Which car to buy?

ledhed

I agree with getting your parents to co-sign. That's what I'm going to do as it will allow me to get the car I want at a decent rate and build credit faster. Even with years of bills and small credit cards, my credit history is so tiny that my rate would be ridiculous and would probably only allow me a $10k car.

PhantomOG

Some lessons just have to be learned the hard way. Hope its just you that learns a lesson and not your parents as well. Good luck.

Jstas

ledhed wrote: »

I agree with getting your parents to co-sign. That's what I'm going to do as it will allow me to get the car I want at a decent rate and build credit faster. Even with years of bills and small credit cards, my credit history is so tiny that my rate would be ridiculous and would probably only allow me a $10k car.

What's wrong with a $10K car?

Sure, the interest rate sucks but when you have no credit history, a co-signed loan can actually hurt you more than help you on your credit history.

Take the heavy interest rate and find something you can afford if $10K is what you can afford.

The first car I got myself was a 1994 Ford Thunderbird. It was sitting on the lot for $10,995 used. I got them down to around $10,200 because I found a dent in the hood that they missed. I bought the extended warranty which brought the total to $11,420. It wasn't exactly what I wanted but it was more than I thought I was going to be able to get for my price range. I had a car that was 3 years old, less than 36,000 miles on it with a warranty. I put $6K down and financed the rest. Payments were $132.77 a month and insurance was just under $2800 a year. My loan interest rate sucked at around 7.9%. Especially for a used car. I could have gotten 5.2% with my parents co-signing but I didn't. I worked and bought it myself. Best move I made because my credit rating shot up to 787 when I paid it off at the ripe old age of 22.

I thought I needed power but I didn't. I only wanted it. So I bought a used and abused Mustang for $300 and got my power that way. I thought it'd be cool to have luxury but, really it wasn't. What's the point of having luxury if you pay $5K for a clapped out BMW that breaks and needs $6K in work and you make $5.05 an hour...part time? I spent more time cursing around in my Thunderbird giving friends rides who had the same mentality as what has been exhibited by the OP because their powerful, luxury cars broke down.

You know what I did with my paychecks and saved money? I got the windows tinted, bought gigantic 17 inch Cragar wheels and BFGoodrich tires, installed a killer stereo and got shocks, springs and sway bars. The car had ABS, traction control and both an active and passive theft deterrent system. It was an insurance sleeper. Cost me next to nothing compared to friends with either new vehicles or used luxury vehicles. Everyone wanted to ride in it because it looked sharp, was supremely comfortable and stone cold reliable. It cost me $11K and it was one of my most favorite rides ever. Second only to the Lightning.

cstmar01

There is something too called living within your means.....all too often with my job I see how that can get people into trouble. If you can't afford it on your own, then you probably shouldn't have it. Even though you just want to get a better rate by having your parents on it, seeing they cosigned, they signed up for the debt as well and if you default they go after them. Also it will affect their credit ect and not really something I would want to think about.

Erik Tracy

Not to sound like an old fuddy duddy (well, I guess I'm close being 50) - but of your choices - keep your current car running and start investing the rest.

Or get the Maxima and invest what you have left.

Always pay yourself first from your income to start saving for your future and then live within your means on the rest. The power of compound savings is phenomenal if you start young.

[fuddy duddy mode off]

LessisNevermore

concealer404 wrote: »

I'm unsure whether i should laugh with you, or argue with you.

Go ahead and shed a tear, 'cuz he's right.:p:D


Oh and about the OP, ever wondered what it's like to clap with one hand?

Serendipity

I didn't read the thread, but instead of a new Maxima or Acura TL,

How about a used Cadillac CTS-V or BMW M5?

Demiurge

Why stop there? How about a Ferrari or a gently used Lamborghini?

nooshinjohn

Demiurge wrote: »

Why stop there? How about a Ferrari or a gently used Lamborghini?

Don't underestimate the Aston Martin's either. Those are some sexy cars with massive amounts of power.

Serendipity

Demiurge wrote: »

Why stop there? How about a Ferrari or a gently used Lamborghini?

Has to be a 4 door car, according to the OP.

Demiurge

How about a Bentley or a Rolls-Royce Ghost?

