What should I do? Instant gratification or slow and steady?

[Event]

Hey guys, remember me? of course you don't.

Anyway, I am moving to California this june to start my first real world job. I currently own a 1995 Buick LeSabre with ~170K miles on her. Since I don't want to hire a transporter, I need to drive a car to California from Illinois. I don't trust what I have now. I could tow it behind the moving truck, but my mom needs a car since she is finally going back to work after a 3 year medical leave. My dad is going to give me $1200 (exactly what I paid a year ago) for it.

So I want to get a new car. I can afford about $400 a month car payments. However, in this unstable economic environment, I am nervous about financing a car. I would think that being working for a company that does coal and nat. gas power generation would be quite stable, but I am not an economist. Some people have been talking to me about it and have made me nervous. They think I should get a $3000-$6000 car and drive it to Cali. Once I get on my feet (I'm going to have tons of expenses once I graduate, including, but not limited to, a security deposit on a very expensive apartment, I'm anticipating $1200-$1400 per month) and have some more liquid assets saved up. True, with no car payment I could save pretty quick and be able to afford a good sized down payment on an even nicer car (new Mini Cooper S, anyone? ). But I enjoy instant gratification.

So I am looking at cars that I could buy right away once I graduate. I'm leaving in June, so I'd buy in May and then drive it to Cali (that will be an awesome drive). I can afford $20K if it is at 0% APR for 60 months, or $18K at a terrble interest rate of 5.9%. This is with both down payments. I want a small, quick car with a manual. Here's what I am considering:

New 2009 Chevy Cobalt SS. Invoice is $23.5K, but I've been seeing them around for $20K. GM has an offer of 0% for 60 on many 09 models, including the Cobalt SS. Good warranty, too.

2007-9 Mazdaspeed 3. It would require some hunting and haggling to get the price down to $18K. Mazda doesn't have any good financing offers right now. I would worry about getting a used turbo

Used Volkswagen GTI MkV. I LOVE this car and it's really what I want. again with the used turbo. I can find them from $18-$15K. Most likely they would have very little left on the warranty, and I know they're not as easy nor cheap to repair as a GM car.

New 2009 Honda Fit Sport. I could get a brand new one of these which have been rated very highly for $17K. Supposedly they're quick little cars. Way less horsepower than even the GTI.

04-07 Mini Cooper S. I would love this car, I'm sure. The prices are inflated since it's a Mini

What should I do? Should I just get a car that would last me 5 or 6 months? or should I get a nice new car right away as a reward for graduating college? Or should I just bring my car and have it towed while I fly to cali?

 

[Danoff]

My personal suggestion - for what it's worth.

Leave the Buick behind and take the cash.

Fly to CA and rent a car for a week to get around. Take about $5k (finance if you must - better, take a loan from the parents if they're willing) and buy a used honda civic with about 100k mi on it and do the necessary maintenance (timing chain, water pump, etc.). Drive that 'till it dies and then buy something nice.

This would be my recommendation if you were graduating in any economic climate. Your early moves in life will be the most important. Getting started out on life with a big car loan is a good way to stay that way. If you save $5k now it will pay you something on the order of $160k when you retire. Never again in your life will you have that kind of time horizon. Use it wisely.

It's frustrating that the most important time to save is when you're young - but that's how you get ahead.

This move saves you money in many ways:
- Initial car price
- Financing costs
- Gas (which is about 50 cents higher here)
- Insurance

 

[nobuffalo]

slow and steady

 

[Event]

My personal suggestion - for what it's worth.

Leave the Buick behind and take the cash.

Fly to CA and rent a car for a week to get around. Take about $5k (finance if you must - better, take a loan from the parents if they're willing) and buy a used honda civic with about 100k mi on it and do the necessary maintenance (timing chain, water pump, etc.). Drive that 'till it dies and then buy something nice.

This would be my recommendation if you were graduating in any economic climate. Your early moves in life will be the most important. Getting started out on life with a big car loan is a good way to stay that way. If you save $5k now it will pay you something on the order of $160k when you retire. Never again in your life will you have that kind of time horizon. Use it wisely.

It's frustrating that the most important time to save is when you're young - but that's how you get ahead.

