New car for college ?

[TexasHusker]

So my son is going away to college in the fall. 5 hour drive. He has a perfectly good 2005 Tacoma that would probably be fine.

But as parents do, we want to buy him a new car - partly for reasons of reliability, part because we can afford it and want to reward him with a car he really wants.

So the vehicle is a 4Runner. He can load all his junk in it, and tote folks around as needed.

We can buy a brand new 4Runner for around $37,500. Or we can get maybe a 3 year old one for maybe $29-30.

I’m inclined to buy new:

1. No repairs, tires, etc for several years
2. Full warranty while he’s in school
3. Car still worth a chunk when he graduates and he won’t have to worry with car payments for literally years.

Thoughts ?

[bjl584]

You can afford it, and it will be reliable as you said (full warranty, etc.), so I don't see an issue here.

[moneybags]

I've bought new when the used price is that close. I agree with the 3 points you listed.

For my kids, the car was always "our" car that we let them borrow. It made it easier to for us to make rules regarding the car. For example, if you don't want him loaning the car out to friends (very typical in college), you can say he's not allowed to.

[TexasHusker]

I’ve got mixed feelings about it. I drove clunkers till i was into my 30s. Never had car payments until such time as the payment didn’t really affect much.

I want my kids to be financially responsible. But because I am many times more well off than my parents were, I have the means to step in and make some roads easier for my kids without them even realizing it.

I can’t expect my kids to have to same point of view about finances as me, since they have never walked a mile in my shoes. I guess we just do the best we can and go on down the road.

[Jluke]

There is no doubt that you can afford this.

Does this vehicle cost as much as one year of tuition?

The reason I ask is if you will feel comfortable with this “luxury” vehicle on or near a college campus.

Have you discussed this vehicle choice with your son so you can ensure he is ok with the idea?

Finally, are freshman allowed to have a car on campus?

[TexasHusker]

There is no doubt that you can afford this.

Does this vehicle cost as much as one year of tuition?

The reason I ask is if you will feel comfortable with this “luxury” vehicle on or near a college campus.

Have you discussed this vehicle choice with your son so you can ensure he is ok with the idea?

Finally, are freshman allowed to have a car on campus?

The vehicle cost is about $39K after taxes. We will offset this by $8/9K by selling his truck.

His school costs around $35K per year including everything, but he’s getting a scholarship of $11K a year to bring it to $24K a year.

He has no idea we are considering a new car. It would be a surprise about 2 weeks before he departs (need 6 months to save for it).

We didn’t do college savings per se, but we have two businesses plus several vacation rentals so we should be able to cash flow the whole thing.

[Jluke]

Probably just me, but as a college kid, I would not feel comfortable with a brand new car on a college campus. I'd be worried people would vandalize, etc.

I had bought my brand new car a month before I graduated college, but that car stayed home and I didn't take it to school for the reason above.

I dunno...

[Drake3287]

Hard to believe a parent would ask this question. Doesn't matter if you can afford it or not, buying a kid that age a brand new nearly $40,000 vehicle is the wrong move. What exactly do you think your teaching him? I'm guessing I have as much money as you but I would never consider doing that to any of my 3 kids. Just plain wrong and it only sends the wrong message.

No reason he can't drive a good, safe, used car. Buying him everything through life with various excuses like you are is wrong and will have a negative life long impacts as he grows up.

Sorry but you asked the question.

[TexasHusker]

Hard to believe a parent would ask this question. Doesn't matter if you can afford it or not, buying a kid that age a brand new nearly $40,000 vehicle is the wrong move. What exactly do you think your teaching him? I'm guessing I have as much money as you but I would never consider doing that to any of my 3 kids. Just plain wrong and it only sends the wrong message.

No reason he can't drive a good, safe, used car. Buying him everything through life with various excuses like you are is wrong and will have a negative life long impacts as he grows up.

Sorry but you asked the question.

Can you elaborate? What is buying him a car teaching him, whether it’s new or used? We really aren’t wanting to teach him anything - it’s a new car, nothing more nothing less. Drive it. Make good grades. Get your degree. Have some fun and make new friends while you’re there.

I’m not wanting to “buy him everything through life.” He’s 18. I’m wanting to buy him a new / newer car.

Am I damaging my son to buy him a new car? Guess I’m missing something.

[Singuy]

Can you elaborate? What is buying him a car teaching him, whether it’s new or used? We really aren’t wanting to teach him anything - it’s a new car, nothing more nothing less. Drive it. Make good grades. Get your degree. Have some fun and make new friends while you’re there.

I’m not wanting to “buy him everything through life.” He’s 18. I’m wanting to buy him a new / newer car.

Am I damaging my son to buy him a new car? Guess I’m missing something.

A couple of thoughts.

1. Bad decisions will be made in college, meaning getting a huge SUV makes your son the designated driver..for everything. Getting a 2 door means there's an increase chance he'll be in someone else's car or his car will not have other drunk friends inside. Also don't forget, peers would want to borrow his car on a date or do whatever else. Having the best car out of your peers is generally not a great thing in that environment.

2. It's fine to buy your child a new car, but a car that's almost 40k sets up a certain standard for the future. You know, and I know that cars are the biggest drain on a person's finances and should be viewed as a luxury item if the car cost beyond 15k. You don't want him to get accustomed to this kind of luxury. Knowing dad already drives Range Rovers or whatever plus shelling out a 40k car just because is pretty much setting a sort of standard he'll expect out of himself in the future.

