Can I afford this car?

[AG74683]

I know this isn't the standard post for this forum, but I thought I'd ask since the group here is either in my same situation, or has "been there done that" and knows if this would be something I regret ten years from now. Please delete or move if this isn't appropriate for this area of the forum mods!

Anyways, I am looking at purchasing a BRZ. I've never bought a brand new car. I have really only owned two in my life time (98 Jeep Wrangler - Sold, and a 99 Jeep Cherokee, current DD). I'll bullet point the pertinent info...

• I am 26 years old
• I hold a steady job, making in the low 40k range
• I am single
• The only debt I carry is student loans (which I do not plan to pay off immediately.)
• I rent, I do not have a mortgage or home repair concerns
• The BRZ will NOT be a daily driver. It will be a second car for longer journeys. My work commute is less than a mile.
• Insurance wise, I am looking at approximately 70-80 a month for my Cherokee, renters insurance, and the BRZ...reasonable IMO
• I will be looking at a 5k deposit approximately. Shooting for a 60 month finance rate (I want to be around $350 per month on payments...I do want to avoid the 72 month financing.)

If I have forgotten any necessary information, please let me know and I will answer as soon as I can. I graduated college in 2011, took my current job in late 2012. I haven't ever been pressed for money since I've been on my own. I live on a strict budget, not because I need to but because I want to. My concern is that at my age, I have better obligations to put my money towards. However I also believe that if one where to purchase a car like the BRZ...your mid 20's are the target area. It is an enormous decision and I am hoping to get some insight from you good folks here.

Again, sorry if this has been posted a million times, or doesn't belong here. I did search but didn't see too much in the way of answers for this question. I contacted Clint several months ago, but I decided to pay off some credit card debt I had and finish paying off my Cherokee in order to shed some monthly payments and save up a bit for a down payment on the car.

Thanks!

[tahdizzle]

You'll need more than 5 down for a 350\month payment. Figure about 200 per 10 K financed.

[dbrandt01]

I was appraised at 1.84% directly through Subaru. With my trade in, I put about $8000 down and my payments are $370 I believe. I always pay more each payment though. I'm 22, full time student with GI Bill. No debt or anything.

[kberkel]

Originally Posted by tahdizzle

You'll need more than 5 down for a 350\month payment. Figure about 200 per 10 K financed.

.


I'm paying more than that on a 6 year, practically nothing down though

[t.chk]

I put down 7 for 350 over 72 months car cost me ~30k out the door new but that is 3.5% since I had zero 'real' credit when I bought it (you might get better since you have lines of credit already).

The financing I got through the dealer was a chase loan and on my document I do not get charged interest on early payments or closing the loan early. So I have been making 500-600 payments to get it done.

I work for 40k a year and rent/internet (I pay a shit-ton more money on insurance due to daily driving a sports car ~220/month state farm)

But I am only 24 so I have not hit that magic 25 year old insurance drop yet...and damnit that better be stellar.

I know it is do able for me, but you might need to throw some extra starter cash down or stretch out the payments.

[kberkel]

Originally Posted by t.chk

I put down 7 for 350 over 72 months car cost me ~30k out the door new but that is 3.5% since I had zero 'real' credit when I bought it (you might get better since you have lines of credit already).

The financing I got through the dealer was a chase loan and on my document I do not get charged interest on early payments or closing the loan early. So I have been making 500-600 payments to get it done.

I work for 40k a year and rent/internet (I pay a shit-ton more money on insurance due to daily driving a sports car ~220/month state farm)

But I am only 24 so I have not hit that magic 25 year old insurance drop yet...and damnit that better be stellar.

I know it is do able for me, but you might need to throw some extra starter cash down or stretch out the payments.

dang that's harsh. Pretty much the reason I didn't get a new license when I moved to Michigan. I'm about 60/month in Ohio on my parent's insurance, and 300/month if I transfer my license (I don't have the best record)

[t.chk]

Originally Posted by kberkel

dang that's harsh. Pretty much the reason I didn't get a new license when I moved to Michigan. I'm about 60/month in Ohio on my parent's insurance, and 300/month if I transfer my license (I don't have the best record)

I had a perfect record prior to buying this car (got 4 tickets in 30 days after buying it), previous 2 cars were car fires and was covered (which is why I think my insurance company is billing me so high). I need to refinance the loan asap because 3.5 is really high. needed to wait 6+ months for my bank to give me better. Hoping for a 1.5%

[s2d4]

Common misconception, affording repayment is not the same as affording the car.

