I have been self-supporting financially for seven months, and last week I bought my own car.
Last week, I got an internship 30 minutes away from campus. I’m homesick, I miss my friends, and I feel trapped. I needed a car. When I decided this, I had $14,000 in my bank account. It was important to me to have savings left over for emergencies, for car maintenance, and for healthcare—that was something I needed to feel safe. Now I’m left with just under $9,000 and I didn’t sacrifice my life for it.
(Image: Courtesy of the author)
Over the summer, I had a full-time job on campus. I worked part-time at the dining commons until last week, on top of being an RA on campus. Being an RA and a college student means that I don’t have to worry about a lot of bills: rent, utilities, and groceries. This makes budgeting exponentially easier, and I would recommend it to everyone.
As for buying the car itself, first I had to decide whether to buy from a private seller (Craigslist, a friend, ec.) or a dealership. I chose a private seller, using the logic that I was avoiding dealership fees, dicey salesmen, and had more bargaining power. If you’re buying a more expensive car, I would be much more likely to recommend buying from a dealership, because it is easier to hold them accountable for lying about the condition of the car.
When buying a car, many things affect its value: meaning what a reasonable selling price is. A few examples are high mileage, a salvage title, older model years, and higher trim levels. Remember that aftermarket options, such as big wheels or a new stereo system actually decrease the value of the car, not increase it. You don’t know how well that work was done.
I was looking for a car in the $2,000 to $2,500 range, but what I found was a 2004 Honda Accord, a standard, with 107,000 miles for $3,000. I bought outside of my budget for a few reasons:
-
Car value tops off at around 100,000 to 150,000 miles. I could buy a car with twice the miles for the same exact price, and it would be valued the same.
-
The standard transmission made it less desirable, giving me more bargaining power.
-
The family I bought it from had maintenance records dating back to 2004, so I know it was well-maintained. A well-maintained vehicle can last much longer than a newer, poorly-maintained one.
-
A higher sticker price could save me thousands down the road when it has less mechanical problems than its cheaper counterpart.
So, when I decided I wanted the car, I went to the bank and withdrew $3,000 in cash. Next, I called a local auto insurance agencies to get the best quote I could. Legally speaking, I had to buy an insurance plan before heading to the RMV for titling and registration because the RMV will not register the car without proof of insurance.
It was important to shop around to get the best possible price, so I called every single insurance agency in the Pioneer Valley in search of the best quote. I found that bigger chain agencies gave me higher quotes, or refused to take me because of my short driving history, or because I did not have continued insurance. I chose a small agency in downtown Amherst called “Encharter”, a division of Plymouth Rock. I made sure to mention that I am a student with a high GPA, I plan to pay for the year up-front, and I have never been in an accident.
This was how much I spent, but plan accordingly if you live out of state.
- $3,000 for the cost of the car
- $100 for a pre-purchase inspection by a local mechanic
- $75 to title the vehicle
- $60 for registration, which needs to be renewed every two years
- 6.2% sales tax, which is collected at the RMV when you get the car titled and registered
- Free to receive an E-Zpass, but must be loaded with $20
- $30 to fill up my gas tank twice a month
- $1718 for the year of car insurance
-
Yearly excise taxes, which is $25 per $1,000 of the vehicle’s worth in Massachusetts
-
Another thing to budget for is maintenance and repairs.
The average cost of ownership of a 10 year-old car is $5,914 including all of the above, plus depreciation in value.
Above the cost of the car itself, I spent over $2,300 on insurance, titling, and registration on the day I bought it. However, if you take on student loans, they are probably negatively affecting your credit score. Paying monthly bills such as car insurance can boost your credit score, as long as you are 100% sure you have enough income to cover it.
Self-supporting as a college student is very difficult in this generation, as the cost of living is so high. Yet many families aren’t perfect, many parents aren’t able to support their children, and you might find yourself getting little to no financial support from your family. But that should not dramatically alter your life. Buying a car opened up a world of freedom for me, I am now able to spend more time with the people I care about, and I’m wasting less time waiting for Uber’s and buses. My time is valuable, as is my sanity. But if you plan on buying a car on a tight budget, make sure that you have more than enough money, plus a little wiggle room. It’s impossible to predict the future.