Broke New Doctor Needs New Car! How?

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newdoc
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Broke New Doctor Needs New Car! How?

Post by newdoc »

Hi,

New poster here.

I will be graduating medical school in a few short months and beginning my specialty training this summer. As you can imagine, I am completely broke. My beloved clunker of 5 years has finally given up on me, and I am car-less. I must have a new car to get to/from the hospital, and given the rigors of training, I simply will not have the time to be constantly embroiled in car trouble. I need a car that will last me for the next 5-6 years without muchhassle. Did I mention: I am totally broke!

I'd like to stay fiscally responsible, although I'm pretty sure I have no other option but to take out a car loan. Am I correct in this assupmption? If so, how do I go about getting a good deal? Is there some clever way to come out on top of all this?

Thanks
Calm Man
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Re: Broke New Doctor Needs New Car! How?

Post by Calm Man »

Fortunately you get paid as an intern. Buy a small inexpensive car like a Corolla and take a loan.
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bottomfisher
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Re: Broke New Doctor Needs New Car! How?

Post by bottomfisher »

Fortunately you get paid as an intern. Buy a small inexpensive car like a Corolla and take a loan.
Congratulations. I agree. I presume you have substantial student loans at this point. But taking an additional auto loan is reasonable considering your needs. I would purchase a reasonably priced (thats a relative term for your situation) certified pre-owned/used car from a reliable car maker/dealership (i.e. Honda or Toyota). It has been my experience that purchasing the extended warranty is worthwhile. Even as intern/resident you should be earning a reasonable salary to repay the auto loan within 3 to 5 year term with a reasonable monthly payment.
DrPeppaPig
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Re: Broke New Doctor Needs New Car! How?

Post by DrPeppaPig »

Congrats on graduating from med school. Now the real work begins!

You might want to look for a mid-90s Camry. Those things are bulletproof. We bought one at the start of residency and sold it for a few hundred less than we paid three years later.
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mike143
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Re: Broke New Doctor Needs New Car! How?

Post by mike143 »

Many to choose from that will yield a low cost of ownership: kiplinger.com: 10 Cheapest Cars to Own, 2013

Nissan Versa appears to have those lowest cost of ownership of them all.
Last edited by mike143 on Wed Mar 13, 2013 10:00 pm, edited 1 time in total.
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newdoc
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Re: Broke New Doctor Needs New Car! How?

Post by newdoc »

Is a Ford Focus reliable? Any ideas as to where exactly to go for a car loan?
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mike143
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Re: Broke New Doctor Needs New Car! How?

Post by mike143 »

My go to brand is Honda, people will argue all different directions. Myself and others are fond of Pentagon Federal, previously offered 1.49%, currently 1.74%.
Nothing is free, someone pays...You can't spend your way to financial freedom.
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newdoc
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Re: Broke New Doctor Needs New Car! How?

Post by newdoc »

mike143 wrote:My go to brand is Honda, people will argue all different directions. Myself and others are fond of Pentagon Federal, previously offered 1.49%, currently 1.74%.
But don't you have to be affiliated with the Pentagon in some way, or can I just show up and apply for a car loan?
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mike143
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Re: Broke New Doctor Needs New Car! How?

Post by mike143 »

newdoc wrote:
mike143 wrote:My go to brand is Honda, people will argue all different directions. Myself and others are fond of Pentagon Federal, previously offered 1.49%, currently 1.74%.
But don't you have to be affiliated with the Pentagon in some way, or can I just show up and apply for a car loan?
You can do it all online/phone. To become a member you have to "qualify" but its simple: https://netmember3.penfed.org/NetMember ... ility.aspx

If you don't have any of the traditional qualifications, choose "None of the above" and you will have the option to donate $15 or $20 to a military organization to qualify. If you use their car buying service you can get the rate at 0.74%.
Nothing is free, someone pays...You can't spend your way to financial freedom.
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ram
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Re: Broke New Doctor Needs New Car! How?

Post by ram »

When I was an intern I bought a 10 yr old Honda accord from a graduating resident for $1850. Had some body rust but took me reliably from point A to point B.
See if some final yr residents have an attendings contract signed up and got any joining bonuses. They might be purchasing new wheels and trying to get rid of their old (presumably reliable ) car.
Ram
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noyopacific
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Re: Broke New Doctor Needs New Car! How?

