Used Car Buying-Super Budget

[NoraG]

So I am asking this for a friend as I am been blessed to have been given my car and not had to buy. She's a college grad looking for a job, but lives in a small town. She really needs a car to be able to get a job as the offerings in her town are nill. She has very little to no credit-didn't have loans and only one cc, but I don't know what her score is because it would be rude to ask.

Anyway, if she were to purchase a used vehicle she'd need financing as she doesn't have any money to purchase it outright. She's in a really tough situation and based on my calculations could afford to make payments on a 60 mo. loan for an $8,000 car at most-that's with $500.00 down, not including tag, title, and reg, with $175/mo payments.

However, having never purchased I don't know if this is correct. I'm pretty sure she can't afford more than $500 down and $175/mo payments. A such, do you all have suggestions on what she might be able to afford. I'm thinking she'll have to get a much older car, say 2003. I'd hate for her to get anything older than that. I'd lover for whatever she gets to have $75000 miles or less on it. I'm worried that if she gets something older and more well used that she'll have to have so much maintenance work done on it that she'll end up increasing her costs tremendously. I think she's be much better off with a less expensive car and shorter lease terms (say $5000, so $6000 loan to include title, etc. for 36-42 months or so).

Any recs for good used cars? I think she'd do well with a Hyundai, Honda, or Subaru. I've herad Toyota suggested, but my mom had one that was awful and with all the recalls I just don't trust them. Thoughts?

 

[ceecee]

I think Hondas and Toyotas have the best ratings for older cars, their resale is usually higher as well. My friend just got a new car after a Toyota Corolla and it had 300,000 mi on it (she just couldn't part with it). Probably she should get a car that's not worth a lot so her insurance could be liability only and she would save that way on ins. Then once she is on her feet job wise, she could shop for a newer one.

 

[carebee21]

So I am asking this for a friend as I am been blessed to have been given my car and not had to buy. She's a college grad looking for a job, but lives in a small town. She really needs a car to be able to get a job as the offerings in her town are nill. She has very little to no credit-didn't have loans and only one cc, but I don't know what her score is because it would be rude to ask.

Anyway, if she were to purchase a used vehicle she'd need financing as she doesn't have any money to purchase it outright. She's in a really tough situation and based on my calculations could afford to make payments on a 60 mo. loan for an $8,000 car at most-that's with $500.00 down, not including tag, title, and reg, with $175/mo payments.

However, having never purchased I don't know if this is correct. I'm pretty sure she can't afford more than $500 down and $175/mo payments. A such, do you all have suggestions on what she might be able to afford. I'm thinking she'll have to get a much older car, say 2003. I'd hate for her to get anything older than that. I'd lover for whatever she gets to have $75000 miles or less on it. I'm worried that if she gets something older and more well used that she'll have to have so much maintenance work done on it that she'll end up increasing her costs tremendously. I think she's be much better off with a less expensive car and shorter lease terms (say $5000, so $6000 loan to include title, etc. for 36-42 months or so).

Any recs for good used cars? I think she'd do well with a Hyundai, Honda, or Subaru. I've herad Toyota suggested, but my mom had one that was awful and with all the recalls I just don't trust them. Thoughts?

She really needs to sit down with a lender and get an idea of what they'll lend her. Does she have a job now? Because you say she needs a car to find a job. No one is going to loan to her without an income. Secondly, if she has little to no credit, she's going to need a larger down payment. And lastly, while she may want longer terms, the bank or dealer isn't going to give long terms on an old or cheap vehicle. They wouldn't be able to recoup money if they ended up having to repo the vehicle because an 11 or 12 year old car isn't worth that much. Also, it's more likely something major will happen with an older car (transmission goes out, engine problems) and too many people walk away as the repairs plus their remaining balance total more than the car is worth and the bank finds themselves with a bad loan.

 

[NoraG]

She's really in between a rock and a hard place. She's had some temporary jobs, but nothing permanent and even what she's had only pay minimum wage. She lives in a very small town and needs to drive quite a distance to get to a job-should she find one. She's really had to limit her search because she's sharing a car. I think she really needs her own car to be able to be more flexible in her job search.

