,m and totally destroyed the dealer's best interest rates.... That being said, buying a $4,000 car means buying an older higher mileage car, and that means a ridiculously high interest rate...if you can get the loan at all. Also, if you go into debt with a $4,000 car there is a fair chance you will be needing to replace or repair it while still trying to pay off the loan. The only way it'd be worth it is if you could pay off the $4,000 in a year. Any longer than that, you're running a serious risk on that level of vehicle. That being said: if you absolutely have to do it consider the following -Honda's are not as reliable as they once were, though they are still pretty reliable -Honda's also have a maintenance item that costs from $550-$750 depending on the vehicle between 65,000 and 100,000 miles. If you get a Honda (which I wouldn't reccomend in this price range) make sure this repair has already been done...it's a timing belt) -Toyota's are more reliable than Honda's, but are waaaay overpriced used -If you get a Toyota or Honda, you will pay through the nose for a car the is nearly destroyed (for $4,000)...that's not smart -If you have to buy a car for $4,000, go for a GM of some sort...very very cheap to repair and the resale value isn't as high so you won't get raped on cost That's a short list...I've got some experience in these areas, and there are several GM's you'd want to avoid like the plague, and others that have trade-offs. For instance, any Pontiac Grand Prix with the 3.8L v6 has an engine that will likely never die. However, there are several other things that tend to go wrong, like alternators, brakes, etc. My cousin has a Grand Prix with 185k miles on it and the engine still drives as it always has. I'd avoid Grand Am's... Don't buy Fords...you'll find several that look fairly decent in that price-range, but they are that low for a reason. I'm sure there are a lot of people here that will swear by Ford, but speaking from personal experience (with my family and friendS) and from mechanical reviews (JD Power, Consumer Reports, Automobile, Car and Driver, etc.) I wouldn't recommend it....with the exception possibly of escorts. Lastly, DO NOT EVER BUY A NEON (unless it's an SR/T, because that is a Mitsubishi engine). If you go to a used car lot, anywhere, there will be at least 5 Neons there....usually ranging from 30,000 miles to 80,000 miles, and they're all cheap. That's 'cause people get rid of them..lol. I did have one friend that didn't have any trouble with his, but I know 4 other people that had a LOT of trouble. Optimally, I'd look for either a mid-90's GM of some sort, an old Subaru (every bit as reliable as Toyota, but EXPENSIVE to fix, just like Toyota), an old Celica or something like that...anything below 110k miles in a Toyota or Subaru.... Ok, I've just realize I keep rambling on. How 'bout this...feel free to pm me or something if you have any specific questions. As you can tell, I'm majorly obsessed with cars...lol Link to comment Share on other sites More sharing options...
stutters April 19, 2007 Share stutters GC Alumni April 19, 2007 do you have to get full coverage insurance for a car purchased on a loan? do you have to get full coverage insurance for a car purchased on a loan? Link to comment Share on other sites More sharing options...
Playaa April 19, 2007 Share Playaa Member April 19, 2007 do you have to get full coverage insurance for a car purchased on a loan? yes. Everything Maverick said is dead on. I'll reiterate some points. If you can pay off the $4,000 in 2 years or less then you'll be fine (Mav says 1 year but 2 is also doable if you get the right car). Basically the gist of that is don't still be paying on the car when it dies. Go for GM cars definitely. Get a 6-cylinder rather than a 4-cylinder. The 3.8 GM engine is a beast that will live through anything but the cars it's on can be kinda high in price. If you're fine with a car that runs fine but needs other maintenance (brakes, tires, etc) go for the 3.8 engine. Also, be aware that you're going to have to look for a good car that may not be an exciting car. Also also, ask every person you know if their grandmother is interested in selling her car. Low mileage, taken care of and cheap. Oldsmobile has never done me wrong either. I purchased 2 cars for around $4,000 before my current car (which was $20,000) and was very happy with both of them. The only thing I regret was that I didn't try to pay them off fast enough so I carried debt over into my current car. Also, don't impulse buy...if you find a car you like, ask the dealer to hold it for a few days and then go research everything you can about that car...the best place to find things about cars are on forums for car groups. You will find out persistant problems with cars that even the dealer might not have ever heard of (because you'll be hearing about it from the people who own the car). Just be aware that those car groups are dedicated to people who LOVE their car usually...so take what they say with a grain of salt. Link to comment Share on other sites More sharing options...
stutters April 19, 2007 Share stutters GC Alumni April 19, 2007 are you going to be able to get a credit worth co-signer (mom/dad)? what rate are you going to be able to get - w/ a co-signer? (6-11%?) - w/o a co-signer? (15-22%) then crack into a PE^(rt) formula. is it really worth it, or should you buy a skateboard + bus pass? Link to comment Share on other sites More sharing options...
