Buying a car

Jul 7, 2019 40 Comments

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!

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 TOP 40 Comments
  • Microsoft
    Hodor

    Go to company page Microsoft

    PRE
    Expedia Group
     Hodor
    If you enjoy driving, why would you consider buying a civic?
    Jul 7, 2019 10
    • Move
      aaahehhfn

      Go to company page Move

      BIO
      H
       aaahehhfn
      If you gonna get a civic get a 2016 si and then rice the hell out of it.
      Jul 8, 2019
    • New / Mktg
      VgQe44

      New Mktg

       VgQe44
      Spending $44k on a car is an unnecessary expense. Look into a certified pre-owned instead of a brand new car. It’ll be cheaper and you’ll still get similar warranty to the new one.

      What I would do is see if you know any friends that own a car lot. Ask if you can buy a car from the auctions they buy cars at, and in exchange you would kick back $$$ for allowing that. You’ll end up getting a newer car for even less.
      Jul 12, 2019
  • Nvidia
    fckm

    Go to company page Nvidia

    fckm
    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
    Jul 7, 2019 0
  • Amazon
    oktrdq

    Go to company page Amazon

    oktrdq
    Put a small down payment and get a loan. Interest rates are low. Put the rest of the money in index funds.
    Jul 7, 2019 2
    • OP
      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?
      Jul 7, 2019
    • Tinder
      paradigm1

      Go to company page Tinder

      paradigm1
      $0 down, loan period depends on interest rate
      Jul 7, 2019
  • Google
    DocStrange

    Go to company page Google

    DocStrange
    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.
    Jul 7, 2019 0
  • Don’t buy new. Buy 2-3yo off lease and let the dealership eat the depreciation
    Jul 7, 2019 1