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Should I buy a car now (before I file my FAFSA)?

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SJBX

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I have a decent amount of money saved up. I won't really need a car my first two years (actually, it might be a pain since I might go to school in a city).

I'm thinking that I might go and buy a car now for two reasons:

1) I actually have money to do so, when I want to buy one for years 3-4, I'll be broke.

2) FAFSA - Won't it be better for me to eliminate money from my savings and borrow more now then have to borrow to purchase a car a few years down the road?
 

mpp

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If you don't need the car, don't buy it. A vehicle is never a good place to stick money just because you need to put it somewhere. If anything, you can stick the money in a Roth IRA (If you do so before April 15 you can put $6000 in...$3000 for last year and $3000 for this year). None of this money would be included on your FAFSA.

Or, just use your savings to pay for your tuition and living expenses. You can still borrow some money later if you need it. Worry about financing a car when you need the car.
 
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