Hi guys, first i just want to say hi. im new to the forums and a newb on cars, and im very intereasted in moding soon when i get my car. but im 15 and have been working for a year and a half now and saved $5000 once i turn 16 im planning to purchase the car i fell in love with the 08 scion xb but im just wondering. im doing this whole car thing on my own and planning to purchase it in 6 months, feb 6th. ( my b-day)

by then i should have $6800. what should i do? should i wait a little longer til i get more $$ or just go for it and have high payments ( what do you think my payments will be?) in the end the car will run me about 21,000 with all the things i want and when i get the cash i want to mod it... it seems like a fun hobby im just wondering for some input from the pros around here how i should go about doing my purchase so i dont make any big mistakes. thanks!!

also are sponsors really helpful or are they no good? would they give me parts and all that?

 

you should have your parents co-sign for you if you want low monthly payment you can afford. When i first got my xb, they quoted me 21%, that's really bad. My mom co-signed for me, it went down to 6%. Very good. Instead of paying $350 a month, i now pay only $267 a month. That would be my advice. Interest is what you pay the bank for buying the car for you.

 

On average, every thousand dollars you finance equals about $20 a month in your car payment. So if you take the $21000 you think you are going to spend and subtract the $6800 you'll be putting down, you'll be financing $14200. Divide that by 50 (gives you the $20 per thousand) and you'll have payments around $284 a month.

superboxcarxb gave good advice. Do whatever it takes to get your interest rate down. For one it lowers your payment and two it looks better on your credit report.

When you are making your decision don't forget insurance rates. You have to budget that in with the car payment, taxes, fuel costs, and anything else you have to pay for.

If I were in your shoes, I'd try to get an XB with no options to keep the price down. You can get all the mods you want cheaper later.

 

Yea thanks for the tip and it really helps with getting a idea of what my payments will be. but my parents agreed to pay my insurance so thats not bad. :-)

 

When you say "on my own", what do you mean?

It's possible that you have credit at this age, but not likely, and it's a totally moot point anyay as you are not 18, and because of that, you are not allowed, legally, to enter any legally binding contract, i.e. an auto loan.

 

Yea sorry when i say "on my own" i mean paying for it myself but my parents will co sign with me

 

Heres just and idea for you, this is basically what i did to get my xB at 16 I saved money, and borrowed some money from my brother actually, but it was only a couple grand. Then when it came time to buy it my parents actually bought it and own it as far as the insurance companies are concerned, this way the insurance rate stays low and i don't have to pay any interest, now in your situation you might have to take out a lone considering it is substantially more money, but I suggest having your parents actually buy it. then a few years down the road you can transfer ownership if you need to. Just an idea.

 

good advice.

 

They still need to have him listed as a driver on the policy though.

I would have them co-sign, it'll help build your credit. I wouldn't dump all my money in that I saved, you always need an emergency fund of some sort.

Have you considered a used vehicle? New at your age (or as a first vehicle for anyone for that matter) is not recommended. Your inexperience alone will probably get you into some type of small accident, even if it's just hitting a lightpole in a parking lot, as well as your driving skills are not yet honed to avoid accidents from other idiots on the road. First car and first motorcycle it's always said to go used and for very good reasons...

Good luck!

 

Well that is a given. And I do agree a brand new car may not be the best choice, but if you insist on getting one new the xB is a good one considering it has such a high resale value. I had to wait two years before i could even find a used one one below new sticker price.

 

My 2 cents. Put the money in a bank and get your parents to cosign so you can get a cheaper rate. If you try it at 16 you will be in the high 20's on rates, talk to your parents and have them assist with this. Good luck.