Spiritually speaking....?

Question

I need some advice

Okay so I'm a full time student, living at home.

I currently have $1150 cash. I'll be getting $4500 in loans but only using about $3000 for both semesters (if that.) so then I'll have $2650 cash.

I'm also going to start training (possibly if the times work out) for a job that starts at $9.50 an hour. And I'll be working as a tutor in my spare time...

I want to get a new car. My old car is okay, but there are cigarette burns with some other things and it's a pretty old car.

With that $2650 as a down payment, and earning $9.50/hour and money from tutoring on the side...would it be financially sound to buy the car?

I don't have credit, nor collateral. My parents would have to co-sign and I don't want to put them in a position of having to pay my car payments.

Answer 1

Keep your clunker....if the burns bother you buy some seat covers, or even go to a junk yard and buy replacement seats for little to nothing....may be quit smoking, spiritually speaking :-). You wont always be live at home with your parents....times are hard so spend wisely and most importantly save save save. Start working on establishing your credit too. Get financial literacy now and it will help down the line more than buying a new car now that you don't need will.

Avoid debt at all cost....if you start saving now then when your clunker does actually go kaput, you can pay cash for your first car.

Answer 2

If your car runs well, keep it as long as you can.   Aesthetics is not that important (especially for students!)

If at all possible, wait until you can afford the new car on your own.