Buying a car

[Xmulder]

I have heard the common advice that one should buy a car when he/she is employed. This leads to financing approval and favorable terms, etc.

What are the options for those of us who will not be working prior to entering med school, but for whom a car will be an essential purchase? Will a car loan be available? If so, how good are the terms? How do students in this position usually deal with this? Lastly, what is the usual monthly car payment/insurance cost?

Thanks!

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[mpp]

If you have good credit and buy an inexpensive used car, you should be able to find someone to loan you some money...check the bank that you use for checking and savings account or the bank that your parent's. The terms will be just plain awful but you have to do what you have to do if you really need the car. If you can't find anyone to loan you money, perhaps a parent can cosign for you (as long as they understand that the loan is then just as much their responsibility as it is yours...if you make late payments or don't pay it can affect their credit rating).

There is no such thing as a usual monthly car payment/insurance cost as it varies tremendously so no one can give you an estimate. How much are you going to borrow? What is the interest rate? What are the terms (length of loan)? A car payment can be anywhere from $100 a month to over $1000.

Cost of insurace will depend on your sex, age, marital status, previous tickets/accidents, type of car, type and limits on insurance, living condition (rental vs. home owner), location (city and state), where the car is parked, how much you drive each month, what type of loan you have, etc., etc. Insurance can cost anywhere from $25 per month to $500 per month.