mbunse

Thanks chroot.. Believe me I would keep driving my dad's avalanche if I could. But when I turn 18 I plan on working valet and its like a 20minute drive. I'm lucky they are paying for gas right now, but when I'm 18 that definitely won't happen. Won't be able to ride my bike to St. Louis and back Thanks for the word though seems like you were in my situation. I can't remember where I read it in here but somewhere, I think cthree said, "Living debt free is bliss". I guess I don't really understand that because I have never been in debt.

trainwreck

i am 24 and right after working a year, i bought a new gpw s2k. growing up i was taught early about finances and knew when purchasing the car that it was a huge depreciating asset. however, i find being broke (well actually 25% goes to espp and 10% goes to 401k) at the end of each month because of car bills and living in san francisco, is a huge motivation for me to work harder.

after owning the car a year, i will need to buy a new set of tires soon. i am going to have to sell some of my stocks early and won't be able to max out my roth this year. in a couple years i think i am going to move back home and sell my car, so i cant afford a downpayment in bay area.

my advice to you is first, dont work as a valet, learn to deal cards!!! if you are going to be workign at a casino. here in bay area, dealers get 15 bux an hour + benefits and tips more tips than a valet.

secondly, if you are not confident your level of income will increase, hold off on the s2000 car purchase. hondas are nice, but toyota corollas are cheaper!!! with similiar reliability.

sahtt

You can get a sub 100k miles 00-02 civic/accord/integra for around the 7-8 mark. When they are listed, they'll be asking 7-8k, but you worked too hard for your money to pay asking price right?

If you get one around the 90k mark, expect 500 for the timing belt job if you can't do it yourself and another 3-500 for the clutch if it's manual. I very rarely buy automatic cars [actually the one I've ever purchased is a Lexus LS400 and that was after verifying it has the most durable auto trans on the market] because even honda's randomly die on you in that area, especially the V6 transmissions.

Your tire costs, insurance costs, gas costs, maint. costs, and labor costs will be much lower. You can find guys on craigslist or DIY for almost any maint. because it's very easy to do.

trainwreck makes a great point-in most areas of the U.S. Honda's are more expensive than toyotas with the base model cars. You can find corola's really cheap.

I'm looking at a 2000/2001 integra with 60-75k miles as a DD right now. I'm so damn picky though it'll probably take several months.

wifeb123

Hey youngin,

Figured id stick my head in here and comment. Granted i have had worse experiences than most but i did the same thing youre about to do. I got my first job, i earned some money and then i blew it on an 11k$ VW GTi. After a year or two, an accident and some motor/flood issues which were sorted out by insurance, I sold the car for like 6k. after putting 2k into a new motor, 1k in insurance, 600 in tires, not to mention all the gas costs, etc. Either way, im 27 now and that car was the worst investment of my life. besides that car ive had several other vehicles before and after, none of which cost over 5k...and all of which ran better, didnt have as many issues, and were cheaper to run/maintain. Now im 27 with two houses, one of which i rent. and a few thousand in 401k and individual stocks. Point is....

DONT DO IT! Its not worth it. Its going to cost a fortune and depreciate and youre going to be working for the next 10 years to pay down that debt on your valet's salary. Get a cheap car that has a history of being reliable...such as the civic...Spend a little extra to get something with low miles so you dont have to do as much maintainance. And pay for it in full, save what you would have wasted on a car payment and do the maintainance yourself so you can learn a little bit about vehicles and save yourself from the ever painful gouge of your local car repair shop.

I'm 27 and STILL waiting to buy my S2k...fact is, sports cars are TOYS and I want to wait until i can afford to WASTE money before i get one.

Best of luck

ExOdy

I'm with most of the people here also.

Don't buy the car. Buy something more within your means and income level of support. You will be able to find a decent reliable car for 6-7k and it still might be fun and all that jazz.

When I was younger, only a few years ago, I was spending recklessly on cars, modifications, and other hobbies left and right. Fast forward to today, I wish I had saved the money and invested it properly. If I had done so, I would be able to buy much better things with less stress.

Should have listened to the parents lol.

