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Car loan?

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Sherif

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are there any car loans that you can take out and not have to pay it until 8 yrs later? if so what are they? Would you recommend buying a new car for around $30,000. I am going to be a freshmen this fall and i figured i am going to be in 8 yrs of debt so i might as well enjoy it now. Any adivce
 
C

Chronotropic

You can take out stafford loans in undergrad then use that to buy a car. They get deffered until your done with school.

As far as I know there is no bank that will give you a grace period of 8 years on a car loan.
 

Hallm_7

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Actually you can't use stafford loans to buy big ticket items such as cars. Whatever school you go to provides an estimate of expected costs incurred by the student per month. Trust me, they aren't including a payment for a $30,000 car. Also, it's actually illegal. They can investigate to see if you are abusing the stafford loan. Americans don't want you buying a car interest free with their money, so it's against stafford loan rules.
 

ayndim

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My advice is to buy a cheap used car. Why would you want to add to your debt. A new car will depreciate significantly as soon as you drive it off the lot. If you must have a nice newer car at least buy one that is a year old. I wouldn't recommend spending $30,000 on a car while at university. My husband is an engineer and I cringed when we had to buy a bigger vehicle to be able to fit all 3 kids in.

I don't think you can get enough loans to pay for a $30,00 car. And that is assuming you are getting a free ride at university. You are limited in how much federal loans you can take out. Stafford subs are limited to 2625 for a dependent freshman. And 23,000 in total as a dependent undergrad. Plus, the amount you can borrow will depend on your (or your parents) finances. There are other loans for people whose tuition rises above that but you will usually need to show financial need.

Will you be working to pay off the car loan? Have you done the math. Assuming you will be putting zero down with 5.23 % interest rate (assuming you have average credit) your payments would be $569 a month. That will buy a whole lot of booze :eek: I was once an undergrad. I know how the parties go. Don't forget to add gas, insurance and maintenance in there.

You will have plenty of time to enjoy a new car once you are finished with school.
 

El Macho

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What? are you crazy??? buying a $30,000 car on loan before your freshman year just seems like a bad, bad idea.
 

OnMyWayThere

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I have great advice:

Post this thread in the FORUM. The benefits are:

1.) More exposure to students from various fields

2.) It helps keep the Pre-Allo form Pre-Allo related.
 

ZekeMD

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What freshman needs a $30,000 car?!?!?!?! Heck, mine only cost $700, and it works just fine.
 

Sherif

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well i gota enjoy life
 

ZekeMD

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Originally posted by Sherif
well i gota enjoy life

Maybe you should take a closer look at life and not think about material possesions as much. IMHO, enjoying life does not require expensive cars or tons of money. Do what you love and love what you do. Spend time with others. Theres more to life than what you possess. Just my 2 cents.

Besides, if you're materialistic, you'll have plenty of time to endulge after you graduate. Why rush life...be happy to live comfortably within your means now.
 

JohnHolmes

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There is a free car loan from hotwirethevehicle.com. You may have to visit the site chopshopforparts.com to have it cosigned.

Med schools are VERY receptive to you having car loans and will increase the amount of need-based scholarship material you receive to help offset the Bentley payments you need to make in med school. No one understands more than cash-strapped state med schools how important having a new Land Rover is while you are eating Ramen Noodles just to get by in Med school.

Coops
 

rgporter

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Originally posted by danwsu
You can take out stafford loans in undergrad then use that to buy a car. They get deffered until your done with school.

As far as I know there is no bank that will give you a grace period of 8 years on a car loan.

Yup that's the only way I know how to do it. $30,000 is way too much, you'll regret it. Unless your parents are independantly wealthy and want to finance your life.
 

Sherif

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ok then no car, i'll just go to college with a tricycle
 

JohnHolmes

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Originally posted by Sherif
ok then no car, i'll just go to college with a tricycle

I'm more of a fan of mopeds myself...

Coops
 

ZekeMD

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Originally posted by Sherif
ok then no car, i'll just go to college with a tricycle

I wasn't saying you dont need a car, in fact at many schools they are a necessity. But a $30,000 car is WAY too excessive. you don't need a car that expensive, you just want one. You should distinguish between needs and wants, or you can end up in a world of financial trouble. If you need a car get a decent used one for under 10k.
 

Columbia22

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30,000??? So then what's to be said of my 50K corvette C5???
 

Sherif

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well i didn't mean it like that. i have been wanting this car since i was 11 and i don't want to wait another at least 10 yrs before getting it. By then we will have flying cars
 

rgporter

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Do what you want but don't say we didn't warn you. When your flipping burgers to pay off your car because you can't cover your car payments with a med students fin. aid package; don't come crying round these parts.
 
B

Blade28

Originally posted by Sherif
well i didn't mean it like that. i have been wanting this car since i was 11 and i don't want to wait another at least 10 yrs before getting it. By then we will have flying cars

Ah. Well...it's up to you, but you're going to be incurring a HUGE amount of debt if you're planning on maxing out financial aid for the next 8 years. Are you OK with that? Can the dream car wait until med school at least?
 

Sherif

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ok dream car will wait but there better not be flying cars nor those new future ugly cars that look like they got Geled
 

Sherif

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ok dream car will wait but there better not be flying cars nor those new future ugly cars that look like they got Geled
 

meanderson

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If you aren't going to work a lot during ugrad to make the car payment, then you simply won't be able to by a nice new car. Even in medical school I don't think you could swing it. Remember, just because the federal stafford maximum is 38,500 doesn't mean everyone gets to borrow 38,500. If you get into a state school with a budget of 31k and then get 7k in institutional scholarships, you won't be able to borrow near the whole stafford amount.

Some medical schools have more "generous" budgets than others. One school lists a monthly food allowance as $500. I don't plan on spending nearly $17/day on food as a single medical student. If you go to a school like this you could borrow the max and use some of the extra to pay for your car. But other schools have a very tight budget. Private schools that cost 33k+ a year and are in rather pricey cities like to keep the total budget under 55k or so. Thus In an expensive city there isn't going to be any excess in there.
 

jlee9531

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im just glad i had a crappy car to drive around college, cause you wont care as much if you end up with minor dents and dings from other cars banging their door on yours, or people hitting your bumper trying to fit into a tight parking spot...random people who just like to F around and mess with other people's parked cars...insurance wasnt as much etc...

many reasons why you dont really need to have a nice/dream car during school. esp. undergrad.
 

Speedy

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Yep. I remember me, 2 consecutive all-nighters (damn p-chem!), and that dumpster that appeared out of nowhere! Originally paid $3000 for it..... got $150 from the dealer when I traded it in. :D
 
C

Chronotropic

Originally posted by Hallm_7
Actually you can't use stafford loans to buy big ticket items such as cars. Whatever school you go to provides an estimate of expected costs incurred by the student per month. Trust me, they aren't including a payment for a $30,000 car. Also, it's actually illegal. They can investigate to see if you are abusing the stafford loan. Americans don't want you buying a car interest free with their money, so it's against stafford loan rules.

I didn't read his post clearly enough. I figured anyone asking this question would be looking for a 2,000 dollar heap not a 30K ride. That does change things quite a bit as having a car is more or less a necessity at most places and its purchased could be justified. But not one that is 30K.
 
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