Should I buy a car to get to work?

baseball1988

Started a full time career when I was around 24-25 years old.
I am around 26-27 years of age right now.
No debt.

It takes me about 1 hour and 30 minutes to get to work by bus (annoying)

I have 2 options:
1) My sister will give me her car and I won't have to pay for it. Then, I can save my 26k.
2) Buy a brand new car and spend 26k.

-I don't really like my sister's car. Kind of big from my opinion and I prefer driving a small car.
-My mom suggest not to buy a used car (possible high maintenance and doesn't like second hand).
-I won't have a lot of savings left in my bank account if I buy a brand new car.

I can take the bus to work but it takes 1hr 30 mins...I don't want to rely on transit...due to unpredictable schedules/etc

If you were in my situation, would you buy a brand new car OR get my sister's car? I know at my age I should have at least 60-70k in my bank account but i dont.

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Comments

Essendon

Buy a small(er) used car. I can somewhat see where your mum's coming from, but buying a brand new car, IMO, is a waste of money. Apart from the fresh leather smell and the warranty, there aint much more to a new car than a used 2-3 year old car. Shop around for a used car that still has some warranty left on it. When I was shopping around for a car some years ago, a salesman told me of the price difference between a brand new top-of-the-range BMW sedan and the same car but just a few months old - almost 40%. Just some food for thought. A car isnt an investment, dont blow your money on something that loses its value over the years.

paul78

Life's too short - get a car.

Personally, I would get a used car. I've never been a big fan of paying the premium to buy a new car.

Plantwiz

If it were me,

Take the car.
Save the money.

When you are ready, buy a used car.
I'll never buy new.

But I don't see the point of a car other than transportation and as long as it runs (reliably) there isn't a reason to buy new. I just read a few weeks back that most folks are holding onto their cars for 11 years on average creating the 'shortage' of used cars. So, I think you'll see a used car will last for quite a while.

Up to you, but spending $26K and having nothing saved...not my kind of risk.

YMMV

jcole4lsu

My opinion is that your mother's advice is worthless. A new car loses a lot of value the moment you drive it off the lot. Go purchase a certified used car from a dealer ie buy a certified GM product from a GM dealer, and let someone else deal with that immediate depreciation.

erpadmin

Plantwiz wrote: »

But I don't see the point of a car other than transportation and as long as it runs (reliably) there isn't a reason to buy new. I just read a few weeks back that most folks are holding onto their cars for 11 years on average creating the 'shortage' of used cars. So, I think you'll see a used car will last for quite a while.

Funny you mention this.

I just got a call earlier from the dealership that has serviced my car (I'm weening myself off the dealership now that the car I bought new is out of warranty.) He's begging me to take the car in so that it can be "appraised" and then bought at book or above book value. I'm thinking "I just finished paying this car off, why would I want to get into another payment?" Now I see why...I've had my car for four years and two months. Finished paying it off around a year and half ago (always paid more than required payments.) There was no way I wanted to get into another car note....no way. Mind you, I have a 2007 Saturn Ion coupe. It gets me from point a to point b, and it is very reliable (and this is with a discontinued brand....) I can't afford to get into another payment now. Mind you, I would love a 4x4 crossover or something like that, but I plan on keeping this car for another 6-7 years.

But getting back to OP, man look, I was without a car in the NYC-metro area (on the Jersey side) for 5 years. Had to deal with public transportation getting up to Greenwich, CT for a couple of months. (From Jersey.) Of course, that commute killed me, but it can be done.

Since you have no debt, take your sister's car and save about $200-$500 a month and put that to the side until you have at the minimum $1500 (at maximum $3000). This way, any work that you might need, you can get that done at your local ASE-approved mechanic and call it a day. Also, get AAA-Plus. If you get stuck somewhere, you get a tow for 100 miles. (four times a year) Another thing you want for the hooptie is a battery charger, in case the battery dies. You can get one at Sears/Walmart for around $80.

That's a much better alternative than spending $26k. (because hey...you never know.

