First Car: Buy or Lease?

[Samael]

Did he just insult me? Sure sounded like it. But I'll keep my head down so the mods have a clear shot.

 

[Brian.Evans]

I'd like to know that too. I think that he might be reading too often in Whine and Cheese. I'm just thinking out loud here, but I know my middle class, rural father wouldn't be caught dead in a knife forum. He has one knife and that's it. Not too many lower-middle class Americans carry $500+ mammoth and carbon fiber folders around here. Maybe you have a higher class of redneck around you.

 

[Maniacal Pete]

I would recommend that you check out the book "Financial Peace university" by Dave Ramsey. If you're not religious, ignore the religious bits. It's very sound financial advice. The best thing about it is that it offers a gameplan that you can follow. Being young and having fewer responsibilities means you have more leeway to make the plan work in your favor.

My wife and I teach FPU classes (we don't get paid) and the plan has been SOLID for us, but it all depends on the commitment to win.

It's a cheap book and the library probably has it.

depending on your area of pittsburgh we'll have another class in September some time.

I think this is good advice, Dave Ramsey is a God.

 

[Magnaminous_G]

Sorry *groan*. I changed the wording. Not trying to insult anyone, but I want to let this young man know that this is not the right forum to ask for financial advice.

 

[Samael]

It may or may not be. You never know. There are doctors, lawyers and other professionals hanging out here. Just because we're not snooty about it like you are doesn't mean we're yokels.

 

[Brian.Evans]

It may or may not be. You never know. There are doctors, lawyers and other professionals hanging out here. Just because we're not snooty about it like you are doesn't mean we're yokels.

+1

Also, OP, check out Dave's books. Great stuff there. Really great. Also, ask that same question over at bogleheads.org. Really great financial forum. Betcha a dollar you get the same answer.

 

[RevDevil]

Did he just insult me? Sure sounded like it. But I'll keep my head down so the mods have a clear shot.

By all means, intervene at your own impulse.
You know you wanna.

 

[Magnaminous_G]

It may or may not be. You never know. There are doctors, lawyers and other professionals hanging out here. Just because we're not snooty about it like you are doesn't mean we're yokels.

Yeah, it was snooty. I edited my post.

 

[Samael]

And there you go. Thank you.

 

[nccole]

First of all, this is the WRONG PLACE to ask for financial advice. Your talking about a forum [EDIT: a forum with a a lot of folks encouraging each other to spend more on knives... to the point of addiction sometimes]. Not to insult anybody, but it's the damned truth, and needs to be said since you are a young man asking for financial advice. This is the WRONG PLACE to ask for it. There are places on the internet where financially-savvy people congregate and help each other. This is not one of them. Now then, if you've got a knife that needs identifying, or if you need to know how a certain year's model of a certain Buck knife performs while batonning through a certain material type... this is THE only place to ask.

But... if you insist on advice, then I'll shoot (although you should take my advice with a big grain or two of salt, too!): I think you are wise to consider that Taurus. First, ask the owner why he's selling it and why is the price so low? Is there a major issue with it? Test drive it. The best way to get a sense of the condition of the car if you are not a mechanic is to listen to it. Start it up, let it idle for a while, drive it around the block, try the brakes out. How does the car sound? If it sounds good and smooth, it usually is. If it is making weird noises (grinding, squealing, knocking, etc.), something is wrong. Before you buy it, google repair shops near your zipcode and choose one with a good reputation and good reviews. Take the car there and get an honest opinion on any mechanical and electronic problems (burning oil? transmission bad? engine light always on? brakes still good? tires still got tread?), before you buy. If your $1500 car will need new brakes and tires within a few months, then it's actually a $2500 car. If you decide to buy, resolve to take care of it: let it warm up in the morning for 5 minutes before you drive, go easy on the brakes, change the oil every 3k miles, get a tire-pressure gauge and check the tire-pressure once in a while and make sure it's correct, check the oil every two or three days for the first week or so so make sure it's not burning up oil and/or the oil isn't getting mucked up fast.

But by spending a few more G's, you'll get a much better car. You mentioned that your grandma was willing to help you out. Is she willing to give you a loan instead of cosigning a loan? If you can borrow 2K from your grandma and spend $3,500, you'll get 10x the car. Plus, you can pay grandma back as you are able without hurting your credit score.

Finally: don't get a loan and always live below your means. Example: just because you've got a little extra cash this week and you can afford Velveeta & Shells and Heineken, doesn't mean you should buy it. Stick with Mac & Cheese and Miller and save that extra bit of cash for another day when you actually need it for something. It helps to have a goal to save money. Start small: save $50 a month. That's it. After six months, you'll have $300 in the savings account. Any questions, just ask!

