Payments?

[MassiveAttack]

the guy seems to have a good bit of money either saved or coming from the folks, b/c he asked how much he should put down to afford it, not if he could afford it.

 

That being said, you put no limit on how much of a downpayment you can put, so I'd say, pay for the car up front. of course that goes against everything i learned in my finance classes about the time value of money...but who really wants to make monthly payments...

 

oh and my folks so graciously put down 5k (b/c I just graduated and had just started working) and my monthly pmts are 460 for 60 months. I think the interest rate is 5.9%.

 

It is really impossible for anyone to give advise as the money he makes doesn't add up to the type of car he is wanting. If his parents are paying for insurance and they are going to put down a large sum of money then what is the point of asking us? I don't really think making $400 a month is really enough to even own a car. If you take that the normal mileage on a car is about 12,000 miles a year, then he will be driving at least 1000 miles a month. The LGT gets 22-24mpg when driven easy. This means that he will be spending between $100 to $120 a month in gas. Using over 1/4 of your income on gas seems crazy.

[direavenger]

Hello All...

 

New guy here and I was really interested in the Legacy GT. First let me explain I am a college student so I only make around 400 a month... I am really interested in the 05 Legacy GT's and was wondering how much of a down payment I am looking at in order to afford one. I am making the trip to the nearest dealer sometime this week so I am pretty interested.

 

Can some of you let me know how much you put down originally? How much payments are? Thanks in advance.

 

I really hope this car is for me because so far it seems like it.

 

One more question though: Can I get the navigation on the GT as an upgraded option (obviously = $$$) or is it only available with the SpecB version. Thanks

 

One bit of advice: save.

 

I found out about the LGT when I was a junior in college, and I worked my ass off to save a ton for the down payment. As soon as I started my real job, I picked it up. There is no sense adding the worry to pay for a car on top of other bills that you're going to have in college.

[RabidMonk]

somehow you did your math wrong. that shouldn't be 420/mo. in the high 100s early 200s at least.

 

LOL. You shouldn't be so quick to correct others. 200/mo is not going to pay off an 11k residual (plus interest) in 30 months.

[coxx]

dude, you cant afford this car bottom line. Hate to rain on your parade but it's not possible at all.

[ThatGuyDownUnder]

Use this calculator to help

http://www.dinkytown.com/java/AutoLoan.html

 

 

They also have tons of other calculators for many many things, and comes in handy when decision making time comes.

[ThatGuyDownUnder]

somehow you did your math wrong. that shouldn't be 420/mo. in the high 100s early 200s at least.

 

assuming his tax rate is 6%'ish the payment would be mid 400's (unless on a 6 year loan it would be low 200's, now thats 6 years aka 72 months)

 

You should not even be considering a LGT BTW

[meythodrider]

somehow you did your math wrong. that shouldn't be 420/mo. in the high 100s early 200s at least.

 

The loan calculations include 8.75% california sales tax and for 30 months which is why the payment is around $420

[IwannaSportSedan]

I've graduated, had two real jobs, and my wife works, and we own a house (not throwing money down a rent rat-hole...)

 

I haven't been able to swing a LGT for two years. But by careful planning, and saving, and managing the current lesser debt on the two cars we have now, I should be able to buy one in a few months, and actually be able to improve my monthly cashflow slightly at the same time.

 

But I have been in school. I had 4 jobs at one point, and had a clunker that was paid for. It finally died, and I bought a $6k used car, and paid it's 3-year loan off early through a lot more hard work while in school. Not to mention the credit card debt problem I had slowly accrued, and had to pay off for 18 months after college.

 

Sure I wanted a new car, but it just wasn't in the cards, and from the picture Cobra Commander is painting, I am thinking that might be the case for him, too.

 

It would be better to buy a fun little used car to bomb around in, and use your energy to do better in school, rather than working to the bone to afford a car. The school has a much better return on investment, and hopefully when you graduate with better grades and academic standing, a better first job, or at least an easier time finding a decent job will make life a lot easier, and make a nice car more of a possibility.