I can't make her sit down with a lender. I offer some ideas every few months or so-I don't want to be pushy. It's not my life or my decision. How does one go about getting a car to get a job if they don't have a job and thus money to buy a car? Anyone been in this situation? I was blessed to have been given my car, but she was not as fortunate. I think she'd be able to get part-time work if she had the car, but without it I don't see how her situation can improve. I want to help, but I don't know how.

 

[carebee21]

She's really in between a rock and a hard place. She's had some temporary jobs, but nothing permanent and even what she's had only pay minimum wage. She lives in a very small town and needs to drive quite a distance to get to a job-should she find one. She's really had to limit her search because she's sharing a car. I think she really needs her own car to be able to be more flexible in her job search.

I can't make her sit down with a lender. I offer some ideas every few months or so-I don't want to be pushy. It's not my life or my decision. How does one go about getting a car to get a job if they don't have a job and thus money to buy a car? Anyone been in this situation? I was blessed to have been given my car, but she was not as fortunate. I think she'd be able to get part-time work if she had the car, but without it I don't see how her situation can improve. I want to help, but I don't know how.

They get a job on a bus route and save the money for a car. It's not always the easiest or most reliable thing, but that's how it works for most people.

Another option may be to try to barter with someone in town. Maybe someone in town has a car for sale that simply isn't selling. Maybe she can offer babysitting services, housecleaning, yardwork, etc a few times a month for x amount of time until the car is "paid" off. If she goes this route, make sure there is a contract in place, but she may get an older car this way.

 

[Bungle]

However, having never purchased I don't know if this is correct. I'm pretty sure she can't afford more than $500 down and $175/mo payments.

Does her budget include insurance and gas? Honestly it sounds like she can't really afford a car at this time. I would suggest looking for alternate forms of transportation and saving up for a while before jumping into a car purchase.

 

[ceecee]

She's really in between a rock and a hard place. She's had some temporary jobs, but nothing permanent and even what she's had only pay minimum wage. She lives in a very small town and needs to drive quite a distance to get to a job-should she find one. She's really had to limit her search because she's sharing a car. I think she really needs her own car to be able to be more flexible in her job search.

I can't make her sit down with a lender. I offer some ideas every few months or so-I don't want to be pushy. It's not my life or my decision. How does one go about getting a car to get a job if they don't have a job and thus money to buy a car? Anyone been in this situation? I was blessed to have been given my car, but she was not as fortunate. I think she'd be able to get part-time work if she had the car, but without it I don't see how her situation can improve. I want to help, but I don't know how.

You really can't do anything to help. A lot of people have been in that situation, maybe she could take public transportation. If she wants your ideas, she will ask for them. I wouldn't worry about it.

 

[TheRustyScupper]

1) First of all, why consider an $8,000 car?
2) Look for a 2000-2002 car.
3) Should find on for $1,500-$2,000.
4) With $500 down, payments are almost nil.
5) Basic transportation!
6) After getting a job and putting a little way, she can upgrade.

NOTE: IMHO, people try to get a far more expensive car than they
can or should afford. When many of us got our first cars, they we
older vehicles and "starter" cars. Folks today seem to want the
biggest and best.

 

[sookie]

Toyota is a great brand. The recalls? I have one of the cars (2010) that was in the middle of that debacle. It is a great car, and I never worried twice about it. Seriously, that was a LOT of hysteria that has been refuted by the government. And they fixed any possible floor mat problems that could have caused a "caught" gas peddle.

 

[stsomewhere]

I would ask around town if someone has an old car for sale. We sold an old car for $500 because we wanted it gone.

We just bought an new truck and donated our old van to Boy Scouts.

ETA: My sister paid $300 for her first car

 

[NoraG]

Thanks for the replies. I wish public transportation were an option, but the town she lives in doesn't have any.

