Young Adults Struggle with Car Financing

“Yeah, definitely a good deal. I'm a little concerned about the transmission as it tends to have issues in this model year, and can cost more than the car to get replaced. I'll think it over quite a bit before making any decisions. Thank you for the advice!”

“It depends on the interest rate, and if you will have to pay taxes on the money you use to buy the car. I had a co-worker whose husband who convinced her to pull money from a 401k to buy a car. They got hit with a huge tax bill, and lost all the earnings potential of that money for their retirement.”

“A lot of hardliners will say to never finance a car; but it all depends on your situation. If you’ve got a decent down payment, good credit history and income you’ll get more favorable loans than the usual horror stories here”

Cash is always better. Why finance a depreciating asset?

“Man oh man where to even start... Sorry for the long rant I jusg massively need some advice! In 2024 I purchased a 2019 Chevy Trax I was freshly 18 and knew very limited knowledge on cars. Originally I had a 2002 Cheep Cherokee and if you know anything about them, they have so many issues. My break lines and break pedal and basically the whole damn car itself decided to quit working one day on the way to work and my family just moved 12 hours away from me so I was on my own. I panicked because h”

Oh! Its an Ad!

“Well for a $1500 car they will probably be on liability only... Doesnt matter as much at that point.”

“$504 a month is a lot to carry with no job, moving out soon, and only 6-8 months of savings. That payment alone eats a huge chunk of your runway right when you need flexibility most. The car itself sounds fine, it's the debt that's the risk. If you can't find work in time, you're stuck with a 23k loan and no income, and that's way worse than upsetting your mom. I'd look at selling it, paying off the loan, and getting something cheap and paid off outright, even if it's”

“Every car buying choice is going to be different. The always buy used isn't always good advice, but it's typically not bad advice either. Look at the cost of the car out the door new vs used and decide if the extra $$$ for new is worth getting an extra 1-3 years of car ownership. Most of the "NEVER BUY NEW CARS!" advice is based on people who keep cycling through new cars every 3-5 years. If you buy a new car and use it till the wheels fall off, it's probably not a bad way”

“I’m 24 and living with my parents. I got my first real job and make $65k a year gross / around $2k net biweekly. 4-5 years ago my parents got me the car I wanted as a gift for graduation. Nothing crazy, just a $10k car. The thing is it is an older BMW and you can imagine how that goes. It needed a new engine after a couple months and my parents decided to get this done at the dealer. For my own sake cannot say how much that cost. The car has now been sitting for almost a year. I have a newer ver”

“I would most definitely keep the 3k for an emergency fund. Whenever you do have extra cash, try to put as much as you can on top of your regular car payment if your goal is to pay it down as fast as possible. I would not let myself be in a position with absolutely no emergency fund, it's extremely risky.”

“Not tryna kick you while youre down but good finances for years means having an emergency fund.”

“hello, this is my first time ever at a mechanic and hoping to find a shop i can trust for my first car, while also trying to learn to take care of my car as well. i have a 162k mileage 2013 honda crv, and i initially made an appointment for a check engine light, but also knew it needed an oil change, rear differential, brake fluid, and transmission fluid change. they figured the check engine light was due to the catalytic converter failing but i decided to not have that replaced yet, and maybe g”

“Have you looked at used EVs? They have little resale value if you don’t mind having a very limited range (charging every couple days).”

