How are your monthly payments, and interest?

<div class='quotetop'>QUOTE(clintd555 @ May 23 2006, 07:27 AM) [snapback]259686[/snapback]</div>

I'll echo his question. Is this $2000 BEFORE taxes? You lose quite a bit as a single guy due to taxes.

Back to the loan question.
Prius: $0. I paid cash.
350Z: $885/mo; 3 year loan at 3.29% interest (got in late 2003). It's almost paid off now (~$3.5K left) and I could've paid cash at the beginning but instead put that cash in a 3 year CD to help pay for the interest expense. I could've paid the loan off completely at any point or and can tomorrow if I wanted to.

 

<div class='quotetop'>QUOTE(mywhitenoise @ May 23 2006, 11:55 PM)</div>

<div class='quotetop'>QUOTE(EricGo @ May 24 2006, 12:25 AM) [snapback]260150[/snapback]</div>

I actually worked my way up while I was in college with a company that serves adults with disabilities in their homes. I'm now in upper management with the company, so I drive around the metro area a lot to make sure that we are making everyone's quality of life as high as possible (thus the 32k miles per year). I have a certain satisfaction from knowing that I earned all that I have on my own, even if I used credit to get some of it (the Prius and home).

Oh yeah, and my degree is in political science. I knew that I always wanted to work in the realm of the public interest, and it's very rewarding to see the impact that I can have on the lives of our clients.

 

<div class='quotetop'>QUOTE(mywhitenoise @ May 23 2006, 12:23 PM) [snapback]259733[/snapback]</div>

The 10k down payment makes a huge difference. Frankly, there are plenty of older people who are quick to jump down the throat of we the younger generation about our spending habits. While I agree you should think through such a large purchase thoroughly, it sounds like you've done your research. Living at home will save you plenty in rent, so you can afford to save more.

The best class I ever took in college was family financial management. We went through our expected budgets and took out everything we wanted to buy, and then we had to make it balance with our savings goals, and comitted expenses. Might be a good idea if you haven't done it yet to go through and make a list of what you plan to spend, just to see what you can afford.

Now to the question you actually asked...since few have actually answered it.
My package 6 Prius came out to about $25,600 after taxes,tags,etc. (I bought it before gas wents up)
I put down $7000, and financed the rest. My payment on my 3 year loan is $559. My insurance is $600 every 6 months (up $400 a year over my old car...I just haven't shopped around to see if I can do better).

I absolutely hate having debt, and mainly took the loan to extend my credit history beyond a credit card (which I've had since 16 and never carried a balance). The loan manager was thoroughly impressed with my credit for my age. When I sold my old car, I made a $5500 payment to my new one. Every extra penny I have goes to getting rid of my debt faster than scheduled.

Once you have determined you can afford the car...if it is what you want...buy it. I have had salesmen, my sister, and my friends all discourage me. They tried to make me buy everything from a Corolla to an Escape Hybrid. Funny...it's my money and I'm the one who has to drive it. I bought what made me happy.

 

<div class='quotetop'>QUOTE(scionfriar @ May 23 2006, 05:13 PM) [snapback]259928[/snapback]</div>

The reason I suggested the Honda Civc Hybrid is because around here (Central NJ/Philadelphia region), they are cheaper than the Prius.
I visited my local Honda dealership, which has a lot of "deals" going on and asked specifically about the HCH. Yes, it's a higher starting price, but this particular dealership had over $5,000 in incentives. Yes, I know it's dependent upon many things, but when I priced it out, a 2006 HCH was under $19,000.

Good luck getting any kind of incentives for buying the Prius -- at least in this region.

Question to those of you speaking out against debt. How did you start out?

 

<div class='quotetop'>QUOTE(Somechic @ May 24 2006, 06:02 AM) [snapback]260267[/snapback]</div>

How did I start out? I started out by having a paying job when I was in what is now called middle school. Starting in high school, I have been a:
Janitor
Teacher (part time)
Security Guard
Graphics Designer
Computer Programmer


In short, I have had a job. I payed my own way through college, working all the time. Yes, I have been in debt (bought a house...that will do it!) but I try to keep it down, try as best as I can to live within my means. Sometimes that means going without 'necessities' that are actually luxuries. To me, my Prius is a luxury (which I am enjoying greatly ). But I am in a position now where I can afford it...that is, afford paying off the entire car, not simply being able to make car payments.

 

How did I start out ? Cheaply.
First 6 years (European program) of medical school: bicycle, up to 40 km/daily.
Internship year: close to hospital, hoofer.
First year of moonlighting: Bought a car with my savings from the year before. If was so old I don't think the question of what year it was came up.
Residency: Different country, different car: $3500 cash, paid with money given to us by parents.
Fellowship: Next car, to replace dead one: $5500 loan. Paid off in 6 months.
First Univ job: $9500, cash
House: 20% down, bought in 7 years
First new car $15K, paid cash
Second new car $25K (Prius) paid cash.
Other debt: hardly.

