T Nation

Buying a New Car Worth It?


#1

So im a 19 yr old college student and i have two jobs bout 25 hours per week soon to be as a personal trainer. I have always been into drifting and the import scene for a while now, so im thinking of buying a 370z its new 2009 and the base price is at 29,000 but if i pay a down payment of 10,000 to 14,000 would you consider this a good idea....or is this an unethical idea, im young so im not very financialy savvy. haha

but seroiusly any feed back would be good


#2

Will you be working for yourself as a PT? Theres not a whole lot of money in it to start off takes awhile to build a good rep and get a steady client base.

Also don't bother with the rice burner get a good old V8 or turbo V6 haha for that price you could prob get a ford f6 typhoon ute imported over, crazy for drifting although take a bit to get used to if youre not use to driving utes.


#3

Where you getting all this dough man? Save your shyt, drive an economy car. I know grads who can't afford a 10 k dp for a car. You must be from a wealthy family cuz this just sounds unrealistic.


#4

Buying a new car is a retarded idea unless you're well off.

I've made many mistakes with money and still do sometimes. Made a lof of them with cars too.

Get a nice used one.

best piece of advice? Read anything by Dave Ramsey. I gave his CDs to my cousin and their husband 2 X=Mas's ago, at the time I'm sure they thought it was dumb, but they later let me know it was one of the best gifts ever


#5

x2


#6

"always for a while now"
"unethical"


#7


#8

im gonna be a presonal trainer getting 14 an hour for base pay and then gradually gain clientelle through the company direct its a private org. gym., yeah i thought it seemed a little out there but the 10-14000 dollars would come from selling the car i own now and roughly 3000 from my job


#9

You have enough cash as a 19 year old college student to drop "10-14K" on a new car? WTF?

If you have it like that, why are you working two jobs? Personal trainers aren't exactly rich and MOST make less than the average school teacher. It takes quite a client base to pull in big money that way. The bigger your name, obviously the more you can charge, but there is no way the average 19 year old working at Gold's is usually making enough to drop that much as a down payment.


#10

Don't you think you need to have a more firm grasp on how much you will be making compared to expenses every month before you jump into something like that? How are you doing in school if this is taking so much of your time? Are you in college to be a personal trainer?


#11

it was an idea so i just wanted some opinions, the car would come in round 370 a month im working part time 20-25 hrs a week and im going to comm. college for two yrs and transfering to a calstate. Im taking 12 to 15 units a semester.


#12

Dont waste your time... you aint even in the uni yet.. How you gonna pay for that?


#13

Hell no.

You'll thank us when you start paying back your student loans.


#14

You think you can afford nearly 400 bucks a month for your car...PLUS INSURANCE along with all other expenses from books to gas (which will no doubt increase in price shortly) to FOOD while working two different jobs and going to school at the same time? Mind you, this is after dropping 14k in a ricer because you think personal trainers have it like that?

Have you ever been out of the house before this?

This all may sound harsh, but seriously, it is like you haven't really thought this through. Buying a new car implies you have the income for it to fit into a KNOWN budget. From the sounds of things, your entire income is SPECULATION about what you MAY earn in the future should things go like you think they should.

Someone with real life experience doesn't plan things that way unless they want to end up bankrupt.

It doesn't seem like you care half as much about the grades you plan on making in college.


#15

OK, while the criticism you've received is valid, let's look at a plus side:

Actually you're in a great position. You're young which means that all kinds of things are open to you if you start reasonably promptly on a good path, and you apparently have $10K you can put down. And you think you have the ability to further make monthly payments that would be substantial.

Let's stop and think what happens if you buy a genuinely good used car for the $10K.

Now, monthly payments are not due. You can save/invest the money.

After a few years, the amount of money you've saved combined with the retained value of the user car you've bought just now will easily allow you to buy an even better used car, AND have savings/investment left over. Quite a considerable amount left over.

A few more years down the road and if you want, you can be buying new cars this way. No payments: for cash, and with your savings/investment constantly growing. (Keep making the payments as if you'd gotten a car loan, but rather than a bank getting it as profit, you get it as capital.)

Look up how much money is just going into interest in car loans. The average young person over the course of their life will dump just an incredible amount of money into interest payments. Not only will you NOT be doing that, and thus be richer by six figures, but you will be EARNING compounded interest or dividends and capital gains. The amount that this can build up starting as early as you could be doing is pretty amazing.

The cost? Nothing but that of driving a $10K car for now instead of a $29K car, and for a few following years also a still-entirely-decent car instead of something you don't actually have the money for. But even if you are focused on cars not your overall finances, you could seen be driving better new cars this way than, instead, paying interest to the bank. That's lost money. Why go into that treadmill?

If a person has no or very little money to put down then they have to get into the interest treadmill. You don't.


#16

I dunno, Professor. My current co-worker spends more than he makes, has a wife and two kids, and buys new vehicles, ATVs, motorcycles, like the act of spending were going out of style, and he's completely miserable! Oh, wait, that was the point . . .

As an aside, Personal Training, and the fitness industry in general, is an amazing way to make money. At least, if you're putting in the initial start-up effort. I will be phasing into it as a full-time self-employed trainer by the end of October. But, unlike the OP, I'm out of college and not intent on buying a car that looks very similar to an albatross.


#17

Dave Ramsey, look him up. Seriously.

Gave his CDs to my cousin 2 Xmas's ago. At the time they thought it was cheesy, they later told me it was probably one of the best gifts they were ever given.

new car= dumb, unless you're very well off


#18

Get a 240 sx


#19

When I was in college, I had friends who drove really nice cars, but lived in the basement of their parent's house. They would drop most of their money into their car, while living very meagerly. Cars depreciate fast, I think it would be better to keep your money and get something used like Jehova mentioned above. $14/hr is more like $10 after taxes, and you are basically working to pay for gas and "stay alive" money. Dont waste it on a car.


#20

DO NOT buy a new car. Let some other sucker pay for the depreciation that occurs the second you drive something off the lot. Get the previous model year for 60% of the price