Serendipity

How about this?

http://cgi.ebay.com/ebaymotors/1987-FERRARI-MONDIAL-CABRIOLET-3-2L-CONVERTIBLE-59K-/260631489043?cmd=ViewItem&pt=US_Cars_Trucks&hash=item3caed8ea13

Edit: Never mind, won't work.

Joe08867

I drove a few of your choices so I'll weigh in. The new Maxima is a nice all rounder. Quick, handles well, decent reliability. But I think alot of there cars are to expensive for the content.

New Acura TL. Very nice. Friend has one loves it. Reliability it is a Honda for heavens sake. The only negative I have heard is the front brakes have tiny rotors. Not that they didn't work but seemed small for the car.

Used Cadillac CTS. How old are you? Just kidding, nice car, another friend has this and it is great to drive. My only concern would be all the bells and whistles working. I own and have owned many GM cars and electrical gremlins abound in them.

Used BMW 5, I would only warn you to drive the car or let it run for at least 15-20 minutes to make sure it doesn't have the overheating problem that the straight six can have. Other than that make sure it has a good service history as this is an expensive car to fix.

I would also look at Audi. They make some fine autos. For the price you could get a used A8 that would blow most of these cars away. or an A4 that holds most of it's value like the Acura.

bigaudiofanatic

Joe08867 wrote: »

I drove a few of your choices so I'll weigh in. The new Maxima is a nice all rounder. Quick, handles well, decent reliability. But I think alot of there cars are to expensive for the content.

New Acura TL. Very nice. Friend has one loves it. Reliability it is a Honda for heavens sake. The only negative I have heard is the front brakes have tiny rotors. Not that they didn't work but seemed small for the car.

Used Cadillac CTS. How old are you? Just kidding, nice car, another friend has this and it is great to drive. My only concern would be all the bells and whistles working. I own and have owned many GM cars and electrical gremlins abound in them.

Used BMW 5, I would only warn you to drive the car or let it run for at least 15-20 minutes to make sure it doesn't have the overheating problem that the straight six can have. Other than that make sure it has a good service history as this is an expensive car to fix.

I would also look at Audi. They make some fine autos. For the price you could get a used A8 that would blow most of these cars away. or an A4 that holds most of it's value like the Acura.

Thank you ya I have heard on the CTS's of door handles even coming clear off. And the over heating I have heard about as well.

concealer404

The overheating in the BMWs is caused by people not doing the cooling system overhaul when they're supposed to.

If it doesn't overheat now, it will later, so plan on doing it at some point. Cooling system in a BMW (and not just the water pump) is a WEAR item.

Joe08867

concealer404 wrote: »

The overheating in the BMWs is caused by people not doing the cooling system overhaul when they're supposed to.

If it doesn't overheat now, it will later, so plan on doing it at some point. Cooling system in a BMW (and not just the water pump) is a WEAR item.

+1!!!!:D That is why I pointed it out. No need for additional expense right off the bat and that also lets you know how well the car was cared for.

concealer404

Joe08867 wrote: »

+1!!!!:D That is why I pointed it out. No need for additional expense right off the bat and that also lets you know how well the car was cared for.

Ah gotcha.

Well, in my case, unless the seller had it documented that they did it recently, i'd just do it right off the bat, overheating or not. Peace of mind, and i'd consider that cost when extending my purchase offer.

Joe08867

concealer404 wrote: »

Ah gotcha.

Well, in my case, unless the seller had it documented that they did it recently, i'd just do it right off the bat, overheating or not. Peace of mind, and i'd consider that cost when extending my purchase offer.

Good idea concealer. Probably better off doing it anyway. Still a very nice car either way.