Post by noyopacific »

When my wife was an OB/GYN resident, she didn't own a car. She rented a room near the hospital and walked or rode a bike.
(Obviously, this is a woman who was primed to go on to become a Boglehead one day!)
Used motor-homes are dirt cheap now, will they let you park one in the hospital lot if you move it once in a while?
You would not be the first resident to rent a storage locker for your clothes and stuff and sleep in the call room.
NewDoc, you said you were broke. I'm sure someone would loan you money for a car but don't you have enough crap
(& student loans?)to deal with as it is.
Do yourself a favor and try to figure out how to simplify and live within your means.

Best Wishes & Good Luck
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HardKnocker
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Re: Broke New Doctor Needs New Car! How?

Post by HardKnocker »

You have to buy a car and borrow the money.

It's a short term thing. Buy something you can afford and skip the bells and whistles.

I've done it in my younger days. You do what you have to do.
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Nancylee
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Re: Broke New Doctor Needs New Car! How?

Post by Nancylee »

I have a Honda Fit, very inexpensive, very reliable, great on gas!! We have had Hondas since the early 90s, and we love them. Very, very reliable.
Best of luck in your internship,
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Re: Broke New Doctor Needs New Car! How?

Post by tibbitts »

Some posts have brought up the issue of living close to your work, and if that's an option it could be a huge advantage. But in many areas, even if you live close to work, there is no reasonably efficient way to perform other routine tasks without a car - grocery shopping, etc. That varies a lot by the exact location, and only you can know that.

Regarding the RV suggestion, some (mostly non-urban) hospitals have facilities for patients' families to stay in an RV on/near the premises during their stay and for a brief recovery period, just as many offer economical rooms in an on-site residence facility that are made available under the same terms. I'm not aware of that ever being allowed for employees - except on TV. Even if you were allow to stay in such a facility, you'd get kicked out the minute there was a legitimate need.

Assuming you do have need for a car, have you tried to get a traditional car loan - like from a bank or through manufacturer financing - and can't, for whatever reason? If you can, ignore all the calls for you to buy a '60s Falcon that's been converted to pedal drive, and get a loan for a reasonably economical new car. Almost all new cars today are reliable, so just pick something that suites you and enjoy it. You've worked hard to get this far, and have more hard work ahead; the last thing you need is to be performing CPR on some clunker every day to get to work.

Paul
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Re: Broke New Doctor Needs New Car! How?

Post by Leesbro63 »

I'll get flamed for saying this, but you are the perfect situation to lease a Corolla or Civic for $200-$250 per month with nothing down. No, I am NOT saying you should get onto the lifetime leasing treadmill. But this is a temporary situation. At the end of a 3 year lease you can re-evaluate and either buy the car or maybe decide you want/need something different. In the meantime you'll be driving dependable transportation and can focus on patient care.
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dm200
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Re: Broke New Doctor Needs New Car! How?

Post by dm200 »

I also suggest a car loan from a credit union. Check with the hospital where you will be assigned for a credit union assocoated with employees of that hospital. Such a credit union might be more familiar with your financial situation.

Perhaps there might be a bulletin board , either at a credit union branch there, or in/at the hospital where you might get a good deal on a private-sale used car.
rixer
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Re: Broke New Doctor Needs New Car! How?

Post by rixer »

My retired in/laws bought a one year old Honda that was an Enterprise rental. They got a good deal and out here, a credit union offers good loans for those. It's still running strong.
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Re: Broke New Doctor Needs New Car! How?

Post by Tamahome »

newdoc wrote:Is a Ford Focus reliable? Any ideas as to where exactly to go for a car loan?
Yes. It ranks well on consumer reports, and it is inexpensive. I know several people who got both used and new Ford Focus cars and they were very happy with them (and still drive them).
I'm not a financial professional. Post is info only & not legal advice. No attorney-client relationship exists with reader. Scrutinize my ideas as if you spoke with a guy at a bar. I may be wrong.
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tadamsmar
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Re: Broke New Doctor Needs New Car! How?

Post by tadamsmar »

Heres's some info on getting a relatively safe used car:

http://epicurusgarden.blogspot.com/2011 ... h-esc.html

www.informedforlife.org
325e
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Re: Broke New Doctor Needs New Car! How?

Post by 325e »

small hondas and toyotas are good. I also like mazdas, they are a little cheaper less brand name. An old protege can be had for under $2k.