) That $26K can go toward wealth-building activities, not buying liabilities.

joshmadakor

baseball1988 wrote: »

I know at my age I should have at least 60-70k in my bank

orly?

Anyway, use your sisters car. /thread

Zartanasaurus

Take your sister's car or buy a nice used car for $6k to $8k. Your mother has the typical bad beliefs that get preyed on by car dealerships. "oh it's an old car and it might not be reliable or you have to pay a lot for repairs. We'll sell you this nice reliable $30K car and your troubles just go away!"

Figure out the cost you pay yearly on a new car plus new car insurance vs what it costs to fix and insure a used car yearly. So what if you need a $200 - $300 repair every so often? That's cheaper than $300/month. Browse craigslist until you find a quality car that was well taken care of by its owner.

N2IT

Zartanasaurus wrote: »

Take your sister's car or buy a nice used car for $6k to $8k. Your mother has the typical bad beliefs that get preyed on by car dealerships. "snip......

I would get a new car to be honest. Life is short and you have been working hard. If you don't like you sisters car don't get it. Buy the new car and make sure you take care of it. If you take good care of it, that car can last a long time. A friend of mine did something similiar one year out of college and he still has his Acura TL. 185,000 miles and he still drives it.

My wife bought a new car no regrets. Besides you can get great deals on new cars, used cars interests rates are inferior to new cars if you have good credit.

ptilsen

Buy a new or lightly used car if you can afford it. As N2IT and Paul78 said, life is short. If you can't reasonably afford it (that is to say, the payments will be a very noticeable financial burden), get an old clunker or use your sister's.

joshmadakor

If you care about cars and have a car that you've always wanted you might as well get it. If cars aren't really your thing, I probably wouldn't pass up getting a free one. I had to scratch my STi itch and I don't really regret it. However, if I didn't really care about cars, I would have just got something cheap and used.

alxx

Get a motor bike , parking is always free, uses a lot less gas , cheaper than a car

Currently on my third bike a suzuki dl1000 -just about to hit 50000km had the bike 3 years, bought second hand with 1400km on the clock

Previous bikes gsx250s and a tl1000s.

ptilsen

alxx wrote: »

Get a motor bike , parking is always free, uses a lot less gas , cheaper than a car

Handles great on snow the 2-3 months each year that OP will see it, too.

blargoe

I bought a used 1997 Camry in 2004, at first for my wife to get around town, and then for me to commute after we had to get a minivan for her and the kids. I still drive the car every day, the only repairs I've had is a power window motor a couple years ago ($100), and a cracked radiator last year somewhere around 172,000 miles... around $300. Hell of a lot cheaper than a $300/mo car payment. No regrets here. I've been deliberating on whether to keep driving it or get something newer (I'm driving about 350mi/week now), and I keep arriving at the conclusion of not trying to fix what ain't broke. If my car dies, so be it. I'll tow it to the junk years and get a ride home, and then buy something else.

Do your research, and keep up with the recommended maintenance, and then you can use your hard earned resources for something that doesn't depreciate into nothing in a few years.

spicy ahi

Personally, I'd go with your sisters old car, or a used car if you're not inclined to accept the hand me down. You're still too young to go through midlife crisis

so stick with something that gets you to where you need to go and no more. Unless cars are your means of enjoyment, I'm sure there are other things you'd much rather spend that kind of money on.

CodeBlox

I would get a car, but I wouldn't spend 26k on it. I used to catch the bus, and I can tell you, it's no fun - even though it was rare - when the bus would break down or somehow get off schedule and I end up late for work. I haven't caught the bus to work in many 4 years though. I still would consider it an option if something bad happened to my truck. Lord knows I need to do something, I topped off my gas and it costed me $68 yesterday!! You will need car insurance as well as fuel. It just isn't cheap either.

