New Grad Buying a Car... any tips?

As the title states, I was blessed to receive a good offer right out of college which starts in February 2025. My salary is 100k, and I’m living at home with my parents so no rent, but the office is around 35 miles away so around 70 miles every time I go to the office (probably 3 times a week). I’m very interested in buying a used hybrid or EV but I’m not really sure how much I should budget for a car, especially as my insurance is gonna be pretty high since I’m still young. Any advice?

I’d consider budgeting for a new car driving those miles… full warranties with financing deals, rebates etc. You may be better off. In my region, used car prices are entirely too high generally speaking. It all depends on the numbers. Get insurance quotes on models you’re interested in and work your numbers… congrats on the job!!

I’m currently looking at around 20k as I have around that much right now but I don’t think I’d be able to get a new car for that much, at least not a hybrid/EV.

Toyota Corolla… extremely reliable, great on gas, and a little more than 20k brand new.

My Toyota Corolla hybrid was $26k in 2022 brand new. IDK how much the market has changed in the last 2 years, but when I bought mine, used cars were going for more than new, so it made more sense to buy new. YMMV.

I have like 15k and I think my parents could help me a little so I was looking at around 20k that’s why used was the main focus. I might look at new cars but the interest rate would be ass especially as my credit score is not real (no paid off loans or actual credit history).

If you’re going to finance a little bit of it, often times new cars have lower interest rates (another reason it made more sense to buy new for me at the time). Every place is different of course so research a ton, but USAA is who I financed through and they gave me better rates for new (I think it was .5% lower than used) and also another .5% discount for autopay.

Definitely a Toyota Corolla Hybrid. They’re dead reliable, fuel efficient, cheap to insure, and undeniably practical. You can get one used for around $15,000-$20,000 used or about $24,000 new. Buying new might be worth it if you can afford it. Only bother with used if you can’t afford new or you intend to sell it within three years. If you plan to run the car into the ground, buy the newest car you can actually afford.

Money guys say no more than 8% of your monthly to the car payment, after 20% down and aim for 36 months or less. I agree with the hybrid option; every 10 miles per gallon is going to save you ~ $1,400 per year. You will certainly want to stay on top of maintenance - you’re driving 20k+ miles per year.

Are you doing a financial plan of some sort? r/Ynab has a free trial over a month and lots of free videos online with helpful hints. Many in the subreddit say YNAB has been extremely helpful and ‘life changing’ and worth the price. Helps to find/allocate dollars and pre-plan for inevitable expenses. Gives a free year to students. Congrats on the job!