Lots of good advice and different opinions and different routes here and I have given my advice, but do not borrow money from friends or family. That is just a terrible idea. Also, I think this community is large enough and has enough variety such that you could ask any question and get decent advice on many subjects. Should this be the end-all be-all, probably not, but not a bad place to get many opinions from a group of what I have seen to be really good people. I do not get why this person says this is the WRONG PLACE and then proceeds to give advice?! Anyway, good luck with whatever you do, and you will definitely learn from this and do things a little better the next time.

 

[AKC]

I say stick with used and purchase all your cars with cash on the spot. Over a life time you will save a lot of money that you can buy knives with.

I drive a '97 Buick purchased new with no payments. Best never to borrow money for things that will be worth less when the loan is paid off. At this time the knife that is usually in my pocket is worth more than my vehicle. . It is just a vehicle that takes you where you want to go, no reason to borrow money to drive it. You will spend enough to insure and maintain it anyway.

Probably one of the best bits of advice here, +1 from me.

First of all, this is the WRONG PLACE to ask for financial advice. Your talking about a forum [EDIT: a forum with a a lot of folks encouraging each other to spend more on knives... to the point of addiction sometimes]. Not to insult anybody, but it's the damned truth, and needs to be said since you are a young man asking for financial advice. This is the WRONG PLACE to ask for it. There are places on the internet where financially-savvy people congregate and help each other. This is not one of them. Now then, if you've got a knife that needs identifying, or if you need to know how a certain year's model of a certain Buck knife performs while batonning through a certain material type... this is THE only place to ask.

But... if you insist on advice, then I'll shoot (although you should take my advice with a big grain or two of salt, too!): I think you are wise to consider that Taurus. First, ask the owner why he's selling it and why is the price so low? Is there a major issue with it? Test drive it. The best way to get a sense of the condition of the car if you are not a mechanic is to listen to it. Start it up, let it idle for a while, drive it around the block, try the brakes out. How does the car sound? If it sounds good and smooth, it usually is. If it is making weird noises (grinding, squealing, knocking, etc.), something is wrong. Before you buy it, google repair shops near your zipcode and choose one with a good reputation and good reviews. Take the car there and get an honest opinion on any mechanical and electronic problems (burning oil? transmission bad? engine light always on? brakes still good? tires still got tread?), before you buy. If your $1500 car will need new brakes and tires within a few months, then it's actually a $2500 car. If you decide to buy, resolve to take care of it: let it warm up in the morning for 5 minutes before you drive, go easy on the brakes, change the oil every 3k miles, get a tire-pressure gauge and check the tire-pressure once in a while and make sure it's correct, check the oil every two or three days for the first week or so so make sure it's not burning up oil and/or the oil isn't getting mucked up fast.

But by spending a few more G's, you'll get a much better car. You mentioned that your grandma was willing to help you out. Is she willing to give you a loan instead of cosigning a loan? If you can borrow 2K from your grandma and spend $3,500, you'll get 10x the car. Plus, you can pay grandma back as you are able without hurting your credit score.

Finally: don't get a loan and always live below your means. Example: just because you've got a little extra cash this week and you can afford Velveeta & Shells and Heineken, doesn't mean you should buy it. Stick with Mac & Cheese and Miller and save that extra bit of cash for another day when you actually need it for something. It helps to have a goal to save money. Start small: save $50 a month. That's it. After six months, you'll have $300 in the savings account. Any questions, just ask!

Still don't particularly care for the tone of this piece. I did find it insulting. The OP approached a group of peers he feels comfortable with for opinions on a matter that didn't necessarily involve knives or things edged. Mag G's usual condescending tone shines brilliantly through on this one, and still smacks of elitism. The extremely broad demographics of BladeForums makes his opening statement moot and irrelevant. A big bag of salt is more like it.

I for one agree with others here; Unless one has an extremely comfortable situation with one's family and friends and absolute necessity dictates, borrowing money from them is not always the best solution.

Best of luck to you, whatever solution you arrive at.

 

[bmilla35]

First of all, this is the WRONG PLACE to ask for financial advice. Your talking about a forum [EDIT: a forum with a a lot of folks encouraging each other to spend more on knives... to the point of addiction sometimes]. Not to insult anybody, but it's the damned truth, and needs to be said since you are a young man asking for financial advice. This is the WRONG PLACE to ask for it. There are places on the internet where financially-savvy people congregate and help each other. This is not one of them. Now then, if you've got a knife that needs identifying, or if you need to know how a certain year's model of a certain Buck knife performs while batonning through a certain material type... this is THE only place to ask.

