Your thoughts on financing (18 yr old)

Reply Subscribe

Thread Tools

Search this Thread

Feb 28, 2008 | 08:48 PM

Jakex1

Thread Starter

Pole Position

Joined: Oct 2007

Posts: 323

Likes: 0

From: somewhere

Your thoughts on financing (18 yr old)

For my birthday my parents are going to LET me buy my own car, and the reason i think they aren't arguing with me is because they don't think I will actually go through with it.

Calculated so far I can make about 2-300 a week working part-time as a lifeguard.
The payments would be for 5 years 250-ish a month. (1 weeks paycheck)
(i would take the loan under my parents name and pay them)
They would pay for insurance however.
(plan to use this car during all of college + for a while after, so i prolly wont be modding it)

The question is: Anyone else buy their own car when they were younger, through a part-time job? I am pretty sure i can do this, but I'd like to know if anyone else has tried it, and how they ended up doing, (no problems, headaches, etc etc)

Feb 28, 2008 | 09:08 PM

yusef

Lexus Champion

Joined: Dec 2007

Posts: 2,080

Likes: 0

From: Upland CA (Inland Empire)

i havent bought my own car, but i financed rims once...and i was doing ok until i quit my job and was screwed. so if you can have a constant income rolling in, then go for it. and plus if you ever want spending money for w.e, your limited because all your money is going to the car.

but im sure if ur stuck ur parents would help you out...and you say your not going to mod it...but wait till you see another car just like yours with all the crazy mods on it, ur gonna be liike daaaamn i want that!

Feb 28, 2008 | 09:12 PM

Perfection

Lead Lap

Joined: Aug 2007

Posts: 694

Likes: 0

From: Beautiful CA

If you are a responsible person that won't skimp out on payments, then why not. If something goes wrong your parents can always help you out. Might I ask, what car are you planning to get?

Feb 28, 2008 | 09:14 PM

Jakex1

Thread Starter

Pole Position

Joined: Oct 2007

Posts: 323

Likes: 0

From: somewhere

well i its ONE weeks paycheck a month. So i will have about 6-700 for the rest of the month.

Feb 28, 2008 | 09:21 PM

cliffud

Former Vendor

iTrader: (3)

Joined: May 2003

Posts: 5,700

Likes: 3

From: away from keyboard

challenge yourself and see if you can put away one week's paycheck per month. if you can put it away without any issues for 4 months in a row, go for it and put that 1,000 towards the new car.

Feb 28, 2008 | 10:09 PM

Jakex1

Thread Starter

Pole Position

Joined: Oct 2007

Posts: 323

Likes: 0

From: somewhere

Quote:

Originally Posted by cliffud

challenge yourself and see if you can put away one week's paycheck per month. if you can put it away without any issues for 4 months in a row, go for it and put that 1,000 towards the new car.

am doing that right now ;D

Feb 28, 2008 | 11:31 PM

is350

Intermediate

Joined: Oct 2005

Posts: 251

Likes: 10

From: ca

if you can balance your time between school and your job, then go for it. i know a couple of people that dropped out of college because they needed to work more to pay their bills.

Feb 29, 2008 | 06:14 AM

DASHOCKER

Lexus Fanatic

iTrader: (2)

Joined: Jul 2004

Posts: 12,191

Likes: 10

From: NYC

Be prepared to be hit with a high interest rate $$$. First ime car buyer too boot? At age 18, there is not much of a credit history. Good luck

Feb 29, 2008 | 07:08 AM

#10

Koma

Lead Lap

iTrader: (3)

Joined: Aug 2004

Posts: 4,809

Likes: 1

From: Massachusetts

Quote:

Originally Posted by DASHOCKER

Be prepared to be hit with a high interest rate $$$. First ime car buyer too boot? At age 18, there is not much of a credit history. Good luck

His parents would be getting a loan which means a lower interest rate.

What are you driving now?
My situation is about the same but I have a bunch of other bills to pay. Except I'm 21 with some credit and two part time jobs that total to about 1400 a month. I could afford a car but I decided to ride out on my parents vehicles until I'm out of college (or maybe hold onto them a little longer after college to save more). If your parents are willing to loan you a car through college I would do that instead. You'll save a ton more money for when you get out of college and be able to buy something you really want.
One of my jobs is a delivery job so I beat on my parent's car a lot. I've swapped my SC400 for a 95 ES300 for when I'm doing delivery, it's a lot easier to deliver in a sedan and better on fuel economy. I couldn't imagine doing the same thing on a brand new car I owned. My parent's are cool with me beating the hell out of the ES because they have 3 cars they could choose from to drive while I have the ES.
Good luck!

Last edited by Koma; Feb 29, 2008 at 07:13 AM.

Feb 29, 2008 | 07:14 AM

#11

DASHOCKER

Lexus Fanatic

iTrader: (2)

Joined: Jul 2004

Posts: 12,191

Likes: 10

From: NYC

Quote:

Originally Posted by Koma

His parents would be getting a loan which means a lower interest rate.

oh, I missed that he is using his parents credit.. Thanks..

Feb 29, 2008 | 07:32 AM

#12

xioix

Racer

Joined: Dec 2004

Posts: 1,792

Likes: 0

From: so. cal

I am doing it now at 21, but if you can be sure your part-time job is stable, and that is what you want then do it

Feb 29, 2008 | 09:39 AM

#13

mmarshall

Lexus Fanatic

Joined: Oct 2003

Posts: 94,575

Likes: 265

From: Virginia/D.C. suburbs

You can also consider a lease (especially if you are using your parents' credit). Leasing often allows you to get more car with the same monthly payment than you could get with a normal financed purchase. But, with a lease, you HAVE to take care of the car, and keep the miles down.....there are mileage limits (usually 10 to 15K a year) and wear-and-tear clauses. That means you can't take the car back at the end of the lease term with dents, scratches, rust, broken glass, or stained or ripped upholstery. So that means no partying in the car, no drag racing, and no other abuse. You also provide your own insurance.

But, if you are willing to acccept and keep the lease conditions, it can be a viable way to get a new car every few years.

Feb 29, 2008 | 10:01 AM

#14

DASHOCKER

Lexus Fanatic

iTrader: (2)

Joined: Jul 2004

Posts: 12,191

Likes: 10

From: NYC

At some point, you will have to "cut the cord", bite the bullet, and get a loan on your own. It should start now. I've been there and done that at the age of 19. I am much older now, and have been through many cars.

Feb 29, 2008 | 10:13 AM

#15

TruPlaya26

Lexus Champion

iTrader: (4)

Joined: Jul 2006

Posts: 2,379

Likes: 5

From: Miami, FL

Hey man, I'm 19 and work full time pulling in about $400/week ... I financed my GS for 5 years paying $360/m for it, plus $280/m insurance and about $300-$400/m on gas ... This totals out to about $1000/m and i still have money left over to pay my other bills (phone, internet, credit cards). After all bills though I have maybe $200 left to spend on w.e I want. And yes I also go to school, at night after i get out of work. If your parents are taking care of insurance for you I think you can pull it out, but just be sure you have a steady job because alot can happen in 5 years.

Good Luck