#CarDilemma – Can I afford a newer car or should I wait? 🚗
Hey guys, so I’m in a bit of a pickle here. I’m 25, just landed a job that pays around $90k/year, and I have a chance to snag a used car I’ve been eyeing for $44k. I got pre-approved for a $47k auto loan, but here’s the kicker – I’m already $33k in debt from past credit card mistakes. 😬
My mom says go for it since I’ll be in debt anyway if I wait, but my brother would probably roast me for breaking my promise about not having a “lifestyle glow up.” 🙈
I’m torn between treating myself to a new ride or focusing on paying off debts first. Can you guys help me out here? Any advice is appreciated! 💸✨
Poll: Should I go for the car now or wait until I’m debt-free? 🚘💭
1. YOLO, get the car now!
2. Pay off debts first, car can wait.
nothing wrong with just getting a used car up until the debt is gone. that’s what i would do first
I vehemently disagree with your mother. You should dig yourself out of debt before buying any car. After you dig yourself out of debt I would still not buy a car that’s half your salary.
What is your income, expenses, savings, and list out debts with interest rates – that way people can give advice.
Otherwise, check the prime directive in the wiki. That will give basic steps if you’re not comfortable listing everything out.
Usually, the best value is in gently used cars, as in used cars with under 20k miles and under 5 years old. Then, new cars are usually a good value if you get a budget model such as a Honda Fit. Older cars have a lot of volatility… sure they are cheaper to buy, but they also often have expensive maintenance problems.
If you weren’t $33k in debt already, I’d say it may be worth thinking about.
BUT, that’s not the case. If you need a car, buy a good used, less-expensive car until you get pay off the $33k you already owe on CCs. That interest has to be eating you alive.
You can buy a car when you pay off your debt and save a chunk of cash for a large down payment
Pay off your debt first. 33k is a lot and you want to add a USED car that’s 44k?? What car is this? Get something sensible.
No no no. Get out of debt before spending 50% annual salary on a car.
Drive a cheap car as long as you can. I’ve been driving a $1000 prius for 5 years now. No car payment.
Look into the “Money Guy Show” podcast. Follow their steps, and you’ll have a very good life.
A 44k “used car?” What’s the year make and model and amount of mileage? It’s a bit telling to me when ppl try to omit those details from discussions on if it is an affordable choice or not.
What’s the interest rate on the loan, repayment timeframe and monthly payment you got approved for?
What are you driving/doing currently for transportation currently that makes buying a new-to-you car something you are considering right now, when you are also sitting on 33k in high-interest credit card debt?
Why do you “need” a new car? What is wrong with the one you’re currently driving?
And a $47k car on a $90k salary is a bad idea in general. With $33k in CC debt, it’s a catastrophic idea. I make in the general neighborhood of what you make. I would never think about spending so much on a depreciating asset.
>Have not asked my brother what he thinks mostly because I know what he’ll say. “You said you weren’t gonna have a lifestyle glow up”
you asked your mom because she says what you want to hear
you haven’t asked your brother because he says what you actually need to hear. you are 33k in debt and want to more than double that debt to get a car because apparently no car under 47k exists? btw, you are paying for the car with post tax dollars, use your net income, not your gross and see how that seems now.
Take the bus until those cards are at ZERO. Holy shit, 33k debt at 25 in credit cards? And your mother thinks taking another 47k+ interest on top ? nearly 100k in debt by 25? Stupid, absolutely dumb. Jobs don’t last forever, and you could lose your job in 5 or 6 months. Then what? 90k in debt.
>My mother says if I can afford to, I might as well since if I want this car, regardless if I wait or not I’ll be in debt.
“You can afford it” is such a loaded question when we talk about financing and debt. Yes, you have the income to afford the **payment**, but you’ll be paying on that loan for years to come and take even longer to pay off the credit card debt.
The two combined means you’ll be throwing away **thousands** of dollars in interest over the next 5-10 years. The 33K in credit cards is a huge emergency and your focus should be paying that off ASAP. Drive the cheapest car possible in the mean time, and only purchase a new car when the credit card debt is gone.