 

I am the biggest car freak known to man, and my wife is always complaining that cars are the only thing I ever think about, which of course is not quite true. But even from my perspective...

 

*It is just a car.*

 

There is more to life than that, and you don't want to handicap yourself financially like that. A few grand for a used car or tens of thousands for a new one... and they both roll on four wheels and get you where you want to go.

 

Save yourself the time, money, energy, and aggravation right now. When you can afford a new car in a few more years... there will be something better. And existing LGTs will still be around if you still want one, and will be able to be purchased cheaper then, and save you some money again in the future.

 

I would think perhaps a used SVX or a 2.5RS impreza would be a fun subaru to bomb around in in college, if one can be found for the right price in your area. Something you can mess about with, do the maintenance yourself, and get paid off in shorter order.

 

Debt is like an enemy in a neccessary battle. Some people are fortunate, and the battle becomes unneccessary, and they don't have to fight it. But if you do need to fight it, choose your battle ground wisely, and make sure it isn't an overwhelming force. It is a battle where you have initial control over both the size of your arsenal, and your opposing force. The idea is to make it a decisive battle from the start in your favor, not decisively against you. You don't want to fly the white flag of bankruptcy if the tide turns somehow.

[coxx]

^^^well said. Perfect

[OCDetails]

I still think its a moot point. No financial institution on this planet will loan somebody money for a car when they only make $400 a month. You couldn't get financed for a car stereo on that kind of income. It would be extremely irresponsible for anybody to cosign with you on such a loan too until you make more money. A sports car isn't what you should be looking at until you are bringing home $400 or $500 a week and not a month. That is the harsh reality of it.

 

Don't feel too bad. We are all in the same boat. I'd like to have a Ferrari and my financial adviser told me the same thing that we are telling you. I need to be making about 4 or 5 times what I'm making now before I can afford one, therefore I choose to live within my means.

 

If a new car is really what you want then I'd head over to the Hyundai dealership. You can get a brand new car for around $8K. Or you could try Honda. I believe you can lease a Civic for around $200 a month. You still won't get financing, but it is a little less irresponsible to go that way than to plan on spending every dime you make on the car payment.

[MassiveAttack]

bottom line..... if he gets a LGT, I'm getting a Ferrari.

[IwannaSportSedan]

You would be suprised, OCD.

 

Debt in this country is out of control. The only way it can get out of control is if credit lenders offer more credit than the people actually warrant.

 

I'll bet college students could leverage $10k or more on credit cards, for a car, or whatever... regardless of their income.

 

The creditors know that if they can give you enough rope that you "hang yourself" with it, they get to reap the benefits of fees and finance charges. They make FAR more money on penalties combined with interest than they lose through allowance for unpayables or bankruptcy.

 

Creditors offer credit to risky customers because they know full well that it is more likely to make them lots of money overall, even if they lose money to a few of them.

 

Cobra Commander could well get himself into VERY DEEP TROUBLE by misusing credit and debt, and there will always be someone ready to let him borrow to do it.

[The B4]

I still think its a moot point. No financial institution on this planet will loan somebody money for a car when they only make $400 a month.

It happens. a dealer will inflate the income and get the person bought at a high interest rate.

 

... plan on spending every dime you make on the car payment.

 

That's exactly what would happen. It's not worth it. your quality of living will go way down if you are paying that much for a car.

[OCDetails]

Ooooooh trust me. I used to work for the largest consumer credit repair law firm in the country. I think it would be you all who would be surprised at how retarded some people can be with credit. What's even worse are the creditors who continue to extend credit to those who they know are going to leave them hanging. Credit management is something that needs to be taught to seniors in High School. The first thing they do when you get into college is put you in front of the credit card smorgasboard. So you spend the next 4 years getting yourself into so much debt that by the time you graduate you can't even get a job because your credit is so shot.

