If you were 19...

[Guest mrhobbz]

Classified information, but let me put it this way, its higher than that of the guy who narrates the FreeCreditReport.com commercials.

 

 

 

I can honestly say I have job security. As for under 10g's, like I said, Impreza RS.

 

Why do I have my heart set on a Scooby you ask? Well, for starters, we live in Ohio. Second, the things are nice cars, inside and out, and easy to maintain.

 

Not trying to be a dick or anything man but getting a "high" credit rating takes years and years. For my age I have great credit, but I've also been building since i was 16 with CD's. Watch the year of what you buy too, you'll tend to get approved on something newer. I had trouble getting approved on the 99 camaro because of the year and milage. The only reason I didn't pay cash for it is I don't have the money in hand right now, and I already regret financing it.

[Guest Hal]

I have a good low risk credit rating. That being said, they also look at credit experience. Our age group doesn't have a lot of credit experience. I'm sure our financial guys can chime in on the subject.

[iwishiwascool]

I'm paying $300 a month for my car. I've only had it for 8 months of my two year loan, and it's a bit of an inconvenience, but it's not breaking my pocketbook or anything. Depends on how long your loan is.

 

Jesus C. You are paying 7200 for a nineteen eighty fucking five Camaro. You are the last person in the universe... in the whole.entire.universe that should be giving advice on fiscal responsibility.

 

 

The answer is a big Fuck No on whether you should go into debt over a car while in school. You have way too many variables in your future. A car payment is a great way to ensure that you will be moving back in with Moms and Pops if you dont get a job straight out of college. Whats worse, driving some young bitches around in a Honda Accord now... or taking them back to your room in the basement of your parents house later?

 

I bought my first real car while I was still in college. I paid $8500 in actual dollar bills. I saved my ass off for 2 years and made it happen. This is the only way you should buy something that expensive.

[TimTaylor751647545500]

At that age, even with having a high credit rating, you may have trouble being financed. At that age, it's not as much that your score can affect your being able to get financed for certain things, it's the amount of credit history you have. At 19 when I financed my first car, I had over a 700 beacon score, but still required a co-signer because of the limited credit history I had.

[iwishiwascool]

Not trying to be a dick or anything man but getting a "high" credit rating takes years and years. For my age I have great credit, but I've also been building since i was 16 with CD's. Watch the year of what you buy too, you'll tend to get approved on something newer. I had trouble getting approved on the 99 camaro because of the year and milage. The only reason I didn't pay cash for it is I don't have the money in hand right now, and I already regret financing it.

 

How exactly do certificates of deposit impact your credit score?

[Guest mrhobbz]

How exactly do certificates of deposit impact your credit score?

 

http://www.bankrate.com/brm/news/cc/19990823.asp

 

^ Read above article.

[TimTaylor751647545500]

http://www.bankrate.com/brm/news/cc/19990823.asp

 

^ Read above article.

 

"As long as the issuer reports it".

[Guest mrhobbz]

"As long as the issuer reports it".

 

 

Yeah thats the real big catch with it, I know for a fact chase does, thats who I had mine through.

[iwishiwascool]

http://www.bankrate.com/brm/news/cc/19990823.asp

 

^ Read above article.

 

So draw the line for me between a "CD" or Certificate of Depost and an "SCC" or a secured credit card. I must be missing it in that article.

[evan9381]

oh come on...didn't you know EVERYTHING when you were 19? i recall from 18-20 knowing everything, and ever since, realizing i dont know shit.

[TimTaylor751647545500]

Took two years to realize that?

 

j/k

[evan9381]

not like flipping a light switch, but the thing ive noticed recently is a couple friends of mine who are 18-20 seem to think they know everything, act in ways i look at them like "what the fuck", then realize "holy shit, that was me a couple years ago". once you get over yourself, its a totally different world

[SRTurbo04]

do it im a full time student and wait tables full time and ive had a car payment for 2 years and for the last 1.5 years had a quad payment and just recently added a motorcycle payment...u just gotta figure ou if you want to work your ass off for your toys or not...personally ive had 4 "beater" cars...just buy a new ish car its not worth the crappie realibility

 

clifs: hell yea!

[TheHaze]

If making a payment doesn't bother you, go for it. Just make sure it's a very minimal fraction of your income.

[iwishiwascool]

My advice is to take advice from people more financially experienced than yourself. (over 23 perhaps)

[TheHaze]

My advice is to take advice from people more financially experienced than yourself. (over 23 perhaps)

My advice is to step back and see what actually makes yourself happiest. What makes some of the people in this thread regretful may be taken lightly by someone else. All of us are different. People spend money on what makes them happy now, or save money to make them happier later on.

[iwishiwascool]

My advice is to step back and see what actually makes yourself happiest. What makes some of the people in this thread regretful may be taken lightly by someone else. All of us are different. People spend money on what makes them happy now, or save money to make them happier later on.

 

He is not spending money, he is spending credit. If you aren't willing to trade impetuous indulgent depreciating happiness for a chance to avoid guaranteed pass into the inevitable downward financial spiral that most every American enters into with decisions just like this then you deserve to be living paycheck to paycheck hoping for some financial windfall to blow all your problems away.

 

But really...

 

I don't really care what you kids do.

