Looking for advice and opinions

[Corran9]

I've been reading the Camaro5 forums for a while now, but today I finally registered to begin posting. So first off, Hi! Nice to be here.

As for the reason for THIS post, I'm in the process of saving up money for Camaro. My goal is to have enough to have $10k for savings and investment, and $10k for a downpayment on a 1SS. That is the amount I'll need to put down on the car to bring the monthly payment down to what I am ready to pay each month.

I am also working on building/restoring my credit.

I expect the process for both of these goals to take about a year to a year and a half. My dilemma is this: my only means of transportation at the moment is a motorcycle. This served me fine for the last 2 years as I was in tech school for the Air Force and lived in the dorms and was basically a prisoner anyway. Then I was in the dorms on my base, and right now I'm deployed. But when I get back to the states in a couple months, I'm finally moving out of the dorms and will finally be back in an apartment. Living off base will be difficult with only a motorcycle, so I intend to get a car. My question for all of you, is what is the best combination of financial soundness and enjoyability for buying a car to only keep for a year or so.

Option 1: Buy a late third gen or early to mid fourth gen F-Body with high mileage for $3 - $5k cash. Obviously won't be the best condition, but it seems like there's a few out there that are decent. I could drive it for a year, then try and sell it for as close to what I paid for it as I can.

Option 2: Buy a slightly used mid-sized car (i'm thinking like an '07 Altima or something.) These are generally going for around $12-13k. To do this I would put a down payment on the car and then get a loan for the rest. So I would be paying interest, but I would have a more reliable car. Then in a year or so, just like in option 1, sell it and hope that it hasn't depreciated too much.

Option 3: I dunno.


Multiple times over this deployment I have changed my mind about which path I would like to take. I would love to have an F-body again (I had an '89 IROC that I sold when I was 19) but on the other hand I'd like to have something in nice condition that I can take on road trips, and is a bit newer.


So what I'm looking for is thoughts from other people. Any advice or ideas you have will be appreciated.

[jrc1122]

First off, Thanks for your service. I served in the USAF for 10 years. It was a great time, and a great career builder for me.

But to the Original Point:

Well, I will come at it from a different point of view.

When you finance you pay interest. When you pay interest you plain and simple over pay for you vehicle. So putting 10K down is a great thing, Lowers the amount financed, which mean you pay less interest overall.

I am just now coming around to the realization that I have always been a fool with money. Sure I paid my bills on time, every time. But If I calculated just all the finance charges and interest rates I have paid over the years. I could have a few really nice cars sitting in the garage paid in full, and a fat bank account.. All you need to do, is put your wants on hold for a little bit and save up the cash.

I'm not preaching.. I haven't even lived by my own advise. But I am going to start. No more credit cards, no more auto loans, especially financing nearly the full amount for a car.

if you can drive a beater for lets say 4 years, and then save extra hard for the car you want. You will not be paying any interest, thus being able to save the cash to buy the car in a few less years, than the payments would be for.

You will then be able to go buy your Camaro outright. and have no payment, and keep the savings going. In theory if you put your dreams on hold for about 4 years. You can have a new car every 4 years and pay no interest, and own each car outright!

[jrc1122]

PS, and 07 Altima still has alot of depreciation to go..

[Berean]

Originally Posted by Chief Blackhawk

Buy a cheap car with good resale value like an accord or something for a DD.

[CaniacFan]

Ya, in agreement with a Civic (less expensive, better MPG) or Accord - yet highly dependable. Lower insurance if it's 8-10 yrs old.

I've never had a hugh down payment on any vehicle I've financed (I'm 51), , have 4 kids, a house, two motorcycles as well as credit card debt - etc. and my credit score is over 700. While in the perfect world, paying cash is nice but it doesn't help your credit score cause you're not making payments (on time, etc) - nor will you pay interest if you pay cash - but 90% of people finance any major purchase. Lot of factors go into a credit score. Get copies from all three companies about 6-12 months before your purchase cause if there is something wrong it takes forever to get it corrected.

Good luck on getting a DD as well as saving for your new Camaro. Lori

[jrc1122]

Originally Posted by CaniacFan

Ya, in agreement with a Civic (less expensive, better MPG) or Accord - yet highly dependable. Lower insurance if it's 8-10 yrs old.

I've never had a hugh down payment on any vehicle I've financed (I'm 51), , have 4 kids, a house, two motorcycles as well as credit card debt - etc. and my credit score is over 700. While in the perfect world, paying cash is nice but it doesn't help your credit score cause you're not making payments (on time, etc) - nor will you pay interest if you pay cash - but 90% of people finance any major purchase. Lot of factors go into a credit score. Get copies from all three companies about 6-12 months before your purchase cause if there is something wrong it takes forever to get it corrected.

Good luck on getting a DD as well as saving for your new Camaro. Lori

I seriously struggle even commenting, because I am truly not practicing what I preach(yet).. But I will.. Because I am going to try to do my best to do the smart thing and live a much more sound financial life from now on.

But... a credit score is simply proof that you have no problem paying too much for something in order to have it now, as opposed to saving for it.
True, MAJOR purchases like a home-- you need credit,, most everything else, is just the US culture of "gotta have it now".

But when you are at the point of buying a home- you typically plan for it.. A 2 year plan at least (not always, but lets not get caught up with the fine details) So you want to buy a house right.. Go open 3 lines of credit. A credit card, a personal loan, and a small car loan. (Make them for a 2 or 3 year term. Pay extra on them. Pay ontime, and realize that the only reason you are paying interest on those things, is so that you can get a home.. 2 years of credit history and cash down and proof of income is typically enough to get into a house these days.

Once you are in your house. Immediately pay off those three loans.. and stop paying interest. Now you have no need for a credit score for the most part.

You have your home, you have NO DEBT (except your home) and you have a big savings acct, because you don't have car payments, loan payments, and credit card payments. You put all that money in savings and buy the things you want/ need with your saved money.

Furniture, new carpet, new cabinets, a TV, etc..

The problem is (and I am super guilty of this too) we want what we want, and we want it now.)

It's not a dig.. If you want to pay more for something just to have it a now, then go for it.. I am guilty of it, but I am truly just giving myself a huge pep talk right now..