gvgseg

I had been eyeing the TSX since about June, i had wanted a 2004 Auto CG/Ebony Non-Navi and had talked the dealer down to 25k.

Unfortunately when I was trying to get one about a month ago, it was too late and there wasn't a single one left in NJ, NY, or PA. The dealer then conned me into a 2005 at $500 below MSRP which at the time was unpublished, now I find out that 2005 has gone up $500 over 2004... I was too caught up in the moment to reject the offer and I signed the deal and put down my $500 deposit.

I initially went through the typical buyer's remorse, but within a couple days, I was very happy and awaiting the arrival of my new car.

Now about 3 weeks later, I'm starting to think that I'm in over my head. Financing for 60 months at 4.14% with about 2k down payment puts me at about $490/mo. I'm 22 years old, just graduated college in May and have been working for 5 months now. My salary plus bonuses is roughly about $36k/yr...I'm living at home right now, paying no rent but that will change in about 9 months...NJ auto insurance is insane, the best quote that I've found is about $2000/yr...plus I'll have another few hundred dollars in expenses each month.

Am I in over my head on this one? If so, is it too late to back out, I've already signed the order form and put down a deposit, it's due to arrive in about 2 weeks.

If i go for cheaper options, I've looked at the Accord Sedan, Mazda 3, Corolla & Civic

CGTSX2004

iTrader: (1)

At that price, I think you might be in over your head by just a bit. Perhaps you should consider either a different car or shuffle around some of your other expenses so that you can afford it.

joerockt

The only reason you were "conned" was because you didnt do your homework before you went out and bought this car. Should have came here sooner!

Well, personally if I were in your situation, I would just ask the dealer if I could back out. Maybe you can get into an RSX instead? You could probably get into a Honda as well (usually the Honda and Acura dealers are one in the same).

Just talk to the dealer, tell them the situation. If their reputable, they will take care of you.

RMATIC09

Yea, , talk to them, if the situation dosent change, then like CGTSX said, try to "shuffle" around some expenses so you can fit the car into your budget.

iamhomin

36k A year, and in 9 months you'll be paying rent. Lets do some math..

Forget the downpayments and the deposits for a minute.

$490 * 12 = 5880
12 months insurace = 2000
Est. for gas annually = 1300
Misc. Maintenance (car wash, oil change, etc) = 300

Give or take a little from the total, $9480.

Hopefully your rent will be less than 1k a month, because if it isn't, it looks like you're a bit over your head.

Also, if the financing gets too rough, you can always sell your car and buy a cheaper car until your financially stable.

sauceman

Try not backing down, "shuffling around" should do.

blueingrid

I would recommend checking your 72 month financing options as well. I personally finance for the longer term and pay off early.. this gives me a little leway each month when I don't want to pay that extra $200 that I usually give for the car payment.

As long as your loan isn't front loaded and there are no 'penalties' for paying off early.. (watch out for shady lenders), you can probably be pretty comfortable.

So, if we estimate that your interest rate will go up 1% for the longer term, you can expect monthly payments of around $430. If you never pay more than an extra $60 a month, then you'll obviously end up paying more in interest to finish in the same amount of time as the 5 year loan, however, those months you can really nail your loan (tax return, bonus paying months, 5-week months if paid weekly, etc) will help out in the flexibility and paying it off equivalently or faster than the 5 year loan.

Of course, this is only my opinion, your mileage may vary.

But, to answer your original question, I think you should shoot a little lower in the monthly payment department by buying a more affordable car. A car that costs ~83% of your yearly income seems a bit high.

sauceman

Good post.

Jeffropugs

I would try to get the money back. Go with a used Accord. At $36K, you're cutting it close. Especially when you move out and want to impress the ladies. You'll have a sweet ride but be cooking Ramin noodles for your date.

Rmemeber Insurance $$ + premium gas $$ + huge payment = broke.

Buy a car around $10-12K.