[TheHaze]

He is not spending money, he is spending credit. If you aren't willing to trade impetuous indulgent depreciating happiness for a chance to avoid guaranteed pass into the inevitable downward financial spiral that most every American enters into with decisions just like this then you deserve to be living paycheck to paycheck hoping for some financial windfall to blow all your problems away.

 

But really...

 

I don't really care what you kids do.

He wants to get a cheap, newer car... how that will cause financial downfall, I don't know. Finance is about balance. If you get a small loan, save a little money and set aside a little for common use, you're well off. No use in conserving as much income as possible for 2 reasons: it causes stress in your everyday life and you can't live life expecting to live in 30 years and THEN spend your money. Live a little while you are.

[iwishiwascool]

He wants to get a cheap, newer car... how that will cause financial downfall, I don't know. Finance is about balance. If you get a small loan, save a little money and set aside a little for common use, you're well off. No use in conserving as much income as possible for 2 reasons: it causes stress in your everyday life and you can't live life expecting to live in 30 years and THEN spend your money. Live a little while you are.

 

You are missing the point. The options aren't limited to one extreme or the other. You can find a median point. Taking on a 10k loan on a depreciating "asset" when you are a full time college student is not a median point.

 

PS: I drive a $30k car, and a decent house of my own... both of which are financed. I am not the miserly, frugal, hoarder you seem to think I am advocating.

[TheHaze]

You are missing the point. The options aren't limited to one extreme or the other. You can find a median point. Taking on a 10k loan on a depreciating "asset" when you are a full time college student is not a median point.

 

PS: I drive a $30k car, and a decent house of my own... both of which are financed. I am not the miserly, frugal, hoarder you seem to think I am advocating.

That was what I was trying to advocate, a median. It just seems the advice always given on CR is to save money in every situation just because someone had a bad experience and overwhelmed themselves with debt.

[TTQ B4U]

in this economy, the best car is a paid off one. IMO, wait until you're out of college and into a job to buy a new car. you have plenty of time to get into debt. besides, once you're out your outlook on car choices will change.

 

spoken like your dad I'm sure, but seriously, save money while you are making it, spend it when you don't. you'll make better choices.

[2 Sweet]

It's all about weighing your options. You gotta make sacrifices. To get a nice car that you have to make payments on, you'll most likely have to work more and live at home longer in order to afford the car. If you can afford it, go for it.

 

Do what makes you happy, but don't screw yourself. You don't wanna make a bad financial decision now that will haunt you in the future.

[copperhead]

TimTaylor is absolutely correct about the credit history vs. credit score. A good credit rating is relatively easy to get if you do it right, but at your age its IMPOSSIBLE to have the history you need. Lenders see a lack of history as being more dangerous to them than bad credit, because at least with bad credit they know what to expect out of you.

 

I understand completely how you feel about having a newer, nicer ride. I've been there, I've been over my head with an expensive truck that I loved but had to get rid of, and I'm still paying the negative equity rolled into a car I don't like (a WRX, lol). Right now I'm trying to sell everything and simply start over.

 

Being in college, you need to realize what your priorities are. There's plenty of time later on for having fun, but for now you need cheap to drive AND maintain, and at a reasonable price. Over the last couple decades cars have become much nicer and more reliable. They are lasting longer. This means its possible to get a ~10 year old car and it still be nice looking, nice to drive and relatively easy on the wallet.

 

I suggest making the range of cars to look at '98 - 2003. At this point, they have devalued a good bit and have started to hold steady in price, they tend to have around 100,000 on the clock which really isn't that bad, and they are still nice cars.

 

As for price, that all depends on how much expendable money you have per month. You probably don't want a payment too much past $150 a month, and at 19 years old I don't care how good your record is, your insurance is still going to be expensive. Assume another $150 a month for a decent newer car. Now, if you do decide to go with something that caters more to the driving enthusiast, you will also need to budget for repairs. It's all part of the game, trust me on this. There's an old saying around here that has always held true: Fast, cheap and reliable, you can only pick two. Sounds like you need cheap and reliable way more than fast.

 

Have a cosigner ready, you'll need one. No way around that other than paying in cash.

 

Also, get something you are comfortable in and at least somewhat enjoy being in. The end goal is to have a vehicle that will last you until you are through with college and will be paid off around the time you graduate. If you end up in something that you decide you don't like, its miserable to keep driving it, and very difficult to get rid of it without incurring more debt. Also having it paid off by graduation means that you will be done with payments just in time to start paying student loans. This gives you some breathing room if you have trouble finding a job then.

 

For reference, I've had car loans since I was 17 and still in high school. I have also owned 17 vehicles in nearly 9 years, so I've been around the block with stupid projects and cars I couldn't afford and cars I wish I never laid eyes on. If I can help you in any other way, feel free to send me a pm, seeing how I've been there before and now know what not to do.

[Guest mrhobbz]

So draw the line for me between a "CD" or Certificate of Depost and an "SCC" or a secured credit card. I must be missing it in that article.

 

 

Called it the wrong thing get over it.

[Guest mrhobbz]

oh come on...didn't you know EVERYTHING when you were 19? i recall from 18-20 knowing everything, and ever since, realizing i dont know shit.

 

Not sure who the fuck you were referring to, but just for the record I never claimed to know shit. Just throwing out there what I have been through.