How much can i afford on a car?

Question

Alright im a 19 year old Male in Bay area of California. just started working as a Union pre-apprentice sheet metal worker... its what i plan to be doing for the next 30 years

i get paid 13.22 starting out but my job tops out around 50$/hr after 5 years and i should get frequent raises. i become a journeymen i get full medical and vacation pay its alittle bit more money

i got my first weeks pay check and its $396.36

i currently live at my friends house because i work with my friends dad because he is the one who got my into the Trade and i get a ride with him to the job sites. but i dont want to have to rely on him forever because i cant.

i dont have any bills or have to pay for any food so my only bill is like a 80$ or so phone bill and if for some reason i couldnt stay at my friends i could go back to my dads where i still wouldnt have to pay for stuff

well there is alot of back info to help you further help me. my end question is how much of a car could i afford? 10k? 15k?

Answer 1

It sounds like you've got things pretty much figured out, but, things can change and you don't want to be saddled with a car payment. You should look around and find a good used car for 4-5K that gets good gas mileage.  That way you can start saving money. You should read Dave Ramsey's books on finances, you sound like a smart guy.

Answer 2

hello - if your dad is helping you with this one, which is GREAT, find a solid used car and buy that.  Dont start now with a long car loan to pay off monthly, its not worth it.  consider the following:

of your 396.36 weekly pay -

                                              

retirement if you put in 20% its 79.27/week and 4122.14/year

food say 10% 39.63/week and 2061.07/year

going out say 20% 79.27/week and 4122.14/year

car savings of 50% is 198.18/week and 10305.36/year

I would be sure to start now by putting away some pay off the top for retirement - compound interest will make this well worth it in the long run.  Also, if you dont get used to spending it you will never miss it.  Have you bank transfer that amount each month into a special account just for retirement.  

So do one of the following, save up until you can pay cash for a solid used car with your fathers help, or find that car now and get a VERY small loan you can pay off in the year for the car.  Keep in mind, when you get the car, you will have costs too - gas, insurance, mainenance etc.  cars cost money all the time, not just the purchase price.

Also, go get a book - automatic millionaire is good, young fabulous and broke is fine etc.  find a writer whose style you like, buy thier book and follow the ideas.  

good luck -

Answer 3

Without having many bills, a nice down payment, and a co-signer you can get almost any vehicle.  Within reason of course.  You shouldn't try to get the most expensive car that you can.  Going by averages with 2K down a 20K car is under $400/mth for 5 yrs and a 25K car is under $500/mth for 5 yrs.  In my opinion save up a little more and try to put as much as possible down or get a car cash if possible.  Something from A to B and your insurance will be lower.  I didn't finance a car until I got married.  I had a 87 s-10 blazer from 98-02 that I put over 100K on it and paid $2800.  My transmission went out in San Diego and it was going to be too much to fix so I gave it away.  My insurance was $60 a month.  Cost to own was next to nothing.  After that I bought an 82 olds cutlass for $600 that ran perfect but needed minor cosmetics.  No body work though.  It was a v8 so it did drink gas and didn't have ac.  I sold that car to buy a regal that I really liked but then I got tired of not having ac and it was getting finicky, so I sold it and put the money on a grand prix now and I wish that I didn't have a car payment.   I just felt like something new.  If I didn't have a car payment my wallet would be a lot fatter.  I am not saying to get a smelly old beater that chics won't get into but you can get a nice used car or  a generic new car for the same price sometimes.