How much money should I save for a brand new car?

Question

I recently got into a hit and run (I was the one that got hit) so I lost my first car ( 2013 used) which didn't even last me for 1 year. I'm really not sure if I should save for a new but used car or save for a brand new car. Because I won't have a co-signer this time if I were to buy a brand new car, my monthly payments/insurance/ interest rate will go up. I can't apply for a loan because my annual income does not meet the minimum. So my game plan right now is to save up as much as I can by the end of December so I can buy a brand new car and have backup money for the very high payments in the future. Is there a better way? I'm just very concerned about buying a used vehicle because of the risk of high maintenance that may be required in the future. I work at Walmart part time and also go to college full time.

Answer 1

As much as you can.

Answer 2

A good used car can be purchased for less then just the sales tax on many new cars. By the time one adds on increased insurance costs, financing and deprecation it becomes apparent that unless a full time (secure) job is a fact- buying a new car is not a smart move.

Save enough money to buy a good used car for cash!

Answer 3

You're not making any sense. If you were a victim of a hit and run you should be swimming in insurance money by now. Your care obviously declared a total loss and you should have been paid for that loss by the guy who hit you.



If they n vet arrested the driver of the other car then your insurance should pay. Either way your old car should be replaced by the insurance company.



But then you say you can't apply for a loan while at the same time you're talking about high payments. If you don't have a car loan there are no payments, so how can they be high?



If you want to save cash money and buy a brand new car with cash, you'll need a minimum of $18,000.00 cash.



The last thing you need is a brand new car. What you need is a good lawyer who will get your totaled car replaced.



If you didn't have adequate insurance to cover this situation, well then you're just an idiot.

Answer 4

You want a brand new car ? Anything else ?



Can you do 5th grade math ?

Answer 5

You buy a brand new car when:-

You've finished college and is into a well paid secure job.

Have built up your driving competence.

You can actually afford one.



At the moment you are in no position to even think about buying brand new, you are still very much at the clunker stage. Look for a well looked after 8 year old car. I call them grand-pop cars, the last new car someone bought when they retired and have spent the last 8 years polishing it more than driving it and has now either given up driving or, more likely, popped his clogs.

Don't get into bad credit trying to buy something you can't afford. That will cost you far more than repairs to an old clunker.

Answer 6

Buy a certified used car instead of a brand new one. If your income is too low to get a loan, you shouldn't even consider a brand new vehicle.

Answer 7

buying a used car is MUCH cheaper than buying new. Yeah, they cost a little more in maintenance. So once in a while you pay a mechanic to fix something, but that's a lot cheaper than paying a bank EVERY month for a car that's dropping in value.



Most cars lose 20-30% of their value in the first 2-3 years. If you finance that car you're paying interest on top of depreciating value. Used cars rarely cost THAT much in maintenance.

Answer 8

Unless you can qualify for such financing, either from a dealership or a bank or credit union, this is moot.