I think that's a good idea, but there will be a lot of pressure on me that first week to find a car. But I guess there are some good deals to be had if no one is buying.

- Gas (which is about 50 cents higher here)

Not versus Illinois

 

[Tornado]

I was going to say something similar to what Danoff said. Essentially, either rent a car and drive to California or fly over there and then rent something. Then buy a crap box, run it into the ground and then worry about getting something new. Either way, I agree with Danoff: Scrap the Buick.

If you must get a new car, get a Cobalt or a Fit.

 

[YSSMAN]

I voted "other" for several reasons:

Picking up a pretty decent used car is probably a good idea, and I would go for that. However, if your time frame is low, you might be on slim pickin's for solid, reliable transportation. I'd personally be pushing for something like a Miata or an MR-S if you want something cheap, reliable and fuel efficient (not to mention fun to drive). You can easily pick up the MR-S for under $10K these days, and you can easily find a late-model NA Miata for $5-7K. I'd say go to town on something like that.

BUT...

Hyundai wants to sell you one of these:

Not only is it pretty, but even as a "stripper," the car is extremely well-equipped at $17,800. Plus, you get to do the Hyundai Assurance program (if you lose your job, you can return the car to Hyundai at no cost, no knock to your credit), and resale values have picked up substantially on it.

I saw one drive by today, and it looked amazing. I shall be going to the dealer to find it tomorrow.

 

[Event]

I voted "other" for several reasons:

Picking up a pretty decent used car is probably a good idea, and I would go for that. However, if your time frame is low, you might be on slim pickin's for solid, reliable transportation. I'd personally be pushing for something like a Miata or an MR-S if you want something cheap, reliable and fuel efficient (not to mention fun to drive). You can easily pick up the MR-S for under $10K these days, and you can easily find a late-model NA Miata for $5-7K. I'd say go to town on something like that.

BUT...

Hyundai wants to sell you one of these:

Not only is it pretty, but even as a "stripper," the car is extremely well-equipped at $17,800. Plus, you get to do the Hyundai Assurance program (if you lose your job, you can return the car to Hyundai at no cost, no knock to your credit), and resale values have picked up substantially on it.

I saw one drive by today, and it looked amazing. I shall be going to the dealer to find it tomorrow.

my roommate suggested a Miata. I always thought of it as a hair dresser's car. Are they really that reliable?

I like that program that Hyundai has. I dont know if I could deal with one for 5 years though I will add it to my list of test drives, however.

 

[Tornado]

Are they really that reliable?

Nothing to break.

 

[YSSMAN]

my roommate suggested a Miata. I always thought of it as a hair dresser's car. Are they really that reliable?

They're solid as a rock, not to mention pretty easy to work on. I've seen several NA Miatas with nearly 200K on the clock, I seem to recall my Aunt's being somewhere in the neighborhood of 160-170K these days (I may have overshot the number). They sold a kajillion of them, parts are shared with the other Mazdas of the era, and the fanbase is big enough to mitigate problems should anything bad happen.

Plus, insurance is cheap. Dirt cheap. Actually, less expensive than what I pay on the Celica. Fuel economy is pretty decent as well, seems like it was in the high 20's without much of a problem. I think the only thing you'd really have to worry about is the room on the inside. I find it to be pretty comfortable, but others may choose to "pass."

 

[Event]

They're solid as a rock, not to mention pretty easy to work on. I've seen several NA Miatas with nearly 200K on the clock, I seem to recall my Aunt's being somewhere in the neighborhood of 160-170K these days (I may have overshot the number). They sold a kajillion of them, parts are shared with the other Mazdas of the era, and the fanbase is big enough to mitigate problems should anything bad happen.

Plus, insurance is cheap. Dirt cheap. Actually, less expensive than what I pay on the Celica. Fuel economy is pretty decent as well, seems like it was in the high 20's without much of a problem. I think the only thing you'd really have to worry about is the room on the inside. I find it to be pretty comfortable, but others may choose to "pass."

I am very intrigued. Plenty on craisglist in the east bay area for pretty cheap. I dont know if my family would have that kind of money to loan, but my grandma is loaded. She's helping me through college. Now I'm starting to want one. Think one of these would be good for a cross country trip?

