I've done something similar in the past with my parents.

However, I have to agree with many of the points already made.

1) A lot can happen in 5 years.

2) Since your parents are the one buying, it's their credit on the line if the payments are missed, not yours so, if you can't make the payments, they will.

That's the situation I got into; my parents had to cover the loan for me. They did it because a) we're family and that's what you do and b) because it would negatively reflect on their credit if they didn't.

But, and here's my experience talking, if you have any kind of soul, you'll feel awful about having to dump this onto your parents. Now, maybe your parents are fabulously wealthy and this is just nothing for them...if that's the case, good for them. It was a burden on my parents though. But, I put them in the situation where they had no choice. I always told myself that I'd make good on it and pay them back but, I never got around to it. Being the loving parents they are, they never really asked for it.

Still makes me feel a little like a a dirtbag when I think about it.

It's possible that you won't have any period of unemployment in the next 5 years. But, you're young and a lot can change, especially if the only job you have right now is seasonal work.

Make sure you have a long talk with parents about what happens if you can't make the payments. You only have one family; the last thing you want to do is screw up that relationship over a car.

 

About lifeguarding being seasonal work. There are a large number of indoor pools, such as gyms, bally total, community centers. I have 3 friends who have been working as lifeguards. Also in the summer i will be making alot more since there is no school. With that money i could cover a few missed payments.

But as habious pointed out, yea my parents are pretty well off middle/if not semi-upper middle class. But i would feel pretty bad if i told them i would take care of it, and they ended up paying for my car.

Uhh Koma, im driving a '05 es 330. My mom would be taking it over. (since she is paying for it i dont want her to worry about it if i take it up to college)

Edit: mmarshall i thought about leasing, but my dad is against it, he said anything can happen and that i would be better off just buying one. (dont really get his argument there)

 

Habious,

I can assure you that your parents by now would be more upset you still mention...feel like a dirtbag... than what happened. They would at most want you aware of what they did but not to feel as you do as you can always make amends in many ways.

Jake..if you can find other work should the lifeguard job not offer enough hours and you have discussed it with your parents...then why not...But college is time consuming on it's own, so study hours need to be thought of against where you would work near school should you not have enough income from the lifeguard job.

 

I work for an auto finance company.

It is great your parents are willing to get the loan for you at a lower interest rate. But, since you are 18, go on the loan with them. Let them cosign for you. Then you get the lower interest rate and can establish installment credit on your credit report. You would no longer be considered a first time buyer, and could get your next loan on your own.

Make sure you pay as agreed and are not late. Because your credit report is like a tatoo. It is easy to get on, but hard to get off. Slow pay history stays on your report for 7 years. Finance companies rate light credit files with slow pay historys very risky. So, don't blow your first chance.

Good luck!

 

Your dad is correct that buying a car is safer in the sense that you are not as limited in how you drive it and take care of it, and of course you don't have to answer to anyone if a scratch or stain gets on it, but leasing does give you the flexibility to get into a more expensive car than simple purchasing would entail.

If it's going to be on your dad's credit record, though, might as well listen to him.........no need to have extra friction in the family for nothing. Buying a car is a big enough decision to make anyway, even without added hassle.

 

I purchased and financed cars from the time i was 16. My first new car at 19 in 1981. I think the car is a distraction. study hard, work hard and later you can buy any car you want.

 

Will you really need a car in college? I mean I know I didn't but it definitely helps when you need to go out to buy something that isn't close by. I go to school in Boston where public transportation is pretty easy but there are times that I need to go far out to get things. If you can get away with not needing a car at all or very occasionally needing a car than I would save the money. You don't want to have to worry about missing a car payment when you have finals and projects due. But if you think you can handle the work load of school and paying car payments and really think you could use a car than go for it. But remember there are a lot of little bills you need to keep track of like food, cell phone bill, rent (if you plan to live off campus + utilities), supplies (school supplies, toilet paper, etc.). These add up, I try to give myself a good buffer between how much money I need for all these things and how much I make.
Think it over and do what you think is best for you.

 

Skinny, by distraction do you mean the car itself or the payments?

and koma, not to be a smartass but if you are in clublexus doesnt that mean you have the car in college with you?

edit: i havnt decided on a college yet, but they range from colleges in the middle of bumble**** (20 miles to go out for groceries etc) to colleges that are 20 minutes away.

 

Yea I do, I'm not arguing for or against having a car. I'm just pointing out if you really need to have the car or not. I know I didn't but I kept it anyway (even though I pay an extra $165/month to park it) because I wanted it for ease of getting around to places. And also at the time that I joined college I was still dating a girl that lived back home.
I also needed the car for when I was on co-op. Our school has 2 required co-op semesters, one junior year and one senior year (working semesters with a company to learn your trade and get business training), and an optional co-op in sophomore year. I got an internship freshman summer and continued to work there on all 3 co-ops.
I keep the SC400 with me in the Summer when weather is better and the ES300 when I need it for doing deliveries and crummy weather.
Honestly from my experience I don't regret keeping a car around or moving off campus (even though school is about 20-30 minutes away from home). I met a lot of great people and learned my independence from my parents. Even though they provide me a vehicle and insurance, I have the burden of everything else and I mean everything.
I don't think I could've afforded car payments though, there were long stretches where I couldn't find work (when on study semesters). Even when I did have work I struggled in school because I had to put in hours to make money for rent and neglected studying. I was fortunate enough that my co-op job allowed me to continue working part time while in school but from home but even that wasn't enough so I got a part time job delivering pizzas.
Right now I could say I could afford car payments but that's from saving tons of money from working 60+ hours a week when on co-op between two jobs. I had to sacrifice quite a bit of social life to be able to afford living away from home. If I hadn't got an apartment I would've been able to afford a car.

 

My view...
College (School) is first priority and everything else comes after. I will be going to college this fall too and like you i'm getting ready to replace my high mileage es300 (probably with a 01 es300). I do have a part time job but I definitely can not afford it, not to mention gas, insurance, school supplies, food, $500/ year parking. I'm lucky because my parents will be purchasing the car, and pay for my college tuition, while i can take care of personal expenses with my part time job. (My parents don't take out loans, everything is paid 100%), so after i graduate, i would then pay my parents back for part of the tuition and the car with no interest.

 

The car and the payment is a distraction. Stay focused on what is immediately in front of you, and that is school. Make that your first priority. You will have all of your life to be tied down to payments and cars.

 

My suggestion would be save up money, and buy a beater with the cash you saved up, and concentrate on your school, or college.

 

Yes, that, or simply get a less-expensive new car. I didn't get my first new car till I was 23...I drove used cars until then.

 

This is good advice right here. If you absolutely need a reliable car do what mmarshall said and get a cheap reliable car to get you through school.