Edit: Since you already have a high mileage Honda Accord, keep driving that into the ground.
“Regardless if I wait or not I’ll be in debt” is such a defeatist attitude and the reason why so many Americans are still in debt later in life with no savings for retirement. The trouble with this attitude is that while technical correct, it misses the point that you’ll be in debt for far longer by not prioritizing the credit card debt and stacking other debts on top.
I make slightly more than you and wouldn’t even dream of buying a $44K car.
The general test is 10 to 15% of gross income for a car. In cash ideally.
That puts you in the 9K to 15K range.
Thats the reality if you want to make a good financial decision. The reality is most people neglect this advice
Your mother is correct in part; if you can afford to then you can get it. Right now you can’t afford it because you have a mountain of credit card debt.
No. Get a cheaper car. There is still nice looking cars in the 20k range. Remember, it’s 2024. The nice cars that people raved over in 2014-2019 cars are all available at a decent price. Ultimately, being debt free is the best way to go.
Buying a new car is dumb unless you are debt free and very high income. Period.
Not a good idea with that credit card debt. Even without that, a car worth half your salary isn’t a great idea.
lol your mother’s logic is gonna hold you down in the long run. Even if you didn’t have a car, the Supra is not a sound choice for fiscal responsibility with the debt you have. Is it a fun car? Yes. If this has the BMW internals, it’s gonna be more expensive to maintain than your typical Toyota. If you’re insistent on a 2 door, GR86
With $33k in high interest debt hell fucking no should you be looking at any more significant debt. You are pissing away SO MUCH in interest right now. Tackle your debt IMMEDIATELY. Keep all other expenses as low as possible till its gone. If your current car was going to die tomorrow, I’d recommend finding a good used car for around $10k at max. Maybe up to $20k if you found a smoking deal on something. You flat out cannot afford a $44k car right now. And I’d be hesitant to spend that much on a car at your salary even if you had zero debt.
How much savings do you have?
Pay off your debt. Read personal finance books.
Do you need a car or just want one? Buying expensive cars is very stupid and a good way to stay in debt and never make it out. If you’re young and making good money you should focus on building good financial habits
You’re not going to want to hear this, but even without the CC debt, you’re not even close to this car. It’s not just the car payment…this car will take premium gas, it will get terrible gas mileage, your insurance cost is going to be $300+/mo for someone your age and if something happens to the car (stuff happens), they don’t just throw OEM corolla parts in these things.
I’m not saying you can’t have a fun car, but you need to be more reasonable with where you’re at currently. When I was 25 I bought a used ’07 335i, 45k miles, $18.5k @ 1.5% interest. Still have it today, twin turbo, fun as hell to drive and didn’t cripple me financially. There’s other options out there that will suit you.
Set a goal of $10,000 saved for your new car, (after your $33,000 in debt is gone, and you have a $5,000 emergency fund) and then ask your brother for his opinion.
That would put your overall debt burden at $77k on a $90k salary, I can not express enough how terrible a decision that would be. Even without your other debt, it’d be a very risky situation, especially considering how fast cars depreciate, you’d be upside down on that loan in no time. I dont think anyone with sound financial knowledge would recommend it.
I’d suggest looking for a much cheaper car option, even buying used, and then making a plan for paying down your other debt completely before buying a new car.
$44k for a used used car is ridiculously dumb at you income level and point in life. How much do you have in savings? Investments? How big is your emergency fund? What other expenses do you have? Rent? Student loans? Other loans? Utilities?
Buying a used car is definitely the way to go, but spending $44k on one is excessive and a very bad idea.
even if you were debt free, a $44k new car wouldn’t be ideal. you’ll just be stepping yourself into another debt hole purely because you “want” that car. if you had a house, were debt free, large amount in savings, then sure maybe. you’re not in a good position for it
I would not buy a car with debt if you are currently in $33k of cc debt… You should be looking at possibly a used car that is <$15k honestly if you need a vehicle so you can get rid of your cc debt. If you already have a car and are just looking to upgrade you definitely shouldn’t even be in the market for a car
>My mother says if I can afford to, I might as well since if I want this car, regardless if I wait or not I’ll be in debt.
