Some Day Soon: The Crave for a 17+ BRZ

[towch]

I am a 28 year IT professional work as a Systems Admin making shit money for that position. I make $53,000 per year before taxes. I have student loans which currently sits at $28,000.Student loan payment began in January. I make payments first of the money every month @ $300/month. I plan to deposit my year-end bonus and 2017 tax return to student loan payment.


Seeing as I don’t plan on getting married or having children (open to a kid if I am making stupid money), getting a house has been pushed way back in my future. Living in my studio apartment is good enough for me. I try to save as much money as I can’t while also trying to enjoy life a little (treat myself here and there, nothing expensive).


As of today, I currently have $39,000 in the bank, this really gives me a sense of security and peace of mind. I sometimes struggle with the idea of paying of my student just like that but I cannot bring myself do it. It is a lot of money for something that would bring me no pleasure. On the other want buying the 2017 BRZ I assume will bring me please but then I suspect that my peace of mind would be out the window.
My cut of mark for money I prefer to have is $30,000 so that gives me $9,000 cash if I was thinking about getting the car. I drive a 91 mr2 turbo, I at this point feel I have spent enough money on that car I feel I’ve had enough of it. I however would prefer to buy the car cash or very close to complete payment. Thus why I haven’t pulled the trigger.
For now I keep pushing it and saving up more money, hopefully I can win the lottery or scratch haha.


Well, I just wanted to share my story. Maybe this will help people in similar situation knowing you are not alone.


I am also taking advises on my debt and car ownership 


Thanks!!

[bentleyboii]

Originally Posted by towch

I am a 28 year IT professional work as a Systems Admin making shit money for that position. I make $53,000 per year before taxes. I have student loans which currently sits at $28,000.Student loan payment began in January. I make payments first of the money every month @ $300/month. I plan to deposit my year-end bonus and 2017 tax return to student loan payment.


Seeing as I don’t plan on getting married or having children (open to a kid if I am making stupid money), getting a house has been pushed way back in my future. Living in my studio apartment is good enough for me. I try to save as much money as I can’t while also trying to enjoy life a little (treat myself here and there, nothing expensive).


As of today, I currently have $39,000 in the bank, this really gives me a sense of security and peace of mind. I sometimes struggle with the idea of paying of my student just like that but I cannot bring myself do it. It is a lot of money for something that would bring me no pleasure. On the other want buying the 2017 BRZ I assume will bring me please but then I suspect that my peace of mind would be out the window.
My cut of mark for money I prefer to have is $30,000 so that gives me $9,000 cash if I was thinking about getting the car. I drive a 91 mr2 turbo, I at this point feel I have spent enough money on that car I feel I’ve had enough of it. I however would prefer to buy the car cash or very close to complete payment. Thus why I haven’t pulled the trigger.
For now I keep pushing it and saving up more money, hopefully I can win the lottery or scratch haha.


Well, I just wanted to share my story. Maybe this will help people in similar situation knowing you are not alone.


I am also taking advises on my debt and car ownership 


Thanks!!

If that was me that money would be in a Cd/Mutual And if your credit is decent would be financing, just be sure the rate of return on the money in the bank is higher than the apr on the car (just my .02) but congrats most people dont have the strength to save up that kind of money , and if i was in your actual position i would pay student loans in full use whats left to put a good deposit (40-60%) on a 2013-14 Theirs No NEED for a brand new 17 even know they are nice and very worth it but maybe look at something a bit lower, dont want to have 80% of your annual income into a car (0.02 again)

[Veloist]

You can get a used FR-S/BRZ Premium for less than $20k. I've seen some between $17k-$18k with 25k miles. With a price of that, after taxes you'd be right at $20k.

A 17+ BRZ would go for at minimum 24k+ tax if you can negotiate down that low.

If you go used, you can save $6,000-$7,000. The pre-2017 models drive just about the same. Actually, I prefer the 2013-2016 BRZ's because they feel less refined/more raw and therefore more connected to the car.

If you wait a year, you may even expect to pay 15-16k + tax for a 2013 model with 30k miles.

You can even pay off your loans in a year, and even if you don't put a down payment a used FR-S/BRZ should be less than $400 a month.

[WRBrzRX]

Buy used. Why not take $10k off on a NA car someone drove around for a year? That's an incredible bargain. We don't hold our value as well as the WRX/STI, let someone else take the initial hit.

[towch]

Fantastic ideas guys, i should add..i'm in no hurry. This is just the first time i actually put a conscious effort into wanting a car. I really want the 2017 so i think i'll wait a 2+ years and get a used one, no biggie.

[imnotsureaboutbrz]

Friend, what I would do is this.

1. Pay off the student loan
2. Take the money from your former monthly Student Loan payment to put add it monthly 401K contributions.
3. Keep the resulting $11k in your rainy day fund.
4. Use your bonus, Tax refund, profits from selling your MR2 to put down on a new(or new to you) BRZ.


I commend you on your fiscal restraint! But if I had a small student loan bill (small comparative to mine ) That I could make go away tomorrow I would. I'm already committed to a 30yr pay off. Another story.

Good luck to you, you seem like a young person with a good head on your shoulders

[strat61caster]

+1 pay off the student loans early, not seeing that $300 go out the door every month will be more pleasurable than you think IMO.