But... if you insist on advice, then I'll shoot (although you should take my advice with a big grain or two of salt, too!): I think you are wise to consider that Taurus. First, ask the owner why he's selling it and why is the price so low? Is there a major issue with it? Test drive it. The best way to get a sense of the condition of the car if you are not a mechanic is to listen to it. Start it up, let it idle for a while, drive it around the block, try the brakes out. How does the car sound? If it sounds good and smooth, it usually is. If it is making weird noises (grinding, squealing, knocking, etc.), something is wrong. Before you buy it, google repair shops near your zipcode and choose one with a good reputation and good reviews. Take the car there and get an honest opinion on any mechanical and electronic problems (burning oil? transmission bad? engine light always on? brakes still good? tires still got tread?), before you buy. If your $1500 car will need new brakes and tires within a few months, then it's actually a $2500 car. If you decide to buy, resolve to take care of it: let it warm up in the morning for 5 minutes before you drive, go easy on the brakes, change the oil every 3k miles, get a tire-pressure gauge and check the tire-pressure once in a while and make sure it's correct, check the oil every two or three days for the first week or so so make sure it's not burning up oil and/or the oil isn't getting mucked up fast.

But by spending a few more G's, you'll get a much better car. You mentioned that your grandma was willing to help you out. Is she willing to give you a loan instead of cosigning a loan? If you can borrow 2K from your grandma and spend $3,500, you'll get 10x the car. Plus, you can pay grandma back as you are able without hurting your credit score.

Finally: don't get a loan and always live below your means. Example: just because you've got a little extra cash this week and you can afford Velveeta & Shells and Heineken, doesn't mean you should buy it. Stick with Mac & Cheese and Miller and save that extra bit of cash for another day when you actually need it for something. It helps to have a goal to save money. Start small: save $50 a month. That's it. After six months, you'll have $300 in the savings account. Any questions, just ask!

I'm sure that there are better places to get answers than a forum about knives, but this is a place where I feel comfortable.

Appreciate the advice. Let me add a little information that i've come to learn. As stated before, it's an '06 Taurus with 100K miles on it. It hasn't been inspected since 2010. It was driven by the owner's wife that spends several months a year in France. I'm curious as to what kind of miles were put on it (highway vs local). My dads mechanic friend is coming out tonight with me to drive and can tell me if everything is in good shape. I'm really hoping it is...this is exactly the deal I was looking for to avoid buying a newer car with a loan.

This made me chuckle.

I would recommend that you check out the book "Financial Peace university" by Dave Ramsey. If you're not religious, ignore the religious bits. It's very sound financial advice. The best thing about it is that it offers a gameplan that you can follow. Being young and having fewer responsibilities means you have more leeway to make the plan work in your favor.

My wife and I teach FPU classes (we don't get paid) and the plan has been SOLID for us, but it all depends on the commitment to win.

It's a cheap book and the library probably has it.

depending on your area of pittsburgh we'll have another class in September some time.

Where in Pittsburgh? I'm in Plum, if you're familiar with that area. Unfortunately, come mid-August, i'll be at State College.

 

[AKC]

There are a lot of good folk here, with a vast wealth of life experience. It's a good place to come to with any question, someone can always help.

Sounds like you have things well in hand.

Good luck with the test drive.

 

[avidknifeusersf]

First of all, this is the WRONG PLACE to ask for financial advice. Your talking about a forum [EDIT: a forum with a a lot of folks encouraging each other to spend more on knives... to the point of addiction sometimes]. Not to insult anybody, but it's the damned truth, and needs to be said since you are a young man asking for financial advice. This is the WRONG PLACE to ask for it. There are places on the internet where financially-savvy people congregate and help each other. This is not one of them. Now then, if you've got a knife that needs identifying, or if you need to know how a certain year's model of a certain Buck knife performs while batonning through a certain material type... this is THE only place to ask.