Also like the old volvo 240s, they last forever and can be had for under $2k. You can drive them forwards or backwards because they look the same in either direction.

The best deals are on craiglist. Then take it to your mechanic and make sure the person selling it isn't too sketchy. I've had good luck this way.
crowd79
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Re: Broke New Doctor Needs New Car! How?

Post by crowd79 »

Just buy an old clunker to get you through a year for a grand or two or less. Perhaps you can ask your family for a loan?
obgraham
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Re: Broke New Doctor Needs New Car! How?

Post by obgraham »

Having once been a resident, I sympathize. I also recognize that you need reliable transportation, and can't be messing with an old car at 3am in the parking lot of some inner city hospital.
So I'm going with a)Get a 3-5 year old low mileage Honda or Toyota, or b)Lease something cheap, like a Civic.

Like someone else said, you have to do what you have to just now -- the future will be different.
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Re: Broke New Doctor Needs New Car! How?

Post by HardKnocker »

obgraham wrote:Having once been a resident, I sympathize. I also recognize that you need reliable transportation, and can't be messing with an old car at 3am in the parking lot of some inner city hospital.
Absolutely.
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Re: Broke New Doctor Needs New Car! How?

Post by nisiprius »

newdoc wrote:Is a Ford Focus reliable?
Check Consumer Reports. They may not be perfect but they've got more real information than anything else. And they have "recommended used cars." Actually, isn't the annual auto issue still on the newsstand?

P. 80, "best and worst used cars." Under $10,000, for "Small Cars," they like the Pontiac Vibe 2009; for "Sedans," Hyundai Sonata 4-cyl 2008 and Acura TSX 2004. "Frequency of repair record," Ford Focus sedan, well, look at it for yourself, doesn't look too bad.
Any ideas as to where exactly to go for a car loan?
Credit union.
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Re: Broke New Doctor Needs New Car! How?

Post by EternalOptimist »

I've had great success in leasing cars after many years of not wanting to. You can actually get one with no money down (have them build costs into monthly payment). The good things: you always have a new car with no repairs, you have state of the art car. A car salesman relative of mine once told me you never want to buy/own a depreciating asset like a car. It has worked for men. Good luck
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Re: Broke New Doctor Needs New Car! How?

Post by DrPeppaPig »

nisiprius wrote:P. 80, "best and worst used cars." Under $10,000, for "Small Cars," they like the Pontiac Vibe 2009;
I had a 2004 Vibe and it was a great car. The gas mileage was great and there is a lot of cargo room with the back seat folded down. They also come in an AWD version which could be nice in Chicago. The Vibe is the Pontiac version of the Toyota Matrix so it should be pretty reliable.
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Re: Broke New Doctor Needs New Car! How?

Post by strafe »

In my book, there's no question what you should do:

Walk to your local Hyundai dealer and lease a new Sonata. Other brands may have similar sticker prices but Hyundai seems more negotiable, and the warranty is unbeatable Your time is too valuable to be dealing with buying/selling/repairing a used car. To give you an idea of how valuable your time is: at my institution, resident/fellow moonlighting shifts paying less than $100/hr often go unfilled (which is something like 6-8x your salary).

Based on others' experiences, with nothing down and not much in the way of negotiating, you're looking at ~$230/mo payment. You can easily afford that as a resident. You can get crappier, cheaper cars, but the Sonata is a much better value.
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Re: Broke New Doctor Needs New Car! How?

Post by MathWizard »

Leesbro63 wrote:I'll get flamed for saying this, but you are the perfect situation to lease a Corolla or Civic for $200-$250 per month with nothing down. No, I am NOT saying you should get onto the lifetime leasing treadmill. But this is a temporary situation. At the end of a 3 year lease you can re-evaluate and either buy the car or maybe decide you want/need something different. In the meantime you'll be driving dependable transportation and can focus on patient care.
This is one of the few cases where a lease would really make sense.

I agree, stay out of the elase treadmill, and tale the time to be prepared for buying a car when the
lease is up.

From another post, you will be driving in Chicago. I've driven there many times. I'd suggest
a car with some acceleration, either a V6 or a turbo 4 cylinder. Parking will be an issue/expense,
maybe even as much as the cost of the car, unless the hospital gives you that as part of your employment.

A park and ride van might be the best option if you don't get parking paid for.
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Re: Broke New Doctor Needs New Car! How?

