A note from Josiah

Phillip Durbin - Flat Fee Fiduciary Financial Advisor in Cameron, MO

Phillip Durbin is an advice only financial advisor, and founder of Generational Wealth Development. He provides financial planning locally in Cameron, MO and virtually nationwide. He started his financial career as a bank teller at the early age of 15 years old! Eventually growing to managing over $70 million as a community and agriculture loan officer. He considers himself a financial coach and works with everyday people.

He also offers a personal finance class for young adults (18 - 40), who want to take control of their finances, at Learn Money Basics. This is especially for those in rural or working-class communities who may not have access to traditional financial education.

Your first real job and the biggest question you have: Should you buy a car after college?

The paychecks are finally consistent. You’re not a broke college student anymore. And for the first time, buying a nice car actually feels realistic.

So you start looking. Because you deserve it.

Monthly payments don’t seem that bad. The dealership says you can afford it.

But before you decide, you need to ask:

Should You Buy a Car After College or Wait?

Because this is exactly where most grads go wrong.

The question isn’t “Can you afford the payment?”

It’s: **“What is this decision going to cost you long-term?”

🚫 The Biggest Mistake When Buying a Car After College

One of the biggest money mistakes after college is buying too much car too soon.

You get approved for a loan, pick something newer than you’ve ever had, and suddenly you’re locked into a $400–$700 monthly payment for 4+ years.

On paper, it works.

In real life, it quietly holds you back.

Why Buying a Car After Graduation Can Hurt You

1. You’re Committing to Expenses Before You’re Stable

If you’re wondering “should you buy a car after college?”, start here.

Your first year out of college is unpredictable:

  • Job changes
  • Moving cities
  • New expenses

A car payment doesn’t adjust with any of that.

2. You’re Reducing Your Financial Flexibility

When you buy a car after college, you’re trading flexibility for a fixed expense.

That extra $500/month could go toward:

  • Building an emergency fund
  • Starting to invest
  • Giving yourself breathing room

Instead, it’s tied up in a depreciating asset. Because after the loan is paid off odds are you're going to do this all over again.

3. The Monthly Payment Trap

If you’re asking “can I afford a car after college?”, be careful.

Dealerships focus on making the monthly payment feel manageable not on what it actually costs you long-term.

That “affordable” payment often means:

  • Longer loan terms
  • More interest paid
  • Higher total cost

4. It Delays Your Financial Progress

Buying a car after graduation doesn’t just cost money it delays momentum.

It slows down your ability to:

  • Save money
  • Invest early
  • Build financial security

And early momentum matters more than almost anything.

✅ What to Do Instead of Buying a New Car After College

If you’re deciding whether you should buy a car after college, consider a smarter approach:

  • Buy a reliable used car
  • Keep your monthly expenses low
  • Avoid long-term debt early in your career

This isn’t about deprivation, it’s about positioning. Do me a favor and look at the alternative. Plug whatever your payment is going to be into a Nerdwallet's Compound Interest Calculator. If you invest for just one car cycle instead of borrowing, you can pay CASH for your next one. Now tell me that's not a flex long term.

The Better Financial Move for New Graduates

The best financial advice for new graduates is simple:

Don’t upgrade your lifestyle as fast as your income increases.

Your first year out of college should be about:

  • Building savings
  • Creating flexibility
  • Avoiding unnecessary debt

Final Thoughts: Should You Buy a Car After College?

So, should you buy a car after college?

In most cases, **not a new one, and not right away.

A new car might feel like success.

But real success is:

  • Having options
  • Not being stressed about money
  • Being able to move forward financially

Don’t lock yourself into payments before you’ve built a foundation.

That’s what most grads get wrong and it’s what keeps them stuck.

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