Minimum wage should be a living wage....
That said, if you're earning minimum wage, you should be shopping for a used car, not new.
Also, nobody finances a car for 12 months. The vast majority of car loans are for 5 or more years.
Even making more than min wage, I never buy a new car...just too much expense for too little return. Luckily, there are so many out there willing to throw their money away like that so I never have to worry about those insane auto expenses.
One case as example - have a friend who spent $50k on a Lexus. Even IF they get 200,000 miles or more, their per mile capital expense would be $0.25. Today, it is still over $0.50!! They won't, 'cause there are about 80,000 mi on it and they won't live long enough to go even another 50,000. Maybe I should buy it for about $5k or so...?
The most expensive car I have ever bought was $15,000, 20 years ago ('95 Grand Marquis). Now, over 190,000 miles later, my capital cost for that car is just under $0.08 per mile. Routine maintenance has given no major expenses beyond normal wear and tear - no engine or transmission repair. Same as the Lexus. And it still runs very good, just looks a little forlorn...faded paint, worn leather inside. The cheapest one ever is a '97 Gr Marquis that cost $2,700, and returned $1,800 insurance buyout for a wreck from a guy who hit me, with 80,000 miles so far. Still driving it, since drivability was not impaired at all. $1,000 cost, 80,000 miles. Still driving it, so it will be down to a penny a mile very soon...
Sadly, the 'new car bug' is one of those ways poor people stay poor. Driving a car way beyond what would suffice. Grand Marquis is noticeably better than just "what would suffice"...and there are still lots of them out there in really good shape for cheap money. I am actually thinking about getting a newer one for the next 20 years! Probably will cost about $5k to $8k for low miles, excellent condition.
