Law School Discussion

buying a new car...?

HippieLawChick

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Re: buying a new car...?
« Reply #20 on: February 06, 2006, 04:04:42 PM »
This is why you need to get a JOB!  If you are concerned about wanting a car during LS (and you don't think yours is "good enough"), take a year off and work.  I promise it won't kill you. 

I deferred last yr b/c my 1994 car had 150,000 miles on it and I planned on going to WI.  I got a 2001 Corolla w/15,000 miles on it for $8,500 and I just paid it off.  I will be SET for LS, but I did have to work my ass off this year.  I wanted a car, and sacrificed to get one.

Everything in life is give & take.  If you don't want to take the time off to earn money for a car, you will have to learn to live without one and choose a school that has good public transportation nearby. 

BTW: I work for a bankruptcy/consumer law firm, and buying a new car when you can't afford it is probably in the top 5 reasons people file bankruptcy.  Don't be "that guy"!

Re: buying a new car...?
« Reply #21 on: February 06, 2006, 04:45:32 PM »
This is why you need to get a JOB!  If you are concerned about wanting a car during LS (and you don't think yours is "good enough"), take a year off and work.  I promise it won't kill you. 

I deferred last yr b/c my 1994 car had 150,000 miles on it and I planned on going to WI.  I got a 2001 Corolla w/15,000 miles on it for $8,500 and I just paid it off.  I will be SET for LS, but I did have to work my ass off this year.  I wanted a car, and sacrificed to get one.

Everything in life is give & take.  If you don't want to take the time off to earn money for a car, you will have to learn to live without one and choose a school that has good public transportation nearby. 

BTW: I work for a bankruptcy/consumer law firm, and buying a new car when you can't afford it is probably in the top 5 reasons people file bankruptcy.  Don't be "that guy"!

Outstanding response!!! 

I am wondering what interest rate you get on a car if you can't show any income?  It must be outrageous.

I have a 1997 Jetta with 105000 miles on it.  Even if I weren't going to law school (hopefully I am) I would keep that car until it absolutely dropped dead.  2K a year in repairs is by far easier than 4K a year in car payments (or in my case 6K+).  Cars are a depreciating asset so you should avoid purchasing them as much as you possible can.  This is not the time to purchase large items that are marginally "luxury".  You will end up in financial trouble and you could end up ruining your credit.

If your car is not least 10 years old, you either bought a lemon or your car is not on it's last legs.  If you absolutely HAVE to buy a car, buy an old bug for $1500 (that's the only VW I would ever recommend to anyone) and learn how to fix it yourself.  The knowledge of basic car maintenance will save you loads of money in the future and it's a skill that's always useful.  Those are they types of cars you can fix with pantyhose and it will get you from point a to point b much more reliable than some other cars.

I hate to pi$$ in your cheerios, but trust me, I've been where you are and I had to work for 3 years to get mine and my partners credit on track.  You don't want to make that mistake.  If you debt to income ratio is too high, you will not get financed for ANYTHING, period.  I don't care if you've never made a late payment.  You won't get financed.  If you don't have a long track record of job stability (which will be tough with law school), you will have a very tough time getting decent interest rates.  It's just a bad idea.  Make life easy on yourself.



Steve.jd

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Re: buying a new car...?
« Reply #22 on: February 06, 2006, 10:31:23 PM »
Good question about whether a car is an asset or a liability.  Schools make it clear that they don't consider financial dept when assigning financial aid, yet they as what kind of car you have and how much you owe on it. 

I have a few thoughts.

1) You'd have to be crazy to buy a NEW car.  20-30K plus taxes and insurance for transportation?  Who do you think you are, F. Lee Bailey? 

2)  You can get a decent used car cheap.  The dude that mentioned he was driving a Toyota with 90K on it?  That is what I consider to be reliable transportation.  If you're a student and you're even considering paying more than 10K for any vehicle, you should have your head examined.

3) Whatever you do, keep you payments LOW!  Around here (MA), people routinely pay $100-$200 per month for auto insurance alone.  Figure in the costs of gas and maintenence, and how much will you have left to actually put towards the car? 

4) I don't believe it pays to have money in the bank.  Buying a used car might not be such a bad idea if you have the money laying around.  As far as I can tell, these schools take all you have and then give you (or loan you) the rest.  So why give them the $10,000 you're sitting on when you could spend it and maybe they'll give you a 10k grant?

5) Thought number 4 is merely conjecture and should probably be ignored. 



2)  I'm the guy with the 90k toyota ;)
Yeah its reliable, but its also slow, unconducive to girls, and really small (which is damn annoying when moving into school, and trying to cram stuff in there)

4) That won't work, very few people get grants because parental income is taken into account, on the one hand you can use 10k towards your tuition and get less loans, on the other if you spend it, they will just make you take out more loans


AH

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Re: buying a new car...?
« Reply #23 on: February 06, 2006, 10:43:04 PM »
Hey steve I have a toyota svu.  Need helping moving into Cornell? ;)

Steve.jd

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Re: buying a new car...?
« Reply #24 on: February 06, 2006, 10:45:20 PM »
Hey steve I have a toyota svu.  Need helping moving into Cornell? ;)

haha you bet ;) ;D