Should I buy a cheap car or pay off a newer car?
So long story short, the car I had gave out on me. It was a 2002 VW Passat that I bought for a pretty decent price with money I saved up, however I always had to fix things here and there and it all added up. PLUS because it was a German car, maintenance and fixes were ridiculously expensive (Just to replace the water pump costed me $1100!). Now I'm carless yet saving money up, I get around using the bus or rides from my parents but I need a car to get me from point A to B, I can only do this for so long! My question is if I should just buy a decent used car until it dumps on me again or should I pay off a relatively newer used car something not too expensive (for example a Kia Forte or 2012 Honda cIvic) that'l last me in the long run? I'm currently a full time sophomore in college and work full time as well to pay tuition yet I still have money left over. I make at least 1100 a month. I have enough for a 3000 dollar down payment right now if I choose to pay it off.
A used 2012 Civic or KIA Forte will cost you about $350 p/month for 5 years. Plus you will need full coverage insurance which is expensive. Paying close to $500 p/mo for transportation is too much for a student who only earns $1100.
You won't get a loan. Your income is to low. Trust me I know. Take that 3000 and buy a domestic car, Toyota or Honda from a private owner or auction but make sure you get a mechanic to check it out. They will cheaper to maintain and last a long time.
Get a good used cheap used car for now. You can't qualify for a loan on a newer car -- you don't have enough available income.
Buy knew
You should find an older car that someone has taken care of and pay cash for it.
Here is another thing you should do. If you think I'm wrong, go and talk to the business/finance instructor at your college. Ask him if it makes sense to "pay interest on a depreciation". And see what he/she tells you.
Keep the V.W. The water pump is not about to fail again. Hell, I put 750,000miles on my V.W.(same water pump) and a dozen timing belts. You DO NOT NEED to remove the water pump to replace the timing belt.(that is a con) The water pump only needs changing when it leaks… Which is no more often than a Ford or Chev or Dodge. German car does not mean it is "ridiculously high cost" to fix. Own a HONDA or a TOYOTA or a NISSAN. "They are all costly parts-wise." Scarey costly… For PLASTIC. I have more faith in metal parts.
However, some parts require lubrication… Water pumps require you use green coolant at 50/50 because antifreeze has lubricant in it. Plain water does not. Then the waterpump will last you near 30 years. I always get most of my parts from auto salvage(but your waterpump did not cost $1100 - that is including the labor and probably a timing belt). Possibly even a thermostat.
The BS only goes so far.
- Does Dealer have to pay for Dry Rotted tires on a car bought brand new off the lot? I was driving home today when my tire literally collapsed in on itself. The car was bought brand new off the lot of the honda dealership, its barely 1.5 years old. My tire light did come on but its going from winter to summer here so I figured I'd just needed to put air in them as usual. Should the dealer have to replace the tires on the car if they are in fact dry rotted? I'm pretty sure it is dry rot as it doesn't look like any flat I've ever had…
- I have a 1998 Honda CRV with 240 K miles. Needs $1200 of repair to pass inspection. Should i fix or buy a newer used Honda civic? Mike? I'm the original owner and have done a good job with oil changes etc. However, it needs 2 front control arms with ball joints and rear struts to pass inspection. I've also gone past my mileage on a second timing belt (first one done at 90K miles). Car body exterior and interior is in pretty good shape. Inside looks brand new. But repair cost at 1200 + timing belt ~500 =~1700 in repars. Is it time for a newer used auto.
- Finance a car and pay it off in 2-6 months? I'm planning to buy a new 2015 Honda Civic EX at $20,079. I want to pay it full on credit. I don't wanna spend 5 years paying it off. The dealers won't let me pay for it (fully) in credit and want cash or check. If I finance it for 1.9% for 4-5 years can I pay it off within 2-6 months without paying interest?
- Buy a new car or pay off student loans? So I graduated college in December, and it's time to pay up those loans. But as much as I would love to not see the monthly bill for my loan coming to me anymore, I would really like to by a new car (Honda Civic Si). I have $25k save up in the bank, just enough to pay off that loan or to buy the car cash and have a bit left over… What would you recommend?