New cars?

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joshua_grooms02

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Did anyone buy a new car or plan on getting a new car when they started school? I have a s-10 now but im afraid its not gonna make it much longer...just wondering if other people will be using the loan money to purchase a new vehicle..
 

capisce?

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I'd drive that thing into the ground before I'd spend loan $$ on a car. Only do it unless you absolutely have to. Just my 2c.
 

purduephigam

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If your S-10 is really on its last leg, you should think about getting a used car, not necessarily a used one. I'd look into the Honda category being that they last forever as every day drivers. At this point you just need something to get your from A to B without misc. expenditures. I'd wait on that "new" car until a few years down the road.
 

nate28

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If your S-10 is really on its last leg, you should think about getting a used car, not necessarily a used one. I'd look into the Honda category being that they last forever as every day drivers. At this point you just need something to get your from A to B without misc. expenditures. I'd wait on that "new" car until a few years down the road.

Hondas are great, but my experience w/ them is they pretty much krap out after 10-11 years.
 

purduephigam

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Hondas are great, but my experience w/ them is they pretty much krap out after 10-11 years.

I agree that seems to be the trend. Just hope the OP isn't in D-school for 10-11 years.

"You know a lot of people go to school for seven years" - Farley
 

Jaybe

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Did anyone buy a new car or plan on getting a new car when they started school? I have a s-10 now but im afraid its not gonna make it much longer...just wondering if other people will be using the loan money to purchase a new vehicle..

Don't buy a new car. Drive your heap until it breaks down. If it breaks before you get out of school, take a loan and get a USED car at that point. Don't take on additional debt right now. You don't know what the future holds.

NEW cars are for people in the position to overspend on rapidly depreciating items. If you take a 100% loan on a brand new car, then total the thing the next week, you will owe the bank CASH to get out of the loan. The car will get totalled for an amount less than the loan amount.
 

Dental916

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New car has its advantage because the worst manufacturer's warranty are 3 year 36000 mile while many are 5 year 60k or 10 year 100k for hyundais. Yes you pay more, but any problems...take it in and get it fixed for free and while you're in dental school you want the least amount of distractions.

Truely...whats another 10-15g's for a car...just pay it off when you get out.


I'll be in debt over 300k so another 10-15 g's wouldn't hurt at all when it comes to making payments. over 30 year payment plan its probably like 50 bucks a month more.
 

Dr. Dai Phan

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This reminds me of a fellow back in 1995 when I graduated. He got accepted into a MD/OMFS program and immediatetly he went out and bought a red hot BMW. I could tell that he had ego on him the way he talked to his friends after he got accepted. Later on that follwing year I heard he got kicked out of the program since he was no where to be found when comes to being on call. I wondered what happened to his Beamer? DP
 

Dental916

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bmw was obviously bought cuz he thought he thought he was a hotshot...this guy just needs a dependable ride.
 

Jaybe

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New car has its advantage because the worst manufacturer's warranty are 3 year 36000 mile while many are 5 year 60k or 10 year 100k for hyundais. Yes you pay more, but any problems...take it in and get it fixed for free and while you're in dental school you want the least amount of distractions.

Truely...whats another 10-15g's for a car...just pay it off when you get out.


I'll be in debt over 300k so another 10-15 g's wouldn't hurt at all when it comes to making payments. over 30 year payment plan its probably like 50 bucks a month more.

Sounds like you are trying to justify yourself.

Look, this mindframe is the reason why Americans of all income levels today hold an unprecedented level of personal debt. A vehicle is bad debt, and there is no nicer way to put it. Why would you unnecessarily take on a maximum level of bad debt while a student?

Why do you think manufacturers are so keen to intice you with 3 - 5 year warranties? Its because new cars rarely break down!!! Cars that are 1-3 years old also rarely break down, but they are much cheaper since the initial depreciation has already occured.

Finally, the extra 10 to 15 grand is actually much more than that, because it is lended to you at a interest rate (maybe 8 percent). Then you have a $300 - $400 / month car payment that you have to take additional student loans out to pay (at about 6.8% or more). So now you are taking additional loans, to pay another unnecessary loan payment on a new car, which loses 20% of its value when you drive it off the lot.

Lastly, you are unlikely to just "pay it off" when you get out of school, because you will have a 2500 / month student loan payment, 2000 / month house note, 4000 / business loan payment, plus your credit card payments and other bills.

Good luck buddy!
 
J

jackbauer!

Sounds like you are trying to justify yourself.

Look, this mindframe is the reason why Americans of all income levels today hold an unprecedented level of personal debt. A vehicle is bad debt, and there is no nicer way to put it. Why would you unnecessarily take on a maximum level of bad debt while a student?

Why do you think manufacturers are so keen to intice you with 3 - 5 year warranties? Its because new cars rarely break down!!! Cars that are 1-3 years old also rarely break down, but they are much cheaper since the initial depreciation has already occured.

Finally, the extra 10 to 15 grand is actually much more than that, because it is lended to you at a interest rate (maybe 8 percent). Then you have a $300 - $400 / month car payment that you have to take additional student loans out to pay (at about 6.8% or more). So now you are taking additional loans, to pay another unnecessary loan payment on a new car, which loses 20% of its value when you drive it off the lot.

Lastly, you are unlikely to just "pay it off" when you get out of school, because you will have a 2500 / month student loan payment, 2000 / month house note, 4000 / business loan payment, plus your credit card payments and other bills.

Good luck buddy!

amen..:thumbup:
 

Dental916

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To those who think 300K in dental school debt is not a big deal, ask the new dentists what they think about it. The following link might give you an idea of what you are up against- http://www.docere.com/MessageBoard/thread.aspx?s=2&f=214&t=19265&r=0#Post0. My advice is to live rice and beans not only as a student, but also the first three years out of school.

I know 3 dental students who got out of school with 300k debt and all are doing just fine...they're not big spending or nothing...but in no way are they struggling. I understand to watch your money and play it safe, but I was only making a suggestion to the OP.
 

ldsmbhc

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I know 3 dental students who got out of school with 300k debt and all are doing just fine...they're not big spending or nothing...but in no way are they struggling. I understand to watch your money and play it safe, but I was only making a suggestion to the OP.
One point I was trying to make is the attitude of adding on more dental school debt because its small compared to the overall four year expense is dangerous. It is not wise to buy unnecessary (a car is an essential thing for most) items because you expect to make a lot of money down the road. What if it doesn’t happen?
 

Lemming

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Truely...whats another 10-15g's for a car...just pay it off when you get out.
I dunno about you, but most people think 15g's is a lot of money. And guess what, the 100K you're gonna be making (at best) fresh out of school is not that much either after taxes. This kind of thinking is a very very bad state of mind to be in, and you should start convincing yourself otherwise or else you'll be in debt for the rest of your life, which would not be fun.
 

beezies

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Jaybe

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I dunno about you, but most people think 15g's is a lot of money. And guess what, the 100K you're gonna be making (at best) fresh out of school is not that much either after taxes. This kind of thinking is a very very bad state of mind to be in, and you should start convincing yourself otherwise or else you'll be in debt for the rest of your life, which would not be fun.

Its true, I am making about that right now during my first year out. I have been trying my 'darndest' to save some cash for our practice acquisitions that will be coming up soon. Its hard. And my wife and I drive paid off POS cars!
 

1992Corolla

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I went to a car show recently and fell in love with the new subaru legacy sedan. YUMMY!
 

small

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Just bought a brand-new Honda CR-V, but I'm also working full-time and have a family to think about. If I were alone and just in school I'd just ride my bike and keep the cheapest piece of junk car I could find.
 
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