 

Still... I seriously doubt anybody is going to someone 3 or 4 times their yearly income just for a car.

[coxx]

^^I didnt go to college but I know what you mean. I was apalled by how much debt people got themselves into in college. Always amazed me how people could spend money they dont have so easily.

[Windex]

three words: used Honda Civic

 

about the propensity to spend money that one does not yet have - It's what makes the economy go 'round...

[cobra commander]

Well I have about 14k in the bank and another grand or so from my current car (1991 volvo 740)

 

so I think I should be able to afford something in the 24k range.. possibly an 04 wrx? my friend used to have a wrx and I really liked it... still need to test drive.. but is that a reasonable car for me or no?

[cobra commander]

alright you guys basically made me change my mind.. i guess i should just keep my current car and save a little bit more until i can afford something cheaper.. maybe in a few years i can get a LGT after college and i'm a full-time firefighter which would be ideal

 

but about an older wrx maybe by the end of the year.. would that be practical?

[cobra commander]

The loan calculations include 8.75% california sales tax and for 30 months which is why the payment is around $420

 

ahh ok my fault.

[cobra commander]

I've graduated, had two real jobs, and my wife works, and we own a house (not throwing money down a rent rat-hole...)

 

I haven't been able to swing a LGT for two years. But by careful planning, and saving, and managing the current lesser debt on the two cars we have now, I should be able to buy one in a few months, and actually be able to improve my monthly cashflow slightly at the same time.

 

But I have been in school. I had 4 jobs at one point, and had a clunker that was paid for. It finally died, and I bought a $6k used car, and paid it's 3-year loan off early through a lot more hard work while in school. Not to mention the credit card debt problem I had slowly accrued, and had to pay off for 18 months after college.

 

Sure I wanted a new car, but it just wasn't in the cards, and from the picture Cobra Commander is painting, I am thinking that might be the case for him, too.

 

It would be better to buy a fun little used car to bomb around in, and use your energy to do better in school, rather than working to the bone to afford a car. The school has a much better return on investment, and hopefully when you graduate with better grades and academic standing, a better first job, or at least an easier time finding a decent job will make life a lot easier, and make a nice car more of a possibility.

 

I am the biggest car freak known to man, and my wife is always complaining that cars are the only thing I ever think about, which of course is not quite true. But even from my perspective...

 

*It is just a car.*

 

There is more to life than that, and you don't want to handicap yourself financially like that. A few grand for a used car or tens of thousands for a new one... and they both roll on four wheels and get you where you want to go.

 

Save yourself the time, money, energy, and aggravation right now. When you can afford a new car in a few more years... there will be something better. And existing LGTs will still be around if you still want one, and will be able to be purchased cheaper then, and save you some money again in the future.

 

I would think perhaps a used SVX or a 2.5RS impreza would be a fun subaru to bomb around in in college, if one can be found for the right price in your area. Something you can mess about with, do the maintenance yourself, and get paid off in shorter order.

 

Debt is like an enemy in a neccessary battle. Some people are fortunate, and the battle becomes unneccessary, and they don't have to fight it. But if you do need to fight it, choose your battle ground wisely, and make sure it isn't an overwhelming force. It is a battle where you have initial control over both the size of your arsenal, and your opposing force. The idea is to make it a decisive battle from the start in your favor, not decisively against you. You don't want to fly the white flag of bankruptcy if the tide turns somehow.

 

 

i really appreciate you taking the time to write me that... that basically in itself changed my decision about the LGT.

[direavenger]

Well I have about 14k in the bank and another grand or so from my current car (1991 volvo 740)

Don't blow all of your money on a car. 14k can be invested early and will give you much more money down the road to buy nice things.

