Whats the best way for a 17 year old to buy a car?

[Ryan L.]

Hey guys,

I'm looking into getting a 06 or newer Mustang GT Manual or 06 or newer Mazda Speed3 Manual.

I'm slowly talking my parents into making a down payment on one for my graduation present and I'm going to junior college for the first two years which will save about $6,000.

I would be stuck with the monthly payment but I'm trying to figure out how to get the lowest possible payment for the shortest amount of time. I don't want to be stuck with paying the car off for 6 years, preferably 3 at max.

Is it better to lease it or to buy it on a auto loan or what?

EDIT: I would prefer to stay under $400 max as a monthly payment.

Thanks in advance!

Ryan

[Gooch]

Re: Whats the best way for a 17 year old to buy a car?

Leasing was cheaper monthly, but its basically renting on a longer term. you have not 'equity' in the car and the money and car are gone at the end of the term, or you can buy it for your 'buyout price'. if you are someone that enjoys the comfort of having a warranty and such, this is a pretty good route.

On this note, with the way the economy and auto industries are, Leasing a vehicle has become almost non-exsistant.


a Loan will be more per month, but at the end of the term, you own the car.

a $400/month payment on a 3 year loan will get you about a $9-11k car depending on the rates avaliable to you, i would err on the lower side since you are 17 and really don't have any established credit.

[ClearlyCoated]

Re: Whats the best way for a 17 year old to buy a car?

Dealers periodically have sales on lease returns, but I don't know of any actually leasing used vehicles - do they do that? Financing through a credit union might be your best option, although APR's for used cars are typically more than for new vehicle purchases.

[Mikejl]

Re: Whats the best way for a 17 year old to buy a car?

Are your folks going to co-sign for you? If so you will be able to get a better finance rate. Unless of course, you've established a good credit rating for yourself in the last couple of years.

Mike

[Larry A]

Re: Whats the best way for a 17 year old to buy a car?

Only pay cash on your first car. Anything that runs good should be good enough for your first car. My first car cast $40.00, my youngest son s car cost $500.00. A thousand dollor car should be your first car.

[TKDDAD]

Re: Whats the best way for a 17 year old to buy a car?

As an answer to the original question, if I was going to do it all over again, I would say this, "do something while you're young to start saving money if you plan on buying a car that costs more than $1000"

My 18 year old son bought his first car last year last summer. A 2006 Hyundai Sonata Limited. It had 45k miles and we are friends with the original owner. He had a paper route for 5 years and thanks to his mom, banked about $8,000which he put toward the car. He borrowed $5,000 from me and is paying it back month by month. Between cars and college, kids are coming out of school with a BA degree and already in debt over their heads before they even begin their first career. He now has a car that will take him right through college. The $500 car will cost you plenty every month in repairs and maintenance if you're not careful. Leasing is a tough call but might be best if you don't want to keep the car for 10 years.

And don't forget about insurance...17 year olds with Mustangs are expensive to insure. Most companies give credit for good grades so that's something to consider too. Good luck Ryan!!

[akimel]

Re: Whats the best way for a 17 year old to buy a car?

This is your first car. Buy less than you want, less than you think you can afford. At this point you want (1) to make sure that the car payments do not become a burden (and $400 a month) would quickly become a burden and (2) to build up your credit rating by buying a car and paying off the loan. Later on, when you are out of college and have a permanent job, you can move up to a more expensive car; but at this point, stay within--even better, below--your means.

[roushstage2]

Re: Whats the best way for a 17 year old to buy a car?

I would be very surprised if you get a new Mustang GT for under $400/mo. for 3 years. To get the payments under $400 at say, 6%, for a roughly $28,000 car you'd need about $14,000 down. This is all providing all of the loan calculators actually work.

I had $4,000 to put down on mine (future 17th birthday and Christmas "presents" plus some of my money), loan was for about $24,000. The interest is killer though, 13.X% for 6 years and my payment is $484.86. Of course, I didn't care back then, I wanted it. Made about $2,000+/mo. working 3 days a week. Wish I still had that gig. :S

[TxRado]

Re: Whats the best way for a 17 year old to buy a car?

