College Student... Should I buy yet another car?

Question

I currently own a 2005 Toyota Corolla... It's pretty decent but I am tempted to buy another one. My dad said he would take over the car as he likes it.. My only concern now is if he is willing to take over my car, wouldn't it be wiser if I just bought an older, used car for about $5000...? Is worth it? I am a college student and working at a real estate office.. making enough to pay bills.. but not good enough to save significant amounts each month... Or should I buy a new one like toyota/honda... or pre-owned bmw? I know it would be smart to just keep the car I have now, but since it was not my style in the first place (dad picked it), it's really bugging that I am putting $400 on it every month. But I only have 2more years and that's it. Just wondering if anyone is in the same situation..? OR what would you do if you were me?

Answer 1

Deferred Gratification!  That's what college is all about - working hard to secure a secure future.  Just about the best car in the world to do this with is a Toyota Corolla.  You don't need to style right now, you need to get out of college with as little debt as possible. The Corolla, Civic and Scion are the best small, cheap cars.  (Are you sure you're not my kid?  I bought my daughter a Corolla for college.  BTW, she graduated and she is very grateful for it.)

Answer 2

Uh, no.... the BMW will cost more to maintain.  A new 'yota or Honda will be more than $400/month.  Keep the Corolla.

Answer 3

There are only 3 ways to buy a car

option 1: pay cash for the best car you can afford without straining your budget

option 2:  get totaly ripped off in interest charges by getting a loan.

Option 3: get ripped off even worse by leasing a car.

If you can afford $400 per month for a car, you should buy an old car, save $400 per month for a while, then go buy a better car with cash. You will save thousands of dollars verses financing.