17/18 year old buying a camaro/c6 vett?

[Evergreen6]

Originally Posted by ST1LE

It is a good rule of thumb that your car note should not exceed 10% of your income.......that is tough if not impossible as a kid on $10+ an hour, but we all learn from our decisions and being broke all the time HAS to suck.

That's the advice I've been given as well. To be more clear, gross income is the measure I was told, but it's even better if you can squeeze it to 10% or less of net income. I was also given advice to never finance beyond 36 months even for a new car, unless the interest rate is 0%. Look at the amortization tables, at higher interest rates it just doesn't make sense. Even then, it's important to watch the residual and not be upside down, and be prepared to pay any outstanding loan amount if the car is totaled. There are also interest rates I simply will not take, however, the last 10 years of rates have been very kind for well qualified new/used car buyers.

The advice has worked very well.

This is all a moot point for the OP...I believe you must be 18 in order to sign a legal and binding financing contract in most states without a cosigner. The bank won't approve any loan on the OP's income/credit history period, but he could buy the car if it was an all-cash deal.

[Emig5m]

Originally Posted by Dfault

This.

I'm a pipliner bringing in $2,000 a week and I still can't afford to buy the car I want. :(

The car you want? You have a 2010 SS- what car do you want?

[Austinfett]

I was actually invited to live with my grand parents next to the college i want to go to. I would qualify for grants. (I'm not on welfare, just insurance btw). I was also told i wouldn't need to pay rent, just maybe food every now and then.

I could actually afford one then... And i would've probably lived with my grand parents anyway.

[pickwithaustin]

Originally Posted by Austinfett

As far as everything else, we get enough assistance from the state to make it alright. Food and medical is payed for.

.

[Dubscamaro]

I say either save the money or go with another nice car you can mod and still get laid in. For example, genesis coupe, 350z/370z, etc. still great cars! See them modded all the time at local car meets!

[whan]

Originally Posted by Austinfett

I was actually invited to live with my grand parents next to the college i want to go to. I would qualify for grants. (I'm not on welfare, just insurance btw). I was also told i wouldn't need to pay rent, just maybe food every now and then.

I could actually afford one then... And i would've probably lived with my grand parents anyway.

Let's break down the numbers.

You plan to go to college. Lets say you are able to work 25 hours per week (which is pretty generous). At that rate you make $12*25 = $300/wk. Per month that's $1200 pre-tax. Post tax you're looking at somewhere around $900, given a 25% Gov. take. So you have $900 per month in income.

Car payment: I'm paying off a balance of $30k on my car in 4 years. Payments are currently $650/month. Let's assume you have $10k down on a $30k used SS or whatever, so your balance is $20k. 66% * $650 = $433 per month.

This leaves you now with $467 per month. Insurance is going to be at least $150 a month, even on your parent's insurance. I was lucky enough to have my parents pay for this year's insurance during my last year of college and mine was $150. I'm 22, graduated college, and my rates will certainly rise once the new year rolls around. Let's say $150 in insurance.

Now you have $317 a month left. Now you have to pay for gas. If you get an SS, your MPGs will be not great. Plus you have to shell out for premium gas. If you drive to school every day, look at filling up every other week at the minimum. $65 fill up, so $130/month.

Now you have $187 left. You haven't even factored in the cost of maintenance (Tires aren't cheap).

If you are planning on contributing to your college payment, rent, etc. you're screwed already. Even if not, you still have to buy books and other stuff. Now you're not even factoring in all the miscellaneous fun stuff in college. You have $187 per month to eat dinners at restaurants, see movies, go to bars (If you plan on it), hang with friends. That $187 doesn't go very far at all.

[Jobrien]

Originally Posted by Da Mammer

Question 1: you say insurance is your only bill, does this mean you have:
A loaded mommy and daddy or equivalent who are paying for the car
B have saved up enough money from the last few years to pay for it
C forgot to mention the car payment in your monthly bills

Question 2 are you looking at a
A new unsold '13 vette (you said c6)
B new camaro (I'm assuming v8)
C used c6
D used camaro

Question 3 is this your first car?

Question 4 do you already have another car suitable for winter?


Answer key:
If you answered A to question 1 I vote you should not have either vette or camaro
If you answered B get whichever you want and can ACTUALLY afford.
C when I was in school there was this thing called math, and I think you should rethink your finances and get some real numbers not just what someone said. I financed 31k with a credit score of 780+ and still needed a cosigner and wound up with a $610/month car payment and 31k is the least of your worries if you answered either A or B or Even C to question 2.

Question 3 if you answered yes, then I again vote no. Learn how to drive before you get that much power.

Question 4 if you answered no you will need one before you need a sports car.

Look, honestly we all want to see you get the vette or camaro of your dreams, but nobody wants to see it handed to you. There is a certain level of pride and appreciation and respect that comes from working hard to get your own things (sports cars included) and if you think people are giving you a blast of crap now about wanting a vette, imagine how much you're going to get when you're riding around in one that somebody else bought for you.

Also look at your future, it's near impossible to live off of 12.xx an hour as is, with a car payment it is impossible. Finish school, go to college, get a good paying job and buy what you want and have income to spare, by 22. At 17/18 you aren't even half the age of a 40 year old midlife crisis, you've got plenty of time. Do it right.

wow 610 a month with credit score of 780 ! your crazy for taking that deal !
im 20 with no credit history and they got me at 500 financing 30k . and no co signer .

[whan]

Originally Posted by Jobrien

wow 610 a month with credit score of 780 ! your crazy for taking that deal !
im 20 with no credit history and they got me at 500 financing 30k . and no co signer .

