I'm an 18-year old male, about to start college in a week. I will be attending a GM specialized Auto Technology Work/Study program. One requirement for the program is that I get a position at a GM dealership. The program consists of 2 months of full time classes, and 2 months of full time work experience (paid internship). This pattern repeats over the course of two weeks.
My pay rate is a mere $8/hour, at about 40 hours per week (10 hours a week during full time classes). My daily commute is about 60 miles total. My current car is a full size Mercedes Benz which averages about 15 mpg. I would rather not waste the money on gas.
While making about $245 a week, would I be able to pay for this brand new car throughout college? The total cost of the car is about $22,000. Now because I work at the dealership where I plan on buying this car, I receive about $1,500 off the initial price, as an employee discount. I also have $2,000 saved up for the down payment, and my current car is worth $4,000 in trade-in value.
With all this in mind, the initial price of the car is about $15,300. That would be the size of the loan I would need. I also figured insurance would be about $100/month. I figured, since I make about $1000 a month, while working full time, I could save the money for 4 payments (the two months that I work full time plus the two months I have classes full time). Would this be an acceptable purchase, or should I wait until after graduation?