 

I financed my Prius...I'm a 27-year old married woman. I got a loan thru Capital 1/Costco for 5.4% (I think)~ it's for a 60-month term. I put down a few thousand as a downpayment and financed the rest. I got a 2006 Package 8 at MSRP (~$33K including taxes and dealer/DMV fees) and currently pay ~$550/month for the auto loan and $85/month for insurance. I plan on keeping this car for 10+ years, I'm sure it will last me that long and then some. I needed a new car, as my 96 Saturn coupe just wasn't going to cut it as a safe family car with a little one on the way. I also plan on paying off the loan early, to avoid paying too much interest, hopefully within the 3-3.5 year mark. The only other debt I carry is the mortgage on our condo. No credit card debt, no other outstanding loans or similar obligations.

Just educate yourself about loans, someone above mentioned www.bankrate.com which is a very good site to check out, also look into credit unions for auto loan rates/terms. Make sure you're not buying more car than you can afford at this time in your life and do some research on alternatives in case the Prius isn't the car for you. Don't let all this "you shouldn't be financing a car if you can't afford to pay for it in cash outright" talk from some of the other posters get to you, there's NOTHING wrong with financing a car. But also be wise enough to not take on more debt than you can financially handle.

 

<div class='quotetop'>QUOTE(mywhitenoise @ May 23 2006, 09:23 AM) [snapback]259733[/snapback]</div>

OK, you really appear to have a level head on your shoulders and deserve credit for 1) Not even thinking about a lease and 2) Thinking things through before acting. Pretty good for a young guy!

From a purely financial perspective the decision is clear; don't buy it. You can get an inexpensive car that gets great milage or hang on to the beater and save some serous cash. Also, things happen.... accidents, wife, children, layoffs. But.....

What is most important to you?
If you don't mind living at home for 4/5 years (aka, low living expenses and a good safety net) it appears you will have sufficient cash flow to have it all....save a little, pay the car, some money to burn. If the car is really important, you apparently can do it.

A question....in 2 or 3 years will you resent the payments and consequent need to live at home , less cash for vacations, etc? If you honestly believe the trade is worthwhile, go for it. If you have doubts, wait and let time give you perspective.

One more piece of unsolicited old guy advice (sorry)....when you get your job start saving in an IRA....retirement will arrive sooner than you imagine! All the best...

 

I read your OP again, and wondered about the multiple brake and suspension repairs. How aggresively do you drive your car ? With enough effort of the right kind, a Prius can get lousy fuel economy, just like a regular car.

So if you are a lead foot, the gas savings you are counting on from the Prius may likely be less, and maybe a lot less, than you are expecting.

 

Unfortunately I did very little research before purchasing my Prius. However I think I snagged someones 06 freshly rolled off the truck in metalic grey package 7, at an ok deal. I had not pre-ordered or even considered buying a prius when I went into the dealership. However because they gave me good money for my trade, threw in leather seats, mats and extended warranty for 32,500 including tax and dealer mark-up (not subtracting trade), I took the buy. I truly fell in love with the car, and although I typically analyze all financial decisions with a sharp pencil, I decided to go with the deal, knowing there may have been a better deal out there. Unfortunately I think I should have had a better rate, I received a 7.1 after complaining when he offered a 7.9 percent interest rate with payments of 516 over 72 months, and put no money down. I know prime is in the 6's, and I think I could have got that rate if I really searched. But at that point I was so exhausted with negotiating deals I couldn't bargain anymore. I am so happy with my prius, I dont care if I could have nickel and dimed the deal somewhere else. And after hearing how difficult these cars are to come-by I am beggining to realize that I probably did get an ok deal.

 

Here is my best attempt at an arrogant post:
It is obvious from your repair record that you are a reckless, dangerous, lead foot driver. Any car you drive will get less than 10 mpg.

Hopefully you will agree that my original post is not written in that vein, and I am not pre-judging you at all. I know you have taken a fair amount of criticism from me and others regarding the purchase on credit of an expensive car, but I don't think anyone was attacking your character. I hope you take the 'save your money' advice in the good faith it was offered. After all, remember all of us LOVE to prosletyze to become one of the Prius faithful; just not at the expense of your personal financial well-being. You are welcome here always, whether your Prius or other vehicle arrives next month or at a later date.

Personally, I think it is GREAT that you are interested in Prius. I just counsel patience, grasshopper. Are you really going to ignore a frog ?

 

well I'm glad to know a young person is also concerned about the planet. So first , thank you!
As well as finances, can you get a credit card you use for things that you can pay immediately to build a credit rating. I don't know all your expenses but the monthly payment should not break you. Can you live at home and save for a while. Can a parent co-sign, thats how I got my first car. Obviousl the best sceneriou is to put as much down and get a low loan rate like AAA or credit union but alot of it depends on yours and your co-signers credit score. Best of luck and thanks for being concerned about the plante.

 

whitenoise, you will do your future self a huge favor if you buy a used car and invest the difference. Buy a new car when you can pay cash. A car is not a house; the equity in a car bought with a loan vanishes when you drive it off the dealer's lot.

 

What ever happened to your 2005?

 

Holy ancient thread, Batman!

I took good care of that '05 Prius. I had over 100k miles on it, one day short of 9 years, when it was totalled by a Mercedes driver from the rear in downtown Houston. Insurance paid out over $11k in 2014.

I miss that car; it was my first new vehicle. I leased for two years and now own a '16 Four Touring. I hope it lasts as long or longer.

 

sad! Glad you're okay though! Congratulations on the new car. I'm always nostalgic about my first Prius. (Also a 2005)