So I want to buy a car

[brendanhm]

I have $3000 cash, looking for a $7000 car. Any advice?

I was thinking of going to the bank first, then seeing if dealer would beat.

Anyways any other ideas?

[coriolis]

Did you calculate other fees as well, such as gas and insurance?

[brendanhm]

Yes, well here's the thing. I start working fulltime on the 29th of June where I will be able to afford it.

Currently I'm just finishing up my spring semester, but I need the car before that date. Unfortunately I just dont have the 7K upfront. But once the 29th hits I will be able to afford expenses. However I need the car before that date (travelling to my job.)

[shock007]

You're getting paid cash on your first day of work?

[brendanhm]

Yes

[theguyz]

bank bank bank, dealers just negotiate for you and prophit if you shop around at banks you will get better rates than through dealer,

Now seeing your in school still, you may need a co-signer for a loan since no employment now. So get prepared and maybe ask parenst if they will if bank will not let you on your own.

[shock007]

How much?

[MP3_SKY]

I would buy something dirt cheap for 1-2k. You don't want to go into debt before you actually go to work. ;)

[angel_wing0]

I would buy something dirt cheap for 1-2k. You don't want to go into debt before you actually go to work. ;)

indeed, althou u cant get anything good at 1-2k...

[Evil Baby]

indeed, althou u cant get anything good at 1-2k...

sure you can. You can pick up a cavalier and that's good enough to get you around.

That being said, do you have any other income? The bank most likely wont give you a loan just because you are about to start a job.

[bruizeman]

I would buy something dirt cheap for 1-2k. You don't want to go into debt before you actually go to work. ;)

There's nothing wrong with getting into debt.

[angel_wing0]

sure you can. You can pick up a cavalier and that's good enough to get you around.

Well good enough to get around, but thats about it. Or maybe a 10+ year corolla.

[Evil Baby]

Well good enough to get around, but thats about it. Or maybe a 10+ year corolla.

I don't knwo what else you'd really want it to do. Mine is cheap on gas, has AC, runs great and cost little money. Of couse I'd love to have a better built interior but I've managed to stop most of the noices that comes with the cheap plastic. Decent set of wheels and the ride is rather smooth.

[Si98]

There's nothing wrong with getting into debt.

Spoken like a true loan shark. :cheesygri

[budfrogs]

I second the cheap car and pay cash to move up in car. If you drive a cheap car for 6 months it will not go down in value much between now and when you want to sell it!

Save up for 6 months sell the garage sale car and buy a better one!

I wish I hadn't gone into debt for a car when I got my first one!

If you are really into going into debt how about getting a student LoC while you are still in school! The interest may be less and you only have to pay interest until you get done. (And the whole not having a job will make it easier to qualify.)

[boyoflondon]

sure you can. You can pick up a cavalier and that's good enough to get you around.

That being said, do you have any other income? The bank most likely wont give you a loan just because you are about to start a job.

Buying a car at that price range is like getting a can of worms.

You would be really taking a chance. While you might get lucky and end up with a rather decent vehicle, chances are, there are going to be problems which will require you invest more $$$ into the car.

[M.D.]

Keep in mind insurance costs as well, for your case, I would suggest getting the best car you can buy with the amount of cash you have now without any loans.

[zajacik99]

I don't knwo what else you'd really want it to do. Mine is cheap on gas, has AC, runs great and cost little money. Of couse I'd love to have a better built interior but I've managed to stop most of the noices that comes with the cheap plastic. Decent set of wheels and the ride is rather smooth.

one more word that matters: safety
newer (and thus more expensive) cars have better rating. i see it as a good investment.

[angel_wing0]

Buying a car at that price range is like getting a can of worms.

nuff said.

[MP3_SKY]

Buying a car at 7000$ or something at 2000$ is more or less the same. Both of them will be used, except the 7000$ maybe few years more recent or better model.

I bought my first car at 5000$ and i spend over 1000$ repairing it within less than a year and dump it after 1 year as I know more repairs is coming.

Get a cheap one that runs, go to work with it, get CAA. Done. Don't exepct a 2000$ car will be perfect and everything working. Aslong as the car runs and safe. DONE. Is not like the 7000$ one you buying won't have any problems or repairs to do neither.

[TopTaxGuy]

Normally the dealer can beat your bank.

If you go to your bank and get a loan and then go to the dealer, the dealer will get a better rate for you even from the same bank. The dealers actually get a better deal because of the volume driven to the bank.

[fly]

Have you considered leasing? Or financing?

When I first graduated and needed a car for my job, I also had a few grand in cash but couldn't afford to buy a car upfront. So I leased. You can get a pretty decent car for $200/month. I figured by the time the lease was up, I'd want a better car. I got a Toyota Tercel and only needed to do the scheduled oil changes and new brake pads in the last year. The Tercel was replaced by the Echo and now Yaris.

$200/month x 12 months = $2400

Your $3k is good for a year of the lease. Insurance will probably be about the same regardless of which car you get since the biggest factor is your personal risk (age). Before the TROLLS start attacking that statement, I'm referring to low-end cars that OP can actually afford so don't be an idiot and tell me it'd matter if he got a Porsche.

As for financing, you can get pretty good deals these days. I got a Mazda3 for $20k out the door, 0% financing for 3 years and 90 days no payment. It works out to be about $550/month and I own it after 3 years.

The last thing you want to is to buy a piece of crap car that breaks down a few months after you bought it and end up paying more for maintenance than the actual car.

[zoober]

I bought a 1990 cavalier 10 years ago that lasted 4 years and made it up to 500,000 km's before it died. Only cost me $900 for the car and maybe $500 in maintenance over 4 years. I almost miss that little car :D

If you can get a year or two out of a $1000-2000 car you'll have a handful of cash to throw at something you actually want and you can dump the old one without a sweat.

[MP3_SKY]

If he doesnt have a job yet, he probably need someone to co-sign the lease for him.

[brendanhm]

From an overall financial perspective, does a Mazda3 for around $7000$ make sense (3000 down, 4000 bank loan or finance)???

[angel_wing0]

From an overall financial perspective, does a Mazda3 for around $7000$ make sense (3000 down, 4000 bank loan or finance)???

..only if u dont mind the interest rate. Financing a used car usually have very high interest rates.

[speedyforme]

My first car (and still have it) is a 1993 Corolla which I bought for just over $3,000. Still only has 110,000 km on it so I got a long ways to go. I plan o run it to the ground. No need for a fancy car as long as I can stay warm/cool and it gets me places, it's all good.