Potential New Owner

[ShoGunZek]

Hi Everyone,

I just graduated from college (22 years old) and will be starting my first job on July 12. I have been looking at new cars and am absolutely set on the Camaro.

I have found a black 1LT with the RS package and the silver stripe package for 25k. I was wondering what everyone thinks about this price? (It is a manual btw).

I will not be putting a down payment on the car (have no money as I just graduated on May 30) but do not have outstanding school loans that will stop me from being able to make monthly payments on a car. I have been authorized a loan from USAA for the car but I am not to keen on the 5.99% they want to give me for 72 months. Does anyone have any idea how someone in my position can negotiate for a good loan rate?

Does anyone think it would be better to wait one to two months to try to get a 2011 LS as it might be cheaper than the 1LT I am looking at now?

Any ideas or suggestions are welcome.

Thanks!

[garagelogic]

Advice. Don't run out and buy anything just because you graduated. Spend your first year on the job putting back a nice rainy-day fund (~4-6 months of wages) and get a good start on your retirement savings. Once you have accompished these two things, you'll have a much better idea of what kind of disposable cash you are going to have and then you can go new car shopping without having to sacrifice your longterm financial plans.

[Danprh427]

Keep what you got then look for a good steady job and get a 1ss if they pay you well, im a junior in college but i had 15k and i work full time so i got the 1lt rs

[ShoGunZek]

Thanks for the advice. The only thing is I have to buy a car as I do not have one. I did not have one throughout college and the one I was driving in high school (91 Accord) crapped out and was sold for around 400. I need a car for work. I was thinking of getting a used vehicle but I am weary on parts breaking, etc. and not knowing what you are getting. I don't want to buy a vehicle and end up putting money into it when I could have bought new in the first place. I was thinking of getting an '08 or '09 certified vehicle but I figured I would rather spend a few extra thousand to get a new one and something that I absolutely want.

I also thought about leasing but in Illinois you pay sales tax (yes, on a lease) and it didn't make sense for me to go that route when I would be paying upwards of $2200 just on tax when I would not even own it. I also may have to travel for work (I will be moving every 9-12 months for the program) and the leasing mileage would not work out for me.

I am in the position to afford a vehicle but not having the money right now for a down payment is not helping me with the financing. Parents cannot help with the down payment either unfortunately.

[garagelogic]

Based on what you are saying, I think it would be a poor decision to buy a new car. You do not have to buy new to get a dependable vehicle. Like you, I did not have a lot of money coming out of school, so I was forced to looking into the used market. Fortunately, all of the used cars I had were great and never gave me any problems or cost me a bunch of money to maintain. If you stay away from sports/musclecars and some of the rally cars (yeah, I know, all the cars that would be cool to drive) you stand a much better chance getting a car that has not been driven hard/abused and will last you for years.

I know it's hard to go down that road, especially coming out of college and getting into the workforce, especially when you may see so many of your peers buying those cars but, as Dave Ramsey says, it's better to live like nobody else today so you can live like nobody else later. (i.e. not loaded down in debt with little spending money between checks and no retirement plan to speak of.)

[ShoGunZek]

I agree. I am open to a used car I just need to find a good one. I do not think I want to buy one that is not GM Certified, Mazda Certified, etc. I am not wedded to the Camaro, but as you said, it is harder not to drive one at this age. What do you think of going the certified used vehicle route?

[Brownhornitt]

WAIT! Don't get a new car. Find an early generation 4 Camaro (or Firebird) V8 if you want a sweet car. Those should be around 5,000 or so, and maybe even less. You can even mod those up to be a nice little car. I had '92 and '94 Firebirds, both awesome.

Save up for a new car (a 2012 Camaro).

[Memphis SS]

Find you a good Honda, Toyota, or Mazda to drive that is cheap on fuel. This will allow you to say money and prepare to get you a Camaro or the car you really want once you get a nest egg put away. You might want to check what your insurance would cost on any used or new car before buying. It is hard to save when your monthly cost for gas, insurance and are deducted from your income.

[garagelogic]

I've never been a big fan of buying a "certified" vehicle, as in most cases, all that means is that the dealer did an inspection of the car and found no glaring issues with it. Then they turn around and justify charging you more for the car because it has been "certified". The fact is, a certified used car has the same likelyhood of having mechanical issues as a non-certified car. The difference is that some dealer provide an extended warranty with their certified cars. When you add it up, you can buy a non-certified used car and add your own extended warranty to it for less than you'll pay for that "certified" car. My suggestion is to do a LOT of research before you go car shopping to ensure you are getting a good car for the right price.

[bbfn11]

I concur with what everyone else is saying. Get something that will take you around for a year and save up for what you really want and not just settle for what you can get.

[Amanda]

Speaking as a fellow 22 yr old... I say save up a few thou for a down payment and get a good work history going... no reputable bank will give someone a loan with a decent interest rate without a history of paychecks (hence the reason they ask for a pay stub) I owned a chrysler crossfire for a year instead of my dream car so I could save up little by little, and even built up my credit a bit before getting an SS (on order and due to be here in august btw!!!! yayay) And def go for the SS... thinking about all that hp will help you wait a little while and save some $!

[brantley847]

I agree with others...try to bite the bullet for awhile man...

One thing to remember is insurance rates. Buy used and it will stay reasonable...take your new job and put a good down payment on the camaro. I am about to turn 25 and wanted so badly to get the camaro out of college when I was 23....my insurance would have been around 900 for the bare minimum coverage. Now that I am pushing 25 years of age, my rates have dropped all the way to 350 for 6 month intervals...

In addition to that...I stayed at my new job....saved up for a year and now will put a 22k down payment on the Camaro 2SS/RS and bring my payments allllllll the way down to 250 a month. That is much more reasonable for me with a lower insurance rate compared to if I had bought the car a year ago and paid 450-500 a month with high rates....

Just hang in man....its hard, but think of it this way. By the time you get your insurance down, establish yourself at the new job......the Z/28 could be back

[Inferno Man]

Originally Posted by brantley847

I agree with others...try to bite the bullet for awhile man...

One thing to remember is insurance rates. Buy used and it will stay reasonable...take your new job and put a good down payment on the camaro. I am about to turn 25 and wanted so badly to get the camaro out of college when I was 23....my insurance would have been around 900 for the bare minimum coverage. Now that I am pushing 25 years of age, my rates have dropped all the way to 350 for 6 month intervals...

In addition to that...I stayed at my new job....saved up for a year and now will put a 22k down payment on the Camaro 2SS/RS and bring my payments allllllll the way down to 250 a month. That is much more reasonable for me with a lower insurance rate compared to if I had bought the car a year ago and paid 450-500 a month with high rates....

Just hang in man....its hard, but think of it this way. By the time you get your insurance down, establish yourself at the new job......the Z/28 could be back

X2! Less is more right now.....trust me!

[ShoGunZek]

Thanks for all the advice guys.