samhamiam Posted July 16, 2016 Share Posted July 16, 2016 Hi everyone! So today I intend on going to the dealer to talk about cars! I think I would most prefer to BUY as opposed to lease. All of my classmates that leased eventually did buy since they were going over the mileage when it came time for rotations. My questions to you are: What type of car? I'm heavily leaning towards the Toyota Corolla. I had my last one in my family for 21 years! How much should I pay monthly and do I have to put money down? Would you highly recommend leasing as a student? How to work with the car salesman? I'm going alone, a young girl, I don't want to get ripped off. I really can't afford a high payment. My dad will be on the phone with me the entire time when we talk finances, he just couldn't physically come as I'm 3000 miles away. Thanks so much! I'm so nervous! Link to comment Share on other sites More sharing options...
loliz Posted July 16, 2016 Share Posted July 16, 2016 Research prices and features BEFORE you go. Auto trader is a good way to see what is available in your area. KBB is a good way to check value of a car. If you go into the conversation with a good idea of what you are willing to pay, why you feel this is a fair price and what questions you have, you will be better off. You may also want to check with your bank or credit union because they can often offer you a better interest rate than a dealership. To be honest, having your dad on speaker phone may make you more of a target. You are putting a sign on your forehead that says "daddy's little girl." This does not establish an image of self sufficiency or maturity. You can always excuse yourself to make a phone call. Beyond that-- as a student, there is absolutely no need for a brand new car. Get something used, reliable, safe and with cheap maintenance (i.e. doesn't require high octane gas, synthetic oil or high liability insurance). No one can tell you what your finances allow for in regards to payment and down payment; when I was a student, I was on my own for bills so adding anything on to my monthly expenses in the way of a car payment was not an option. Other people buy brand new sports cars. To each their own on this one... Link to comment Share on other sites More sharing options...
samhamiam Posted July 16, 2016 Author Share Posted July 16, 2016 Research prices and features BEFORE you go. Auto trader is a good way to see what is available in your area. KBB is a good way to check value of a car. If you go into the conversation with a good idea of what you are willing to pay, why you feel this is a fair price and what questions you have, you will be better off. You may also want to check with your bank or credit union because they can often offer you a better interest rate than a dealership. To be honest, having your dad on speaker phone may make you more of a target. You are putting a sign on your forehead that says "daddy's little girl." This does not establish an image of self sufficiency or maturity. You can always excuse yourself to make a phone call. Beyond that-- as a student, there is absolutely no need for a brand new car. Get something used, reliable, safe and with cheap maintenance (i.e. doesn't require high octane gas, synthetic oil or high liability insurance). No one can tell you what your finances allow for in regards to payment and down payment; when I was a student, I was on my own for bills so adding anything on to my monthly expenses in the way of a car payment was not an option. Other people buy brand new sports cars. To each their own on this one... Thanks so much! Yeah, I wanted to get certified used toyota corolla. I want something that though I'll pay as a student along with other bills, I'll have when I'm done with school to use as well and it's not a junker. Thanks for the tip about the dad on the phone, I'll excuse myself and talk about prices privately. The area where I'm living, it's ALL driving. It's just a remote area with no buses or anything, so a reliable car is a necessity as the upperclassmen have made sure to tell me. Thank you for your help! Link to comment Share on other sites More sharing options...
Administrator rev ronin Posted July 16, 2016 Administrator Share Posted July 16, 2016 Bottom line? Leasing is for people who have money to throw away and want a new car every few years. If you're looking at a car with 21 years in the family as a positive thing... I'd definitely buy. Toyotas aren't bad cars, but I still commute in the same 15 year old Honda Civic I had through PA school, which I bought when it was 2 years old. Link to comment Share on other sites More sharing options...
mgriffiths Posted July 16, 2016 Share Posted July 16, 2016 I don't know what your financial situation is, but whenever possible I NEVER buy anything with debt that will depreciate with value. In other words, the only two things that I plan on buying with debt in my lifetime are my diploma (school loans) and a house. It makes even less sense to buy something with debt when you are already broke - like most of us that are either in school or starting. I don't agree with everything that Dave Ramsey says about finances, but absolutely agree with his comments about car buying. Just google "Dave Ramsey + car buying" and there is a good video and article. Debt has become too much a part of our lives. Long story short, buy something that you can pay for in CASH and that will get you through PA school without costing a fortune in repairs/maintenance. Then, after you graduate, upgrade if necessary when you have a nice income coming in and can actually afford it. Link to comment Share on other sites More sharing options...