But... if you insist on advice, then I'll shoot (although you should take my advice with a big grain or two of salt, too!): I think you are wise to consider that Taurus. First, ask the owner why he's selling it and why is the price so low? Is there a major issue with it? Test drive it. The best way to get a sense of the condition of the car if you are not a mechanic is to listen to it. Start it up, let it idle for a while, drive it around the block, try the brakes out. How does the car sound? If it sounds good and smooth, it usually is. If it is making weird noises (grinding, squealing, knocking, etc.), something is wrong. Before you buy it, google repair shops near your zipcode and choose one with a good reputation and good reviews. Take the car there and get an honest opinion on any mechanical and electronic problems (burning oil? transmission bad? engine light always on? brakes still good? tires still got tread?), before you buy. If your $1500 car will need new brakes and tires within a few months, then it's actually a $2500 car. If you decide to buy, resolve to take care of it: let it warm up in the morning for 5 minutes before you drive, go easy on the brakes, change the oil every 3k miles, get a tire-pressure gauge and check the tire-pressure once in a while and make sure it's correct, check the oil every two or three days for the first week or so so make sure it's not burning up oil and/or the oil isn't getting mucked up fast.

But by spending a few more G's, you'll get a much better car. You mentioned that your grandma was willing to help you out. Is she willing to give you a loan instead of cosigning a loan? If you can borrow 2K from your grandma and spend $3,500, you'll get 10x the car. Plus, you can pay grandma back as you are able without hurting your credit score.

Finally: don't get a loan and always live below your means. Example: just because you've got a little extra cash this week and you can afford Velveeta & Shells and Heineken, doesn't mean you should buy it. Stick with Mac & Cheese and Miller and save that extra bit of cash for another day when you actually need it for something. It helps to have a goal to save money. Start small: save $50 a month. That's it. After six months, you'll have $300 in the savings account. Any questions, just ask!

BMilla35,

I just want you to know when ranking advice, that i am an urban dwelling, business owning man who hasnt bought a knife in months and makes over the median income, so you should totes rank my advice +1,000,000 over the other plebians on this board. Perhaps you noticed my fancy gold name? (Pay no attention the platinum people, theyre obviously living well above their means, [conspicuous consumption comes to mind.] And the guys in red... i get disgusted just thinking about their economic sitch.)

I would add that a loan at near 0% interest rate is not always a bad decision compared to paying all of it upfront. Since you can technically be earning interest on the money instead of forking it over. Although they are hard to find on a used car. I believe its Warren Buffet (take his advice with a grain of salt though, he started out as a poor rural hillbilly) who advocates buying used so you dont take the automatic hit on depreciation. But you might be able to find 0% on some pre-owned cars and motorcylces. Plus youll save a ton on gas riding a moto.

 

[Alann45]

I say stick with used and purchase all your cars with cash on the spot. Over a life time you will save a lot of money that you can buy knives with.

:thumbup:

I drive a '97 Buick purchased new with no payments. It is just a vehicle that takes you where you want to go, no reason to borrow money to drive it. You will spend enough to insure and maintain it anyway.

Plus you needed something suitable for hauling goats.

Sorry *groan*. I changed the wording. Not trying to insult anyone, but I want to let this young man know that this is not the right forum to ask for financial advice.

Good change, if maybe a bit late.
Wasn't really insulted by the "less-than-middle-class rural", just made me raise an eyebrow. You're really underestimating a lot of your fellow forum members

Suggested reading: How to Win Friends and Influence People by Dale Carnegie

I'm sure that there are better places to get answers than a forum about knives, but this is a place where I feel comfortable.

Not necessarily. You're comfortable here and that goes a long way.
There is a great diversity of people here with a LOT of real life experience.

My dads mechanic friend is coming out tonight with me to drive and can tell me if everything is in good shape. I'm really hoping it is...this is exactly the deal I was looking for to avoid buying a newer car with a loan.

I was just about to suggest that. You seem to be handling things the right way.
If the mechanic says nope, keep looking. There are good deals out there.

You seem to have moved away from leasing, so all I'll say is that IMHO you don't lease unless you just must have a new car every 2-3 years, otherwise buy it.
Every car buying "expert" I've listened to says normally buying a car 2 or 3 years old is the best bang for the buck.
However, in a down economy like we have had, you can find some very good deals in a new car.

There are a lot of good folk here, with a vast wealth of life experience. It's a good place to come to with any question, someone can always help.

Worth repeating because it is so very true.
Folks here are amazingly generous with their time and willingness to share.

 

[bmilla35]

There are a lot of good folk here, with a vast wealth of life experience. It's a good place to come to with any question, someone can always help.

Sounds like you have things well in hand.

Good luck with the test drive.

Thanks! I sure hope this deal isn't too good to be true.

BMilla35,

I just want you to know when ranking advice, that i am an urban dwelling, business owning man who hasnt bought a knife in months and makes over the median income, so you should totes rank my advice +1,000,000 over the other plebians on this board. Perhaps you noticed my fancy gold name? (Pay no attention the platinum people, theyre obviously living well above their means, [conspicuous consumption comes to mind.] And the guys in red... i get disgusted just thinking about their economic sitch.)

