New Buyer

[TRD4life]

Hey guys, I'm looking to get the FRS sometime this summer hopefully, and I was wondering if any of you vets could give me some insight as to what goes behind purchasing, leasing, and financing a car.

To give you some more background, I'm a third year college student. I have a short credit history (only around 5 months of having a personal credit card) and my credit score is ~mid 600's (if that's considered low, its due to a medical bill that got lost, but which I paid off as soon as I found out it was misplaced). I usually work 2 to 3 jobs during the summer and at least 1 during the school year, and I'm hoping to pay for this entirely myself - I don't want my parents to help me pay for it (its a personal thing, I've always been independent when it comes personal expenditures).

I've used Scion's online calculator to see what various combinations of down payments and term lengths spit out which monthly payments, but beyond that calculator, I have no clue what goes behind obtaining a car:

• Is it better to lease or purchase?
• Given my situation, which option would be better?
• Also, in both cases, is a higher down payment better, or can I get away with a lower down payment? (I know how it will affect the monthly payments, but which option will save me the most money in the long run?)
• Where does going through a bank come in?

All in all, I want to learn about the process of buying a car, and the pros and cons of each option provided by the dealer and accompanying banks, as well as what path I should take to get the car of my dreams while not getting caught paying way more than I should.

Thank you so much in advance!

[Mandy]

Originally Posted by TRD4life

• Is it better to lease or purchase?
• Given my situation, which option would be better?
• Also, in both cases, is a higher down payment better, or can I get away with a lower down payment? (I know how it will affect the monthly payments, but which option will save me the most money in the long run?)
• Where does going through a bank come in?

1) If you love the car as much as you say you do, purchase. Will a TRD/STI/Shooting Brake/Targa/Convertible leave you wishing you had waited? Lease.

2) If you don't mind the payments/insurance/gas, and you think you can realistically afford it and have money for food and shelter, then go for it (purchase). I'm 24, and I can tell you the thing I'm paying out the ass for the most is my insurance. If you're under mom/dad's plan and they're paying for that at least, it helps. Gas isn't too bad in my opinion, and if you purchase, you can put a big down payment down to give you some breathing room.

3) Large down payment with smaller monthly payments will always save you the most money. I was an idiot and let the finance department talk me into financing it instead of buying the car in full. I put $12k down and financed the rest, but my payments are still a horrendous four-hundred and change because I tacked on the service plans when I was financing, I was horny for the car, wasn't expecting to buy it, but I had to have it. Just remember, you can walk away. So if you do get any of the extended warranties, pay out of pocket for those and don't get them bundled onto your financing.

4) When you're talking about interest rates on your loan. Toyota will go through Toyotas banks. If you have a bank that's willing to negotiate a loan, then give them a try and see what their financing will be like. My credit sucks simply because I pay off everything in full, and the only derogatory statements I have are from college loans before I found a job.

As a last thought, don't forget the $500 graduate discount. If you're going to be graduating within I think it's one or two years, you're eligible for it.

If I had to do it again I would get the base model, without Toyoguard, no BeSpoke, no extended warranties, and pay outright for it.

[Archavious]

I would suggest you not buy a new car until you are putting away more for retirement than you would a car payment.

[CrazyWookiee]

I would purchase if you plan on keeping it for a while. I bought my car before I graduated as well and saved every dollar for it. No one helped me and I bought it out.

It's a big purchase at this stage in our life, but I was set on knowing I'd have this vehicle for several years. I feel that if you were to lease, the money isn't going towards ownership and at our age is better put that money towards something more stable for the future.

Agreed with the large down payment mentioned above if you don't buy it outright.

Also agreed with above about insurance. Even though I saved and own nothing on the vehicle, he insurance is still a big hit every month that can make you cringe if you're only working summers/part-time/weekends. You want to minimize that month to month payment on anything, so a large down payment helps in that aspect. After the cost of insurance, premium gas, I couldn't imagine adding car payments to that equation.

[chenshuo]

If you have other outstanding debt then don't get yourself into more debt by getting this car. If you have everything paid off and have the financial ability to do so then get whatever you want.

[CrazyWookiee]

Agreed. If you have student loans left or anything, don't pul the trigger.

Originally Posted by chenshuo

If you have other outstanding debt then don't get yourself into more debt by getting this car. If you have everything paid off and have the financial ability to do so then get whatever you want.

[Books]

If you can afford the monthly payments, go for it. By afford I mean you are not eating ramen and have several months of rainy day savings.

If you love the way car (and afford it) , don't let anyone stop you.

Sent from my Galaxy Nexus

[strat61caster]

Finish school first and get a good job before you saddle yourself with more debt there's another guy who posted the same question recently; http://www.ft86club.com/forums/showthread.php?t=31070

Google car buying and read up and be careful. Always negotiate price of the vehicle and add ons (or lack thereof if you're smart), be aware of monthly payments but don't switch to talking about that because something that costs "only $5 per month, what's the big deal?" is actually going to cost you $300+ interest, that's like food for a month.

The dealership will run your credit and qualify you through either Toyota Financial or eligible banks, as it sits you may get lucky and get a reasonable interest rate, if you wait until you graduate you should be able to pick up their best advertised interest.

[jmaryt]

Originally Posted by Mandy

1) If you love the car as much as you say you do, purchase. Will a TRD/STI/Shooting Brake/Targa/Convertible leave you wishing you had waited? Lease.

2) If you don't mind the payments/insurance/gas, and you think you can realistically afford it and have money for food and shelter, then go for it (purchase). I'm 24, and I can tell you the thing I'm paying out the ass for the most is my insurance. If you're under mom/dad's plan and they're paying for that at least, it helps. Gas isn't too bad in my opinion, and if you purchase, you can put a big down payment down to give you some breathing room.

3) Large down payment with smaller monthly payments will always save you the most money. I was an idiot and let the finance department talk me into financing it instead of buying the car in full. I put $12k down and financed the rest, but my payments are still a horrendous four-hundred and change because I tacked on the service plans when I was financing, I was horny for the car, wasn't expecting to buy it, but I had to have it. Just remember, you can walk away. So if you do get any of the extended warranties, pay out of pocket for those and don't get them bundled onto your financing.

4) When you're talking about interest rates on your loan. Toyota will go through Toyotas banks. If you have a bank that's willing to negotiate a loan, then give them a try and see what their financing will be like. My credit sucks simply because I pay off everything in full, and the only derogatory statements I have are from college loans before I found a job.

As a last thought, don't forget the $500 graduate discount. If you're going to be graduating within I think it's one or two years, you're eligible for it.

If I had to do it again I would get the base model, without Toyoguard, no BeSpoke, no extended warranties, and pay outright for it.

correct! why? 'cauze it's the same damn car in ANY trim! put the difference in YOUR pocket!

[jflogerzi]

Don't buy this car now. Wait another 1-2 years. Finish school and get your first real job, then buy the car. But not now IMO.