Post by ziszew »

newdoc wrote:Hi,

New poster here.

I will be graduating medical school in a few short months and beginning my specialty training this summer. As you can imagine, I am completely broke. My beloved clunker of 5 years has finally given up on me, and I am car-less. I must have a new car to get to/from the hospital, and given the rigors of training, I simply will not have the time to be constantly embroiled in car trouble. I need a car that will last me for the next 5-6 years without muchhassle. Did I mention: I am totally broke!

I'd like to stay fiscally responsible, although I'm pretty sure I have no other option but to take out a car loan. Am I correct in this assupmption? If so, how do I go about getting a good deal? Is there some clever way to come out on top of all this?

Thanks
Given your other post about buying a condo in Lincoln Park, Chicago, my guess is you're living/working in the city proper.

My advice is to rent close to work (assuming it's in a decent area) and walk. For car "needs" you have Zipcar and cabs. My wife and I did this for many years and it is a fantastic way to save cash and have a car when you need it (not to mention the 10 minute commute no matter what). I don't think there was a single month where we spent more on Zipcar than we would've spent on a parking space alone, not to mention the fact that you don't have to deal with the hassles of ownership (and the variety of cars offered from Zipcar, ie. sedan, vans, BMW, mini, SUV, etc to suit whatever you need).

Cars make very little financial sense if you live and work in the city with the availability of Zipcar and cabs; given the hours you're going to spend at the hospital, even less so.
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norookie
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Re: Broke New Doctor Needs New Car! How?

Post by norookie »

Todays Drs have no clue where or how to find transportation. :annoyed, again. Please, keep your stitches to yourself.:wink:
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Re: Broke New Doctor Needs New Car! How?

Post by White Coat Investor »

If you're broke, and you have to have the car (not necessarily a given, I rode my bike to the hospital for 3 years), then I see little choice aside from taking on a debt and buying a car. However, if I had to buy a car on credit, it wouldn't be anywhere near new and anywhere near nice. I'd be spending $2-5K. Pay it off as soon as you can and get on with building wealth. You don't "deserve" a nice car by virtue of graduating from medical school. You deserve it by virtue of saving up $40-50K in an account earmarked for a nice car.

P.S. If you can't buy a car, you certainly shouldn't be buying a house.
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Re: Broke New Doctor Needs New Car! How?

Post by c.Alvin »

I have to agree with EmergDoc. You may need transportation, but keep the cost low. The true cost of a new vehicle must include the mandatory full insurance coverage. No institution will give you a loan without the costly insurance policy. You want to pay cash for a cheap vehicle or get a minimal loan that can be paid off quickly. Once the loan is paid off get a minimal insurance policy. It will save you a lot of money. The drawback is the minimum insurance policy will not cover repair or replacement of the vehicle.
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newdoc
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Re: Broke New Doctor Needs New Car! How?

Post by newdoc »

Well, I'll definitely need a car since I'll be commuting to multiple hospitals. Roughly how cheap can I get a robust one that I can count on to last 5-6 years? $5K? More? Less?
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Re: Broke New Doctor Needs New Car! How?

Post by HardKnocker »

newdoc wrote:Well, I'll definitely need a car since I'll be commuting to multiple hospitals. Roughly how cheap can I get a robust one that I can count on to last 5-6 years? $5K? More? Less?
As a previous poster said, your time is money. Don't cause unneeded stress for yourself by buying a substandard car (clunker or questionable used). You can buy a reliable new car for under $20k with a 3 year warranty.

You have to be careful about leasing with yearly mileage limits.

Rent at this point in your life. No need to own a house or condo.

If you don't need a car then don't get one but if you do, then buy one.
“Gold gets dug out of the ground, then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility.”--Warren Buffett
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Re: Broke New Doctor Needs New Car! How?

Post by VictoriaF »

Every time I see this subject line, I want to change it into "Broke New Car Needs a New Doctor(*)." Is it just me?

Victoria

(*) "Doctor" as in "mechanic," no disrespect to OP is implied.
Last edited by VictoriaF on Tue Mar 19, 2013 11:30 am, edited 1 time in total.
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Re: Broke New Doctor Needs New Car! How?

Post by Epsilon Delta »

If this is not too far off topic.

