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I am 18 years old and turning 19 in a few weeks. I’m not sure what my credit score is but I have a credit card that I have paid off when I have used it and have had loans that I have paid off and am paying off now. I just recently bought a car for $ 6,000. I have been paying on it for a few months and have it down to $ 5,000. I was impatient when I bought the car and there is so much wrong with it that I would end up paying just as much to fix everything for almost the payoff on it. If I were to sell it privately I would need to repair quite a few things so I don’t want to do that. The next car I want to buy is something that costs between $ 13,000 and $ 17,000. Is my best bet to trade in the car, which the trade in is worth about $ 3,500, and add that extra $ 1,500 to the loan on my next car?
I will be getting the loan through a credit union my family has been at for over 20 years….my last interest rate was 7.75 and the next will also be. It’s an old lexus that I was conned into buying and the actually year of the car was different than what
I was informed, but too much was settled before I could back out and I was an idiot for not noticing earlier. The lexus has 87,000 miles and anyone who knows lexus knows about the 90k mile service…

7 Thoughts on What should I do about buying my next car?
  1. Reply
    gary h
    December 1, 2011 at 1:17 pm

    Not usually, but you need to make sure your car runs and is dependable. Next time don’t buy impulsively. Have a mechanic check it out before you sign. Also, shouldn’t you be saving some money for college?

  2. Reply
    santosh
    December 1, 2011 at 1:35 pm

    Dude u need to check for ur cars re sale value….and buy a car whose spares are cheap and readily available in the market….do check for owners background and where was it used if u r to buy a second hand one…happy buying

  3. Reply
    Garacaius
    December 1, 2011 at 1:50 pm

    Yes, that is a good idea.

  4. Reply
    Kat Q
    December 1, 2011 at 2:41 pm

    Wow, imagine this one, I am going through the same stuff with my little sister, so here goes, this is what I told her. Look at the money you have. You are young, what do you need with a fancy car? Do you just WANT a fancy car? If you do, I would recommend paying down your car a bit more.. if you file taxes, slap them on that bad boy. Also, look into it, a lot of places will have early payoff penalties, and if this is the case with your car, then you will get hit for trading it in. Be patient. You may have to wait to get what you want. Your car’s trade in value may be low, but save some money. There are a lot of places that will still give you a good trade amount if you present yourself well to them, sometimes more than the car actually is said to be worth. Also, shop around. My sister was dead set on a 2000 Honda Civic LX. I made her test drive every car we came across, and you know what? She likes the Hyundai Accent we test drove, and it was at a good price, but still a bit out of her range. Point of that is, the car costs less, but she could see herself being happy driving it. Also, think about your job. The longer you are at your job, whether it be Sam’s Supermarket while you are in college, or some big exec, the better things look for you. I only was able to get my car because I had been at my job for 3 years at the time. Also, if you have your car longer, and make the payments, and pay it off, or close to it, it looks better on paper as well. Understand that the people who are deciding whether you get the car or not do not know you, and dont feel they need to get to know you, they just look at the black and white on the paper.
    I hope this bit of somewhat lecturing helps you hun, whatever you decide to do. Just thought some examples and some relations would help you. . .I get to go on the finding the perfect car grind again tomorrow, which is actually today 😛

  5. Reply
    Sandy
    December 1, 2011 at 3:35 pm

    I don’t know what kinda car you got for $ 6000 but, I would be willing to bet anything that if you put $ 2000 into it, it would run for the next 4 years trouble free, with proper care and maintenance.
    My nephew just had a 2002 Kia (solmethin) engine blow up. I mean this thing was nasty. Melted parts and junk. He bought it used, so that 100k bumper to bumper is out. I found him a a new Motor for $ 1050 and it will cost about $ 600 to install it. Totall cost of a brand new engine installed, $ 1650, I would have $ 350 left over to buy some tires for you.
    Or you can go further into debt. They are eating you alive at 12% APR or whatever. You have to ask yourself, do I want to get from point A to point B? or do I want all my friends to see what a rad ride I have. The A to B is the reality, the rad ride is the bling dream of millionaires.

  6. Reply
    ray p
    December 1, 2011 at 3:35 pm

    You hit the nail on the head when you used the word IMPATIENT, stats show most buyers today dislike the experience buying a car and the main reason is they are pre occupied and dont find the time to do some homework.

    Buying a used car is a huge investment and a process of steps, you learn the proper steps and you will get valid value for your bucks, you just got bitten but will you get bitten twice I somehow think you will have buyers beware written all over you from your first experience.

    Go to my website http://www.usedcartips.org/ and study the 10 steps, its free advice with no strings attached

  7. Reply
    Confused
    December 1, 2011 at 4:00 pm

    Here is your problem. You only have only had credit for one year and you already have multiple loans. Now you want a loan for 15-20K (price of the car + tax, title, lic + negative equity). You had a car for only a few months and already you want a new car. Without knowing anything else about you I would turn down this loan and tell the dealer “too much, too early”.

    The other side is that you made a mistake buying you current car and need to get out of it before it goes up in smoke. Putting 5 grand into a car that is worth 3500 doesn’t make sense.

    I would say that your best bet would be to get your parents to co-sign the loan. I don’t know many finance companies that would be willing to loan a young person significantly more money than the value of the vehicle.

    I would go to a credit union or local bank, they might be able to help you and explain your options. You are probably going to have to settle on a cheaper car since a 20K loan at 60mn is over 400 bucks a month.

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