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Buying advice: First Car, First Job


YoungGrasshopper

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Hi guys,

I've been a regular visitor to the forum,but decided to finally create an account today. It's always  great to see a community of car lovers trying to help out each other. 

I need a small favour from you guys, and it would be great if you could help me out.

One of the things on my bucket list is to buy a car by the time I turn 23, which I will be next year. I just managed to snag my first job a couple of months ago and I now want to somehow achieve my goal of owning a nice, decent car. As you might have guessed, I make a basic executive level salary (around 45k a month). I also have about 200k saved up, which I can use towards a down payment.

My dilemma is as follows:

1. What would be a good car to buy?

The criteria: Has A/C, Good engine, decent mileage,  Looks okay, and doesn't cost a fortune to run and maintain.

2. In your opinion, what would be the best way to fund the purchase?

The FinMin has this new Loan To Value limit of 70% on leases (thanks Ravi, VATman and dasher of dreams) which has been brought down to 50% through the new budget. On top of that, banks have age limits on cars, which also impact the amount they're willing to lend.

Please help. Should I go for a car, or save up more (and use uber or our trusty tuk tuks to get around till then)?

Your opinions would be really helpful. 

Thanks in advance! :)

 

 

 

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The basis which you have only 200k in hand and your monthly salary 45k,

honestly the best thing you should not go for a car. Car values are depreciating, so invest for other thing or atlest save something in your bank account. Since you are still 23, use public transportation (its funny as well - new persons every day) and your legs (you will receive free exercise as well) as much as possible and work hard for 5 more years. Your company will provide a car for you sure. or else, you could buy any car you want. - seriously 

 

Hint: If you manage to find your wife with a car (lets wish for a house as well), nothing to worry. - Just kidding. :):);) 

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3 hours ago, YoungGrasshopper said:

Hi guys,

I've been a regular visitor to the forum,but decided to finally create an account today. It's always  great to see a community of car lovers trying to help out each other. 

I need a small favour from you guys, and it would be great if you could help me out.

One of the things on my bucket list is to buy a car by the time I turn 23, which I will be next year. I just managed to snag my first job a couple of months ago and I now want to somehow achieve my goal of owning a nice, decent car. As you might have guessed, I make a basic executive level salary (around 45k a month). I also have about 200k saved up, which I can use towards a down payment.

My dilemma is as follows:

1. What would be a good car to buy?

The criteria: Has A/C, Good engine, decent mileage,  Looks okay, and doesn't cost a fortune to run and maintain.

2. In your opinion, what would be the best way to fund the purchase?

The FinMin has this new Loan To Value limit of 70% on leases (thanks Ravi, VATman and dasher of dreams) which has been brought down to 50% through the new budget. On top of that, banks have age limits on cars, which also impact the amount they're willing to lend.

Please help. Should I go for a car, or save up more (and use uber or our trusty tuk tuks to get around till then)?

Your opinions would be really helpful. 

Thanks in advance! :)

 

 

 

Well hello,

With 45k as a salary and still teen and close to me age, dont waste the salary when you are just starting to save money. Also if you are planning to take a lease/loan, trust me it will bite you in the sweet spot if you dont manage carefully. Save a bit more, but with the Lankan vehicle market is bloated with the Japanese mindset and unrealistic prices for second hand cars, you are better off buying a new car (ex: viva elite, axia, i10, picanto) which is new. 

Also dont buy a old rust bucket if you dont have time to attend to garages and repairs and so on. Im thinking that you will be doing some professional qualification studies of some sort. If so, never buy a rust bucket. IE: You can buy a Fiat 131, YOM 1977, it does good on fuel and all. And costs -=200k. But with the age of the car, rust is a issue. This is just an example.

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I have an entirely different opinion from the rest. I would say go and buy one.

I am in my mid 30s and I bought my first car when I was around 24-25. It was a huge learning experience. I lost a lot of money on that car. I think I bought it for something like 3.30, spent another 2.50 for repairs and mods and eventually sold it for something like 3.50.

Yes I lost money, but here's the deal.

1. I gained a massive amount of knowledge about cars by meddling with it.

2. The personal loan I got had a monthly instalment of around 13,000 and my job paid me less than 40k at that time. If I didn't take that personal loan and bought the car I would have spent that 13,000 anyway on something/someone or the other :D

I have absolutely no regrets on losing that 250k. The experience I gained was much more valuable than that and had I waited til 30 or so to buy a car and end up buying a lemon (like most people do), I would have lost much more than the 250k anyway.

This is the age to experiment in life. Be it jobs, cars, women... whatever in life. You will not get this chance once you pass 30. So go take a risk. Get a car.

I have just one advice for you. Never ever go for a lease. Always try to get financed through a personal loan. If you don't like the car you can easily sell it off. and you don't need to get a comprehensive insurance.

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Hi Guys,

Thanks for the input! Keep 'em coming!

I probably should have mentioned this earlier. The central bank a.k.a "The Parents" are willing to lend me another 200k or so, and have told me to go for a loan or whatever if I need more money for a car.

On the career side, I've completed my professional qualifications, but have a plan to enroll in an MBA next year. The total cost of an MBA is around 600k. I've been thinking about all this, and I realize that there is a high chance of me ending up in a tight spot if I try to juggle funding both a loan and an MBA.

So @gayanath and @fiatLife, I hear you loud and clear :)

Also @Crosswind, interesting perspective machang! What car did you buy?