Several posts have touched on insurance suggesting minimal auto coverage and no renters insurance. One of the purposes of insurance is to cover liability and so protect future income. How does this apply to a resident expecting a large increase in income?
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Epsilon Delta
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Re: Broke New Doctor Needs New Car! How?

Post by Epsilon Delta »

HardKnocker wrote: As a previous poster said, your time is money. Don't cause unneeded stress for yourself by buying a substandard car (clunker or questionable used). You can buy a reliable new car for under $20k with a 3 year warranty.
Theres a big gap between a new car and an old clunker. Many modern cars will be reliable for more than a decade if treated properly. Proper maintenance is the key. You need a good, honest mechanic. You want to follow the manufacturers recommendation for maintenance. You want to listen when your mechanic says something might last for six months and take preventive action. You want to pay attention to changes in the cars behavior and have them seen to. Theres a big difference between being stranded at the side of the road and dropping your car of for a scheduled appointment and getting a loaner.
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Re: Broke New Doctor Needs New Car! How?

Post by William4u »

Chicago is a great town, and there is no need to own a car there because it has big-city transportation. I agree with others that Zipcar and the CTA trains and buses are ideal for you. Owning a car in a big city is a big, time-wasting pain. Parking in the city is tough and expensive. It is faster in many cases to just take public transportation.

I have a friend who lives and works in Chicago. He can easily afford a car, but there is no need for it. He chose a condo near a CTA line that goes straight to his workplace. Lincoln Park is on the red line, and so any job along the red line would work well if you lived in Lincoln Park.

Check the bus and train schedules and see how fast it can get you to work. There are many high-quality places to live next to a CTA stop that should quickly get you to just about any major hospital in Chicago. Or, just live within walking distance. If you ever need a car, then a Zipcar or a car rental will work fine.
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Re: Broke New Doctor Needs New Car! How?

Post by obgraham »

Once again:
You'll be a busy fellow for the next few years. In and out of hospitals, offices, meetings, often at odd hours of the night (well, unless you're in Dermatology!) and sometimes in less than savory parts of town. You need secure, safe, reliable, and not too ostentatious transportation.

This is not the time for biking to work, zipcar-ing, or organizing your life around your neighborhood mechanic.

You're going to make $45-50k for now, with a better future ahead.

Lease that Civic/Hyundai/Corolla and be done with it.
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Re: Broke New Doctor Needs New Car! How?

Post by ossipago »

William4u wrote:Chicago is a great town, and there is no need to own a car there because it has big-city transportation. I agree with others that Zipcar and the CTA trains and buses are ideal for you. Owning a car in a big city is a big, time-wasting pain. Parking in the city is tough and expensive. It is faster in many cases to just take public transportation.

I have a friend who lives and works in Chicago. He can easily afford a car, but there is no need for it. He chose a condo near a CTA line that goes straight to his workplace. Lincoln Park is on the red line, and so any job along the red line would work well if you lived in Lincoln Park.

Check the bus and train schedules and see how fast it can get you to work. There are many high-quality places to live next to a CTA stop that should quickly get you to just about any major hospital in Chicago. Or, just live within walking distance. If you ever need a car, then a Zipcar or a car rental will work fine.
Doctors need cars. Even in a big city. They are often on house call, and required to respond to emergencies, often under strict timing standards. I'm a huge fan of biking/public transportation/etc., but they're simply not suitable for 3 am time-sensitive emergency responses.
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Re: Broke New Doctor Needs New Car! How?

Post by killjoy2012 »

Some general guidance - just my opinion:

- I worry about some of the advice here being penny-wise, pound-foolish. It's easy to say go with a $2k beater... until it breaks down and makes you late to work (aggravating your bosses), possibly multiple times over a relatively short time span. I don't care what brand or who's your daddy or if you stayed in a Holiday Inn last night, but a $2k car is going to break down, need repairs, spend time in the shop, etc. I think you'd be adding a lot of stress, wasted personal time (which is a very limited resource for you), headaches, etc. just to save a couple $, esp given your future earning potential in the near term.

- Take out a loan for the vehicle from your credit union (PenFed or Alliant are both good online CUs, if needed). Keep your vehicle choice something practical, modest, reliable, and leaning more towards frugality than luxury. I would not look to spend more than $15-20k, or lease < $250/month... but I also wouldn't be so cheap that you get something that you're going to be embarrassed to be seen in by your peers/boss in.

