Advise for a friend....LS Camaro

[TxBandit911]

I have a friend that loves my 1LE and the Camaro in general. He is young (19) and has a little money saved up. Wanting to help the kid out, I went to the chevy dealer and he likes this AGM LS M6, its not near as equipped as my 1LE, but he likes it, its a nice looking car. I told him 325hp and a M6 will make it a fun car. Its also like having a blank canvas to do anything he can dream up to it to make it his own. With his military discount and such, he can get the car for about $21k OTD.... I told him its a great starter car, great MPGs, cheaper insurance, good power and looks great. And, in a few years, upgrade to an SS if he still loves the Camaro. The low price of the car will allow him to have money left over to upgrade the shit out of it (rims, etc.)

What do you guys think? Good idea for a young guy in the military trying to make it a long way from home?

[rscheff3]

Yes. That's exactly how and where I started (except for joining the military after I bought the car instead of before) with an m6 LS that I paid ~$21k for otd.

It was fun, plenty fast, it got 30mpg highway, insurance was dirt cheap for what it was, and 2 years later I traded it for an SS.

If I had to do it all over again I'd do it that exact same way again.

[31B]

Originally Posted by TxBandit911

I have a friend that loves my 1LE and the Camaro in general. He is young (19) and has a little money saved up. Wanting to help the kid out, I went to the chevy dealer and he likes this AGM LS M6, its not near as equipped as my 1LE, but he likes it, its a nice looking car. I told him 325hp and a M6 will make it a fun car. Its also like having a blank canvas to do anything he can dream up to it to make it his own. With his military discount and such, he can get the car for about $21k OTD.... I told him its a great starter car, great MPGs, cheaper insurance, good power and looks great. And, in a few years, upgrade to an SS if he still loves the Camaro. The low price of the car will allow him to have money left over to upgrade the shit out of it (rims, etc.)

What do you guys think? Good idea for a young guy in the military trying to make it a long way from home?

Good advice. If he has USAA have him use the car buying service. May be able to save a few more bucks.

[Todd in Vancouver]

Also a great way for a young guy to start building a good credit rating. Hopefully he can get into the housing market before prices become something our younger generation can only dream about when it comes to owning their own home.

Good advice for a young man.
And thanks to you both for what you do so the rest of us can do what we want to do.

[TxBandit911]

Originally Posted by 31B

Good advice. If he has USAA have him use the car buying service. May be able to save a few more bucks.

Yes, he does have USAA as do I. This is the same dealer I got my 1LE from and they were right on par with the USAA buying service, before I even showed them the printout

Their service department leaves a little to be desired, but I can take my car anywhere for that. I haven't found many dealers that are great in both departments....

I thought this was a good idea for the guy, he is a good kid. He just doesn't know what he is doing. I didn't have help when I was his age and ended up in a bad situation with a Z28 that I paid way too much for with a Interest rate that was nuts....I'm just trying to help my soldier out...

[31B]

Originally Posted by TxBandit911

Yes, he does have USAA as do I. This is the same dealer I got my 1LE from and they were right on par with the USAA buying service, before I even showed them the printout

Their service department leaves a little to be desired, but I can take my car anywhere for that. I haven't found many dealers that are great in both departments....

I thought this was a good idea for the guy, he is a good kid. He just doesn't know what he is doing. I didn't have help when I was his age and ended up in a bad situation with a Z28 that I paid way too much for with a Interest rate that was nuts....I'm just trying to help my soldier out...

Very well done. You don't see this as much as you should. Your Soldier is lucky.

[Evergreen6]

Here's what the good financial advice of me says (and I realize I'm probably the lone dissenter of the group): No, not a good idea. The kid is 19, highly mobile, in the military, the last thing he needs is debt and a car following him around. He can have a lot (and I mean a LOT) of fun with a used 4th gen or something else that's still relatively safe and is a thrill to build and/or beat on. He can pay cash for it, insure it for cheap or just for liability, and when the car's done, he can move on to another car that he pays cash for while he saves the rest. I have military friends that spent all their money while they were in the military. I also have friends who had some fun but save the rest. They're a lot farther ahead than their peers who spent it on new cars and fun toys.

I would never encourage anyone (ever) to build credit by taking out credit and paying interest. Building credit also happens with time and responsibility, i.e. taking out a credit card, using it for budgeted expenses, and then paying it off every month. Having the account open will build credit, and USAA will set him up pretty good when he wants to buy bigger and better things.

The other side of me says...$21k OTD isn't a bad deal for a 1LS, that's about what I paid for mine a few weeks ago. Sale price was just over $18,900 before tax, title, license. It's a safe car, it's halfway decent on mileage,

but,

It's just a gateway drug. He'll trade it in within a year or two and lose some good money by doing that. This advice is completely lost on most 19 y/o's, but save up and get what you really want when the time is right and you've got cash to pay for it. I only advise taking out a car loan if the payment is 10% or less of monthly gross pay, financed for no longer than 36 months, at the best interest rate available (good/excellent credit). Things can change real quick and the last thing you want to do is be upside down in a car when you need to get rid of it or can't afford it.