“So my plan was to drive my car until the proverbial wheels fell off. Well the wheels are falling off. I paid $5000 in cash for this car 6 years ago from an auto auction lot and it’s been nothing but repairs since. I estimate I’ve probably put $5000 in repairs into this car (including $1600 to have my brakes completely rebuilt last year). I’ve got a transmission issue and it’s estimated that it’s going to cost at least $1200 to fix. My KBB value on my car is like $600 at this point (it’s a 2012 N”

“Late comment but I can confirm that if you are above at least 780, use their TrueCar buying service and are a rewards member you will get 3.64(what I got) All I had to do for the rewards member discount is open a credit card and have a 1,000 direct deposit in the month your loan goes through as I was a brand new member”

“Hi everyone! I'm 18 and starting college in Florida this fall, and I'm trying to figure out if financing a car right now is the smartest financial decision. Here's my situation: About $5,000 for a down payment (I could increase it to around $8,000 , but I'd rather keep it at $5k if possible). Expected interest rate between 2.5% and 5% . My credit score is 768 , but I just turned 18 and only recently started building my own credit, so the loan will most likely be under my dad'”

“Got into a car accident two weeks ago. Shopping around to eventually get a car when I recover in 4-8 weeks hopefully. I will get about $8,500 from the insurance payout for my car. I want to get a decent car and I’m honestly so strapped for cash. I make 70k a year before tax but I need something that’s not gonna completely break the bank. I have a mortgage, 6k in credit cards/ personal loans through SOFI and capital one. Savings got wiped due to some unfortunate family things right before the acc”

“Tall man, I understand. Maybe look into a used Subaru Forester. SUV and older models in the 2010s should be less than 15k. Regardless, that $572/month is just too big of a number and it would go a long way for your monthly allowance if you could lower or clear it”

“I am planning to buy a $24k JDM Car Stateside already? What is the best option to loan? Credit score 716 Roughly $50k salary I need to loan around $17k State: PA, and the car im getting is from NY The car is over 25 years old I tried lightstream before and got denied because i was asking around $30 but this car is a lil cheaper and already stateside so im gonna beed around $17k loan. Im scared to use them again cus I know if i got denied again my credit score would drop. Any suggestions? Maybe l”

“My boyfriend needs a new car after his shutdown, we’re trying to research the best way to get a loan and buy a used car. it would be a small loan, probably 3000 dollars max, if that is even possible? And we’d like to have it paid off within a year to 18 months. We just don’t know if it’s better to go with a credit union or normal bank? And if a credit union which one has the best rates? For context we’re located in Long beach CA so preferably some close to that area. Also is it better to get a p”

“My current vehicle has 200,000 miles on it, and it’s getting to the point where the cost of repairs outweighs the cost of buying a new car. I’m trying to figure out whether I should get a sedan like a Camry or a compact like a Corolla. I’m wondering if you know whether Uber prioritizes the rides they give you based on the size of the car you drive. submitted by /u/whycandi [link] [comments]”

It’s totaled.

“Ahh man, sorry to hear that. Get a solid 10 yr old vehicle or something. Can you afford a down payment on one? Or can you outright buy a cheaper car cash and run the gamble?”

This guy keeps saying he wants to finance a car

“Cars are so expensive. Keep saving. Look for ways to get into jobs that pay better over the next few years. Buy the car with cash because that forces you to face how much money you're parting with, and it doesn't get you into payments, which are hard to turn off if you're short of money in the future, which leads to huge stress. Listen to your parents on things they're good at. They're not good at building wealth, so nod along to their financial advice and ignore it. so if i”

“How far are you from work and do you live in an area with any sort of public transportation?”

“my 24 ascent is 650/month. I can afford it just fine but would be 650/month happier if I didn’t have it. that’s 2 cruises a year I could take. i hate car payments. you make 150/k a year? you’re fine. anyone else, it’s a waste of money. I think it’s a waste for me but… eh”

“Just wanted a no frills car that was good on gas to save money while making long commutes to work. I probably spent as much in gas as I did the car while driving it for 7 years.”