Good advice for staying in debt. Do you need a different car? Because you do need to pay off those credit cards. You shouldn’t be looking at buying anything while you have 33k in CC debt. That used car is also half your salary. That’s wild.
If you enjoy struggling, go ahead and buy it though.
Well the thing is you can’t afford this car. If you could you wouldn’t be taking out a loan for the full value of the car.
If you currently have a car hold on to that. All the money that would be going to your car payment put that to your credit card debt so you can get that off your back .
After that start putting at least 15% of your income to your 401k (if you can, I’d try to max it out. It’s a lot easier to max out your income while you are young with fewer responsibilities)
From here, ideally your transportation costs shouldn’t be more than 15% of your take home income. that would be roughly 900 for you and that 15 percent should include gas and insurance as well. Assuming $200 insurance and $100 in gas each month that leaves you with a max $600 car payment.
Car payments can easily be manipulated by giving you a longer term loan though. If you want to be seriously frugal, save up and by your car in cash. If you are just looking to be a bit more responsible with money that 600 car payment should be attached to a loan no longer than 5 years
Since your salary is high consider buying a nice used car in cash after you pay the debt.
Ignore your mother. This is terrible advice.
It’s decisions like this that got you into $33K worth of debt at an interest rate of 18% (!!!!). If I were in your shoes, I’d be buying a used car, saving up a minimum emergency fund of 3 months, and putting everything else into paying off the debt.
I suspect you are seeking affirmation of your decision. You’ve already decided to do it and are looking for enough upvotes to remove your liability in the decision.
If you’re seeking advice online it’s probably not a good decision
NO. you are not that rich. Your net worth is -$33,000 (in credit card debt!?) and you want to accrue $47,000 dollars more to put yourself in the hole $80,000?
I get wanting to buy, but I could never sleep at night if I took on this kind of risk, let alone someone else. You probably have a ~24+% apr which automatically makes the total debt substantially scarier, ignoring the fact that this figure will continue to accrue. You need to pay this off IMMEDIATELY. skip the car, skip everything except food and rent to pay this off first. Then we can talk about how you want to throw nearly 50k more in the toilet
Awful idea. You keep driving the car you currently have until it doesn’t run anymore. Pay down your current debts.
When your car does break down and it doesn’t make financial sense to fix it, then you go buy a reliable used car. You can find many for less than half the price of what you’re looking at.
You earn 90k a year.
44k is 48% of your yearly salary
No.
Pay off your debt and then when you **need** a car, look for one. And not a 45k car.
Edit: and you’re already 33k in debt?! You want to increase your debt to 80k? How did you even get approved for this loan?
Why would you take on more debt if you don’t have to? Strive to be one of those financially smart people who have no debt other than a mortgage. And some don’t have even that. Interest on debt represents time you work for absolutely no gain. Some people complain about working an hour or two causal overtime for no pay, but will work ten hours a week simply to service their debt. Don’t be that person.
Your mother may be a lovely person, but she is financially illiterate
Your credit card debt is a five alarm fire. You seem to not realize that, otherwise you wouldn’t even consider this car.
“Buy a car you can’t afford because you’re in debt already” is total nonsense.
First, don’t buy a car that expensive. When people face hard financial struggles, despite making decent money, it’s often because they make terrible financial decisions like buying a car or house they can’t really afford. Or taking up tons of credit card debt…
Second, “you’ll be in debt anyway” is a terrible way to look at this. Your goal is to get out of debt. Here comes your Mom telling you that not only should you not get out of debt, but that you should go much much more into debt – and for no good reason other than “it’s a fun thing I want.”
You need to pay off the credit card debt immediately. If you really need a car, then you shouldnt be looking at anything over $10k.
$10k is the absolute maximum you can afford. Don’t listen to your Mom when it comes to anything financial.
No way in hell I’d take on a luxury like that while being that much in debt. I don’t think I’d be buying much of anything aside from absolute necessities if I was $33k in debt. Use every extra dime you have to get that debt paid off, then think about a new car.