Car buying

Posted by mk_378 (164.106.129.131) on February 02, 2004 at 08:43:13:

In Reply to: getting a loan posted by jade on February 01, 2004 at 22:35:12:

First off call insurance companies and see if you can even buy your own car insurance at age 17. Also check what insurance will cost; it's going to be expensive. Unless your parents wreck a lot it will cost much less (but still a lot) to have your car on their policy. It may be more practical for your parent(s) to actually own the car and agree to give it to you when you're 18.

I recommend buying an old car for cash. New cars are not worth what they cost. Slightly used cars can be even worse, they are at the point where they will start to need costly repairs, but still too expensive to buy for cash. If you paid cash for the car, the money you would spend on a car payment each month is now available for insurance, gas, tires, repairs, and other costs of owning a car. An old car can be highly reliable if you notice and replace worn parts before they reach the point that the car won't run.

Try to buy cars from people you know (this doesn't count your new "friends" at the car dealer) whenever possible. They are more likely to tell you if the car has a problem. Also they may give you a better deal because they realize your situation. Start putting "feelers" out at work, church, etc. for someone who has an extra car.

Ideally, find someone who is about to trade in their good-running old car for a new one at a dealer. Dealers pay very little for old cars in trade-in. Offer to buy the car from them for what the dealer offers or a little more. It is important to have the cash on hand to close this deal immediately. If the seller wanted to spend the time, he could sell the car to a stranger for more than the dealer will pay. But he may want to just be rid of the car quickly and in to the new one.

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