Buying a car

[username456789]

I'm a third year medical student who currently has a piece of junk 1995 Buick. I've had it for 4 or 5 years, and while it's gotten me from A to B, it's got a terrible transmission and terrible brakes (the brakes should be able to be remedied with a simple new brake pad purchase, at least). Overall I don't really know how much longer it'll last. I'd love to have something a bit more reliable (and, honestly, a bit more modern . . . this thing feels like an ancient clunker).

I'm paying for school/living expenses entirely with loan money (well, I have a $4,000 grant included in there somewhere). I've heard that buying a new car in med school is a bad idea, but I feel like trying to buy one in residency will be even harder as I begin to pay back the huge med school debt. At this point I will likely be $300k in debt after all is said and done with med school, so to me, another couple thousand hardly seems all that big a deal. I'm certainly not planning on buying a "new" car, just a new-to-me car, maybe something from this century (since I turned 16, I've never owned a car that was less than 10 years old at the time). I would think I should be able to find a decent 2000/2001 sedan for a reasonable price, no?

Is this an absolutely crazy idea, or a reasonable-to-consider idea? I've taken out slightly more than I ended up needing each year so far (it's tough to know exactly what I'll end up spending each year) with the plan of scaling back as necessary for my 4th year based on how much additional loan money I've accumulated in my bank account. So it's not as if I don't have access to an additional $5,000 or something, and I could pay for it all up front, it's just that this money is obviously borrowed with interest.

Input?

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[TMP-SMX]

You'll be fine getting a used car if you have enough budgeted for everything else.

 

[McGillGrad]

It is usually cheaper to repair a car than buy a new one unless it involves a repair that costs more than 60% of the new-used car purchase.

You won't get rid of car repair issues by buying a 6-9 year old used car. You will still need to pay for upkeep and the eventually expensive repair.

Buying another car when you are not generating revenue is not a great idea, unless your Buick dies.

As nice as a new(er) car would be, it is a bad financial move. If you can wait 1.5 years then wait until you know your financial situation during residency.

 

[SFO-IST]

It is usually cheaper to repair a car than buy a new one unless it involves a repair that costs more than 60% of the new-used car purchase.

You won't get rid of car repair issues by buying a 6-9 year old used car. You will still need to pay for upkeep and the eventually expensive repair.

Buying another car when you are not generating revenue is not a great idea, unless your Buick dies.

As nice as a new(er) car would be, it is a bad financial move. If you can wait 1.5 years then wait until you know your financial situation during residency.

+1

I can totally understand your hatred of the buick. However, you never know with new cars. I bought a Chevrolet Aveo new, thinking a cheap new car would be a sound investment. I had to have it repaired three times in one year - luckily under warranty. The last repair was for a door lock that FELL INTO THE DOOR when I inserted my key. That was the final straw and I ended up getting a civic, which has has 0 issues whatsoever since I bought it new in 2008.

I guess the moral of the story is that just because the car is new, you can't be sure it will be reliable. I would wait until the car really dies - like wait until the transmission goes out or something. Then I'd get a new car. On the other hand, if you come across a good deal on a 5 year old used car like an accord, civic, prius, etc. that has high reliability scores, that's a good option too - especially since you won't be able to go car shopping when your current clunker bites the dust.

 

[Dr Fraggle]

Toyotas and Hondas tend to be very reliable and not so expensive (esp the Toyotas). They are always rated well in consumer reports and tend to keep their value longer than other models. If you absolutely have to buy something, I would stick to those. A new transmission can cost anywhere from $600-$3000 depending in what else breaks with it. And that cost likely will not be financeable, unlike the cost of a new car. If you had a reliable car to begin with that was just showing it's age a bit, I'd do the repairs. But buicks are not known for their reliability. I'd look hard at your finances to see how much you can spare and then do a leisurely search to see what is out there. While your Buick is still running, you have no burning need for something new and can take your time. Don't forget as a third year you also have to budget for step 2.