I've been putting away money for a car.

N i C k · 10-24-2008, 04:17 PM

I have been saving up for a car for 3 years. I've been working after school and doing all that I can to put away enough money to afford one. I am at 7,031 banked in my Savings Account dedicated to my car. My father told me whatever I save he will match it... So that puts me at 14,062. The problem is I am most likely paying for insurance.

I plan on buying a Chevy Colorado during the Spring time, hopefully the economy is more stable then and insurance may be a little cheaper also.

My problem/question is does anybody have any suggestions on doing anything with my money until then so I can possibly make a little more cash? Once the football season is over I plan on going back to work after school. I've been collecting copper and other expensive scrap metals to help afford insurance too. I am just looking for a way to make a good amount of cash until spring, I'm 17 years old keep that in mind.

mulletstation · 10-24-2008, 05:16 PM

CD's will be your safest bet. Stick it in a 6 month and you'll have maybe a couple months of insurance money out as interest.

N i C k · 10-24-2008, 09:25 PM

I was thinking about doing that, I was reading through my local paper the other say as well and they had an ad for a new savings bank or something. They gave you like 8% interest per month for the first 1000, then like 3% for every next 1000.

I'm not sure if I qualify for it though or if it is a really long term thing to help get the bank on their feet.

You know any banks giving out good rates?

mulletstation · 10-25-2008, 12:14 AM

a couple of the online banks have good savings/cd rates. I know offhand Etrade is doing 3.3% savings.

madgoat · 10-25-2008, 12:47 AM

hsbc direct is at 3% for online savings and something like 4.5% for a 6 month cd with a min of $1000

Carnagge · 10-25-2008, 01:49 PM

our credit unit gives 5.5% interest on checking account. 12 debit card uses, direct deposit, online statements.

I would suggest buying a car for 10k using the 4k to pay insurance.

Also, insurance rates are not being effected by the current economic conditions. Insurance is not a investment its a product that goes by mortality tables etc... and amount of claims that are paid out.

seems like a big reserve fund, but what happens if your car breaks down or has to have repairs?

N i C k · 10-25-2008, 04:28 PM

Quote:

Originally Posted by Carnagge

our credit unit gives 5.5% interest on checking account. 12 debit card uses, direct deposit, online statements.

I would suggest buying a car for 10k using the 4k to pay insurance.

Also, insurance rates are not being effected by the current economic conditions. Insurance is not a investment its a product that goes by mortality tables etc... and amount of claims that are paid out.

seems like a big reserve fund, but what happens if your car breaks down or has to have repairs?

If my car breaks down or needs repairs, I have a little under a 1000 to the side to spend when I need it or to buy things I really want, video games, lacrosse sticks etc. I can always put it to car repairs.

Once school is out too I am going to be working full time in the Plumbers Union as well. So I will be making a lot more money then right now. The problem is I need the car to get to work and for work itself.

The car i'm looking at is a Chevy Colorado, I can probably get one for around 12,000-13,000 if it's an 04-05.

automagwarrior · 10-28-2008, 06:42 AM

You could also look into a money market account if you have your money in a Credit Union. They are high yield high interest savings/ checking accounts that have a much higher minimum balance. Most of them you can only write 3 checks per month on it.

You might also consider buying a certified used car for about 15k put 10k down assuming they do not have a limit (which a lot of places do, since they make money off the interest on payments). This will help you establish credit, and if you get into a jam you can just pull the money out of your savings account and pay off the remainder.

Man, its a lot easier to see things after you've made all the mistakes.

DaBXRoMeO · 11-04-2008, 05:58 AM

Quote:

Originally Posted by automagwarrior

Man, its a lot easier to see things after you've made all the mistakes.

QFT

Might want to also look into over seas accounts, they may be of some interest to you. I know some of the banks like NatWest (can't remember the rest) have higher interest rates like around 6%, but of course they are in LBs, not dollars...either way the interest is still higher than over here and the LB i believe is still up on the dollar. And they have special accounts for people who dont have 50,000 to throw into a bank