Serendipity

So what's the verdict?

mark090852

[QUOTE=Thanks for the tips. I have talked to a nissan dealer and they would give me around 5 grand for my car as trade in with 5 grand down as well payments would be around 230 a month plus full insurance for 370 a month. Of corse I could always put it in my fathers name and make it even cheaper.[/QUOTE]

Not sure how you got those numbers. Our Maxima was just under $40,000 and even with a $5K trade in and 5K cash down you would still be looking at WAY more than $230 a month even if financed for 5 years.

cstmar01

mark090852 wrote: »

Not sure how you got those numbers. Our Maxima was just under $40,000 and even with a $5K trade in and 5K cash down you would still be looking at WAY more than $230 a month even if financed for 5 years.

yep...if you would have a loan for say 38K over at the most our bank would offer 72 months (new cars only but the rate is normally higher 5.8 or so I think with the BEST credit score)...then you payments are still right around 650 or so. Not including insurance and I think I figured on a 6% rate...

have fun!

here's a calculator you can use. Click on the first one to figure out payment figures.
http://www.associatedbank.com/Personal/Calculators/Auto.asp

Also if your credit kinda is bad, figure you will also get a higher rate....

bobman1235

This thread rules.

Jstas

mark090852 wrote: »

Not sure how you got those numbers. Our Maxima was just under $40,000 and even with a $5K trade in and 5K cash down you would still be looking at WAY more than $230 a month even if financed for 5 years.

I've been seeing advertisements in this area for low monthly payment leases with an astronomical buyout at the end. Usually it's depreciation plus 20% which is highway robbery. That's when you'll get raped, at the end. But you're right, for a "new Maxima" the numbers don't jive. $30,690 minus $10K in down payment still puts it around $21K. At $230 a month, without any interest figured in, it'd be a 90 month financing term. That is unheard of. With the interest payments factored in that's 96 months or, 8 years unless it's compounding interest then it's longer. The car will have depreciated to the point where your giving the bank your money and you may not even have use of the car anymore.

If you're leasing, a low cost lease like that is going to have some real harsh conditions in the terms of the agreement so you'd better go over it with a fine-toothed comb or you'll get bent over when it comes time to end the lease and either turn the car in or buy it out.

exalted512

I was talking to a mechanic the other day and he told me that they had just replaced the o2 sensor on a 5 series BMW and the part alone was $850

Have you taken into consideration insurance? Insurance on those cars is high too.

You really should avoid co-signing. You might get a slightly better interest rate, but buying a car on your own gives you sooooo much better credit.

Have you started saving for your retirement yet? Got a 401k in place?

Good luck with whatever you decide to do.
-Cody

concealer404

Cody, i think the mechanic may have been yanking your chain a little.

At least... i hope.

Zeros

concealer404 wrote: »

Cody, i think the mechanic may have been yanking your chain a little.

At least... i hope.

Yeah, they usually range between $50 to $150. $850, someone got robbed!

exalted512

concealer404 wrote: »

Cody, i think the mechanic may have been yanking your chain a little.

At least... i hope.

quite possibly...but he had no reason to lie to me...but who knows

Zeros wrote: »

Yeah, they usually range between $50 to $150. $850, someone got robbed!

The one on my wifes 04 civic is around $250 just for the sensor
-Cody

Jstas

No, O2 sensors don't cost between $50 and $150. I don't know where those prices are coming from but only the old universal ones from the GM TBI systems are that cheap last I checked prices.

For a 2005 BMW 5 series, the O2 sensors cost as little as $380 for the front/rear set on a 525i to as much as $780 for a left and right front/rear set. Those are Rock Auto prices so add 15% and you'll get local retail from a Pep Boys, NAPA or Autozone or something. It all depends on which ones you need. I'd imagine a newer 5 series could easily exceed and maybe even double those prices.

inspiredsports

Son just turned 16, daughters in college are 18, 20 and 22 plus my wife and I. I used to buy or lease new cars until I got smart about 10 years ago. My "fleet" is now built around value.

Older Lexus 350's, Toyota's (Camry's or Avalon's), Volvo's (850's) and Honda's (Accord's) in beautiful shape with half of their life left can be had for $5-$7,000. You will save thousands and thousands of dollars buying used and will avoid depreciation, interest payments and higher insurance rates.

Bank the dough, invest when things look like the end of the world is near, and in a decade or so you will be able to buy a $100K car outright. But you won't, because by then you will probably understand that a car is just an EXPENSE that can be properly managed.

Keep what you have now until it dies.

PhantomOG

If the dealer has got you focused on your monthly payment amount, you're definitely going to get screwed.