It sounds like you live in a place (not downtown DC) where you've reached the point that you need a car. Go ahead and spend $6-7k on a used honda/toyota from the classifieds, and otherwise focus on retirement. If you were downtown DC I would say no need for a car until you have kids.

No...get used to life without it. once you have it...you can't let it go!

agree with others that you should:

save in a 401k (at least to get the company match) and roth ira as much as you can.

If you can still afford a car, then get one at least 2-3 years old--most of the fast depreciation is in the first few years of ownership.

It sounds like you won't be driving this car much. If so, look for a car with a newer year but higher miles. In your case, I would go with a 2013 with 60k on it than a 2011 with 20k miles on it, just because you won't be putting many miles on it yourself.

Put $11,000 in a Roth IRA. Whatever's left (less taxes and insurance), is your car budget.

I am going to weigh in that it is not always better to buy used. I have done both, and ever since I bought a used lemon that checked out perfectly with an independent mechanic I am all about the new car that I do perfect maintenance on. The statements re losing $5000 when you drive off the lot are silly if you are not talking about a very expensive car to begin with. An option is to buy a seriously reliable new car and keep it for many years. Do research on cars that hold their value, set a reasonable budget and use a buying service. Costco has one, so do some banks. We used usaa and saved thousands on our new cars.

Also, start saving for retirement on Monday. Max out your options, you cannot get these years back later.

Hi OP-- when I was in my 20s I opened my retirement account and put 10% or so in each year. I'm in my early 50s and I have almost $550,000 now. Time went by so fast. I'm so glad I contributed in my 20s. I will be able to retire relatively early. Do the retirement account first and only if you still have $ leftover go for the car. Buy used. Good luck!

Anonymous wrote:There are zip cars in the suburbs too. You sound like you haven't researched much. You say if you won a car you don't have to worry about parking, but that might not be the case. You may have to pay for street or deck parking, where else are you going to put your car? If you are in the close suburbs I doubt you are in a house with a dedicated driveway.

I live in complex that offers free parking per resident, thanks! Based on my research, a Zipcar seems like a feasible option for city dwellers. I would have to wait on an unreliable bus during non rush hours to take me to a zip car location and pick me up once I'm done. Sounds like the general consensus is to get a cheaper used car and open up a retirement savings account.

Stupid autocorrect. That is own, not won.

There are zip cars in the suburbs too. You sound like you haven't researched much. You say if you won a car you don't have to worry about parking, but that might not be the case. You may have to pay for street or deck parking, where else are you going to put your car? If you are in the close suburbs I doubt you are in a house with a dedicated driveway.

DEFiNITELY start saving for retirement! You will be ecstatic with yourself when you will reap the benefits of compounding interest. Max out your 401(k) at work (do a Roth 401(k) if they have that option), or at the very minimum, contribute enough to obtain your employer match if they offer that.

If you still have leftover disposable income, I don't think it's an awful or crazy idea to buy a cheap, reliable used car. Try to veer towards the utilitarian end (honda civic or corolla). Maintenance costs will be lower and it'll last you longer.

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

Never buy a new car. You might as well light $5-10k on fire.