So no, I don't think it's a good idea. It's not the end of the world either, and i think I already know how this one plays out having been 19 once myself. He's looking at a brand new car and he's probably going to buy it. The future opportunity of saved money isn't as tangible or important as is having fun and probably finding a fun hobby, outlet, escape, from being in the military.

Good luck to him!

[baum]

all people have to start somewhere. at 21k otd that is also about what i paid for my 1ls last year. does he have credit? i know most dont think you can have great credit when your young, but hell my wife had a over 700 score at age 19. just dont get rid of it for the v8 itch before its paid off. you have to keep in mind that a 21k loan at a 5% rate will be about 430 a mo for 60mo. with nothing down. they say for every 1k you put down it can lower your payment about $20/mo

[TxBandit911]

This is why I'm helping him. He is going to buy a vehicle. I'm trying to avoid him digging a big hole. He's a good kid, saves money, understands interest and how it screws people. I want him to have the piece of mind of a new car warranty, also. He was looking at a new truck, but he will be getting way more IMO with the Camaro for the money. The trucks are not cheap at all. At the dealer, I'm right there beside him every step of the way, making sure he isn't getting boned. He also has over a 700 credit score. He also plans on keeping whatever he gets for a long time. He's just that type of person

[MYDLIFECRISIS]

Best way to go for a young man at his point in life. Great advice for him.

[TxBandit911]

Thanks for the advice guys, we are going to go look at the final details of the Camaro today. If everything isn't perfect, its gonna be a no go.

[flyer08]

Originally Posted by Evergreen6

Here's what the good financial advice of me says (and I realize I'm probably the lone dissenter of the group): No, not a good idea. The kid is 19, highly mobile, in the military, the last thing he needs is debt and a car following him around. He can have a lot (and I mean a LOT) of fun with a used 4th gen or something else that's still relatively safe and is a thrill to build and/or beat on. He can pay cash for it, insure it for cheap or just for liability, and when the car's done, he can move on to another car that he pays cash for while he saves the rest. I have military friends that spent all their money while they were in the military. I also have friends who had some fun but save the rest. They're a lot farther ahead than their peers who spent it on new cars and fun toys.

I would never encourage anyone (ever) to build credit by taking out credit and paying interest. Building credit also happens with time and responsibility, i.e. taking out a credit card, using it for budgeted expenses, and then paying it off every month. Having the account open will build credit, and USAA will set him up pretty good when he wants to buy bigger and better things.

The other side of me says...$21k OTD isn't a bad deal for a 1LS, that's about what I paid for mine a few weeks ago. Sale price was just over $18,900 before tax, title, license. It's a safe car, it's halfway decent on mileage,

but,

It's just a gateway drug. He'll trade it in within a year or two and lose some good money by doing that. This advice is completely lost on most 19 y/o's, but save up and get what you really want when the time is right and you've got cash to pay for it. I only advise taking out a car loan if the payment is 10% or less of monthly gross pay, financed for no longer than 36 months, at the best interest rate available (good/excellent credit). Things can change real quick and the last thing you want to do is be upside down in a car when you need to get rid of it or can't afford it.

So no, I don't think it's a good idea. It's not the end of the world either, and i think I already know how this one plays out having been 19 once myself. He's looking at a brand new car and he's probably going to buy it. The future opportunity of saved money isn't as tangible or important as is having fun and probably finding a fun hobby, outlet, escape, from being in the military.

Good luck to him!

Bought my first car at 21k OTD before starting my first job. By time i paid it off and sold it privately was able to afford my SS no problem and had a new job to support the cost. He has guranteed paycheck each month so if he manages his money he will be fine. Need he will move up in rank/Time served and get raises

[Evergreen6]

Originally Posted by flyer08

Bought my first car at 21k OTD before starting my first job. By time i paid it off and sold it privately was able to afford my SS no problem and had a new job to support the cost. He has guranteed paycheck each month so if he manages his money he will be fine. Need he will move up in rank/Time served and get raises

I totally understand, and I realize I'm probably in the minority opinion here.

Technically, if you are financing a car, it's truly not affordable. Affordability is a subjective concept when you talk about payments and what your car is worth to you, and all I'm saying is there's an alternate reality to buying a new car at a young age (even it if it's a good deal).

[Sapphire]

wow this is exactly what I did. I took the LS base model home. its a great car, and the first car I bought ever. it is a blanket canvas, and I have done some moding here and there. its my DD so I needed the better MPG. I say go for it and you are a great friend for helping out!