Hey bro, if your existing car still has some juice then continue saving your money. I've paid for all of my vehicles in full and its the best way to purchase a car imo. It seems hard but start saving and put money into an account you wont touch every month. I've done this for all 3 of my cars (98 Mitsubishi eclipse, 04 Chevy Colorado, 06 350z) and have avoided annoying interest rates.

Paid for my first car by the money I saved from detailing cars at the age of 15 ^^

[94BMW325CIS]

Re: Whats the best way for a 17 year old to buy a car?

You can get a really good solid car for about $1100. The good thing about buying cheap cars is you can add things like body kits and paint the rims to make it look like a much more expensive car without putting too much money into it. It may not be the fastest car in the parking lot, but it sure will be the envy others if you modify it right. You don't need money for a nice car, just a good design and quality modifications on a reliable car and you will have a good looking car for cheap that won't leave you stranded.

[john m.]

Re: Whats the best way for a 17 year old to buy a car?

First of all you probably shouldnt finance through the dealership if you can help it, they are going to try and make the deal that will make them money. Also like mentioned earlier you should have your parents co sign and possibly have them make the actual payments and you give them the money. Like you I wanted a really nice car but being 18 knew i wouldnt get it so i got a civic, only difference is im one of the lucky ones whos parents are paying for it. Basically to find the best deal you need to go around and talk to different dealerships and see what kinds of offers they give

[Ryan L.]

Re: Whats the best way for a 17 year old to buy a car?

Thanks guys for all the advice.

Luckily my parents bought the Jeep in my Avatar for my brother when he got his license and it was passed on to me. So I do have a car but I would like to get a car thats actually mine and make payments on it and so forth. Plus I really want a car when driving around in the city, lifted Jeeps aren't the most comfortable or good for gas mileage cars.

I would definitely have my parents co-sign on the deal and I will talk to them about possibly making the payments and me paying them.

Insurance is the least of my worries cause right now I'm the primary driver on a 2004 lifted SUV and my insurance alone is $1400.

Thanks again guys for the advice!!

Ryan

[Nappers]

Re: Whats the best way for a 17 year old to buy a car?

Get a honda civic, stripped, not the best looking or optioned out car, but it will get you through college (reliable car) without too much out of pocket with gas and insurance!

[Markus Kleis]

Re: Whats the best way for a 17 year old to buy a car?

Get a honda civic, stripped, not the best looking or optioned out car, but it will get you through college (reliable car) without too much out of pocket with gas and insurance!

Or if you are wanting to go the fun and sporty route, ever consider an SVT Focus? They got RAVE reviews (look them up) as being a fantastically fun car to drive, and they have amazing handling. You will also get probably an average of 24-26 MPG.

They have a 6 speed manual, and optional HID headlights...moonroof, leather, etc.

My buddy has one of the SVTs and loves it. They stopped making them in 2004, and you can easily find a nice one with moderate mileage for $10,000 or less. It will also be cheaper to maintain than most imports.

If you want, I can arrange for you to see my Focus and my friends too.

[Nappers]

Re: Whats the best way for a 17 year old to buy a car?

Or if you are wanting to go the fun and sporty route, ever consider an SVT Focus? They got RAVE reviews (look them up) as being a fantastically fun car to drive, and they have amazing handling. You will also get probably an average of 24-26 MPG.

They have a 6 speed manual, and optional HID headlights...moonroof, leather, etc.

My buddy has one of the SVTs and loves it. They stopped making them in 2004, and you can easily find a nice one with moderate mileage for $10,000 or less. It will also be cheaper to maintain than most imports.

If you want, I can arrange for you to see my Focus and my friends too.

Sorry Mark, still in the "domestic small cars ****" mode!

Can't forget the domestics, the Focus and actually the Cobalt are pretty dang reliable and not too bad a car!

The cobalt still has the rental car interior syndrome though. The SS is a fast car.....

I do like the Focus, a friend of ours has one and she loves it! It's a nice, solid car! She has had not one problem with it. Change oil and put gas in it.