Is this a good deal? Haven't made it yet. Advice welcomed...First Car...

[AceGuy0906]

Hello all:

I've been on the market for a Civic for a while, however, because I'm saddled by yuuuge amounts of student loan debt I'm being fairly conservative in regard to my first car purchase.

I recently ran across a Used Honda Civic EX with 30,000 miles (and a clean car-fax) priced at 15,900. On its face, is this a good deal?

The second option, of course, is to wait as more Used 2016's (EX's and above) come on the market. My fear, however, is that the car is so popular that there won't be many options any time soon.

Thanks for the help everyone.

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[NorthernEX-T]

Lot of mileage for a 2016, but I'd say it's a fair deal. Assuming it's a 2016 because the is a 10thgen forum..

 

[AceGuy0906]

Lot of mileage for a 2016, but I'd say it's a fair deal. Assuming it's a 2016 because the is a 10thgen forum..

Yes. 2016. Whoever bought it went on the holy grail of road trips.

 

[inv4zn]

If you're saddled by "yuuuuge" student loan debt, absolutely do not buy this car lol

Buy a $3000 civic, spend $500 tuning it up, store away another $500 as emergency repair fund, and pay off your debt.

Starting your adult life in debt by immediately going into more debt for a depreciating asset is a mistake I made 10 years ago, and it is very, very shitty digging yourself out of it.

Sure you'll lose face when your friends all get nicer cars out of school, but in 5 years you'll be ahead.
I know it's not what you want to hear, but do seriously consider it.

That said, if a semi-decent inspection was done on it, it's not a BAD price. You could negotiate it down a tad due to the higher mileage.

 

[Billy4202]

If you're saddled by "yuuuuge" student loan debt, absolutely do not buy this car lol

Buy a $3000 civic, spend $500 tuning it up, store away another $500 as emergency repair fund, and pay off your debt.

Starting your adult life in debt by immediately going into more debt for a depreciating asset is a mistake I made 10 years ago, and it is very, very shitty digging yourself out of it.

Sure you'll lose face when your friends all get nicer cars out of school, but in 5 years you'll be ahead.
I know it's not what you want to hear, but do seriously consider it.

That said, if a semi-decent inspection was done on it, it's not a BAD price. You could negotiate it down a tad due to the higher mileage.

Can't agree more. It's tempting with the first decent job out of college to spend the $$$ on the shiny new whip (we've all been there), but saving $$$ and building up your 401(k)/other investments early on makes the future so less stressful. I cringe when I see people in their mid-30s that are making $100k+ and have jack shit in their bank account because they didn't know how to delay gratification.

 

[Browncoat3000]

@AceGuy0906
You didn't mention: are you paying cash or financing the deal?

I'm guessing you are financing, so if you have 3K for a down payment, low interest, and go for 5 years, that's going to be $230-240/mo.

The Beater option does make sense, assuming you can find a suitable car for 5k or less. Especially if you aren't financing. Drop that money on the debt.

There is a third option, consider leasing.

Right now, Honda is offering $179/mo leases, with 2k down. That would free up $50-60/mo. and only tie you down for 3 years. Plus you won't have to worry about a major repair bill in that time.

 

[AceGuy0906]

If you're saddled by "yuuuuge" student loan debt, absolutely do not buy this car lol

Buy a $3000 civic, spend $500 tuning it up, store away another $500 as emergency repair fund, and pay off your debt.

Starting your adult life in debt by immediately going into more debt for a depreciating asset is a mistake I made 10 years ago, and it is very, very shitty digging yourself out of it.

Sure you'll lose face when your friends all get nicer cars out of school, but in 5 years you'll be ahead.
I know it's not what you want to hear, but do seriously consider it.

That said, if a semi-decent inspection was done on it, it's not a BAD price. You could negotiate it down a tad due to the higher mileage.

I may have overstated the yuuge part, I was lucky enough to work a few jobs during college and brought my debt down to around 18k. But thank you for the wisdom, I'll certainly take it into consideration.

But your point still stands, taking on new debt isn't ideal. I've worked the price down to 15,480. The breakdown is below.

My only other concern is any issues that might occur with the car, since its not under any warranty (is my current understanding).

Thank you for the wisdom. As a 22 year old, I appreciate it.

Can't agree more. It's tempting with the first decent job out of college to spend the $$$ on the shiny new whip (we've all been there), but saving $$$ and building up your 401(k)/other investments early on makes the future so less stressful. I cringe when I see people in their mid-30s that are making $100k+ and have jack shit in their bank account because they didn't know how to delay gratification.

I like the idea of being ahead financially in five years, but I'll be returning to graduate school next Fall. That's the most significant reason driving this decision. Living in central or upstate NY without a vehicle can be hell. I completed undergrad without a vehicle, but I missed out on many internship opportunities that weren't accessible through mass-transit. (I probably saved a ton of money on car insurance, gas, and snow tires as well).

Thank you for the wisdom.

