Should i get this car or wait?

My 94 honda civic died of me and i got rid of it for 500 bucks. I got approved for a 2011 kia soul. 50K miles from carmax. I don't want ANY other car but the soul. I really want this car but i'm trying to see if i can afford it. 362 a month for 72 months warranty included, and 135 for insurance. I make between 800-1100 a month. I know it's steep but i'm using the car to motivate me to find a better job or second job. I've been car shopping for a better apr rate but so far carmax has the best (15 percent) due to my credit. I also have 2 bills. Phone bill and gym membership.

The problem is you are overpaying for the car. Kelly blue book says that this is a $12000 car. Go to kbb.com with the details on the car and get a dealer cost. At 8% interest and a 12K loan for 72 months and sales tax of 8% the payment should be 227/mo for the vehicle. Either your interest rate is outrageous or they are ripping you off on the warrantee. If your interest rate is greater than 8% or so it means you have bad credit. If you have bad credit buy a beater and work on your credit score. Get exact figures on the warrantee costs. Usually they sell a warantee that covers the car until it hits 75K miles or so. This car gets to 75K in about 1-2 years so the warrantee should cost no more than $1000-15000.

PS--72 months of 362/mo payments comes to 26000 dollars---more than twice what the car is worth.

You are about to pay $26064 for a KIA, I'd seriously think about that one.

Pay cash for cars, it's hard, but it's well worth it.

Getting into a car loan is a big responsibility. We recommend you evaluate your finances before making such a big investment. The interest rate and monthly payment will depend on various factors such as length of the loan, down payment and credit history. You can use this payment calculator as a guide. Good luck and we hope to see you driving a Kia soon!

Raul T.
Kia Social Team

Rip off doesn't even start to describe that deal. Over 26K for a nearly four year old cheap car? 15% is an absurd interest rate, if you don't have good enough credit you should not be buying a fairly new car. And nobody should EVER finance a used car for six years - my rule is 5 for new and 3-4 for used cars.

And I did the math - at 15% interest and 72 months you must be financing over 17K, even with whatever warranty they are giving you this car is an incredible rip off.

If you buy this car, I will make you a promise right now, you will regret it.
as others have said, the amount you pay for the car is double what it should be. This car will be your financial undoing if you buy it.
stay away. Get something cheap and affordable until you get yourself in a better financial situation.
in a perfect world, you save money and pay for every car up front in cash. (almost never happens anymore because we have become a society that always wants the new and best of things regardless of if we can afford them.)

Well in the long run your car loan if you decide to get it is miles better than mine is. I earn the same amount as you per month. And I pay 410 per month. My car note and gas basically leaves me broke every month. You don't want to end up like me. Just get something cheap and you can quickly pay off or pay cash for something. When you make more money or feel stable then get a car loan.

Find a "beater" for 1500 or 2000 bucks and drive that until you can afford a better car. At 1100 per month you'd be a fool to turn over more than half of your income for a USED car. The 1500 used car would be paid for in total and your car insurance would be half of that 135 for the Kia. Don't be a slave to a car payment, life is too short!

I would definitely go for it. I believe it will also boost your confidence and work rate (finding a second job) so good luck with it.