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I'm 23 years old. I just got my license a few months ago. I still live with my parents.
I make $11.25 per hour. I work 40 hours a week.
Right now I'm paying: Rent: $250.00 Utility: $160.00
You need to live where you can WALK to work (and pay less for housing too).
No car for you
You need to live where you can WALK to work (and pay less for housing too).
No car for you
There aren't that many places in the US where you can pay less than the $410.00/month that OP is currently paying for housing (rent + utilities). That said, car insurance for a new driver will always be on the expensive side of things - could easily be in the $200.00/month range. Perhaps a scooter temporarily while trying to take steps toward eventually having a more liveable income. I have 2 housemates that are basically doing just that.
What are you doing about meals, transportation and health insurance now? Have you spoken with your folks about your future plans to move-out ... as a priority over buying a car (or does your location link the two together).
Since your $400 monthly rent and utilities is part of their monthly housing expense, whether you are there or not, they may be willing (and probably already are) to work with you on a meaningful plan that both gets you out of the house .. and into a vehicle.
Nevertheless, $11.25 per hour isn't going to buy a lot of either freedom or transportation. Also, as noted by another poster, $400 per month isn't going to buy much in the way of housing and utilities. Do you have a plan or potential options for higher paying employment?
Otherwise, if you intend to go for the vehicle first, you need to start a savings plan, if for not other reason than to personally validate how much you can afford to spend on transportation. Even with minimal insurance, cars are an expensive proposition. Do you have a public transportation system in your area? Can you pay someone for rides? (Are your folks, perhaps, still carrying you on their auto insurance policy?)
As jghorton pointed out, your budget is lacking common sense items. So, you need to be a bit more honest as to what you really spend money one each month otherwise your budget is just a fantasy.
Do you have any money saved up or planning to finance the entire amount? I would go on Nextdoor dot com app and see if any of your local neighbors are trying to sell a car. You can also post on the app to see if someone will sell to you instead of maybe donating a car to a charity. But as others mentioned, you need to make sure you go through your finances and monthly bills to make sure you can afford a car with your current income.
I'm 23 years old. I just got my license a few months ago. I still live with my parents.
I make $11.25 per hour. I work 40 hours a week.
Right now I'm paying:
Rent: $250.00
Utility: $160.00
Cell Phone: $40.00
Student Loan: $170.00
I'm looking for an affordable used car. Anywhere from $4,000-$6,000.
I'm also looking for affordable insurance.
I'm going to be the dissenting voice here, but you do need to provide some more information such as your state of residence, gender, whether or not you have a raise or a second job in your near future, etc.
1. How much longer are you looking to remain in your parents' home? If so, would they be willing to put the car into their name so that they could put it on their insurance policy while you pay them what it costs them to carry the extra vehicle? Depending upon your state of residence, you might already be on their insurance policy as some states require that any licensed driver who lives in a given household be on the insurance regardless or whether or not they drive a vehicle other than their own (if they have one).
Option two if you're planning on continuing to live with your parents is to get your own insurance. Shop around once you decide what car fits into your budget but before you've actually committed to buying one. Once again, some states are far more expensive than others when it comes to new drivers (and drivers in general). Taking a safe driving course, being a female versus a male, etc.---those are ways that you can save on auto insurance as well as *not* paying for insurance on a monthly basis. Most insurance companies give nice discounts if you pay the premium annually or semi-annually.
2. Do you have savings set aside for emergency repairs, general maintenance (this includes any annual state inspection fees), and your car insurance deductible? Put aside at least a grand before buying and continue to set aside more money each month and let that account grow. Don't use that money for anything else.
Once you buy the car, "pay" yourself back for it so by the time you need a new ride, you have money to either buy another outright or for a hefty downpayment.
You'll need money for your annual registration and/or taxes, the latter being tax-dependent. Work that into your budget, too.
4. Once you've figured out items 1-3, consider what sort of car suits your both your budget and your needs. Finding a single owner car of the type that's reliable but has a relatively low resale value is often a good bet for a newly minted driver. Buicks, Ford Fusion, Mercury Sable--basically "Grandma cars." Older folks tend to take care of cars while putting relatively few miles on them. Also look at older Japanese cars that have a good track record when it comes to long term reliability. Corollla, Civic, etc. Be sure to have the car that you're looking at vetted by a mechanic of your choosing before buying.
Last edited by Formerly Known As Twenty; 10-12-2020 at 11:32 AM..
The most reliable and the best gas mileage we ever got was with a Saturn. Right now our AVEO does really well.
We get our cars from the wrecking yards. This means they've been wrecked before however you can get a quote to have it fixed or drive it. Or fix it yourself Or get a job where you can drive their car home. Then drive it every once in a while if you have a date or something. Start visiting the food bank to save money. It may be drive thru right now due to COVID
Another idea is to cut out rent completely. Go onto your local Craigslist and look under employment and housing sections for "paid roommate" I saved a TON of money so quickly doing this years ago. Then you'll be paid while you sleep and can use that money for rent. Then just work part time during the day, start school or do whatever you wish Good luck!
I suggest that you go and talk to an insurance agent before you buy the car. Get an idea of what it will cost. They can't give you an exact quote without knowing what car, but they can give you an idea.
It's possible to get a good car for $4,000- $6,000 but you will have to shop hard and be very careful. In that price range, a lot of the cars have problems that you don't want to take on.
At your age and budget, stay away from muscle cars or anything that goes fast or flashy. The insurance on those cars is high.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Have you calculated the value a car will be to you? Can it get you to another job? I always worked 3 jobs.(weekends, nights) + college. I was making $1.50 / hr and supporting a disabled parents, so needed all the income it could get. More hours working= less hours spending your money.
Cars.... Look around. I just found a very nice lightly used Saturn for $1200, for a tenant who needed a cheap car. I has new tires, brakes, AC service.... I would expect it to last another 100,000 miles~ 10 yrs. My own daily driver cost $35 and I've used it for over 20 yrs with very little repair. Our extra car (minivan) cost $800 and has provided 40,000 miles of heavy service. bonus.... you can live in a minivan!
Why are your utility costs so high? Do you pay 100% of the total household? That would be fair since you don't have to pay home insurance or taxes. But... Single person utilities should be under $100/ month
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Good luck!