@AceGuy0906
You didn't mention: are you paying cash or financing the deal?

I'm guessing you are financing, so if you have 3K for a down payment, low interest, and go for 5 years, that's going to be $230-240/mo.

The Beater option does make sense, assuming you can find a suitable car for 5k or less. Especially if you aren't financing. Drop that money on the debt.

There is a third option, consider leasing.

Right now, Honda is offering $179/mo leases, with 2k down. That would free up $50-60/mo. and only tie you down for 3 years. Plus you won't have to worry about a major repair bill in that time.

I got approved for an unsecured loan through Light Stream at 1.74% for 15,000 for a period of 60 months. Payment would be 260. I would fork over the rest of the cash (taxes, docs, plates, etc).

Car: 15480
NY Taxes: 1350ish
Docs: 488
Plates: 366

I'm liking the idea of a lease even more. Like most of you that have posted, I don't like the idea of using up my savings to buy a depreciating asset. It literally makes my blood boil, which is why I won't buy a new car and I'm contemplating this choice instead.

My only concern is mileage. I love taking road trips but usually use rental companies (like TURO) to make them possible. Having my own car would allow me to not give a rats ass abou mileage.

Thanks all for the feedback! I might hold back on pulling the trigger till next year since I don't really need the car until July of next year.

 

[neteng101]

Another factor to consider - financing/leasing can be useful to raise your credit ratings for the future. But of course if you have any revolving credit balances like credit card debt - those needs to be paid off first.

 

[kirkhilles]

Here is one thing to consider. Many people see a vehicle with say 3 years of miles (this one is close to that) and say "oh, its $6k off MSRP, that's a great deal", but look at this math:

2.5 Years of mileage for $16k.

MSRP: $22,000
Average Price you could buy new: $19,000 (I've seen $18k clearing out older models from our fixed price dealer)

Savings $3,000.

BUT think of it this way. It would be like Buying New for $19,000, driving it for 2.5 Years (mileage wise) and it only costing you $3,000. $3,000 / 30 months = $100 per month.

Leasing an EX for $100 per month would be an amazing deal which makes buying it not-quite-as-good-of-a-deal.

30k is nothing at this point, but you'll be needing tires soon, maintenance sooner, etc. Instead of being 30k on a new car, you'll be 60k. 90k becomes 120k. What would you pay to add 2.5 years of life to your car? I'd pay more than $3,000 personally.

 

[VarmintCong]

Here is one thing to consider. Many people see a vehicle with say 3 years of miles (this one is close to that) and say "oh, its $6k off MSRP, that's a great deal", but look at this math:

2.5 Years of mileage for $16k.

MSRP: $22,000
Average Price you could buy new: $19,000 (I've seen $18k clearing out older models from our fixed price dealer)

Savings $3,000.

BUT think of it this way. It would be like Buying New for $19,000, driving it for 2.5 Years (mileage wise) and it only costing you $3,000. $3,000 / 30 months = $100 per month.

Leasing an EX for $100 per month would be an amazing deal which makes buying it not-quite-as-good-of-a-deal.

30k is nothing at this point, but you'll be needing tires soon, maintenance sooner, etc. Instead of being 30k on a new car, you'll be 60k. 90k becomes 120k. What would you pay to add 2.5 years of life to your car? I'd pay more than $3,000 personally.

good point - always consider the new car discount when shopping used. People buy a used 3 series and think it's a great deal cause they're getting $10k off MSRP. But BMW sells a lot of them for $6k off MSRP when new.

I generally don't buy used Hondas or Subarus, so overpriced.

 

[AceGuy0906]

Here is one thing to consider. Many people see a vehicle with say 3 years of miles (this one is close to that) and say "oh, its $6k off MSRP, that's a great deal", but look at this math:

2.5 Years of mileage for $16k.

MSRP: $22,000
Average Price you could buy new: $19,000 (I've seen $18k clearing out older models from our fixed price dealer)

Savings $3,000.

BUT think of it this way. It would be like Buying New for $19,000, driving it for 2.5 Years (mileage wise) and it only costing you $3,000. $3,000 / 30 months = $100 per month.

Leasing an EX for $100 per month would be an amazing deal which makes buying it not-quite-as-good-of-a-deal.

30k is nothing at this point, but you'll be needing tires soon, maintenance sooner, etc. Instead of being 30k on a new car, you'll be 60k. 90k becomes 120k. What would you pay to add 2.5 years of life to your car? I'd pay more than $3,000 personally.

I've actually been considering leasing instead of buying the used car. For all of the above stated reasons as well as warranty/longevity concerns.

 

[kirkhilles]

I've actually been considering leasing instead of buying the used car. For all of the above stated reasons as well as warranty/longevity concerns.

I'm leasing it because of the especially low depreciation rate. Just remember that each $1,000 off MSRP saves you around $30 per month, so getting a good deal is imperative. Now (or over the next month) might be a great time to seal that deal on outgoing 2016s.

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