Do I need a cosigner to buy a car?

I don't know how to buy a used car, but I need to buy one soon.

  • The family's cars all got busted around the same time. They need to be replaced. I, individually, need to buy a used car. This will be the first car I buy on my own account. I have a tight budget, and I can't afford a mistake. I don't want to buy a money sink, but I don't want to sink all my money up front, either. I don't know cars at all: How can I find a good deal? What should I avoid? Details inside. Last week, it became clear that two of the family's cars would have to be replaced. One had been hit by my father's neighbor across the way while parked, and the insurance company declared it a total loss. The insurance company will send us a check for $3400. The other car was found by a mechanic not to be worth fixing. He fixed it enough for it to last another three weeks or so, he said, but it's on its last legs. In addition, my brother got a new job last week. Since he wants to move out, he's getting a car of his own. Our parents got a new Honda; my brother and I will split the check from the insurance company. With my own savings, I could make my $1700 from the insurance company into $3500, though I could stretch it to $4000. If I took a loan, I think my budget could go as high as $5500 or so. I live in Massachusetts, specifically the Woburn area, so I'll need to get insurance. Previously, my parents paid the insurance for the total loss, which was registered in my name and my mother's. I'm looking into USAA, since both my mother and father are members there. I make $15/hour and pay about $550 each month to my student-loan creditors. I also pay $330 each month to my parents as rent. I don't have much room for car-loan payments and insurance payments, but I can only minimize the car-loan payments by making sure I pay enough down. I'm looking for a decent automatic four-door sedan with front-wheel drive. I don't drive much - 18 miles/day most days, with a more-or-less weekly trip to Boston, which is about 36 miles round-trip. Sometimes I go to the city twice in a week, but I try to minimize that. I want it to last at least two years so I can save for a better car. A friend of mine wants me to look at old Volvos, Mercedes, etc., and there are some good deals on those, but I hear that they cost a lot to fix, and that worries me. On the other hand, I worry that a Honda Civic, an Accord, or a Ford Escort in my price range will have been worn out by the time I get to it. That friend of mine knows cars and is willing to help me look at available ones in the area. Since my options are limited, how can I ensure I don't get cheated or otherwise wreck my finances? What are good ways to look for cars in my area? What should I avoid doing at all costs?

  • Answer:

    Start with this http://ask.metafilter.com/245448/Best-responsible-used-car-for-less-than-10k. As I suggested in that AskMe, a mid 2000s Toyota Corolla will be cheap and reliable. Your friend's advice is bizarre, particularly given your budget.

Rustic Etruscan at Ask.Metafilter.Com Visit the source

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Find the most boring, minimally rusted Toyota or Honda that is 20% less than your maximum budget. Have a Honda or Toyota specialist mechanic check it out for you. Buy car. Keep that 20% around for surprises. Drive that car into the ground.

zippy

http://ask.metafilter.com/248367/I-dont-know-how-to-buy-a-used-car-but-I-need-to-buy-one-soon#3607307: "Your friend's advice is bizarre, particularly given your budget." 5 grand will get you an old Mercedes that still has a hundred thousand miles or more in it with only minor repairs and regular maintenance, at least around here. That said, the few people I know who drive used Mercedes all have the resources to pay for a $2000 repair if it came to that, which it rarely does. Right now my boss is driving a 1988 300TE (the station wagon) with at least 300,000 miles on it. He might replace it before next summer because he's tired of being without A/C, but I doubt it. That said, I think when most people talk about a reliable Mercedes, they mean one with a diesel engine. Those things do not die. My neighbor still has a late 70s/early 80s model that he drives almost every day. That said, look at the Pontiac Vibe. It's a Toyota Matrix, but since it's got the Pontiac badge, they usually go for less money than the ones with the Toyota badge. There are a couple near Boston listed on Auto Trader.

wierdo

1998-2002 Toyota Corolla... Seriously... Have you priced Volvo or Mercedes repair parts? Also, old Volvos get terrible gas mileage. Make a deal with a local mechanic to inspect two cars for a fixed rate (two hours of labor). Pick the two best Corollas you can find via craigslist or other direct sale by owner and arrange to have the owners meet you at the mechanic's shop. Buy the one that is in better condition relative to its price and whatever repairs might need to be done on it in the near term.

thewalrus

Do not under any circumstances get an old Mercedes. My first and second car were both elderly Mercedes and while the second one was a diesel that had made it to an astonishing amount of miles, they are EXTREMELY expensive to fix. Even if you have a nice mechanic that will source used parts for you. On the other hand, my most recent car, a 1989 Toyota Tercel that I bought for $1600 was a dream. I drove it from Philadelphia to California and happily ever after until it was impounded recently. Great car, and even the one biggish repair it needed cost me hundreds of dollars less than another make of car would have.

Aubergine

I've been driving for 24 years I've never spent even $3K on any of the... uh, 11?... cars I've owned. More than 2/3 of them had 3-digit price tags. Take that for what it's worth. I think you can do fine in that price range. I'd try to go for a private seller instead of a dealer, because the dealers who sell cars at that price point only sell crappy cars. The two best things I can suggest you do to get a good price and avoid getting screwed are to buy from someone who has no incentive to screw you, e.g. a relatively affluent person just trying to get rid of an older but well-maintained car, and pay a mechanic to inspect it thoroughly. Don't deceive yourself into thinking any car you can afford will be free of problems. Don't spend everything on the initial purchase and leave nothing for repairs. If you get a loan, don't plan your budget down to the nickle, leaving nothing for the unexpected. I would not go for an old Mercedes or Volvo unless you personally want to learn to work on it. New parts for them are very expensive. There are decent sources for used parts, and enthusiast's forums to help you figure out how to do the work, but none of that matters if you aren't mechanically inclined.

jon1270

For about $5000, I'd get a used Honda or Toyota from the late '90s through mid-2000s. Have it checked out by a mechanic. If there's a lot of miles on it, you'll want to know if major things have been recently replaced (e.g., the fuel pump, etc.). There's no way I'd get a Volvo, Mercedes, etc. if you will be on a tight budget for future repairs and maintenance.

scody

Grandma cars, like Buicks and Oldsmobiles depreciate quickly (and are thus undervalued in the used car market) and are reliable. They often have low mileage, regular maintenance and only one or two owners.

FiveSecondRule

http://www.cartalk.com/mechanics-files Find a good mechanic and talk to them ahead of time to find out how they'd like to work it. Just say you want to have your mechanic (not their mechanic) inspect the car before you buy it. THEN DON"T SIGN ANYTHING that doesn't explicitly say something like, "contingent on inspection by Rustic Etruscan's mechanic."

jon1270

I bought a 1999 Toyota Carolla for 5000 (including a loan). They are one of the most reliable cars in the world and my mechanic says he's seen them make it to 300,000 miles. Mine's at almost 200,000 with no serious issues. Not sure about safety of driving in the snow...

latkes

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