Cheers,

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  • Here is another thread, we discussed about buying the first car & learn driving for a young graduate. Difference is at that time he was seeking a job while you are doing. But you may get useful points from that thread.
  • I am also in  @gayanath and @fiatLife view because you are going to enroll a MBA in next year, If so you need to attend lectures on almost all weekends while doing the job on weekdays. That seems we can manage things easily in the beginning. You will give (honestly must) priority to MBA and delay some other small small tasks one by one. After 5-6 months some of that postponed task list will be big and force you to miss lectures to do those. When you own a car, this task list can be increase rapidly.
  • It is said that Thomas Alva Edison tested thousands of filaments to get success. In natural science, we can test same thing again and again. But in social sciences we can not test like that. Buy a car, get marry and complete MBA. If not success complete MBA, marry and own a car. As we can not reverse the time. Most people give priority to qualifications/career. But if you jump out from the box like @Crosswind says, and can manage everything together, you may reach your goals in different way.

Make a list with pros and cons everyone saying here. Include own things too to that list. Then take the decision.

Good luck !!!

Edited by kusumsiri
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My car related comments which were moved to the Education thread...

Anyway....I too would say buy a car. A small old fashioned car. I would say something like a box lancer or a corolla/sprinter E80, KE72/74 or even a Sunny (i find the B11 sunny hideous though), etc...Something which is pretty hardy and easy to maintain. With your savings and the money from your parents plus a few months savings, you should be able to pick up a decent specimen. Also, if you are in to cars...the mechanics on these things are quite simple that you will learn quite a lot by doing things yourself (thus, saving some money). No fancy electronics and hyper-sensitive sensors and ECUs to deal with. You could do a simple tune-up at home in a matter of hours (leave the carb alone !). 

Will the above be 100% trouble free....def. not...but it won't cost that much in time and money to fix. During the days it is in the garage; use a taxi (to be honest most of the time using a taxi to go for lectures and even work stuff is a lot more easier than driving considering the hassles of parking in Colombo) AND you don't have huge loans to pay off. 

Just an alternative point of view

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On 11/20/2016 at 0:11 PM, YoungGrasshopper said:

Hi guys,

I've been a regular visitor to the forum,but decided to finally create an account today. It's always  great to see a community of car lovers trying to help out each other. 

I need a small favour from you guys, and it would be great if you could help me out.

One of the things on my bucket list is to buy a car by the time I turn 23, which I will be next year. I just managed to snag my first job a couple of months ago and I now want to somehow achieve my goal of owning a nice, decent car. As you might have guessed, I make a basic executive level salary (around 45k a month). I also have about 200k saved up, which I can use towards a down payment.

My dilemma is as follows:

1. What would be a good car to buy?

 

I asked a similar question half-a-decade ago and the good folks at AL  helped me out ... I guess the options might still be valid..

 

 

On 11/20/2016 at 0:11 PM, YoungGrasshopper said:

2. In your opinion, what would be the best way to fund the purchase?

The FinMin has this new Loan To Value limit of 70% on leases (thanks Ravi, VATman and dasher of dreams) which has been brought down to 50% through the new budget. On top of that, banks have age limits on cars, which also impact the amount they're willing to lend.

Please help. Should I go for a car, or save up more (and use uber or our trusty tuk tuks to get around till then)?

Your opinions would be really helpful.

Whether you should go for a car depends on who you are... for example if you are a big petrol head, and you like to get your hands dirty a bit trying to figure out what's wrong with your car or  spend time in a garage then you will actually enjoy a car (given that at your price range you're looking at an older car)  but if you have other obligations ( say a girl friend who want's you to go shopping with her each weekend) then maybe you will not have the time to dedicate for an older car. 

 Don't lease take a Personal Loan now that you're employed.

 

 

 

good luck. 

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Hey guys,

thanks for the info. will check out that other thread.

And @iRage and @Crosswind, I do have my eye on PIM for now, but even on the MBA scene, nothing is concrete as yet. I'm keeping my options open (local vs. foreign). I'm involved with  few startups over here, so that's the basis on which I'm trying to lodge my application.

Anyway, back to cars...

What do you guys think is a good brand new car for a guy like me to buy, once I've saved up some more money? Something that won't embarrass the better half would be good :D 

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Simply Car thing at your age is easier said than done ??

You may earn 45k and yes you are financially cool to go for a car in the range of 12-15 lakhs

Its not the case as you see it, 12-15 lakhs worth car is pretty much old in 2016 and you have to attend even the tiny thing unless you dont care.

Once spending is over with the help of a lease or so its really not gonna end then and there...

1) you need to pump petrol

2) then take care of the insurance and revenue license keeping them upto date

3) services to be done

4) Need to check all around even the tyres which is more important than anything

So I understand its really craving for a its not really easy as you see unless you are sponsored by parents or else really financially rich yourself coz Its pretty much hard to standalone to buy a car at this age in Sri Lanka ???

In my opinion I would suggest you to wait up and save some bucks and keep spinning with the family vehicles if you have or ask for sponsorship ???

Good luck in future endeavours ??

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Hello welcome to the forum,

I think you have do a lot of math here. You better calculate all expenses against the income you get. As everybody mentioned maintaining a car these days is not what it used to be. Cars will have unforeseen issues from time to time, and when you replace  one part  you may find other parts around will also need to be replaced, specially if you buy an old car.

If you really think you can manage one please try to find a relatively new well maintained one. Don't rush on impulses. Good luck!

 

Edited by aamarakoon
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3 hours ago, Quiet said:

at your age i had no income no mobile phone and no Job/ only Mahapola and some girl friends:D so i guess you are better off than me. Just delay your vehicle a bit until you have adequate disposable income

 You were way ahead of me! I had no Mahapola, no job, no mobile and no girl friends. :D 

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