 

Roth IRA FTW

[OCDetails]

NO. You are in college and you don't make any money. Don't spend your money on a new car. Get something you can pay cash for like a 7 or 8 year old Civic that will get you around. DO NOT DUMP YOUR SAVINGS ON A CAR WHEN YOU AREN'T MAKING ANY MONEY TO REPLENISH IT. However, if you want to live your life this recklessly then I can't stop you. However, you are never going to get anywhere in this world if you can't get a grip on your impulse control. Spending all your savings on a car in your current situation when it isn't necessary is very irresponsible. Unless you want to live with your parents forever and never get married or have anything other than a car, then you should keep saving your money and buy something that fits your lifestlye better.

 

 

edit: I see that you have seen the light. Good. Save your money. Buy a car you can pay cash with, but don't spend more than 50% of your savings on it. Evaluate your finances and LIVE WITHIN YOUR MEANS. Think about the future. I don't just mean 5 or 6 years from now. Think about what your needs are going to be next year and if spending all your money now is a good idea.

[RuskiTrombone]

I am in college and I have an LGT. I also don't make 400 per month. Infact you need to make atleast 1500 per month in order to qualify for financing in any bank I know.

 

I am glad I am graduating this semester with absolutely 0 debt on credit cards, 700+ credit, no college loans to pay off. I've seen some of my friends suffer with over 50K in college loans and credit cards.

[direavenger]

^^^college + LGT + no debt = very lucky guy

[IwannaSportSedan]

or a very knowledgeable guy, who is good at financial planning.

 

Cobra Commander:

Thank you for your compliment, and I am glad to help, as are we all. Well, most of us anyway It is good to learn from other people's experiences, and I certainly don't want anyone to repeat my mistakes, If I have a chance to say something about it.

 

Besides, I am long winded, anyway... . Just ask anybody.

 

Spend your 400/month on college fun stuff. Drink a beer if you are old enough. buy a pizza. Take a girl on a date. Just don't put the fun stuff on credit. You won't necessarily be so unencumbered later on. I wish I was in the position you are now when I graduated. I had no money, no firm employment lined up, debt, and was getting married. It worked out, but it wasn't comfortable. I would have much rather been ahead of the game, with a financial cushion to help the transition.

 

I make much more than I did in college, and my wife's income is also a big help, but I have less purely discretionary spending money now than I did in college. Because I had fewer and less expensive bills than I do now. It isn't worse now, but it is some more serious thoughts to occupy my mind than I had to worry about during college, and more places my money has to go every month.

 

BUT, I consider a car payment a bill. And I can afford more car payment now than I did then... so it really isn't all that depressing. I also have a very nice modest home that will help me with equity in the future, rather than just costing me money. A rather large change of circumstances.

 

There are good things about college, and good things about getting beyond college, but they are different good things.

 

But the obligatory re-iteration:

It isn't worth putting yourself in financial harm's way. you won't enjoy college, for having to work harder to pay the debt, and it'll put leverage on you afterward, when you want to move forward.

 

If you have a car now, drive it some more. Read about other cars. Stay here on the Legacy board. We talk about all sorts of other cars, too. Check out some other forums for cars that catch your eye. Check out some other used cars. If you want a used WRX... think about it. But think about it logically, like we have been encouraging you to do here. Wishful thinking can get you in trouble... I know. I am the king of wishful thinking. There are a lot of kings of wishful thinking.

 

if a fun, cheap used car comes up, and you KNOW you can afford it without much damage to your finances, maybe pull the trigger. Otherwise have some fun, save a little bit more if you want/can... and watch all the cool new cars come out for another couple of years, and when preparation meets opportunity, it will all work in your favor.

 

Luck, after all, is when preparation and opportunity meet.

 

BTW, you'll have to find out what used WRXs go for in your area. Some of them tend to hold their value pretty well, and aren't the cheapest used cars. but that has reasons rooted in reliability, too... Just be careful, and know what you get yourself into.

 

I would think a BD legacy(97-99), a 2.5RS Impreza (before the bugeye impreza) or a decent SVX might be a little closer to a college used car price, for a still viable Subaru. At least subarus last a good long time, and make good used cars.