$30k liquid seems really high to me, typical advice is 6 months of living expenses in case of job loss, you've probably got a year and a half there. That money is ripe to drop $5k into a Roth IRA right now, you'll reap the benefits later.

I also think you should seriously check out a '13-'16 BRZ, you can easily save $10k (vs. a realistic list of $26k + TTL) and you won't be missing much other than the new car smell. Your insurance will likely be cheaper to boot.

You could work it so that you spend down your savings over the next few years to be a debt free BRZ owner instead of waiting 8 years and having a wad of cash just sitting in a low interest account. Not sure how much cash is coming in but say you ramp up student loan payments to $1,000/month and then once that's paid off roll it over into paying off a BRZ early, should be debt free in ~4 years without seriously compromising your safety net.

And we're about the same age, did you have the same priorities at 24 that you do now at 28? What are the odds you've magically stabilized and will exactly the same when you're 32? I think you're right, don't blow nearly $40k on the loan and car next weekend, but I think you're living a bit too conservatively, content to let the interest rack up as a wad of cash rots in a (presumably) low interest savings account.

[bentleyboii]

Originally Posted by towch

I think i will wait for a used 17 BRZ

Good Decision, I would seriously pay off those student loans though but thats just me

[towch]

Jesus, i am shaking because i looks like i'm about to pull the trigger on this student loan lol

[towch]

Ill keep you guys posted

[thomasmryan]

Pay off the student loan, buy a house AND then get a car. Establish a relationship with a loan officer at a credit union where you plan on living.

Keep a beater for going to work and parking in public places because some ppl don't care if they sling open a door or cut it too deep when backing out.

[bentleyboii]

Originally Posted by towch

Jesus, i am shaking because i looks like i'm about to pull the trigger on this student loan lol

Opening Up 300/Month and spending 30k would make me shake as well im sure you will make a wise decision just remember to keep those student loans in check with my job i see lots of people fail financially because of silly student loans yeah their great when you need them but paying them back is a different story you should deff. be proud of what you have accomplished though saving that kind of money at that age is phenomenal keep doing what your doing

[Seasaw]

Originally Posted by towch

I am a 28 year IT professional work as a Systems Admin making shit money for that position. I make $53,000 per year before taxes. I have student loans which currently sits at $28,000.Student loan payment began in January. I make payments first of the money every month @ $300/month. I plan to deposit my year-end bonus and 2017 tax return to student loan payment.


Seeing as I don’t plan on getting married or having children (open to a kid if I am making stupid money), getting a house has been pushed way back in my future. Living in my studio apartment is good enough for me. I try to save as much money as I can’t while also trying to enjoy life a little (treat myself here and there, nothing expensive).


As of today, I currently have $39,000 in the bank, this really gives me a sense of security and peace of mind. I sometimes struggle with the idea of paying of my student just like that but I cannot bring myself do it. It is a lot of money for something that would bring me no pleasure. On the other want buying the 2017 BRZ I assume will bring me please but then I suspect that my peace of mind would be out the window.
My cut of mark for money I prefer to have is $30,000 so that gives me $9,000 cash if I was thinking about getting the car. I drive a 91 mr2 turbo, I at this point feel I have spent enough money on that car I feel I’ve had enough of it. I however would prefer to buy the car cash or very close to complete payment. Thus why I haven’t pulled the trigger.
For now I keep pushing it and saving up more money, hopefully I can win the lottery or scratch haha.


Well, I just wanted to share my story. Maybe this will help people in similar situation knowing you are not alone.


I am also taking advises on my debt and car ownership 


Thanks!!

I was in a similar position at a similar time of life as you. I had about 30k in loans after college. Post graduation and landing my first job, I was looking for a car (was driving an old family car at the time). I figured it would not be smart to buy a car that was more than 50% I made in a year;which was about 40k at the time especially when I had loans. My advice would to pay that loan off as soon as possible before you get into spending on auxiliary things. I feel for you however; Paying 30k on something that will not give you joy is painful, but you are going to feel worse when you have to deal with that down the line when you are maintaining your car and rent and other things.


After you do pay off that loan I would save about 50-75% of the what you are going to pay for that car. That way you have time to think about if this is really the car you want, and if you indeed want this model year, next years, ect. By then, you will have a sense of whether or not you really want the car and not some infatuation you had just browsing around for cars.


As for me, I wanted the mustang since 2013, paid off my loans in 2015, saved about 60% of the mustang msrp in early 2016, but realized that I was not really a fan of the mustang formula (heavy, high powered muscle cars). I was looking for something that was light, RWD, sporty kind of look. When I saw the news for the updated refresh in late 16, I was sold. 2017 I am driving a MO 17 BRZ with the PP. Hope this helps!

[JohnnieBoy]

Can you qualify for a low interest auto loan from a credit union? If so, pay off the student loan but keep $10K set aside for padding - $10K is ALWAYS a nice number to have tucked away. Take out a 5 yr auto loan for $18K @ 2% and that equals your same $300 a month payment. Go out and find yourself a nice used BRZ. Now you have a bitchin car to drive around for the same payment - that will bring you very much enjoyment and many smiles. Then if you want to sell the MR2 - take those proceeds along with your return+bonus and pay the auto loan down for a smaller monthly payment. Life is short, enjoy it a bit!