JustFred

I will always buy a used car, but thats me. Buying a new car is not worth it unless you are a millionaire and most of them own 6-12 cars anyway.

techinthewoods

Buy a car. Why waste your life sitting on a Bus? I didn't see anywhere in your post about how long it will take to get to work with a car versus the 1.5 hour bus ride, but I'm assuming it is considerably less. Get the car, use the time you save each day for something more enjoyable or productive. Life is not meant to be spent using 1/5th of your awake hours sitting on a bus.

techdudehere

I believe in most North American cities, you will get around better with your own car. In South America, taxis are so inexpensive it might not make sense, though. You do not need to spend anywhere near that much for a new or lightly used car. At the end of the ordeal, all cars are worth their weight in metal. I believe you can get a new Versa for something like 12k. Toyota also has some lower cost cars. I believe the Corolla is fairly inexpensive. You want something reliable, so you can get to work on time. That does not need to involve spending a lot on a car, though. No matter how cool you look in those expensive cars, you won't have much fun if you cannot afford to put fuel in it. No one can predict salaries 20 years from now, you may need that nest egg more than you think! I imagined myself making a comfortable living by now, but here I am struggling to survive on less than 60k a year. The worst case would be taking out a loan, though. If it were me I'd go with the lower cost car and keep living at home until I could purchase a moderate priced home in an excellent neighborhood with a good school. The only way I'd spend more on a car is if I had small children, then I'd probably go with whatever has the highest safety rating.

SteveLord

Remember, if you finance a car...you're also responsible for FULL insurance coverage.

YuckTheFankees

SteveLord wrote: »

Remember, if you finance a car...you're also responsible for FULL insurance coverage.

^ I'll second what he said.

dales

CodeBlox wrote: »

I would get a car, but I wouldn't spend 26k on it. I used to catch the bus, and I can tell you, it's no fun - even though it was rare - when the bus would break down or somehow get off schedule and I end up late for work. I haven't caught the bus to work in many 4 years though. I still would consider it an option if something bad happened to my truck. Lord knows I need to do something, I topped off my gas and it costed me $68 yesterday!! You will need car insurance as well as fuel. It just isn't cheap either.

Bit off topic (sorry) but truck and $68 dollars to fill it up, my family saloon (vectra 1.

takes about £80 to fill it up which is about $130 I think. Be cheaper for my car to run on gin and gold dust in the UK.

hackman2007

I'm a bit mixed on the topic. As much as I like new, used can be just as good. I bought a new car because I wanted a new car and wanted something where I didn't have to worry about the extra expenses. I also didn't have enough money to buy a car and the lowest interest rate I could get was on a new car (6.9%).

My story: I graduated in May 2011 and bought a brand new 2012 Ford Focus SE (financed about $18,000). I still own the car obviously, but it has already had a problem. It broke down at 2,000 miles. The battery died randomly and the CPU had to be reprogrammed. I didn't have to pay the tow bill or the new battery, so that's a good thing. But it did break down. I have about 2,600 miles on it now I think.

Would I repeat the purchase? Maybe. My payment is only $310.06 and I should have the car paid off by this time next year.

shodown

I bought a used car in 2003 and it still runs to this day 2012. The car is 10 years old and its time to let her go(my wife had 2 accidents in her). In the years's I've had her I replaced the tires 2x, the alternator, and a battery. All I have done is regular maintenance. Like others have said let someone else take the hit on a new car and buy a good quality used car.

Everyone

Well being in NYC you have a lot more to consider. Do you have a parking space where you live, or will you have to pay one? Is there parking at work, or will you have to pay for parking there? Even with a "free" car, it could end up costing more than what you currently pay for public transportation.

If you're 27 though, get yourself a freaking car already. Don't you ever leave the city?

Heero

Bought a used, 2000 Honda Accord in 2003 or 2004 (don't remember exactly). I have not had to do any major repairs other than standard maintenance and replacing a bumper after a fender bender. Runs great, no issues. I see no reason to buy a new car and pay that new car premium. I will say that you are more likely to get scammed by a used car salesman than a new car salesman, but do your homework on the vehicle and get it inspected by someone good, and you shouldn't have an issue. Or just take the free car from your sister. I've found that personal preference means **** when you get something for free.

networkjutsu

Get the free car even if you dont like it.