- Brand: All I'm going to say is don't take car advice from a finance forum. Also, being in the Chicagoland area & assuming a decent daily commute (suburbs?), I would be looking at something that will do well in your winters. Something like a Ford Escape, Jeep, or similar GM comes to my mind.

If you can move close to the hospital and avoid this cost entirely, by all means go for it. But my brother is currently a resident, and they often move him monthly between different hospitals and training back at his school. Given his situation, I don't see how you could possibly get by without a car.
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mike143
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Re: Broke New Doctor Needs New Car! How?

Post by mike143 »

killjoy2012 wrote:All I'm going to say is don't take car advice from a finance forum. Also, being in the Chicagoland area & assuming a decent daily commute (suburbs?), I would be looking at something that will do well in your winters. Something like a Ford Escape, Jeep, or similar GM comes to my mind.
1. I would take any advice on this forum in high regard no matter the subject. Automotive forums are full of snake oil and butt dynos. Bogleheads are mostly likely to select vehicles that return the lowest cost of ownership, providing lower maintenance (reliability) and operational cost.
2. I don't live up north so I do not have first hand experience but my understanding is that any front wheel drive car will do fine in the city, no need for a wasteful SUV.
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DTSC
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Location: Illinois

Re: Broke New Doctor Needs New Car! How?

Post by DTSC »

ossipago wrote: Doctors need cars. Even in a big city. They are often on house call, and required to respond to emergencies, often under strict timing standards. I'm a huge fan of biking/public transportation/etc., but they're simply not suitable for 3 am time-sensitive emergency responses.
Doctors in residency need cars, but not because they have to respond to emergencies. They need cars because they may have rotations in hospitals far from the "home" hospital to broaden their experience. For example, I rotated through my university's hospital, a VA hospital, a community hospital 5 miles away, a nursing home, and an outpatient neurologist's office 10 miles away. If you are an intern or resident, most (all?) of your calls are taken in house, i.e. you sleep in the hospital's call room (if you are lucky enough to get sleep). That's why they are called INterns, as opposed to EXterns. At least this was how things were 10 year ago when I went through training.
killjoy2012
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Re: Broke New Doctor Needs New Car! How?

Post by killjoy2012 »

mike143 wrote: 1. I would take any advice on this forum in high regard no matter the subject. Automotive forums are full of snake oil and butt dynos. Bogleheads are mostly likely to select vehicles that return the lowest cost of ownership, providing lower maintenance (reliability) and operational cost.
2. I don't live up north so I do not have first hand experience but my understanding is that any front wheel drive car will do fine in the city, no need for a wasteful SUV.
1. I wouldn't. This is an investment forum that attracts people that are very interested/knowledgeable about finance & investing - not cars. The best vehicle that meets your three listed requirements is a moped or motorcycle - not the vehicles you've previously listed this thread. Lastly, given the OP's location and soon-to-be profession, there may be more rightful considerations than just the 3 metrics you've listed.

2. A row boat will theoretically sail across the Atlantic too, however I wouldn't suggest it to friends or family. Or for a BH analogy, a 3-fund portfolio should be just fine for everyone in this forum, yet look at how many go beyond that. Same story with vehicles.
nepats
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Re: Broke New Doctor Needs New Car! How?

Post by nepats »

Since you need a reliable car, find a lease on a Toyota or Honda that requires no money down and at most $200-300/month payment. You deserve it :)
ziszew
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Re: Broke New Doctor Needs New Car! How?

Post by ziszew »

DTSC wrote:
ossipago wrote: Doctors need cars. Even in a big city. They are often on house call, and required to respond to emergencies, often under strict timing standards. I'm a huge fan of biking/public transportation/etc., but they're simply not suitable for 3 am time-sensitive emergency responses.
Doctors in residency need cars...<snip>
Good to know (and the walk/bike/CTA/Zipcar suggestions won't work)
killjoy2012 wrote:1. I wouldn't. This is an investment forum that attracts people that are very interested/knowledgeable about finance & investing - not cars.
Have you even seen this thread?

One of the many great things about this forum is the diversity of backgrounds and interests (with associated knowledge). While you might have put everyone here in a convenient box, the reality is most people won't fit. Would it make you feel better for us to give credentials? How about an SCCA National competition license, WERA (motorcycle) racing license, seat/saddle time in Formula Fords, GT3s, Supersport, and Autocross, as well as the ability to turn a wrench well enough to keep those on the track? Would having been paid to work on cars/trucks count?

