Tough Decisions

Two years ago I bought my first car! Two years ago I took on the second biggest debt of my life...no one ever tells you about that expensive piece of paper that will be the first biggest debt you take on. I'm sure you can guess that I am referring to your College Diploma which can rack up a nice price tag. The average debt taken on by students in the US was $30,000 in 2014, so use your imagination for what it currently racks up.

For you blessed individuals whose parents paid that debt for you...guess what the rest of us envy you because we were not so lucky!

I remember the day as if it was yesterday! I literally was NOT looking for a car instead I was just looking (this is how they get you!). Then I saw it...

1. 1. Used car (check)
2. Low miles (super check)
3. Four doors - well my first car was a two door and since I added my dog Thunder to my life and two doors suck (super super check)
4. Priced reasonable (check - my dad and I still talk to this day about how we could of gotten it for cheaper).

Then I test drove my car and fell in love. This was it, this was the one for me, where do I sign? In the end I got the car that Saturday night and had to come back to get it on Monday night. Two years later and I still love my car! Thanks to the carelessness of the American people my car has slight scratches but nothing that can't be fixed with paint once I pay it off.

I hope that you all enjoyed and that you remember to live your life the best way that you can and not for otherIf you are willing to make short term sacrifices you can achieve so much in life. The debt that comes along with a car can be great especially if you are looking for a car with low miles but one thing to keep in mind is that the maintenance on a car with fewer miles is far less than getting your car repaired every 6 months.

My bit of advice for car shopping:

• Never pay the price on the sticker - always try to negotiate the price and with that being said make sure you do your research! Make sure you know the going rate for the model, year, and cars and still try to go lower. Ask the dealership for discounts, the worst that can happen is they say no. I was able to get a New Graduate discount since I graduated within a year of my purchase.
• If it is within your price range do not buy a car older than 2 to 3 years UNLESS you are buying a classic like a 1970s Mustang but again ONLY if it is in your price range.
• A used car is always affordable - certified pre owned is the best but it may not always be in budget. Certified pre owned usually means that it has low miles and is relatively new by either 1 to 2 years.
• Low miles - cars that have a high mileage no matter the make or model will tend to have more problems in the near future than a car that has fewer miles. I personally think 0 to 50,000 would be a good range but if you can get less than 30,000 that would be even better.
• Know what you can afford before you even walk in the door. If you are going to finance outside of the dealership you need to be pre approved by your bank or lender. If you are going to be financed by the dealership (which is what happened with me, remember I walked in to LOOK) be prepared to provide proof of your income. When I say know what you can afford I am talking about on a month to month bases.
  • For example, if your income is $2,000 a month
  • Rent is $1,000 a month (which your rent should never be half of your monthly income--lookout for Financial Responsibility Part II)
  • Utilities $120
  • Student loans $400 (this is close to the average monthly payments for that $30,000 student loan debt I mentioned earlier)
  • Internet $50
  • Phone bill $110 (average phone bill with a leading provider in America)

That would leave you with about $320 bucks a month to spend on food, shopping, savings, etc. So you should not go out and buy a car with a monthly payment of $300 because there is no way you would not mess up your credit as your car would eventually be repossessed.

If you are looking to buy a car soon be wise and do your research. Please comment and share.

I hope that you all enjoyed and that you remember to live your life the best way that you can and not for others.