As for the expense of the car, I guess I wouldn't trust a $500 car. I'm sure some people (like those here on the Disboards) wouldn't sell a lemon to a desperate person. Other folks-well they are not as trustworthy. She is saving up from her temp jobs, so I'm hoping she'd eventually be able to afford something between $3000 and $5000. If she can get a car in good condition for less that's great. But if you don't know anyone selling a car, I think this greatly limits one's options.

She would be able to afford gas and insurance. BTW, I wasn't looking for an immediate fix, but rather something she can work toward. Obviously if someone has no money they can't buy a car-or anything else for that matter.

She's need to travel some distance on this car as well 80-100 miles round trip to/from a job in bigger cities nearby, so I'd hate for her to get a car that that would die because she didn't save up more for a more reliable vehicle. Of course, she can always take it to a mechanic to have it checked over before purchase-something I'd recommend.

Thanks for your thoughts.

 

[MichelleinMaine]

Another option would be if she had someone who could co-sign a loan for her.

She could look into ride share/carpool programs going to the larger area. (Usually these involve people taking turns driving, but perhaps she could neogiciate paying for gas. A friend who didn't like driving in snow did this over the winter.)

She may need to consider moving to where the jobs are, sad to say.

 

[MichelleinMaine]

NOTE: IMHO, people try to get a far more expensive car than they
can or should afford. When many of us got our first cars, they we
older vehicles and "starter" cars. Folks today seem to want the
biggest and best.

 

[LJSquishy]

She really can't afford an $8,000 car. My 2000 Nissan Sentra has 145k miles on it and is reliable and runs perfectly and isn't even worth that much. It is worth maybe $5k at the most. My dad was nice enough to "sell" it to me for $3k when he was upgrading to a new car by me making monthly payments to him...that was in 2005...and I've only had to make a few repairs.

A car in the $2k-$3k range should be perfectly fine for her needs right now. I would stick to maybe Toyota, Honda, maybe Subaru, or possibly Nissan as those have always been reliable brands (especially the first two). Have her consider even cars with a lot of miles on them (but hopefully under 200k). It should last her a couple of years or so, and by then she can probably afford to upgrade because she will likely have a steady job (paying more than minimum wage) and have some sort of credit established.

I can't say for sure, but I don't think anyone would lend to her with no current employment and no credit established. Also, I don't believe anyone will finance $8k for 60 months...I think they only do 60 months usually for larger amounts, such as a brand new car. Her best bet is to either have someone co-sign a loan for her, or save up the cash somehow...or have someone privately loan her the money ($2k-$3k) and have her make personal payments to that person.

 

[ceecee]

1) NOTE: IMHO, people try to get a far more expensive car than they
can or should afford. When many of us got our first cars, they we
older vehicles and "starter" cars. Folks today seem to want the
biggest and best.

We called them Beaters! My first car was actually nice for a teen at my school (only 8 yrs old! I called it the Beast) My mom co signed the "loan" for me so I would learn to make payments ($25 a month) but then I only had a summer job so I had to budget to get thru the winters. It got me through college and to my first job, where I bought my first new to me car.

 

[Nayan]

1) First of all, why consider an $8,000 car?
2) Look for a 2000-2002 car.
3) Should find on for $1,500-$2,000.
4) With $500 down, payments are almost nil.
5) Basic transportation!
6) After getting a job and putting a little way, she can upgrade.

NOTE: IMHO, people try to get a far more expensive car than they
can or should afford. When many of us got our first cars, they we
older vehicles and "starter" cars. Folks today seem to want the
biggest and best.

I have to agree with this. A beater car would be her best bet but really if her budget is that tight what happens if the car (any car she got) broke down? Would she have the money to fix it or would she be out of luck? Can she afford gas, insurance, regular maintenance, tires, etc.? Owning a car takes money.

