This is for my friend, who wants to buy a car for the first time. I don't have any good advice to give them because it's all new to me as well but I thought you guys would have some smart things to point out and offered to make them a post.
So here's what their situation looks like. They want to buy a used car at a dealership for around 10k, probably a 2013 or newer Mazda or Ford. They have around $600 saved up in cash. They work 32-40 hours a week during the summer for $15.10 an hour and work 30-34 hours during the school year for an annual income of about 26k before taxes. They commute to work (about a 30-50 min drive) with their 1992 Honda, so a car is necessary for them.
Currently, their monthly expenses include a phone bill of $100 a month and car insurance. Their credit score is 696. They haven't had much time to build up credit but they've been building it by paying credit card bills and paying their phone bill.
Since they want to get their car this month, they want to take out a car loan from BECU. Alternatively, they wanted to just put a down payment on the car of 3k and pay monthly payments of $400 max, but they don't know what the interest rate would be.
What do you guys think? Does this seem like a good idea? What might be some things that they might not have accounted for? How should they go about this? Thanks in advance.
Submitted July 02, 2018 at 02:54PM by egospect https://ift.tt/2tOCP1r
