One of the main things we were told when preparing for graduation and the real world was to NOT buy a new car.
Makes perfect sense right? We were just handed big, fat envelopes of debt…why would you add tens of thousands more to that already high number? There is no good reason.
Ask yourself these questions when you feel like you may cave:
- Does your current car run? (Yes)
- Do you have student loans? (Yes!)
– and if your answer is no, then I’m jealous and maybe you can buy the car.
- Is buying a new car going to help your financial situation? (NO!)
In college, I bought a 2006 Hyundai Elantra. By graduation it was completely paid off, there were no major issues with it, not even cosmetic ones. A perfect car to start my adult life on the road to paying off student debt.
While in South Carolina, two of my friends bought new cars (not brand new, but new to them) and from there I had the itch…
I drove myself to the Toyota delearship, alone, to test drive a mint green, used Toyota Prius.
BACK UP… Picture this for a moment… A young girl, walks into a car delearship…alone… wishing to purchase a car. How do you think I was treated? Not well. I was treated very poorly and not taken seriously (which has been an ongoing struggle in my adult life).
But hey, dodged a bullet right? Didn’t buy the car, got that out of my system.WRONG!
The dealership called me a few days later asking about my experience and I was honest. They promised me a better experience and convinced me to return with a different salesperson.
Well jokes on everyone. Remember that used Prius? For $12,000? It didn’t have cruise control (deal breaker). Solution? Buy a brand new Prius.
I failed at the number one rule and added $22,000 on top of my mound of debt. Not the smartest move in eliminating my student loans.
Let’s do some math: I was on the 10 year plan ($2000 a month plus whatever extra) making max payments. Down about 30K… Let’s add 22K on top.
New grand total: $192,000
By end of 2013, I was a year down and barely made any progress.
STOP. DON’T BUY THE CAR!!