Financial Advice Needed

[Anonymous]

I am a recent college grad and would really like some input on whether or not it would be decent financial decision to buy a new car?
My salary covers all my expenses (including my student loan debt/rent) and I have been able to accumulate a decent amount of savings (at least 6 months-1 year worth of living expenses. Would buying a car for the purposes or commuting to/for work and weekend errands be a frivolous purchase? Thanks!

[Anonymous]

How do you commute now?

[Anonymous]

I don't think so, as long as the cost of it and insurance fits within your budget. But I am from the Midwest and see a car as a necessity.

[Anonymous]

OP here: I use my city's metro to commute to work.

[Anonymous]

Is zipcar available in your city? If you only need a car occasionally this would likely be a better choice for you. Car costs add up. Besides insurance and fuel, there's maintenance costs, and if you're in a city, you should most likely budget in for parking tickets too.

If you live in a city with a good transit system, a car could easily be more of a burden than a blessing.

[Anonymous]

Why a new car? I would get a used car. New cars depreciate in value so quickly. If you can find a good used car, much better deal

[Anonymous]

Agreed, get a gently used 2010 or 2011 model.

[Anonymous]

My suggestion: Put off buying a car as long as you can and sock away that money. Don't spend it - save what you'd be paying for gas, insurance, maintenance, etc.

Yes, it IS a frivolous purchase, but it makes your life SO much easier. And once you buy one, there's no going bacik. I'm so completely spoiled by having a car now even though I live in a highly walkable community and less than two miles from work.

Sometimes I go outside and think "oh what a great day to walk" but I;ve got my car with me and I promise myself that when it dies, I won't buy another one.

So - if you don't need one now to get to work or appoinments or grocery shop - don't buy one and do save the money for when you eventually - if ever - need one. Use Zipcar or rent cars for the day. You;ll save a ton.

[Anonymous]

Basically the answer is no. At most you might want a used car, but even that it probably not a good use of money. Are you saving 10-15% for retirement?

[Anonymous]

It depends. Personally I didn't get a car until I was 35. Something to bear in mind is that on average people put on 13 pounds within 2 years of buying their first car. I know I did.
Do you love cars? If it is your all-consuming passion, then go for it. If it just a way of getting from a to b, I would put it off for as long as you can.

[Anonymous]

It's not even "decent financial decision" to buy a car -new or used since you don't need it.Seems like you want to do it because many people have cars.
Why don't you take pride on not having one and channel the money to your Roth Ira.
(If my bf hadn't wasted money by buying 2 Audis in his 20s, he wouldn't have to worry about his retirement right now).

[Anonymous]

OP here again: thanks for the advice so far! Although I have access to a decent public transit system to get to work M-F, I am starting it realize that I need a car for appointments, grocery shopping etc on the weekends.

I live in a suburb that is fairly close to the city, so it would be challenging for me to use a zip car or get access to one on a regular basis. If I owned a car I wouldn't have to factor in parking costs.

As a young 20 something year old I didn't know I should be putting some money away retirement....I can start now. I have saved up quite a bit of "disposable income" to afford a car, so I am just wondering if it's worth the extra expense or a complete waste of money.

[Anonymous]

Anonymous wrote:OP here again: thanks for the advice so far! Although I have access to a decent public transit system to get to work M-F, I am starting it realize that I need a car for appointments, grocery shopping etc on the weekends.

I live in a suburb that is fairly close to the city, so it would be challenging for me to use a zip car or get access to one on a regular basis. If I owned a car I wouldn't have to factor in parking costs.

As a young 20 something year old I didn't know I should be putting some money away retirement....I can start now. I have saved up quite a bit of "disposable income" to afford a car, so I am just wondering if it's worth the extra expense or a complete waste of money.

You should start saving for retirement ASAP. Google compound interest and retirement savings. I don't have any good numbers specific advice but the younger you start, the more you'll have and the more interest will build.

It sounds like you have a lot to learn about this kind of planning (not trying to be rude, I am mid 20s and have a lot of work to do myself). I'd suggest taking a look at this site: http://www.savingadvice.com/forums/ I find it very helpful.

[Anonymous]

Dude. Seriously? Buy a used car for $10k and move on.

[Anonymous]

Whether new or used, if you can easily afford a car, gas, upkeep INCLUDING TIRES, insurance, go for it. Your independence awaits.