should i buy a car?
Newly graduated and moved to san jose from Canada. I don’t know if I’ll stay in the Bay Area for more than a few years, and if i don’t I don’t know where i’ll move to. Maybe i’ll go to San diego, Seattle, New York, or back to Canada. Maybe I’ll stay here for longer. i am using lyft right now and just going to and from work is costing me around 300 per month. I have no debt and have about 40k saved up. should i spend 16k(19k after taxes and fees) on a used 2017 honda civic given my situation? or should i get a cheaper car? I know i can get a really cheap and reliable 10 year old corolla, but I will probably want to upgrade after a few years. With a better more expensive but still reliable car now, I would want to keep it long term. TC 120k
In your calculations include parking costs, insurance, maintenance and gas. Those added up to around $900 per month for me when I first bought my car (the car was worth around $20k)
Woah $900 is a lot! I won’t be paying much for parking, and my insurance is around $200. I don’t imagine maintenance and gas will cost much for a civic, but this is my first car so I could be mistaken.
Don’t buy if you can stick with that $300 number for Lyft. Also if I am not wrong, apple gives $100 for transit that you can use. I bought $40k car with similar tc as you in 2013 and Sold it for $14k in 2016 and I think it was the worst financial decision I ever made.
Yes Apple does give 100, but I still spend around 300 per month going to and from work, and a couple of extra trips a few times a month for things like doctors appointments, etc. I barely go out otherwise because then my transportation costs would easily be 500+.
what on earth at the time convinced you it was a good idea to buy a car that depreciates 65% in 3 years??? 🤨🤨
Lease it
OP, buy a reliable beater.
As someone above said, calculate all your costs (parking, insurance, gas, & maintenance) and buy a reliable cheap car. Unless you want a more expensive car, you don’t need to spend the money on one. Don’t lease unless the numbers really make sense or you hate equity.
Yes
Yes
Car ownership is expensive in the US. Your insurance costs will be very high if you're under 25. Insurance - 200 Gas - 150 Monthly installments for a 10k car with 3 yr financing deal - around 300 This will set you back by 650-700 bucks per month. That being said, I know exactly what you mean when you talk about going anywhere on a whim. I resisted buying a car for a year and used alternatives until I started feeling that my life was restricted, specifically in South bay I ended up buying a used SUV for 15-20k from one of the dealerships but my friends got awesome deals on Craigslist. One bought a used Hyundai Elantra that was 1 year old and had 30k miles for 9.5k. Another got a great deal on a mini Cooper - 7k that would've otherwise set him back by 13-14 k based on the estimate given by the authorized dealership. I would suggest that you stay on the lookout and if you find a great deal on Craigslist, go and have a look at it. Do get the car inspected by a mechanic before you sign anything.
I would say buy Honda/Toyota which is below 10k. You probably can get something which is 5-6 years old, 70-90 k mileage with that price cap. I would go with private buyers and negotiate hard , will be cheaper than dealer price. I would also check the car’s previous history and look for clean records. Before finalizing the deal check with a mechanic and go for basic inspection. Unless you live in the city and works there as well in Bay Area it’s hard to be without car. Other option is to get a colleague as a roommate who has a car and same working schedule if you want to avoid buying a car.
Spend 7K on a car