“Hoping this is the right subreddit for this. I am 18 and live with my parents. I currently have no expenses and have about 5,000 dollars to my name that sits in a 4% savings account. One goal of mine is financial independence ASAP. My career prospects is a job that I like and am happy to do till I'm 65 - but I want to be able to travel the world in my 20s and not have to worry about retirement etc. I need to get a car and I was looking at buying some options (only ever second hand, brand new”

“For context I drive a 2013 mpg suburban, gets around 17mpg and have no other cars available. Got about two months before I leave for the navy and need a bit of money till then. Is it even worth doing doordash or will i be spending all of my money on gas? (Gas in my area is $3.19 per gallon right now) submitted by /u/Altdank1340 [link] [comments]”

“Hello, I want to save up to buy a car. I work as a substitute teacher and I am a full-time college student. I am on medicaid and don't see any way that I could save for a car without losing my health insurance. Any advice? submitted by /u/herecomethegoats [link] [comments]”

“Trying to sanity-check my math. Leaving the US for ~2 years in November, so I need a car until then and won't after. The car: 2025 Hyundai Kona SEL, 2WD, gas. Bought ~13 months ago for $27,500. Currently 12,700 km (~7,900 mi) — low miles. CarMax just offered $22,000 (good through July 15). KBB trade-in range on it is $17,120–$21,820, so the offer's actually above book. My situation: I'd be driving nearly every day until I leave. If I sell now, I'd rent (Turo or a monthly rental)”

“Currently a 2014 Hyundai. 55k miles or so. Hiddeous looking thing but gets me from A to B relatively cheaply”

“we have two Rav4s- I got a LX Rav4 2012 last year for 8K--driven for a whole year with 0 issues. I love it so much.”

“paid cash for a used car (8K for a 2012 rav4), and we pay 105$ for 2 used cars a moth in insurance. We fix things ourselves when possible.”

“Take that friend out looking at cars with you. Find a new friend with one of the mechanic scan tools and bring them with you.”

“I go to the nothern Virginia public Auto auction (not really an "auction" for most of the cars, just old cars seized for all sorts of reasons). For 7-9k total, I can buy the whole car. My first car was a 2012 kia sportage (which I totaled in an accident, it didn't break down) and I loved it. My second was a 2014 Honda CRV. These are high mileage cars over 200k miles, but I take them straight to my mechanic for repair and get regular oil changes. I never have breakdowns or issues an”

“I bought a small suv in 2017, it was a 2016 with 24k miles on it. I spent 19.5k on it out the door. I totaled that suv in an icestorm in 2021. They paid out 17,775. I bought a 2010 impala in 2012 for 12.9k. One owner, 22k miles. In 2023, I bought a 2014 impala limited for 10k with 90k miles on it. And the used car market is still fucked today. 4k will get you repair bills and a headache. Putting down 4k and financing 5k for a reliable vehicle is not a bad decision. What would those payments be?”

“Can get a reliable used car cash or a new honda with a $350/month car payment. Only ever bought beaters for cash, and tired of fixing things. Warrantee also sounds nice. But am I going to stRt to really miss that chunk from my paycheck? submitted by /u/Logical_Adagio_7100 [link] [comments]”

“Statistically, men under 26 yrs old are more likely to have car accidents, so your rate will be high for a few more years However, your parents might be able to add you and the car to their existing policy and get a lower monthly rate, which you can then pay them for monthly. Ask them to price it out and see where the numbers land!”

“Dude, was looking for a cheap car for a friend. Saw someone selling a 96 Tacoma 188k miles. They want 6k for it.”

“If you are a student and the goal is city navigation, I recommend NOT using a car. Look up city laws about other transportation: kick scooter, electric scooter, bike, ebike. To answer your question: many do not afford cars. Those that do have them often set themselves back financially, spending all the money they have on the cars essentially.”

“I am in my early twenties and looking to buy my first car. I found a used 2020 model for about $9,000. My plan is to put $4,000 down (parents helping) and finance the remaining $5,000. What surprises me is how quickly the costs add up. Between the monthly loan payment, insurance (which looks like it’ll be at least $200/month), gas, maintenance, registration, and everything else, it starts to feel really expensive. I’ve looked at cheaper cars in my area, but a lot of them either have rebuilt titl”

“yeah u are right. I dont know why they are trying to go trough this bank that does not have office in our city”

“This is the goal! Just want to get there the best way. I am tired of paying such a big chunk to my car payment. Thanks and congrats on your own accomplishment!”

