I was recently telling someone how I bought my first Mustang Cobra. It dawned on me how unusual my method was, curious if anyone else has a good story?
Here's mine; it's 2006, I'm 19 or 20, a sophomore in college driving a beat 95 Accord. I had a good enough job that I got my tuition paid without student loans. In state, commuter, not expensive. I asked my parents if they would co-sign on a used car. They are very blue collar, no money but good credit. My dad is driving a Cavalier at the time and my mom had just retired her 85 Caprice for a 98 Chevy Blazer. They agreed to co-sign. After all, a son should drive a better car than both his parents.
I find a screaming deal on a 2004 GTO. They refuse, too expensive. Now they're realizing what is happening. I looked at WS6 Trans Ams next, then they declared "No loans for anything fast! Not buying a coffin."
I saw no point in buying something not fast so I went to Citibank and got a student loan with 10% interest + every dollar I had, and bought Rio Red 99 Cobra with 20,000 miles on it for $12,800 cash. It was beautiful.
The man who sold it to me bought it as a present for himself when he retired from Ford. I figured my parents would freak out when I brought it home but they just said, "oh you bought a Mustang? it's nice." Then a month later, "why are there little snakes on it?"
I didn't understand interest compounding so I realized pretty quick that my loan stinks and I'm going to owe way more than 10%. I opened a credit card with 0% on balance transfers, moved the loan over and paid it off gradually at cost.
No regrets, buying that car was one of the best moves I ever made. 3 years later I sold it for 11k.
Here's mine; it's 2006, I'm 19 or 20, a sophomore in college driving a beat 95 Accord. I had a good enough job that I got my tuition paid without student loans. In state, commuter, not expensive. I asked my parents if they would co-sign on a used car. They are very blue collar, no money but good credit. My dad is driving a Cavalier at the time and my mom had just retired her 85 Caprice for a 98 Chevy Blazer. They agreed to co-sign. After all, a son should drive a better car than both his parents.
I find a screaming deal on a 2004 GTO. They refuse, too expensive. Now they're realizing what is happening. I looked at WS6 Trans Ams next, then they declared "No loans for anything fast! Not buying a coffin."
I saw no point in buying something not fast so I went to Citibank and got a student loan with 10% interest + every dollar I had, and bought Rio Red 99 Cobra with 20,000 miles on it for $12,800 cash. It was beautiful.
The man who sold it to me bought it as a present for himself when he retired from Ford. I figured my parents would freak out when I brought it home but they just said, "oh you bought a Mustang? it's nice." Then a month later, "why are there little snakes on it?"
I didn't understand interest compounding so I realized pretty quick that my loan stinks and I'm going to owe way more than 10%. I opened a credit card with 0% on balance transfers, moved the loan over and paid it off gradually at cost.
No regrets, buying that car was one of the best moves I ever made. 3 years later I sold it for 11k.