I'm a new grad. After tax, I should have about 44k from my signing bonus. I'm considering buying a Honda Civic Sport Hatchback (or the Touring version though idk if the extra features are worth an extra 5k~) which would be about 23k-28k. I could live with just public transportation most likely in Seattle, but I really do enjoy driving which is the main reason why I'm considering this. Would using my signing bonus on this be wasteful? And if I do decide to get it, should I just buy it straight up ? Or put a down payment on it and get a loan. (If the latter, how much of a down payment to put down on it?) Thanks for any advice!
Put a small down payment and get a loan. Interest rates are low. Put the rest of the money in index funds.
What would you consider to be a small down payment? And also how long of a loan period? I was thinking of investing money left over into something like wealthsimple, haven't really looked at index funds or would they be about the same?
$0 down, loan period depends on interest rate
Buy it ! Life is short ....u dont want any regrets later, Honda is a good choice and right in the resale market....
Don’t buy new. Buy 2-3yo off lease and let the dealership eat the depreciation
What are you talking about? A car depreciates the most in its first 3 years. How is the dealer eating up anything?
Don't buy. Lease a nice Audi or BMW or something, then enjoy every time you drive it. Been there, done that, it's awesome. I'll never go back to buying a depreciating asset that breaks down often, even when brand new You're welcome
It is not wise, just lease for two to three year, and get a new car when the lease is over. Better to put money in index fund than wealthsimple, it shows u dont know much about how regular index fund investments works. You will want to read up some finincial book on index fund and investment, else your are just throwing money away. As a new grad, u would want to save up as much as you can. A car might not even be necessary if just for occasional drive, zipline or rental will be a better option for you. U will be lossing alot of money for management fee through wealthsimple and have no control over your investment. A little adds up, and will cost hundreds of thousands over the years. A lease and a small loan is better for you if u decide to buy it, because it will help with your credit score instead of buying it with full payment at once
Buying a new car, especially at your age, is a waste of money because of the massive depreciation. If you’re gonna keep the car for 10 years then maybe it works out. Otherwise please buy a used car, even 1-2 years old is still “new”
As others have said, buying used will save you a lot of money over time. As to whether it’s a good use of your funds, that depends on your overall net worth, credit, and future plans. All that said, don’t overthink it. You are going to have a long career most likely. 20k or whatever now is a trivial amount of money in the long run.
Sounds great just make sure you aren't buying a new one.
I'd suggest getting a car by a loan, either new car or pre-own. your sign-on bonus is valuable, you can put that in a saving account(2.1% APR) against the interest or invest elsewhere. And one day if you want to buy a house, you know, you still have cash.
If you enjoy driving, why would you consider buying a civic?
I like the looks of it, and it also seems fairly cheap. And I like driving in general, not that picky about what car I drive
Then you don’t enjoy driving. You just enjoy being inside a car that you think looks good