Moderator EMEDPA Posted July 16, 2016 Moderator Share Posted July 16, 2016 Agree with Rev- I have had several Hondas and been happy with all of them. I only replaced them when I wanted a new feature (or when they were stolen), not because they died. have had the following 82 civic- got rid of at 188,000 miles. wanted AC and an air bag. in-laws drove it for several more years 95 civic went 130,000 miles. sold because I wanted side impact protection and cruise control 98 civic stolen at 135,000 miles 2002 civic. just sold last year. 2013 Fit. current car at 40 ish thousand miles. still love it. my first car was a Toyota celica. such a lemon. will NEVER buy another. Link to comment Share on other sites More sharing options...
DiggySRNA Posted July 16, 2016 Share Posted July 16, 2016 All of these are great suggestions... But if you want low car payments you better have great credit (no derogs, excellent payment history on your credit cards, and a variety of credit: credit cards and students t loans should do the trick if you don't already have an installment loan). If not, your apr is going to be through the roof which can break your bank account while in PA school. For example, when I bought my first car with little to no history, I had to get a cosigner and my apr was 12.79% - 230/monthly payments on a 10 year old car. 3 years later of overpaying a took it in and walked away with a better car with an interest rate of 3.67 and no cosigner. Pull your credit report from credit check total and see what your FICO 8 scores are and that should give you a ballpark where your credit history and score stands. Use that as leverage when talking to the dealership. Also, credit unions provide the BEST interest rates but sometimes can be matched by dealerships. All in all, get into something reliable and that you feel comfortable driving.... Don't get into something you'll hate for the next 5 years. Link to comment Share on other sites More sharing options...
fishbum Posted July 17, 2016 Share Posted July 17, 2016 Have you looked at craigslist, autotrader, cars.com, and your local newspaper classified ads? You'll save a ton of money if you buy from an individual rather than a dealer. You mentioned wanting a "certified" used car. This could cost you thousands of dollars by the time you factor in the big dealer markup, sales taxes, "documentation" fees, etc. I understand wanting some guarantee that the car is mechanically sound, but there's not a whole lot that can really be wrong with a three or four year old Toyota or Honda, assuming a clean title and no red flags in the test drive. And the money you'd save in the purchase could cover a whole lot of repairs, if they ever did become necessary. Link to comment Share on other sites More sharing options...
FrankB Posted July 18, 2016 Share Posted July 18, 2016 If you are set on a new car, the Hyundai elantra was almost $10,000 cheaper than a comparable toyota or honda. Over 75,000 rough kayaking/hiking dirt road miles without an issue and 25,000 more miles on the warrantee. That said, I would suggest a reliable, cheap used car. Link to comment Share on other sites More sharing options...
marktheshark89 Posted July 18, 2016 Share Posted July 18, 2016 Subaru impreza/legacy/crosstrek are all decent values and very reliable if you need something all wheel drive for the snow Link to comment Share on other sites More sharing options...
teenyfish Posted July 30, 2016 Share Posted July 30, 2016 I would suggest a used car. I recently purchased a great 2013 Mazda 6 with all the bells and whistles for 12k, only 30k miles on it, a much nicer car than I could have afforded new. My parents went with me and kept kicking themselves for buying a brand new car for double the price when many of the used cars were in great condition. Honestly, I can't even tell that my car has been used other than a few marks on the interior. I would suggest Honda & Mazda for reliability, as well as Volvo but those are a little more pricey. Link to comment Share on other sites More sharing options...