EbilDustBunny April 19, 2007 Share EbilDustBunny GC Alumni April 19, 2007 do you pay for college too??? Link to comment Share on other sites More sharing options...
NOFX April 19, 2007 Share NOFX Member April 19, 2007 (edited) I bet its hard if you dont have great credit, but I will share my trick again... It involves no signing of paperwork and basically no interest fees.. I've had the same credit card for about 4 years now..Over time, my limit keeps going up, its about 16,200 limit and my interest rate has and will always be 5.9%... Credit card company sends me checks and if I use the check. It costs 3%, maximum $75. So I wrote a check to myself and deposited it in my bank account for $5000.. Now I owe $5075.. I then take one of those credit card offers I get every day that say 0% for 12 months with no balance transfer fees. I then transfer all the money to that card, when 12 months is up, I repeat the same thing with another card... Even if I didnt transfer the money a 5.9% rate isnt all that bad.... Speaking of cars and such.. My advice to you is pick up a trading post. If you know a little bit about cars.. Dont go to a dealer.. Through the trading post I just sold my motorcycle for $6000.. I found a 2000 honda civic with 66,000 miles for $6000... if your not afraid to change your brake pads and you know what to look for in a car, id go with a trading post. I bought one car from a dealer and as soon as I walked away I felt like I had just got bent over.. Yea I learned my lesson. Edited April 19, 2007 by NOFX Link to comment Share on other sites More sharing options...
[LaW]Maverick April 19, 2007 Share [LaW]Maverick Member April 19, 2007 I found my car on Autotrader.com For $4,000 you are a lot better off seeking a private sale, but only IF you know what to look for like NoFX said.... Link to comment Share on other sites More sharing options...
TheGeek April 19, 2007 Author Share TheGeek Member April 19, 2007 I do pay for my own college. And my parents make too much money, so I don't get much financial aid. The load I will be getting is one of those no credit loans. This loan is from a bank, and the program is meant to build credit. I am still worried, I cant find a catch yet. My dad just got one because his work vehicle broke down. I cant remember the interest off hand. But it is reasonable. I'm starting a 11.50 hour job while keeping my 6.50 hour job. I am going to be a work addict this summer and save up for a vacation and to pay off my car debt. I HOPE I don't have to get full coverage on my car! I am paying no-fault right now at 100 per month and I'm happy with that! Full costs me around 300. I am looking at cavalier's, daewoo's, kia's, 2000+ year grand prix's, and any buick's with the 3.8 V6 engine. Ive heard really good things about all of these. I was looking at dealerships a lot and it looks like they jack up the prices about 1000 dollars to any car they get their hands on. Cars are constantly getting sold where I live, I even heard somebody say at mc donalds, "I have to sell my car, it just hit 150,000" LOL!! A car under 160,000 is practically new to me. The grand am I have now has 258,000 miles on it. My first car had 356,000 miles on it. I'm not afraid of millage. I AM scared of dealerships. My uncle worked for many different ones for about 10 years and they pull all sorts of crap on you. (temporary fixing things with duct tape, falsifying car maintenance reports, stealing airbags, replacing body panels on totally wrecked cars and not informing the buyer that the whole A frame is screwed) And any dealership that does not, is something out of my price range. I am going to go local. Looking on the weekends, and taking up leads. If that fails, then I will just have to take my chances with the dealerships. Thank you guys for all of your help, I'm definitely going to be pm'ing you guys with some questions. THANKS! Link to comment Share on other sites More sharing options...
Fairweather April 19, 2007 Share Fairweather Member April 19, 2007 i'd say ride your car out till you know its gonna die soon, i'v been doing that with my stratus for about 4 years now and its got 320 000km's on it, youd be suprised how long you can push some cars if you get lucky i also am paying for school at the moment and need to buy a car, i'v been told by a couple mechanics to look at 2000+ grand am's and oldsmobile aleros, their cheap, cheap to fix, reliable and last a long time on the autotrader i can find 2000 alero's with 100 000km's for 4700$ 3.4L V6 engines... (i'v heard bad things about the smaller engines breaking down) Link to comment Share on other sites More sharing options...
