Car Payment in Med School

[Tertbutyl]

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Has anyone been able to handle this? Since I won't be working once I start school in August, I need a few options regarding how other people have handled this situation. It seems silly to take out a loan to pay another loan, but it seems like that might be my only option.

And if so, what loans did you utilize to do this?

 

[yadayadadude]

It'd be best not to have a car payment in medical school, if you are planning to live on loan money. Any way you can either a) pay off your car before matriculating (as in, work a couple extra jobs) or b) sell it, and buy a cheaper car with cash?

I went through most of medical school without a car payment, and it was a lifesaver. My husband and I shared an older Acura that we bought with cash. One of the great things about this situation was that the car was old enough (1998) that it was practically free to insure -- we paid $35/m for (liability only) insurance. Sadly, that car completely fell apart this fall, so we recently leased a new car. Much as I like the car, it sure is unpleasant to get that bill every month.

 

[Sol Rosenberg]

It'd be best not to have a car payment in medical school, if you are planning to live on loan money. Any way you can either a) pay off your car before matriculating (as in, work a couple extra jobs) or b) sell it, and buy a cheaper car with cash?

I went through most of medical school without a car payment, and it was a lifesaver. My husband and I shared an older Acura that we bought with cash. One of the great things about this situation was that the car was old enough (1998) that it was practically free to ensure -- we paid $35/m for (liability only) insurance. Sadly, that car completely fell apart this fall, so we recently leased a new car. Much as I like the car, it sure is unpleasant to get that bill every month.

Just a comment: The age of the car has very little, if not nothing, to do with the cost of liability insurance.

It is collision and/or comprehensive coverage that has its cost tied to the value of the vehicle.

 

[yadayadadude]

The age of the car has very little, if not nothing, to do with the cost of liability insurance.

Hm, that's interesting, although now that I think about it, it does make sense. So if we were to reduce our coverage to liability only on the new car (which we can't, since it's leased), it would be that cheap? Really? That's good to know.

 

[Sol Rosenberg]

Hm, that's interesting, although now that I think about it, it does make sense. So if we were to reduce our coverage to liability only on the new car (which we can't, since it's leased), it would be that cheap? Really? That's good to know.

More or less. Your liability rate is primarily tied to:

1. Your demographics (i.e. Single Male < 25 years old = screwed)
2. Your driving record (i.e. Single Male < 25 years old with tickets and/or accidents = REALLY screwed)

Even the amount of liability coverage that you purchase affects your policy only slightly (i.e. 100/300/100 coverage was only like $10/year more than state mandated minimum coverage (20/50/20? I forget -- it's been so long since I had minimum coverage) in our case.)

But, aside from all that, and to un-hijack this thread, it would be stupid (and not permitted if you are financing/leasing, as you pointed out) to not buy collision and/or comprehensive coverage on a new car, so new cars = de facto more expensive insurance, so it's probably best to buy a good used car while in medical school, and treat yourself to a nice graduation present when the time comes 🙂