Can a 18 year old with a wage of 10.50 an hour with no living expenses own a new Scion FRS?

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Old 03 Nov 2013, 03:10 am   #1 (permalink)
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Default Can a 18 year old with a wage of 10.50 an hour with no living expenses own a new Scion FRS?

Can a 18 year old with a wage of 10.50 an hour with no living expenses own a new Scion FRS?
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Old 03 Nov 2013, 03:25 am   #2 (permalink)
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You need 1500 down and 189 per month just for the car. Fuel and servicing is extra. So is food































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Old 03 Nov 2013, 03:40 am   #3 (permalink)
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Theoretically yes, but you'd be much better off finding a used car. They are much cheaper and you'll get more of your money back when you sell a car you bought used than one you bought new because of the depreciation.
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Old 03 Nov 2013, 03:57 am   #4 (permalink)
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Hi yes if he saves up to buy it with a deposit and keeps paying the monthly payments otherwise it will be repossessed .
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Old 03 Nov 2013, 04:09 am   #5 (permalink)
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In short, no, you cannot in any way afford this car. Here's why:































First, at 18, you have neither the credit, nor the credit history, to get approved for this car. Second, banks loan money based on your "debt to net" ratio, which is how much you bring in, versus how much you pay out. They will not approve you for a loan in which the payments exceed 25% of your net (take home) pay. $10.50 per hour, times 40 hours, times 52 weeks, gives you $21,840 per year. Subtract 30% for taxes, and you actually make $15,288. Divide this by 12 months, and you average $1,274 per month. Your max payment based on this would be $328.50.































A 2014 Scion FR-S has an MSRP starting at $24,500. After adding tax ($1,960 - estimated at 8%), title and license ($490 - estimated at 2%), your total amount financed is $26,950. Your payments would be $545 (60 months at 7.95% - higher rate due to having little/no credit, first time buyer). In addition, you need to think about full coverage insurance, which would easily run you over $400 per month (most likely more). Gas would be around $250 per month (the national average). You also need to consider incidentals (oil changes, tires, maintenance, and upkeep), so let's estimate another $50 per month (minimum). You're already spending $1,245 per month, just on your car. Look at the bright side, though. After you pay for your car, you'll have $29 left over every month, for the next 5 years. Don't spend it all in one place.































Sorry, but the math just doesn't work.
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Old 03 Nov 2013, 04:31 am   #6 (permalink)
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If you have a large enough downpayment or a co-signor with a very good credit rating, yes.































But it's a very bad purchase for you to make at this stage in your life as you will be saddling yourself with debt. Ideally your transportation costs should only be 15% of your total income. A brand new car ( as well as your insurance and maintenance ) at your wage would take you far above that 15%. You would be much better off buying a used vehicle and saving your sports car dreams for later in life when you are in a better position to afford it.
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