“I’m a huge car enthusiast but have never had the chance to own a “fun” car. I currently drive an EV that I chose to purchase a couple years ago due to the tax credits. Lately I’ve been having a huge itch to get something more exciting, but I am stuck in analysis paralysis and don’t want to make a financial decision I’d regret later in life. Some background: - 24yo - Base salary ~$168k, total comp ~$240k-$250k including bonus and RSUs. - Ignoring RSUs/bonus, after taxes and deductions my take hom”

“Hello! I am giving my current older vehicle to my younger sister in the next few weeks so she has a vehicle (this car was originally my dad’s -thus why I need to make this transfer) and I will need a new car. I am thinking of getting a honda civic since they are generally reliable but would be about 20K (up to 26K for new 2026 base model) it seems for any reliable used car that is manufacturer certified? I have seen the 20/3/8 rule for buying a car so was thinking I would need a down payment of”

“No you should not take a 401k loan to purchase another vehicle. The fact you’re even considering it is a huge financial red flag.”

“I’ve done exactly what you’ve described but if the goal is to buy a cheap car then you might be on a bit of a time crunch. That’s my point.”

“Are you factoring in the insurance costs? If you lease, you’re going to need full coverage as opposed to lower coverage on an older car. That could easily run an additional $200-300/mo.”

“I’m a current college student, earning about 1.2k a month with a few thousand saved and no payments as far as school or rent (cause of my scholarship). I’ve looked for a used car for a while now, within $12k, but there aren’t many options. The only cars within this budget are old high mileage beaters that will probably cost a lot in repairs, so I’m wondering if it’d be a smart idea to lease a car for two years. I do understand that I am kind of throwing that $10-12k dollars away, but I need a ca”

“I (26M) currently own a 2012 Toyota Camry with about 230000 miles. I’m currently been thinking about it is financially worth it to just replace with a new car. The work that has currently been done within 365 days with approximate pricing ⁠1. Computer needed to be replaced. Between the misdiagnoses from Toyota along with the computer, the total spend was around $4000. ( new ignition coils, computer, oil valve, fees from diagnostic.) 2.New tires. Total spend around $900 3.New brakes, calipers and”

“He’s just fronting you $9,000 so you can pay him $10,800 over the year in car costs for a car you don’t own. You’re better off if you keep paying down the CC and getting an affordable car with good gas mileage when you really need it.”

“No way!!! Stick with your plan. Get out of debt and buy another car in cash. $900 month is insane”

“I recently started a new job selling cars to earn money quickly cause I have a lot of credit card debt. About $9000 My current car is a beater and the transmission is going out, has been for a while and my boss knows this. So I keep talking about upgrading. My initial plan was to lease something around the $450 range AFTER I had paid off my bills. My boss offered me this, instead of taking money off the car he would buy my car for the cost of my debt. Then I’d lease the car but with no discount.”

“What is the actual "need" for a truck though? Trucks are more expensive than sedans or crossovers in general, and quite a few people buy these trucks and then rarely use them for actual "truck things." And what's the make/model/mileage of the current car? Just because it's a 2011, that doesn't mean that its death is imminent. I daily drive a 2008 Mazda 3 with about 157,000 miles, and have been since 2009. It doesn't usually need much other than routine mainten”

“I don't think that's necessarily his point. I think what he means is to buy a cheaper or a used car that you can afford to pay out right. If you have to deplete your savings on a car you couldn't afford it.”

“Sounds like the decision to buy the Raptor was maybe an impulsive decision and the decision to get rid of it is as well. Personally I'd just keep the paid off truck and get all I can from it. If you were a Camry person you'd have gotten that instead. If you can afford it every financial decision you make doesn't have to be the smartest one. The people telling you to sell it here are also probably not the sort of people to spend on a vehicle what a Raptor cost to begin with.”