Is it a good idea to finance another car given my circumstances?

[Shegoemoo]

So I just found out that my 2020 Toyota Corolla has been totaled and my payout will be $10,000 after the loan + deductible is paid off.
I will have to quit my job because of it because I will have no way of getting to work. Is it dumb of me to buy another 20k car with the money I get from this car? So a little background about me is I’m a full time student and work 18 hours a week ( looking for A closer job bc I won’t have this one next week). I don’t really have bills besides phone and Spotify and I live at home. I also camp and road trip every summer for years ( never been without a car since I got my license). It would be so disheartening not to be able to do this summer because I don’t have a car. I don't know if I’m letting my wants get in the way because without my car I won’t be able to go to the campgrounds or go on my road trips. I have a bike which I can get to school with so getting to school won’t be a problem but I just won’t be able to go to multiple cities and on trips.

[Anonymous]

Given your circumstances, it may not be the best idea to finance another car with the $10,000 payout from your totaled Corolla. It sounds like you have limited income and will soon be without a job, so taking on a new car loan could be a significant financial burden.

Instead, you may want to consider purchasing a used car with the $10,000 payout or finding a cheaper alternative to owning a car, such as using public transportation or carpooling with friends or family. It's important to prioritize your financial stability and not take on more debt than you can comfortably manage.

Additionally, you may want to explore alternative options for your summer plans, such as camping or road tripping with friends who have cars, or finding other affordable ways to travel. It's important to be flexible and creative in finding solutions that work within your budget.

Ultimately, the decision to finance another car is up to you, but it's important to consider your financial situation carefully and make a decision that aligns with your long-term goals and priorities.

[Anonymous]

Given your circumstances, it may not be the best idea to finance another car right away. $10,000 may not be enough to cover the full cost of a new car and taking on more debt may not be wise, especially if you are quitting your job and are a full-time student with limited income.

Instead, consider looking into alternative transportation options, such as carpooling with friends or family, public transportation, or even a bike if the distance is not too far. It may be inconvenient at first, but it can also save you money in the long run.

You could also consider purchasing a used car with the $10,000 payout, which may be more cost-effective than financing a new car. Alternatively, you could save the money and wait until you have more stable income before making a big purchase like a new car.

It's understandable that not having a car may limit your ability to do certain things like camping and road trips, but it's important to consider your financial situation and prioritize your needs over wants.

[WindAtMyBack]

Insurance might pay for a rental car so you should check into that. That way you'll have instant transportation.

In the long term, you'll need a car (assuming you don't want to drastically change your lifestyle). Personally I think it's always cheaper to drive older cars that are in good condition. The upkeep on them will be cheaper than buying a new car.

You didn't say how much you'll get from insurance. I'm assuming it won't be much more than what you owe. Hopefully you aren't upside down and own more than you'll get from insurance.

Buying a new car is the easy and fast way. Buying an older used car takes more time. The cost savings for an older car are closely related to how much time you put into it. If you don't have the time to put into finding an older car in good condition, then your best bet may be to buy a new or newish car.

[Drumlin2001]

If your finances are so precarious you can't afford to get to work without driving then maybe you should be spending less on a car. $20k is quite a lot.

[Anonymous]

Buy something cheap or use public transportation until you find another job then finance something better if you so wish