Im in college should I invest in financing a nice used car? About $900/month?
I make about $1,500 a month no other expenses other than gas and food
- TheRealLv 56 months agoFavorite Answer
First and foremost, no reputable lender will ever approve you for a vehicle which exceeds 25% of your gross monthly income. You may be willing to pay $900 per month, but no bank will let you. Second, the fact that you have no bills now is irrelevant. A lender will simply assume that you pay rent/mortgage, or will by the end of your loan, and will take that into account. Finally, lenders look for no less than six months of uninterrupted full-time employment, and a verifiable income of no less than $1700-$2000 per month. Failure to meet minimum lending requirements will get you denied automatically.
On a side note, a car is not an investment, it's a depreciating asset.
Sorry, it's just not going to happen.Source(s): 20 years retail auto sales experience.
- Lorenzo SteedLv 76 months ago
You need a used Accord or Camry. Reliabilty is more important than coolness, at this stage.
- GEEGEELv 76 months ago
Nice used car for 900.00 a month? That's crazy for someone at any age. A car is never an investment. It depreciates the second you drive off the dealer lot. Get a very modest used car and call it a day.
- 6 months ago
Save a couple months rent and make a friend who can find you a good used car for 2000. It absolutely can be done. I bought an old Toyota for 1100 that had worked without major failure for 3 years so far. Dealers feel like a safe bet but you won’t be getting a good value. It’s essential to have that friend or a vigilante mechanic come with you to inspect if you don’t know how to yourself
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- Ding DongLv 66 months ago
They have deals like that here in the UK, for the Stirling equivalent of that. Sure, you get a car that doesn't break down but it takes you four years to pay that and it's heavy interest. By the end the car has little resale value and you've paid double what it was worth new. Save and buy a good second hand one.
- thebax2006Lv 76 months ago
That's a lot of cash to pay every month on a car.
Save up a few bucks and just buy a used car with cash!
- regeruggedLv 76 months ago
No. Invest in investing. Save your money and buy a beater.
- JetDocLv 76 months ago
A used car IS NOT an investment. It is an expense, and a MAJOR one at that. Do you really NEED a car? If not, save your money until you can pay CASH for the car that you want.
- Wayne ZLv 76 months ago
$900 is way too high for a car payment. My mortgage was less than that.
One should never have too nice of car in college. Why? Because you have idiots for friends. How do I know? I was once in college and those same idiots were my friends.
- AnalisaLv 46 months ago
Sorry, cars are never an investment due to depreciation. And $900/month seems like a lot of money. Couldn't that be put to better use? You'd be better off investing on a monthly basis into a retirement fund. Start now and retire early as life will get more expensive.