I would add that a loan at near 0% interest rate is not always a bad decision compared to paying all of it upfront. Since you can technically be earning interest on the money instead of forking it over. Although they are hard to find on a used car. I believe its Warren Buffet (take his advice with a grain of salt though, he started out as a poor rural hillbilly) who advocates buying used so you dont take the automatic hit on depreciation. But you might be able to find 0% on some pre-owned cars and motorcylces. Plus youll save a ton on gas riding a moto.

Haha you guys are ruthless (albeit funny)!

I think I can get an interest rate in the 2.5 area on a used car from the credit union, which isn't bad at all from what i've heard and read (alternatively, the check ready loan from the bank is around 3.7). That being said, I still plan on looking for an older car for now. If I can buy this Taurus I am seriously considering buying a motorcycle this summer. I'm already looking at driving courses I can take this summer..

 

[bmilla35]

:thumbup:



Plus you needed something suitable for hauling goats.



Good change, if maybe a bit late.
Wasn't really insulted by the "less-than-middle-class rural", just made me raise an eyebrow. You're really underestimating a lot of your fellow forum members

Suggested reading: How to Win Friends and Influence People by Dale Carnegie



Not necessarily. You're comfortable here and that goes a long way.
There is a great diversity of people here with a LOT of real life experience.


I was just about to suggest that. You seem to be handling things the right way.
If the mechanic says nope, keep looking. There are good deals out there.

You seem to have moved away from leasing, so all I'll say is that IMHO you don't lease unless you just must have a new car every 2-3 years, otherwise buy it.
Every car buying "expert" I've listened to says normally buying a car 2 or 3 years old is the best bang for the buck.
However, in a down economy like we have had, you can find some very good deals in a new car.



Worth repeating because it is so very true.
Folks here are amazingly generous with their time and willingness to share.

I couldn't agree more. I feel I can come here with just about anything.

Like I just said, i'm really hoping he doesn't find anything serious. I know there are a few dents outside that need fixing, but I can live with that.

 

[Alann45]

Like I just said, i'm really hoping he doesn't find anything serious. I know there are a few dents outside that need fixing, but I can live with that.

100,000 miles you sort of expect a few dents...gives it personality.
You said you have a lot of mechanically inclined friends which is a big plus.

By coincidence, when I went to get groceries a bit ago, one of the local financial gurus was discussing car purchases. Because of the current economy he was saying you can buy a new car now for less than a one or two year old used car.

Not that I'm suggesting you buy a new one. When I was younger I wasted way to much money buying new cars and not driving them long enough...VERY stupid of me. You're showing way more sense than I did.

As I got less stupid I started keeping them for 10 years. I usually bought Honda and Honda mechanics don't even get impressed until one has 200,000+ miles on it.

 

[Shann]

I am impressed that the spat did not result in this thread going down in flames as is customary on the internet. Good for everyone.

I will point out that old cheap cars often need repairs even if they are checked out by a mechanic. I bought my son a 10 year old Subaru Legacy with 125,000 miles on it. I paid $2,800 for it. I now have another $4,000 into it for engine, transmission and exhaust, etc. He has put 50,000 more miles on it. Over the 4.5 years he's owned it that's like the equivelent of about a $125.00 per month car payment which isn't bad and a lot cheaper than I could have leased something or bought something new, but its worth noting.

 

[Brian.Evans]

I am impressed that the spat did not result in this thread going down in flames as is customary on the internet. Good for everyone.

I will point out that old cheap cars often need repairs even if they are checked out by a mechanic. I bought my son a 10 year old Subaru Legacy with 125,000 miles on it. I paid $2,800 for it. I now have another $4,000 into it for engine, transmission and exhaust, etc. He has put 50,000 more miles on it. Over the 4.5 years he's owned it that's like the equivelent of about a $125.00 per month car payment which isn't bad and a lot cheaper than I could have leased something or bought something new, but its worth noting.

Yeah, I'm kind of surprised too, but glad it didn't!

I bought my 1999 Blazer off a coworker 4 years ago for $1200 with 108,000 miles on it. It has 175,000 on it now. I'm never getting rid of it. I told my wife that the day I get rid of it is the day I call her from the side of the road and tell her to bring the title. I'll sign it and stick it in the glove box with a letter that says, "If you want it, here it is!" That's how you wring every single penny from a car. Don't tie a bunch of your self worth up in a car. It's just a damn car. Transportation.