If I make minimum wage and have 2k in the bank, is it better to buy an old cheap car or finance a newer better?
(2011-01-08 21:55:53) 1. Says: Ran out of space. Is it better to buy an old cheap car or finance something that's about $12,000 or so?2. Says: If you finance a car the payment is not your only expense. The lender will insist on full coverage insurance which depending on your age might be higher than your monthly car payment. Then there is the unexpected expenses of repairs. In your situation I would buy a used car for cash. Carry the minimum PL and PD insurance plus comp. The comp will cost a little more but you would be fully covered in case you hit a deer or your car gets totaled in an act of God.3. Says: Hey You will be better off buying an old dependable car.Buy a HONDA or TOYOTA they are the best! I have and drive daily a 1992 toyota camry with 285,000 miles on it. And I recommend 'em they are really good try to get a 4 cyl.(like mine) since gas keeps going up! Make sure you checked the value at kbb and nadavalues so you can negotiate the price.Also When you ready to buy make sure you take it to your own mechanic to make sure the cars is ok.Good luck4. Says: There is no way you'll qualify for a loan on a $12,000 car making minimum wage so my advice is to buy an older cheaper car. Something you can afford. Look in the $3500 - $5000 price range. There are plenty of very good used cars in that price range that you can easily afford.5. Says: Find a good used car and pay it cash. Vehicles especially new ones depreciate the minute you drive them off the lot. Live debt free!6. Says: Buy the old cheap car. You don't make enough to afford payments on the newer car unless you have no other bills.7. Says: Easy answer, you wont qualify for a $12000+ car unless you earn $1500+ per month. Tag: If I make minimum wage and have 2k in the bank, is it better to buy an old cheap car or finance a newer better?