TheGeek April 19, 2007 Author Share TheGeek Member April 19, 2007 A phrase keeps on poping back into my head. I think God will provide a car when I am ready, might be tomorrow, might be this summer. I'm going to keep on looking for my new car, but I'm going to be picky. God has always provided a car for me when the one I had was junk. Good things happen to those who wait. Thanks again for all of the advice. I'm going car hunting with my mom this weekend. Link to comment Share on other sites More sharing options...
appalachian_fox April 20, 2007 Share appalachian_fox Member April 20, 2007 If you can wait long enough, you might want to look into financing a used car purchase like that with a student loan, provided it's necessary to have the car to get to school based on your housing situation. You may qualify for Federally subsidized loans, which means you won't even have to worry about paying the principal and no interest will accrue until you graduate. If you get a car now, you could also pay the balance off when the next round of loans comes through. It violates the "pay it off in a year or two" line of thought, in a way, but since deferring that cost will only set you back the origination fees for that portion of the loan, it may be a viable option for you. Assuming it's a school expense, of course. Link to comment Share on other sites More sharing options...
Playaa April 20, 2007 Share Playaa Member April 20, 2007 Fairweather hit it dead on. Check out Oldsmobile Alero's...they are a nice little car made by a GREAT car company that will last you forever (i.e. the engine will always run...things inside the car might break down though...cheap American car and all that) Link to comment Share on other sites More sharing options...
NOFX April 20, 2007 Share NOFX Member April 20, 2007 I HOPE I don't have to get full coverage on my car! I am paying no-fault right now at 100 per month and I'm happy with that! Full costs me around 300. most banks require full insurance if you owe on your car 100 a month seems kind of high. I pay 33 a month and that is with two speeding tickets left on my record. I just turned 25 though. Link to comment Share on other sites More sharing options...
[LaW]Maverick April 20, 2007 Share [LaW]Maverick Member April 20, 2007 The Alero's are good, but don't get the 4cyl, those do have a bad reputation, stick with the V6 GM's 4 cylinders have never been the most reliable, but they make a GREAT v6 That being said, if you buy a Deawoo, I will slap you silly. Hahaha...the reason being is this: they don't sell cars here anymore AT ALL. They went out of business. So, if something goes wrong with a Deawoo...say, for instance, you need a new Windshield washer fluid reservoir, you'll pay $700 instead of $60. (by the way, that's NOT an exaggeration) Also, if you research Kia's closely, I wouldn't buy one either. First off, I work for a company that builds testing equipment for the automotive industry, and I've BEEN to a Hyundia/Kia research facility. They spend all day copying other people's designs (I saw this with my own eyes), and they cut corners wherever they can. Their own employees told me never to buy them. These aren't the showroom floor guys, these are their lab-techs telling me this. Heck, their building is sinking because they didn't want to spend the money to excavate the property properly. Those are my 2-cents. you really can't go wrong with that 3.8L v6...and they drive real nice as well. Buy a kia before a Deawoo though....really, Deawoo is bad joo joo Link to comment Share on other sites More sharing options...
TheGeek April 20, 2007 Author Share TheGeek Member April 20, 2007 Mav, i had no idea.... WOW NOFX, i have one speeding ticket on my record, and i have to pay that $100. It must be different in minnesota. appalachian, my student loans are so small each year that i usually have to pay a 300-400 dollar difference for the rest of my tuition. I wish i could do that. fairweather, i will check into the alero's I just test drove a 1999 chrysler concord cxi. That thing is magnificent. 169,000 miles for $2,800. Leather seats, infinity sound system, 200+ horsepower, 25 mpg, HUGE TRUNK, LOTS of room inside. I am doubting it though, I was going for a good reliable car that had good mpg. This car is still on its first transmission, and its never been flushed. The timing chain on those cars needs to be replaced every 80,000 miles and so far it has not been done. If its there in 2 weeks, I will put in an offer. Link to comment Share on other sites More sharing options...
Tristan April 20, 2007 Share Tristan Member April 20, 2007 Learn to double your gas mileage and save some money. Linky! Link to comment Share on other sites More sharing options...
Fairweather April 20, 2007 Share Fairweather Member April 20, 2007 Learn to double your gas mileage and save some money. Linky! neato, i'm gonna try out that pure acetone tip to see if it actually works Link to comment Share on other sites More sharing options...
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