[disneysteve]

But as parents do, we want to buy him a new car - partly for reasons of reliability, part because we can afford it and want to reward him with a car he really wants.

Thoughts ?

I think the decision is yours to make and whether or not any of us would do the same is really irrelevant.

That said, no, I absolutely would not do this.

1. The whole "I need a $37,000 car because I want something reliable" is ridiculous. My daughter bought her car a year or so ago. It was $5,000 and she hasn't had a moment's trouble with it. She is also in college. You don't need to spend a ton of money today to get a reliable vehicle. My car is worth about $3,000 today and I would hop in it right now and drive it across the country if I could without a second thought. It's a 2006 Camry and is as reliable as can be.

2. I'm not sure why the warranty matters. If you spend $20,000 less on a quality used car, that's money that you will have available to pay for any repairs that might crop up. A warranty doesn't stop things from happening. It just covers the cost if they do.

3. What's the difference what the car is worth in 4 years? If instead of buying him a 37K car now you buy him a 15K car instead, you could then buy him another one as a graduation gift. Or most likely he could still be driving the 15K car for years after graduation. My current car was 16K. I bought it in 2012 so I've now had it for nearly 6 years. I paid it off in a year so I've had no payments for 5 of those years and I have no plans to replace it anytime soon.

Personally, I wouldn't buy a new car, not for me, not for my wife, not for my daughter, so that's my perspective here. It's not about what we can afford. It's about what I feel makes sense financially.

[Like2Plan]

The thing that would give me pause is a 13 year old vehicle having to travel the distance that your DS has to travel. I know older vehicles can be fine-my current vehicle is a 2005, but then I drive within a few miles of home and I doubt it would it would be as big of a deal to break down for me than it would be for your DS potentially quite a ways from home.

Another factor to consider is the safety upgrades on newer vehicles. I understand Electronic Stability Control is available on most newer vehicles (standard as or 2012, I believe) and is a huge step forward in vehicle safety. https://en.wikipedia.org/wiki/Electr...bility_control A lot of younger inexperienced drivers have a tendency to over control. This would be something that I would want on a car for a younger driver. But, you are a "car" person, so you probably know more about this than I do.

Do you have another vehicle from your fleet that you could loan him and then maybe get yourself a new car?

[LivingAlmostLarge]

I'm against the new car. I think you should give it to him after finishing college. Time to grow responsible and then take the shiny new toy to his new job and set him up with a $40k car that will last say 10 years to 32! With new wife, new baby, new house.

That's my take. You can afford it so go ahead. I just think in college with friends wanting to borrow a car, drinking, etc it's better to get something used and reliable.

I also agree with singuy I lean to a tiny small four door. Maybe a civic, corolla, fit, focus. I guess it could be new, but I'd lean to something used.

I'd like to do it for my kids. I'm thinking from college a new car for each DK. Nothing too fancy I'm thinking more along the lines of a corolla or civic new, no car payments and it'll last till 40 from age 22. That will be the beater, commuter car through graduate or professional school that will last through first house and marriage.

I don't know if we'll be able to afford it. I hope so.

TH think about it this way, the money you save from not buying new, say $20k for used car now, use the $20k and either buy a house or invest in an index for DK and give it to him upon graduation.

I'd much prefer a $20k car and $20k gift of house or $20k stock investment.

[TexasHusker]

I'm against the new car. I think you should give it to him after finishing college. Time to grow responsible and then take the shiny new toy to his new job and set him up with a $40k car that will last say 10 years to 32! With new wife, new baby, new house.

That's my take. You can afford it so go ahead. I just think in college with friends wanting to borrow a car, drinking, etc it's better to get something used and reliable.

I also agree with singuy I lean to a tiny small four door. Maybe a civic, corolla, fit, focus. I guess it could be new, but I'd lean to something used.

I'd like to do it for my kids. I'm thinking from college a new car for each DK. Nothing too fancy I'm thinking more along the lines of a corolla or civic new, no car payments and it'll last till 40 from age 22. That will be the beater, commuter car through graduate or professional school that will last through first house and marriage.

I don't know if we'll be able to afford it. I hope so.

TH think about it this way, the money you save from not buying new, say $20k for used car now, use the $20k and either buy a house or invest in an index for DK and give it to him upon graduation.

I'd much prefer a $20k car and $20k gift of house or $20k stock investment.

Some very good points.

My son currently has a 4-door 4WD Tacoma that he takes camping and fly fishing, so moving him to a Corolla might not go over so well.

But I sure might back off and get him a 4 year old 4Runner and save some cash.

[corn18]

I'm the worst person to ask because I bought a new car for each of my children when they turned 16. $26k for the first one, $30k for the second. No regrets other than they are now carried as a depreciating asset, which is depressing.

If I had to do it over again, I would still buy them cars, but 1-2 years used. Just to lessen the depreciation hit. But I do not regret buying them a car and so far, it has no apparent impact on whether they are savers or spoiled brats.

I would say sharing with them the results of us paying off our debts, living below our means and saving buttloads of money = a much lower stress life has made a bigger impression on both of them. I have been very open with them about where we were ($160k of revolving debt) and where we are ($1M net worth) and how we got there. Not sure if it's the right thing to do, but as TH indicated, we're doing the best we can to help them be good people and good citizens.