[ericmpena]

Whatever you do, just make sure you leave yourself with a decent amount of money every month for mods.

[kberkel]

Originally Posted by s2d4

Common misconception, affording repayment is not the same as affording the car.

good point. The BRZ is not a bad "asset".. and at least while making payments, the car at least holds good value. I think I calculated $500/month payments.. after the cars paid off, if I held no value on the car at all, it's more like $320/month after trade in


But the best part about paying off a car, is trading it in with a huge downpayment on the next car

Originally Posted by ericmpena

Whatever you do, just make sure you leave yourself with a decent amount of money every month for mods.

Seriously, I am blowing money like mad, I have the mod bug. I'm having a hard time holding myself back in order to not get bored after 2 years after it's fully modded out.

[t.chk]

Originally Posted by kberkel

good point. The BRZ is not a bad "asset".. and at least while making payments, the car at least holds good value. I think I calculated $500/month payments.. after the cars paid off, if I held no value on the car at all, it's more like $320/month after trade in


But the best part about paying off a car, is trading it in with a huge downpayment on the next car



Seriously, I am blowing money like mad, I have the mod bug. I'm having a hard time holding myself back in order to not get bored after 2 years after it's fully modded out.

I had a similar problem with firearms...bought one a month for about a year...then bought my BRZ. Now spending money on mods and ammunition rather than new firearms.

The girlie is expecting me to trade it in once we get married and have kids...she might be wrong. This car just does not get old, as fun to drive today then when I bought it 10k ago.

[soundman98]

Originally Posted by AG74683

....

are you looking at the premium or limited?

i'm 27, make roughly the same, but the brz limited is my only car right now.. i put 10k down, and my payments are $350/mo @ subaru's special rate of 1.9%..

currently it looks like subaru is offering 0.9%, so you might be able to fiddle with the numbers a little more..

Originally Posted by s2d4

Common misconception, affording repayment is not the same as affording the car.

especially with a tuner car like this!! see next point

Originally Posted by ericmpena

Whatever you do, just make sure you leave yourself with a decent amount of money every month for mods.

+100... for 2 months before buying the car, and the last couple months of ownership, i've been buying stuff like crazy-- i still was able to make the minimum payments, but it's been a little close here and there.. much closer then i had intended.. my goal when buying the car, and what i had budgeted/planned for before buying the car, was to always make double and triple payments.. so at least try to attempt taking modding into account

[kberkel]

Originally Posted by soundman98

+100... for 2 months before buying the car, and the last couple months of ownership, i've been buying stuff like crazy-- i still was able to make the minimum payments, but it's been a little close here and there.. much closer then i had intended.. my goal when buying the car, and what i had budgeted/planned for before buying the car, was to always make double and triple payments.. so at least try to attempt taking modding into account

I'm way over my planned budget, though I'm good as long as I don't do "this" every year.


I'm hoping I'll blow tons this year.. then make it back next year when I'm not modding. We'll see

[Khazzy]

This is how I view questions like this. If you feel you will be strapped for money each month of even question yourself on whether or not you can afford something, you should not buy it. This of course is not permanent but save up to be able to afford it. Please keep in mind affording the vehicle includes routine maintenance, gas, insurance, repairs, and taxes after purchasing/renewals. I am pretty much in the same boat as you but I put a ton of money down from saving the whole year.

I am 24 and got my car last year. If this is something you really want to do and everything is in check then I say go for it. But double check your finances. I also planned out my payments on how much I can over pay to pay the vehicle off sooner. I am not a person that buys a new vehicle every few years and I plan on keeping this. Also try and see what your price would be with the maximum loan duration. I took out a 6 year loan and this was due to the fact of possible unforeseen circumstances that may come up. Would I be able to afford this car if I somehow got injured and could not work? Would I be able to afford this car if gas prices became $7.00 a gallon. Would I be able to afford this car if I lost my job? These are the questions you need to ask yourself.