Hey guys,
I am going to buy a car.
I am in dilemma whether to buy a zero mileage car or a used car.

I want to do some cost analysis for buying a new car, my monthly expenses and my savings per month to pay my credits.

Here is my situation:
1. I am a recent graduate with a Master's Degree in Computer from a mediocre university.
2. I recently got a job at a top notch company in my field( but with declining market share and revenue.)
3. I have around ten thousand dollars to pay my credit card bills.
4. I have to pay back my parents for their investment in my education.(Virtually I took a loan from them who in turn took loan from bank and others in Nepal)
5. My current living(lodging+ fooding) expenses is around $1000 per month.
6. Though I am single, I have to support my family members also.
7. My biweekly paycheck is around  $1600 each.

Considering  the current financial situation in US, job security has been a major issue amongst the job holders and job seekers. So although getting a job is a nice start for shaping a career, but one should not take it for granted that the position is permanent. Anything can happen. Jobs are being offshored and departments in whole are being laid off irrespective of your excellent personal performance.

So, hey guys, please share me your information, suggestions and idea on this issue.
What would you guys do if you were in my situation?
Would you guys buy a new car((20,000 on Avg) which will incur a certain downpayments with monthly payments of $300 on average.
OR,
Buy a used car of around <7 thousand dollars one time payment or even with a dealer on finance and be in peace of mind by not worrying how to pay the monthly payments in case you are laid off (due to poor performance of the company or bad economic situation).

Any ideas will be appreciated.

Go for a new car bro. Used car's a lot of trouble. Ultimately it costs more than a new car.

Is your biweekly check really 1600. I am going to go for Masters in Computer Engineering from this spring. Should I reconsider my decision bro?  I earn that much now.

jhapaliketo,

Thanks a lot for your suggestion.

>>Is your biweekly check really 1600. I am going to go for Masters in Computer Engineering from this spring. Should I reconsider my decision bro?  I earn that much now.

Go with your interests rather than money.
But that is what I will be getting in hand after all deductions and taxes.

Thanks.

Dhaule,

Rite now go with used car, as you have other financial needs, once u payoff all your loans and such you can always ride nice brand new cars.

If you buy a car around 20k your payment will be around $400 bucks.... with 0 down payment and assumin you have excellent credit as that will be around 3.9% a.pr for 60 months Your insurance are always higher on new cars then used ones.

Ofcourse with new car you have warranties and you dont have to worry about breaking down or anything , but if you have about a month time frame look around different dealers and news paper ads and craigs list for nice decent cheap car that you can pay cash for.

When you buy used car make sure you take it to a mechanic for inspection before you make the final deal.

This is a very good time to buy new cars as there are big discounts and incentives, but way the job market and economy is you might want to go with something you can pay cash for and not worry about it for another 2/3 yrs ... after tht we all know things will turn around then by that time you will prllly have most of your other loans paid off and you can buy brand new car and keep this one as run around.

Just my 2 cents.... can only advise, you have to call the shot.

 

Shaq,

Thanks a lot for your excellent suggestion.
Really appreciate it.

Thank you.

Dhaule Keto
I suggest you to wait till there is some positive sign of good economy, it may be another 6 months or a year. Meanwhile you can buy a used car for now and even afterwards your family member can use that if you are buying a new one.

If you decided to buy a new car, there will be a good offer before christmas, but I dont know you can wait till December or not?

Still its your situation! Do your math.

MBird

no probs dhaule ... one more thing ... was lil too late when i wrote it hehe ..... but the reasons I emphasize on you taking the car to mechanic is because carfax are not always accurate. They do have buy back guarantee but there are  restrictions .

This is also for all the sajhites asking to check vin on carfax, Car fax gets most of their information through police records and insurance companies, and I have seen if not thousand hundred of car come thru the dealership with major accident and frame damage and car fax is clean..

Its worth spending that little extra dollar and paying a good mechanic to inspect the car then just relyin on carfax .

 

good luck on you purchase

yeah shaq u are rite about that carfax things. i bought one car from dealer and i check its vin number. That dealer gave me current carfax report. But in that report the latest accident was missing. when i tried to sell my car after 7 month (after i got new title after) and the new  possible buyer check the carfax, this time there was latest accident report.i was not in any accident. but the accident report says it was major. it ripped out side of car and few fronts part like the radiator,front frame but the title was clean(no lemon,no salvage,no rebuilt nothing).
 it happens so dont rely on carfax only, do taste drive, take it to mechanic. they will charge $50-$60 in most of the case also depends where u are.

dhaule ,

I m going thro the same situation like u, its almost similar, but i do have prioritized things in life.

First, I will help my parents , I cant be cruising in a BMW when my dad is having hard time couping with

the inflation and economic hardship in Nepal.

Second, I will clear all the credit card debts.

And only after that I will think of getting something for me.

So, I wont buy a new car now, even it is within my rearch now. But there are far imp things in life than this bro. U wont

degrade yourself if you manage 1 year or so in a 4000-5000 dollar car. that way you will have enough time to

gather some fund to repay your parents and credit card debts.

If you go for a new car, for sure it will take a lot out your paycheck, including the premium and the insurance(full coverage)

besides your living costs. So, that way u wont have much left in your debit account.

So, please think about it.

A year with a used car wont do any harm to u, as you are a recent college graduate, so skimping thro the economic hardship is the

best practice.

(i m lucky that i stay at walking distance from my company, so i wont buy a car for another 6 months )

anyway good luck bro !!!!!!!!!

 

 

 

Do you make over 70K? Do you live in tax free state? Go for Brand New. Because you never know how the car was handled by the previous owner ( most of the time  we new buyer will go with the looks). We need a car that is mechanically sound and that goal is achieved by buying a new car and rests on your handling.

You can not judge all old car are not mechanically sound, but it's not 100 % sure. I know one gentleman pushing his 1994 accord to 300000 miles (he got 251000 now). But he knows little bit about maintenance and has time to take to the person who works off the street and fix cheap. If you have less knowledge about car, may end of paying more than it should be because used car dealer and mechanics are compared as BUTCHER. 

Newer car, teenage driver will pay more insurance( better to with geico). Now the economy is down and used car values are soaring too. In 2004 seen 1997 Camry sold for 3000 and around, now 1995-97 are asking more than 3000.

Did I confuse you??? 

 

When possible, public transportation jindaabad.

Gaadhi nabhai nahuney ho bhaney chahi, buying a used car makes sense economically.  But before forking out your hard-earned dineros to your slimy neighborhood used-car salesman, check Consumer Reports for the most reliable model, then check carfax on the particular car you want to buy.

Adios.