Boatswain2PA Posted July 30, 2016 Share Posted July 30, 2016 Leasing cars is a STUPID idea.....unless you're a car salesman/dealership. Don't go into debt to buy a car. The value of cars goes down daily. If you get a GREAT deal and buy a $22K car for $18K, it will only be worth $15K in a year. You just lost $3K.Toyota's were underpriced yet FANTASTIC cars in the 80's (probably before you were born). I remember people laughing at people driving the Toyota Corolla's and Celica's in the 80's and 90's because they weren't "cool" cars. Now Toyota's are regularly-priced great cars.Hyundai's of today are the Toyota's of the 80's. Buy a Hyundai, with cash if at all possible.I'm making the 95th percentile a year as a PA, plus retired military pay, plus my wife is an RN....and we have 2 Hyundai's and a Chevy truck (and 3 houses, 2 boats, vacation twice a year, yada yada yada).Buy a Hyundai. Don't go into debt if at all possible.Good luck.Edit: www.DaveRamsey.com is the first place you want to go for common sense financial advice. Link to comment Share on other sites More sharing options...
Maverick87 Posted July 30, 2016 Share Posted July 30, 2016 Agree with Rev- I have had several Hondas and been happy with all of them. I only replaced them when I wanted a new feature (or when they were stolen), not because they died. have had the following 82 civic- got rid of at 188,000 miles. wanted AC and an air bag. in-laws drove it for several more years 95 civic went 130,000 miles. sold because I wanted side impact protection and cruise control 98 civic stolen at 135,000 miles 2002 civic. just sold last year. 2013 Fit. current car at 40 ish thousand miles. still love it. my first car was a Toyota celica. such a lemon. will NEVER buy another. Yup! I'm pushing 210,000 miles on my 2005 Honda Accord. After 3 cross country trips and 11 years (I got it brand new as a high school graduation present), it's still going strong. I considered buying a new car this year, but I just couldn't fathom spending $25k+ on something that is just meant to take me from one place to another. All of these are great suggestions... But if you want low car payments you better have great credit (no derogs, excellent payment history on your credit cards, and a variety of credit: credit cards and students t loans should do the trick if you don't already have an installment loan). If not, your apr is going to be through the roof which can break your bank account while in PA school. For example, when I bought my first car with little to no history, I had to get a cosigner and my apr was 12.79% - 230/monthly payments on a 10 year old car. 3 years later of overpaying a took it in and walked away with a better car with an interest rate of 3.67 and no cosigner. Pull your credit report from credit check total and see what your FICO 8 scores are and that should give you a ballpark where your credit history and score stands. Use that as leverage when talking to the dealership. Also, credit unions provide the BEST interest rates but sometimes can be matched by dealerships. All in all, get into something reliable and that you feel comfortable driving.... Don't get into something you'll hate for the next 5 years. A derogatory mark on your credit score isn't the end of the world. I have one and my credit score is still 750 (way more than enough to get a good rate). I would suggest a used car. I recently purchased a great 2013 Mazda 6 with all the bells and whistles for 12k, only 30k miles on it, a much nicer car than I could have afforded new. My parents went with me and kept kicking themselves for buying a brand new car for double the price when many of the used cars were in great condition. Honestly, I can't even tell that my car has been used other than a few marks on the interior. I would suggest Honda & Mazda for reliability, as well as Volvo but those are a little more pricey. What's your process in going about buying a new car? Did you go certified pre-owned? I still feel like you could get a raw deal doing something like that. Link to comment Share on other sites More sharing options...
teenyfish Posted July 30, 2016 Share Posted July 30, 2016 What's your process in going about buying a new car? Did you go certified pre-owned? I still feel like you could get a raw deal doing something like that. Yup, I went certified pre-owned. Looked up a few cars that I was interested in on KBB & Carfax. I had a general idea of what I wanted, did the whole test drive thing etc. I think I got such a good deal because I ended up getting my Mazda at a Kia dealer and they were desperate to get rid of it. Mine came with a 60 (?) day warranty, so after I bought it I took it to my parent's mechanic and had them check it out. Ended up getting my rear brakes done for free via warranty because they were borderline. So you can definitely get a raw deal, but from my experience they were pretty straightforward, you just have to be careful. Link to comment Share on other sites More sharing options...