SD_S2K

One more notch on the I agree with everyone else belt ... do not buy an S2000 unless you want to start your young life in debt. Sure you will look really cool to the girls and your friends, but who cares. The cost of the actual car is just a small part - the maintenance, premium gas, tires, mods, insurance, etc will all eat through your wallet faster. Plus at your age you probably want something that holds a few of your buddies and some gear. Keep in mind the S is very minimalist. No big road trips ...

Go find a stay at home mom or grandma selling her gently used 5-10 year old Civic, Camry, Corolla, Accord, or Sentra for under $7k. I have had a few of those and never had an issue. I still use a 1995 Camry LE that my folks handed down as a daily driver. My S only sees sunny days, never rain. The Camry has 105k miles and runs like a champ. I actually prefer driving it sometimes because I am 6'3 and the space is great, the automatic is thoughtless, and the stereo is better. Plus I can't get a speeding ticket in that boat...

Put your cash in an internet savings bank for now, such as ING or Emigrant or HSBC and earn 4.3-5% in the meantime. Don't let it sit in your Wells Fargo earning a tenth of a percent. At your age there is no rush to start an IRA and that would totally handcuff the money anyway.

Save the dream of an s2000 for when you get out of college and have a salary and can afford the payments and the additional costs that come with it. Until then buy a beater and keep socking away cash. You will be happy you did some day ...

HGL1668

Here is my little story. You guys might disagree or agree with me, but this is what I have been though and my experience. This I not an advise!

When I was 16, my parents bought me a 2001 GSR Hatch (I am very grateful). I fixed it up a little bit with my allowance and work money, being debt free. Until when I was 20 years old, one summer, I racked up 3000 in Credit car debt. Then I decided to fix up my car even more and made it look exactly like a JDM DC2 Type R inside out, (which cost a lot). With those big numbers I see, buying those parts, the little numbers seems like nothing, so I went ahead and bought many other toys, like phone, Nintendo DS, clothes, LV wallets, etc. In a 1-2 months spend, I maxed out my credit cards from 3000 to 25,000!!

25k didn

SD_S2K

^^^ A perfect example of how parents ruin kids by giving them too much, IMHO .... 19/20 years old and given a newish $30k Honda Pilot ... and that isn't "enough" so you go buy a $30k s2000 .... guy has 2 $30k cost-new vehicles and he isn't even out of college yet. Wowzers



"take it with a grain of salt" alright ... at least you got out of debt, congrats on that. Hopefully the OP has seen this enough in the posts to understand it can't be said enough ...

chroot

Ouch.

Yet another indication that the banks are unscrupulous and will lend money to anyone, no matter how unprepared that person may be to deal with the consequences....

Sorry, but buying a $35k car with 100% financing and paying it off in five years is no less a debt trap than racking up a $25k credit card bill (!) and paying it off in two.

And if your parents have to help you out more than once after you're 20 years old, you are effectively a financial failure. Sorry, but it's true. You make statements like, "The problem is, I cannot live with that big car by it self." Also characteristic is the fact that the moment you crawl out from under one crippling debt, you're out looking for another. That's pretty much an indication of financial irresponsibility and a frightening sense of entitlement. Both will conspire to keep you in serious debt for the rest of your life.

Trust me, an S2000 is just as much fun to drive when you're 30 as when you're 20, and you'll be able to sleep at night.

Good luck.

- Warren

HGL1668

*Above* You are right, a payment debt is just as deadly.

But you are wrong, banks know that I can pay them off and I know I can pay them off. I didn't just went through the whole CC debt without learning a thing, I planned it out.

The car payments, I think of it as my entertainment, example, like a movie. Yes, its an expensive entertainment. But to me, its worth it and thats all that matters. And with that expensive entertainment, I can still live like a normal human being. no debt what so ever.

Yes, I am a materialistic guy, but I learned from my mistakes too. I have no CC debt right now, and will not ever again, or any other kind of debt, well, the car payment is different to me. If I haven't learn that, I would have used all my money in my bank account right now, and rack up another CC debt. Oh yes, I can because I already have a list of things that I want to buy, like... 42in. Plasma, home audio system, a new laptop, a road bicycle, Garmin Nuvi, Surefire Flashlight, and I have not even list all the parts I want to buy for my car. I can have all that with in a min if I didn't learn. I know how to take care of my money. Of course, I still can improve, but it takes time. I am planning to buy a property right now, not a bad investment right?