At the worst case, let them keep the $500. I rather lose $500 now than get locked into something I can't afford for 5-6 years. Chaulk it up as a life lesson.

Good Luck.

Jeff

bigwilliestyle

But there are people who say if you can't take a car loan for 4 years or less, then you probably can't afford it. Granted, I always do 5 years, but 6 years seems awfully long.

RadYOacTVe

Even if you back out, the car isn't yours until you take delivery.

NightHawk CL9

i don't see why a dealer wouldn't let u back out. I mean it's an 05 TSX, they are in demand and i quess that they will be able to sell i in about 1 week from when they get it on the lot. Is it was a crappy cheap car, something that barely sells then i can see them not wanting to give u the chance to back out. I say truthfully tell then the situation, and if that dosen't work tell then your a good friend with Jonny Cocherin......

majormojo

gvgseg, welcome to the site. I agree with those who say you should get out of the deal. Even if you have to lose your deposit. Including fuel, insurance, maintenance, you'll be spending approx 20% of your monthly gross income for the car. That's too high IMO, you should aim to get that below 10%. Get yourself a good used car for $5K-$6K and drive that for a year or two so you can see how your monthly expenses work out. Moving out on your own for the first time is going to bring lots of unanticipated expenses over and above your rent. The TSX will still be a nice car a year from now.

sipark

I agree with most people... If you're going to live by yourself and drive a TSX, $36K really is not enough, IMO. Wait until you make around 45K.. You'll live a bit comfortably and still own the TSX.

supraken

iTrader: (1)

gvgseg, are you just switching to a new car, or you don't already have a car? If you have a beater or whatever it is, I would say just stick with it for another 2-3 yrs.

I was in a similar situation last year when I graduated from college and had the urge to get a new car. I decided not to but that was when my civic broke down. I was lucky enough to have a decent salary that would allow me to afford the tsx comfortably, but sometimes I still wish I could just stick with the old car, and not have to worry about payments, insurance, scratches, dings, etc etc etc, esp when I have to pay rent and student loans. esp if you spend most of your driving only to work, tsx is kind of an overkill for a fresh college grad.

Trust me, the worst thing you can do is to jump on a 30k car fresh out of college. Your finance situaion is not stable, job is not yet stable, usually you would have debt, etc. The dealer should let you back out of the deal if they're not shady. (I'm glad I escaped from a Lexus dealer right before my TSX... )

rb1

Why not just lease it? This is typically what folks do when they want more car than they can confortably afford to buy...

CGTSX2004

iTrader: (1)

I pay the same amount on my lease as I did before for my loan on a 97 integra. While the integra might have been still worth something down the road, it might also have ended up costing me more in maintenance costs. Just another path to consider.

psx

36k/yr sounds like it might just get you by with a TSX, but only if you continue living at home. I have been pining over a TSX for over a year now, make more than 36k/yr and feel like it would still be a stretch for me. I pay about 12k/yr in rent too, so I suppose that makes a difference. There's a lot of factors you have to consider like insurance, repairs, maintenance, etc. I think if you have to ask the question, then it's probably a sign that you can't afford it. As nice it would be to have a sweet '05 TSX, I would reccomend a new Civic (cheap, and holds its value well) until you feel like a TSX payment would be no problem.

On a side note, I recently saw a brand-new Lamborghini Gallardo (~$170k) parked on the street next to some real s***-boxes and thought to myself, man... that guy must have a ton of cash to not only afford the car, but risk it being keyed, hit, or stolen (downtown Boston). I think I might actually cry if I was just getting by with my TSX and something (God forbid) happened to it.

supraken

iTrader: (1)

Don't you see that everyday on Newbury St?? Maybe not Gallardo's, but 911 turbo's, 360's, CL600's, etc.

esk

Buying a car is one of the worst investments you'll ever make. At your income and age you should buy the cheapest car possible. You should take the money you save and open up an IRA and savings account. In about 10 years you'll be able to buy a decent car without having to starve for it providing you don't get married or have kids.