I am 6" tall, however... would I fit?

 

[Japspecvr6]

Buy a E30 M3.....That will solve all your problems.

 

[zed300]

These MX5's, sorry Miatas, here in Aus we call them MX5, anyway they are known here as a handling machine, especially those early ones (pre "95)there only about 950 kgs,sorry,about 2100lbs(I think) they would be a great cross country car. Cheap to run and a joy to steer on the highway.
Just check for any areas that look wet for oil leaks OR too clean compared to whats near it. I mean if the diff /gearbox look nice and clean check the floor for build up, and don't be afaid to ask questions about the car.
The more imformation you get the more peace of mind you'll have 100mi from the nearest town,when your out on your drive.

 

[niky]

Echo Danoff and casey... slow and steady.

Miatas are fine except for quirks with the cooling system... which is only a problem if a track-rat owned it previously (look for signs of a hastily removed roll-cage )... but with a female previous owner and the mild Cali climate, it shouldn't be a big deal. Still, I think you should make the move, take the cash, get your feet under you, then worry about car payments once you're sure you've got the wherewithal to pay them.

If you need wheels right away, you can't do too badly with a brand new or even a slightly used Honda Fit. Great little car. Driven responsibly, a 1.5 MT Fit should be able to return you 40-45 mpg on the highway. Just don't go over 50 mph... those ultra-short gears are terrible for high-speed economy. Only problems with them secondhand would be a "clunk" from the front bushings, but this is a low-dollar job, and... heck, I don't even know if US-spec models have the same problem (different climate).

 

[YSSMAN]

I am 6" tall, however... would I fit?

I'm 6' 1" (155-ish lbs) and I fit in just fine. I think the only complaint I can think of is elbow room on the NA models. I haven't been in an NB model for a long time, but you should be able to pick up one of those on the higher end of your affordability range, and that may be a bit more of a comfortable option overall.

 

[homeforsummer]

I echo the "something else" option of some others here. Fly to Cali, hire a car for a bit to look for one to buy, and find an older Civic in nice condition that shouldn't go wrong and should last you until you've got a bit more financial security and you're settled in.

 

[Philly]

I am 6" tall, however... would I fit?

I'm 6'5" and I'll say that I fit in the car, but driving it across the country would get uncomfortable after about an hour I'd think.

If you want to get a car, I'd say GTI. It is an outstanding machine. The only less than stellar bit on it is the reliability, so make sure you go for an extended warranty that goes up to ~100k if you go this route.

My second choice would be the MS3, but I don't know if it is any more reliable than the GTI.

 

[hamstrings]

Buy a E30 M3.....That will solve all your problems.

That sounds as expensive as a new car. How much is a M3 over there? They're pretty much collector's cars over here. BMW 318is with the M42 engine, the poor man's E30 M3.

I agree that now is a terrible time to get saddled with car payments. An early Miata would be a more responsible buy.

 

[Prosthetic]

Not versus Illinois

Care to elaborate? 90% of my family live in the Chicago area and gas there was over a $1 cheaper per gallon a year ago.

Get a used Focus!!! Cheap, reliable, fun as hell to drive, NOT slow if you get the 2.3l (I have one) and if you maintain it well it will return you with no problems. Living in Cali you will do a lot of highway miles. A year ago I was looking at getting cars in the $15k range and I got a handout that you can buy for 5k and my god it's a gem. But then again it was my sisters so it was maintained well... But seriously... a Focus will go a long way.

 

[Boz Mon]

I'm going to support the miata choice, pretty much because they are brilliant cars, and reliable.

 

[sesselpupser]

+1 for the MX-5/Miata/Eunos Roadster vote, I'm thinking of ditching my Clio when I graduate to buy one, why should hairdressers get all the benefits of 50:50 weight distribution, decent reliability and a small engine in a light (rear wheel drive) car? Well its either that or an AW11 MR2 but finding one that's not rusted through will be tricky.

