Should I buy a new car or start saving for a house?

Question

I'm about to turn 21, and have roughly $8k saved in the bank. Should I get a new car (I'm looking under $15k, Sentra, Mazda3) or should I keep my 96 Neon and save money for a house when I get out of college and start working. I have no loans for college.

Answer 1

car will loose its value, a house will go up in value, so i would say save for a house!

Answer 2

Save for a house with today high rising prices gases theres no need for a car unless its a hybrid car.

Answer 3

Lesson's learned already me thinks.

If you're asking this then probably you know the answer too...

Save for the house, a 'new' car is not worth the debt of a house I assure you

Answer 4

$8k at 21 is great! And with the housing market the way it is, you can get into a house with it in some areas.

Drive your car until it falls apart from under you.

Answer 5

Definitely save for a house.  I had the same situation and I made a bad mistake.  Cars do lose their value and a house is an excellent investment.

Answer 6

.No doubt about it - save for a house

Answer 7

Since house is best investment, so better save your money for a house.

Answer 8

A new 2008 Nissan Sentra will depreciate $4,842 during the first year you own it.  (http://autos.yahoo.com/nissan_sentra_2.0...  If you're interested in giving that money away, I'll send you my address.  

If you are interested in obtaining a newer car, sell the Neon, combine the money with what you have in savings, and purchase something that you like better that is at least two years old.  That way someone else eats the initial depreciation.

Saving for a home is a much better investment.  While I don't think that right now is a good time to buy a home, home values typically double every ten years on average.  

What you do with your money is your business, but cars always go down in value, and homes always go up.

To conclude, transportation is an expense.  Housing is an investment.

Answer 9

save for house, new cars are the worst investment you can make