 

[NoraG]

If she asks, I think I'll suggest a $2,000 limit on the car because tags and registration look to be about $1,000-1,300. Once she has a job, yes, she'd be able to afford gas, insurance, maintenance, etc. I own my car so I know how much it costs to maintain it. And mine is 11 years old-certainly not the oldest on the road, but it's not brand new. I just hope she can get something with 150,000 miles or less. There are some jobs I think she could easily get once she gets the car. Without it, she just can't be flexible on the hours because her transportation is so limited.

She has some savings, so she could probably afford the car, but would be short on the tags and registration. Perhaps her family could chip in for that instead of gifts for her birthday and Christmas. It seems like a pretty good deal to me. She's probably still a few months away from being able to afford it, but at least it's a goal that likely doable.

Thanks for bringing me back down to earth. $8000 was just wishful thinking.

 

[carebee21]

If she asks, I think I'll suggest a $2,000 limit on the car because tags and registration look to be about $1,000-1,300. Once she has a job, yes, she'd be able to afford gas, insurance, maintenance, etc. I own my car so I know how much it costs to maintain it. And mine is 11 years old-certainly not the oldest on the road, but it's not brand new. I just hope she can get something with 150,000 miles or less. There are some jobs I think she could easily get once she gets the car. Without it, she just can't be flexible on the hours because her transportation is so limited.

She has some savings, so she could probably afford the car, but would be short on the tags and registration. Perhaps her family could chip in for that instead of gifts for her birthday and Christmas. It seems like a pretty good deal to me. She's probably still a few months away from being able to afford it, but at least it's a goal that likely doable.

Thanks for bringing me back down to earth. $8000 was just wishful thinking.

Honestly, if she's interested in a vehicle and ready to take on the responsibility of one, she needs to be doing her own research as to what the costs are, what she can afford, etc. I don't understand why you're doing so much of the work for her. It sounds like you're pushing her towards something she's either not really interested in or not fully motivated for.

I really am saying this with the best of intentions and from life experience; Butt out. Let her make her choices and let her make her own mistakes. If you recommend a $2000 car and it turns out to be a lemon, she's likely going to blame you for the decision and this may cause a rift in your friendship. If you recommend something more expensive and she can't get a job or afford the payments, again, she'll likely blame you.

If she truly wants a job and a car, she will figure out what to do to make it happen. She will do her own research on the best car for her budget and do the research on whether she's better of with a clunker car or something more expensive.

 

[NoraG]

As much I think your intentions were good, I think you're jumping the gun.

I had some preconceived notions about how much cars cost and what it takes to get financing. I did the research because I was curious. She did not ask for my help and I have no intention of offering any information unless she brings up the subject. I also won't recommend a particular car and I'd insist she visit a mechanic before purchasing. I did the research and asked questions simply so that I'll be better informed. I had extra time and I wanted to do it. I'm sure she's done her own research as well. It's not something we talk about at the moment. I was just curious what others, who have more experience than I, thought about the situation and what she might be able to afford.

I think you were pretty quick to get on your high horse there. I never said she asked me to do the work for her. I did it on my own because I wanted to, because I care, nothing more. I wanted to be able to offer some information (not necessarily advice) if she ever wanted it. I happen to think friends go out of their way to help friends. If she never asks, that's fine. I still learned something. Maybe I'll want to buy a new-to-me car one day.

Sometimes you can let people make mistakes, but if you have the chance to offer some help when they truly need it and are willing to accept it, then isn't that what being a friend is about? I'd rather try to help and lose a friend then have her end up unemployed for years because I wanted her to make her own mistakes. There is plenty of time for her to do that as well I'm still not offering the advice. I'm waiting until she brings up the subject.

Thanks to everyone who offered advice. I feel as though I've learned a lot. I hope things work out for my friend and even if I never share my new found knowledge with her, I still think I've gained something.

 

[labdogs42]

We had a car tha we bought for $300 that we managed to put 5000 miles on before it died. Cheap cars are out there and that's what she should be looking for. She shouldn't get a car that she needs to make payments on before she gets a real job. (if they'd even give her a loan)

ETA -- another idea would be for her to move closer to where the jobs are!