It depends how long the term is. For $610 a month he's probably looking at 54 months at 4% or a bit less. I'm at $665/mo for 48 on $30k at about 3% (Parent's credit, but I'm footing the bill). I'll end up paying $31,873 by the end.

In order to get $500/mo financing 30k. I'd guess you have a 72 Mo term at almost 6% (given you have no credit score). You'll end up paying $35,800 by the end.

[Evergreen6]

Originally Posted by Jobrien

wow 610 a month with credit score of 780 ! your crazy for taking that deal !
im 20 with no credit history and they got me at 500 financing 30k . and no co signer .

Think about what you're saying.

It's more likely that the $610/month guy took a shorter term and will have his car paid off quicker than you will. Shorter terms also usually come with lower interest rates, especially if it was a used car. More equity faster, a quicker payoff. It's a better way to go, to become debt free, faster.

A 780 credit score is on the high end of "good" and on the cusp of "excellent." It's likely that $610/month guy qualified for the best rates available.

I can tell you that having no credit doesn't automatically come with a 780 credit score and it's highly unlikely you qualified for 0% or the best rate at the time. If you did, that's good for you, but it's not normative.

[NoleLife]

I hope you read this reply man - seriously. It will be worth your time.

I am 27 years old with a degree in Computer Science and work as an analyst for a university. When I got this job, after buying myself some other toys I had been wanting for a while, I saved up a downpayment, traded my truck in, and bought my Camaro. I love the car to death and don't plan to sell - but I also regret my choice. Maybe not entirely THAT I did it, but rather HOW I did it. And it's not the first time -- let me back up.


I have been working constantly since I was 15. I worked after HS, and full time over spring/summer/winter breaks. At 19 a job opportunity opened up and I worked as Technical support for the university and was making 10 an hour. I also worked between 20 and 30 hours a week while being a full time student (for a year I held down a job at Hollister working closing/opening shift as well, pushing 40 hours a week + school). The point I am making with that lengthy explanation is that I had sizable income for my age and being a student. The problem was my hobbies.

I enjoyed paintball, R/C vehicles, and video games. I played paintball every weekend. I kept buying upgrade parts for my stadium r/c truck, 200 for an engine here and there, 200-300 for a new radio, fuel, replacement parts, etc. I also bought every new game I wanted, and built a new computer every year. Then I started buying lots of clothes. OH! And I ate out - A LOT. Every meal. Constantly. Looking back, I have very little, if anything, to show for ~5 years of working upwards of 40 hours a week. It was a bit of fun while I had it, but a regret for me now. I should have saved my money where I could. I should have made sandwiches at home, bought cheaper clothing, not bought things I didnt need, and not bought so many video games (go for a bike ride - I wish I had done that instead). The question is though, why?

The answer the same reason why I regret jumping right into work, buying expensive things, and locking myself into an expensive payment. I don't have money to travel like I would like. I have 8 weeks of vacation saved up. I have weekend availability. I get winter holiday off. I could fly anywhere in the country, or abroad to see the world but I don't have the money to do it as much as I would like. My friends graduated college and because they saved while being a student, they had money to go backpack Europe and see every country for 3 months before starting a job. I would kill for that opportunity.

Additionally, as a student/young adult you are going to want to go do things with friends. The car would be fun, but taking a trip to the mountains, or bahamas, or California with friends for a week would be much more fun and create lasting memories.

Hope you read this, and hope I didn't repeat too many things, but take it from some one who has gone through this. Later on you will wish you didn't get some so expensive and wish you had saved and/or traveled instead.

EDIT - Additional Info: Some things to consider, as others have sorta pointed out.
-Gas: You're young, you're not going to drive it the most conservatively. I don't. I currently spend 60 a WEEK in gas, and I drive it well under the avg miles per year
-Tires: On the SS, they are 420 a piece for the replacement runflats.
-Insurance: I'm 27 (over the 25 threshold) with a nearly perfect driving record (just a couple seat belt tickets, 4ish years ago) and my insurance is 138 a month. Granted... I do have a fair bit of coverage
-Oil: Oil changes are 92 each

[TPAJETSKI]

It's a bad idea financially to begin with, but add in the fact that your folks are receiving government assistance, and you live with them, you morally and ethically have no business spending that type of money on a car.

[Da Mammer]

Originally Posted by Jobrien

wow 610 a month with credit score of 780 ! your crazy for taking that deal !
im 20 with no credit history and they got me at 500 financing 30k . and no co signer .

My loan was a 5 year loan at 3.99% interest... A FINE EXAMPLE OF WHAT AN EDUCATION AND A GOOD PAYING JOB CAN DO [hint hint cough cough OP]. I got my car (New 2010 2SS highly optioned) for my 24th birthday and had it paid off in 2.5 years at 26. While also buying a gsx-r1000 and a couple beater cars for winter and quite a 'few' mods to the car. Call me crazy, but I'd take that deal again any day.

[Enduring]

Originally Posted by rebelyell22

Yea, I'm 18 with a clean record and insurance is $415 a month. Believe it or not, that's only a few dollars more than what my '12 Jeep Wrangler was. These cars aren't too bad

It really depends on the insurance company. I'm only 23 and my insurance is only $100/month. The Camaro costs me $50 more per year than my 14 year old Grand Am GT. My insurance company doesn't use age in calculating insurance, only driving record. With 8 years of a clean driving record I have a 16% discount.

[Austin45]

I just paid off my Camaro that I bought when I was 17. It took my 2.5 years and the only reason it got paid off early is because I was really lucky and received a windfall. If buying the car means you have to live paycheck to paycheck for 4-7 years, don't do it.

The only reason I was EVER able to pay for this car is that I'm in college on full scholarship so my only bill was the car.