Maintenance costs: some car parts and repairs are much more expensive then others.
Repair costs: What do parts cost on average? In pocket and time wasted?
Care: Better wax that new baby 3 to 4 times a year to really keep that special metallic paint protected from oxidization from the elements.
Stress: Your new shiny bank-owned vehicle will get dinged by some inconsiderate idjut next to you in the parking lot. Not once, but often. Also rocks and pebbles love hoods and windshields...now that ‘new car’ isn't so new anymore. And you are left stressed out and wishing that in another 42 months you can afford to buy..wait for it!... ANOTHER new car!lol
Seriously, back in the day, nobody started with their dream car. It is something to work for like a home. It demonstrates self and financial disciple to put off a ‘want’ to a later date in life. Today's generation is a fast food culture always wanting it today. Never using the wisdom and vision to see down the road into the future. If he has the discipline to be in the military, he certainly has the discipline to put off a huge expense like this and opt for a more economically feasible vehicle.
Long advice short: If possible go quality used and pay with cash. Check maintenance records and pay the 50 bucks to check the title for any possible accidents.
Second choice: put as much down as possible and for the rest stick with a maximum 2 to 3 year loan.
If he does opt for the full 60+ month debt payment plan ( :( ) it is imperative that he take good car of his vehicle doing regular maintenance like clockwork. It's also imperative he stick with a budget he can absolutely "afford", including payment, fuel, care, and maintenance. The biggest risk with long term debt like this is you are presuming on the future. You are presuming that you will have the exact same income 5 years from today and that nothing will affect your finances any differently then today for the length of the loan. And don't even get me started on depreciation...;) Once it's payed off, he should drive it as long as possible. If he buys quality made and does research on long term maintenance and reliability ratings for that particular vehicle in the long run he could drive a vehicle for 5 years or longer without a payment and much lower insurance costs long term. Or even pass it down to grandchildrens in the future.:)
I did. I knew the car I wanted, I worked for the down payment and then worked to pay it off. I learned about financing, the rule of 78, and about having a budget. I polished it every chance I got and went on a date every weekend. ;)
Our problem today is not that we dream too big, our problem today is that we dream too little. In the process of fulfilling our goals, we learn more than we will ever learn in school. My dream car in '72 was a '68 Mercury Cougar (one below is not mine):