ETA: Also a Focus isn't a bad idea as Prosthetic pointed out, Fords generally seem to have the best handling in their class... At least the ones we get here do, i.e. the Ka, Fiesta, Focus and Mondeo. In fact at the Nürburgring in 2007 my friend in his 10 year old (but still pretty fast) Impreza 2000 Turbo was completely done between Adenauer-Forst and Metzgesfeld by a Focus S-Max, and that's an MPV/Minivan!

 

[Event]

Care to elaborate? 90% of my family live in the Chicago area and gas there was over a $1 cheaper per gallon a year ago.

Get a used Focus!!! Cheap, reliable, fun as hell to drive, NOT slow if you get the 2.3l (I have one) and if you maintain it well it will return you with no problems. Living in Cali you will do a lot of highway miles. A year ago I was looking at getting cars in the $15k range and I got a handout that you can buy for 5k and my god it's a gem. But then again it was my sisters so it was maintained well... But seriously... a Focus will go a long way.

Gas here is about $1.90 per gallon while checking it california it looks to be $2.10 in the area I am going. True, it's much cheaper than last winter, but I fully expect the prices to skyrocket by memorial day this year, if there is ANY sign of an even slight economic recovery.

My family has a bad history with fords. The last 3 we've had have been wrecked with injuries to the driver. But I will look into it since I don't believe in curses.

Also, does a 50:50 weight disribution really matter that much in everyday driving? Or only on the track. I can safely say that I won't be taking it to the track, but I will be flying around town

 

[Prosthetic]

It's still under $2? I've seen almost $3! Where abouts in Cali are you moving to?

 

[Event]

It's still under $2? I've seen almost $3! Where abouts in Cali are you moving to?

Dublin, east of Oakland http://www.sanfrangasprices.com/

 

[Prosthetic]

Dublin, east of Oakland http://www.sanfrangasprices.com/

Hmmm.. I live in Marin.. opposite side of the bay. With the average home value over a million now that should be why gas is more expensive here. Didn't realise it was that much cheaper in the east bay.

 

[Event]

I'm now imagining driving a miata through the twisties in the California mountains and forests... I think my pants are getting tighter I've found some 95-98 miatas with 80-120K miles on them on CL, often garaged in the winter, for $4-5K out in the east bay area. Sexy... I'm gonna ask gramama for some money over spring break

 

[Prosthetic]

I'm now imagining driving a miata through the twisties in the California mountains and forests... I think my pants are getting tighter I've found some 95-98 miatas with 80-120K miles on them on CL, often garaged in the winter, for $4-5K out in the east bay area. Sexy... I'm gonna ask gramama for some money over spring break

We should totally get a drive of a bunch of GTPers together.

 

[Philly]

I don't think you're going to find a car that will be more fun to toss around town for the money than a Miata.

But if you want to shell out a little more and are willing to not be able to change your oil, I'm sure the GTI will put as many smiles on your face and be able to haul 5 people in relative comfort and a ton of stuff with leather. Although I'm guessing you don't exactly have plans to have to be able to carry a bunch of kids and stuff around just yet.

 

[Event]

I don't think you're going to find a car that will be more fun to toss around town for the money than a Miata.

But if you want to shell out a little more and are willing to not be able to change your oil, I'm sure the GTI will put as many smiles on your face and be able to haul 5 people in relative comfort and a ton of stuff with leather. Although I'm guessing you don't exactly have plans to have to be able to carry a bunch of kids and stuff around just yet.

The only thing I'm worried about is that they are mostly manuals. I want a manual but I've only driven one once (with a crappy instructor in a ford focus). I would feel wierd about asking the owner selling the car to teach me . I wouldn't have a problem at the dealer, however, I'm sure a miata doesn't have as loose of a clutch as a Cobalt.

 

[Danoff]

The only thing I'm worried about is that they are mostly manuals. I want a manual but I've only driven one once (with a crappy instructor in a ford focus). I would feel wierd about asking the owner selling the car to teach me . I wouldn't have a problem at the dealer, however, I'm sure a miata doesn't have as loose of a clutch as a Cobalt.

Get a friend to teach you on their car.

 

[Event]

Get a friend to teach you on their car.

don't have any friends with a stick. Maybe my dad knows someone with one and then they could teach me. I know the theory of it.