IDCtoPA Posted July 31, 2016 Share Posted July 31, 2016 Almost all new cars today will last well over 100,000 miles if you do the recommended maintenance. The difference comes down to really 3 things. What you pay, What you get for what you pay, and What it is worth when you finally decide to get rid of it. In the general group of consumer cars. I don't think anyone beats out Honda for the value retained. My 2007 Honda Ridgeline with 120,000 miles is still worth over half of what I paid for it and it is still a reliable vehicle that I wouldn't hesitate to drive across the country tomorrow. In my extended family we have 3 Honda Fits 2009, 2011, and 2013. They are all excellent cars. You cant beat the economy, comfort, and interior room. Fully loaded they are still affordable, especially if you buy a certified used. I expect to get another 5+ years out of my Ridgeline and even then I will be trading more to get newer hi-tech creature comforts and maybe an electric vehicle if I am still in the city, not because I expect a loss of reliability. I have to say it is really nice not having a car payment and still having a car that is VERY reliable, looks good, and is worth something if I do decide to trade it in. I love my Ridgeline, but, If I were buying again today I would get a FIT without a doubt. Excellent cars, incredibly economical, comfort like a car you pay twice as much for, and there is nothing I can not "FIT" inside one. In short.. Certified Used. Preferably a Honda for reliability and trade in value. And look seriously at the FIT for Economy, Comfort, Room, and Value. Link to comment Share on other sites More sharing options...
Moderator ventana Posted July 31, 2016 Moderator Share Posted July 31, 2016 Find a nice older used car, one owner, private sale with maintenance records.... Don't be afraid of something in the 8-10 year old range - Honda and Toyota are spendy but worth it if you find a nice one Hyundai is likely the value winner right now, and long warrantee as well..... DONT get a car loan for moe then a few thousand dollars..... And DONT buy new or LEASE - horrid idea..... Link to comment Share on other sites More sharing options...
Maverick87 Posted July 31, 2016 Share Posted July 31, 2016 Find a nice older used car, one owner, private sale with maintenance records.... Don't be afraid of something in the 8-10 year old range - Honda and Toyota are spendy but worth it if you find a nice one Hyundai is likely the value winner right now, and long warrantee as well..... DONT get a car loan for moe then a few thousand dollars..... And DONT buy new or LEASE - horrid idea..... My Honda is 11 years old and is in pretty good shape. The only reason I'm even considering getting a new car is because the AC is starting to go and I just moved to Phoenix.....and it's summer. As I said, it's treated me well and has been with men through my entire undergrad, PA school, my entire military commitment, and 3 cross country trips. I definitely recommend a Honda if you're looking for longevity and endurance! Link to comment Share on other sites More sharing options...
DiggySRNA Posted July 31, 2016 Share Posted July 31, 2016 A derogatory mark on your credit score isn't the end of the world. I have one and my credit score is still 750 (way more than enough to get a good rate). Maybe for your profile. But for a thin inexperienced credit profile (as assumed by the OP's choice of words), a derogatory mark is a death sentence. Link to comment Share on other sites More sharing options...
Boatswain2PA Posted July 31, 2016 Share Posted July 31, 2016 My Honda is 11 years old and is in pretty good shape. The only reason I'm even considering getting a new car is because the AC is starting to go and I just moved to Phoenix.....and it's summer. As I said, it's treated me well and has been with men through my entire undergrad, PA school, my entire military commitment, and 3 cross country trips. I definitely recommend a Honda if you're looking for longevity and endurance! AC in Phoenix is required 360 days of the year. Cost of new AC in old Honda? Estimating $2500. Cost of replacing said old Honda? Probably much more than that. You're in school. Just fix the AC. To the OP: 1. NEVER lease. It's stupid. 2. DON'T buy a new car unless you're a millionaire. 3. DON'T borrow money for something that will be worth significantly less tomorrow than it is today.....like a CAR. Only things worth borrowing money against is your education, and a house. Follow rules 1 & 3, and you will (probably) be able to disregard rule 2 in 20 years. Link to comment Share on other sites More sharing options...
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