If any of the above qualify as "interested" or "knowledgeable", than my first bit of advice would be to get reliable, fuel efficient FWD with a set of dedicated snow tires on steel rims. I grew up driving in snow (FWD, AWD, and 4WD) and moved to Chicago in the late 90s; a FWD with studless ice&snow tires will handle and stop better than an AWD (or 4WD) with all seasons and cost less to operate. If the OP were planning on back country roads in the winter it'd be different, but the roads in the city are flat and well cleared (comparatively) during the few decent dumps of winter.
Topic Author
newdoc
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Re: Broke New Doctor Needs New Car! How?

Post by newdoc »

I think I'm going to go ahead a take out a $15K loan for a car. I'll try to see if I can find something for maybe $10-12K, and spend perhaps the next 3 years aggressively paying it down.

Even though my credit score is great, my ability to take out loans is impeded by my massive debt-to-asset ratio as well as the fact that I am technically unemployed. Furthermore, I have no one who I can use as a cosigner. My records prove I'm good for the money, so how do I go about getting a loan in this circumstance? I know some recent med school graduates who had to wait until they received their statements of income from their hospitals before they could take out loans. Is there any way around this? Will simply explaining this to an actual human over the phone as opposed to entering data into an online form help?
Default User BR
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Re: Broke New Doctor Needs New Car! How?

Post by Default User BR »

newdoc wrote:I think I'm going to go ahead a take out a $15K loan for a car. I'll try to see if I can find something for maybe $10-12K, and spend perhaps the next 3 years aggressively paying it down.
A possible place to start is Pentagon Federal. You do have to join to get a loan, but I don't know if they would pre-approve a used car loan without doing so or not.


Brian
ziszew
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Re: Broke New Doctor Needs New Car! How?

Post by ziszew »

newdoc wrote:I think I'm going to go ahead a take out a $15K loan for a car. I'll try to see if I can find something for maybe $10-12K, and spend perhaps the next 3 years aggressively paying it down.
One thing to remember is the "fun" with Illinois taxes.

Used vehicles purchased from dealers are taxed at a much higher rate than those from private parties; under 15k privates sales are taxed based on vehicle year (see the Dept. of Revenue chart here); the price from a dealer is taxed at 7.25% (same as new) plus the additional 1.25% "Chicago" tax if registered to a Chicago address. It may make more sense to buy from a private party and put the difference to dealer price with tax towards a "repair fund" if you're considering a reliable model (Civic, corolla, etc.). Depending on the age and mileage, you may also still be able to buy a manufacturers extended warranty (what they throw in with a "certified used" at the dealer) and come out ahead. As usual, caveat emptor...

As for aggressively paying it down, given current used loan rates being below inflation (and probably below your other existing loans) it may be better to put the dollars elsewhere (i.e. emergency fund, higher rate non-deductible student loans, etc.) in the short term
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White Coat Investor
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Re: Broke New Doctor Needs New Car! How?

Post by White Coat Investor »

newdoc wrote:I think I'm going to go ahead a take out a $15K loan for a car. I'll try to see if I can find something for maybe $10-12K, and spend perhaps the next 3 years aggressively paying it down.

Even though my credit score is great, my ability to take out loans is impeded by my massive debt-to-asset ratio as well as the fact that I am technically unemployed. Furthermore, I have no one who I can use as a cosigner. My records prove I'm good for the money, so how do I go about getting a loan in this circumstance? I know some recent med school graduates who had to wait until they received their statements of income from their hospitals before they could take out loans. Is there any way around this? Will simply explaining this to an actual human over the phone as opposed to entering data into an online form help?
Why not put it on a 0% credit card and pay it down aggressively over 12-15 months? I'm not sure why you seem to think it's going to be some kind of difficult task to buy a car for $12K. $9K gets you a nice 5 year old Sentra with 50K miles on it. Make it 8 years old with 80K miles on it and it's $6K. Remember that you only need a car that'll make it 3-5 years. You'll have plenty of income at that point to buy what you want. A car with 80K miles on it is hardly a beater and hardly likely to require huge sums to maintain when compared to a brand new one.

Spending 3 years paying down a $15K car loan is hardly what I'd call "aggressive." Aggressive is paying it off in 6 months on a resident's income.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
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