Good rule of thumb is spend 10-15% of your take home income on transportation. That includes gas, insurance, parking, etc. As you know or will found out, there are more things in life than cars. You have other bills to pay, restaurants, parties, girlfriends, rent, etc. Everything costs money. You also need to save 10-20% for emergencies. If all or most of your money is tied to the car then you are depriving yourself of other good things in life.
I've been there 18 years ago and it sucked! Big time! I was driving a nice 1991 MR-2 Turbo but eating $1 burgers (with no soda) most of the time.
I am now a successful $$$ SAP consultant (look it up) $$$ for the last 13 years and I have enjoyed finer cars but, I won't forget that terrible experience of buying a car I thought I could afford but did not consider other expenses.
In the end it's your decision. Good luck.

Easy to pay off a car in 3 years.

1. Have the cash to pay for the whole car but spread it out and make 36 monthly payments or less.
2. Have innumerable amount of income to pay the vehicle off within 36 months or earlier.

IMHO,
If a enlistee especially a 19yr old one thinks he's not gonna have any other payments or expenses he is still a boy & not a man. But with experience he'll hopefully figure it out.

A person that is already thinking that he'll be out of a job or won't be able to afford a new car after getting out of the military has the wrong mental mentality. Hopefully in those 4years he'll learn something that will change this mindset.

Take the emotion out of it and balance the pros & cons of obtaining a depreciating asset then make a decision. It's hard at 19 to think ahead especially when you're an enlisted man with a for sure paycheck albeit small. (I don't understand how enlistees think 1400-2000 a month is lot of money a month especially after taxes & expenses).

But good luck and THANK YOU for serving.

My guess is that if membership here were somehow screened to prevent non-owners (or even non-car owners) from registering, the membership rolls would be cut by 50% or more. Hell, some of these people probably don't have a drivers license.

I have to disagree with the "get a cheap used car" plan for a youth. In my younger years I used my money to buy nice cars and play with them. I had the time of my life, made friends I will never forget and have memories that I cherish.

It is a time where I had nor real obligations or responsibilities other that taking care of myself. I used that time to do things that are much harder to justify when you have a home and a family to provide for.

I also hate when people say you should save all your money when you are young so you can retire early. I would rather travel and do fun things when I am young instead of old.

I've played with fun cars since I could drive, traveled the US and still have money in the bank, a house and a 401k.

You don't have to live miserably in your youth to enjoy life later if you are smart.

There is some truth to this. I bought my very first, brand new car, when I was 23. I got something that I felt I could easily afford. It was a 2007 Pontiac G5 and I kept it for a little less than 2 years. In 2010, I saw a 2010 Cobalt SS turbocharged and thought to myself, I'm not married and I'm almost done with school, so I went and traded in the G5 for the SS. Took a good hit on the trade-in. So, you would think, a vehicle that has been out for 5 years, 3 years for the turbocharged model, that they would have gotten all the kinks out. Well, they did not. My car was definitely a Friday car. Over the course of ownership, I accumulated about 50 pages of service documents. A few were my fault (I hit a curb within the first day of owning the car :thumbdown:) but aside from that, until the day I got rid of it and got the BRZ, I would get random CEL and the turbo would not always boost correctly. Furthermore, it took me 2 months of arguing with the service department about the parking brake not working (the SS was a 5 speed manual, so an e-brake is kind of essential, wouldn't you say?). Keep in mind, when I bought this car, it was brand new with 2-3 miles on the odometer. I have never had so many issues out of one car. It was literally in the shop for almost 50% of the time. I even had the dealership make a monthly payment on the car because they had it for a month. And the turbo issue would come in go. It would be very apparent during the summer times (2 summers in a row, it was in the shop).

Sorry for the rant. Just wanted to point out that even cars that have been out for a while can still have just as many issues as a new vehicle that was just released.

Lastly, I don't know about some of you guys, but when it comes to a sports car, I'm a bit skeptical of buying a used sports car. To the OP, if you want a sports car, might I suggest you buy new. Else, if it's something else like a sedan or truck, do your research, and you should be fine buying something used and reliable.

Listen to this guy if you want your life to be defined by only numbers. He's talking about VALUE = Money. Ergo, he doesn't understand what VALUE is, or means. This car is an emotional purchase for many of us and many don't regret it. Only you can know the value the car offers you. Will you enjoy the car more than you'll dread making the payments? Use the following formula:

If Value (Fun, ownership, time you spend in the car, etc) > Monthly Payment = Buy it

If you'll feel remorse when making the payments, then don't get it. I've made my payments with a smile on my face. I like paying for my FR-S, because I feel it's worth it, regardless of how bad an "investment" or "expense" it is.

Dont buy it, move in with mom and dad and get a real car. FERRARI

Honestly having 11k in the bank isn't a number to decide if you can or can't, but it is a number that shows you can be disciplined and save your money. It is a sign of responsibility. I would bet most 19yr olds do not have 1k in the bank.

So my advice is to just enjoy your life. What is the worst that could happen? Having a million dollars and a nice car when you are 80 yrs old seems like a lot of fun right? Why not hate life now so you can think about your money when your body is deteriorated and dementia sets in? That is when life gets REALLY good. Just be balanced, be responsible, and reward yourself for your hard work. All the guys I know in the military make good money too, so why is everyone saying you are probably broke? Plus the service will help pay for college if not all of it.

Okay, going to give you my military life experience. You can get a used car on base for damn near nothing from people going on deployment so there is that... BUT, you have no credit and a steady guaranteed paycheck. You also have NO BILLS WHAT SO EVER because the military pays for; housing, food, clothes, entertainment, and what you do buy you buy on base for half price. Add on top of that you have 100% of your college life paid for including; 6 years of college with GI and Hazelwood etc., all books paid, allowances for housing, allowance for food, and some spending money added on top. I personally was getting around 2,500 a month ON TOP OF TUITION AND BOOKS! Might as well take this step to get a new car that will be reliable and give a large boost to your credit score. A new car is the best way to raise your credit since it will add a large revolving credit based on income and you will never miss a payment since the military will do the bank draft for you straight from your paycheck.

I did the same thing. Had a nice shiny car in the driveway but lived paycheck to paycheck. In hindsight I wish I had kept my previous vehicle that was paid off (or, if I hadn't had a vehicle at the time, bought something much cheaper.)

I can't tell you not to buy the FR-S. You'll do what you want to do in the end and it seems like your mind is made up already. But I'd strongly advise not making the typical youth mistakes, and make sure you have enough money to put aside and save once your expenses are paid. And while we're talking financial sense and youth, don't go racking up a bunch of credit debt either modifying your new car. They're tempting and look like free money, but that's a hole that's much easier to dig yourself into than out of.

Living paycheck to paycheck sucks. Been there, done that. I'm finally out of that slump and won't go back willingly ever again. I do want this car bad. Like really bad. I am so sick of driving uninspired slushbox four door family hauler machines (even if, admittedly, taking the Camry through the mountains is still a nice drive.) But I've also an understanding that I'm older and have responsibilities and priorities as a father and husband that push this to the back seat for now. I just wish I had saved back then so I could have my instant gratification now. :D

If you want something fun and sporty I'd highly encourage you to go look at a cheap used Miata. I know, stereotypes and whatnot, whatever.. But the only reason I don't own one right now is because I can't justify buying a vehicle without a back seat now that I have a child. That and I always feel a bit tall inside of them.

tl;dr: Do what you want, but make sure you're saving enough money each month as well.

I say go for it, this is my first car. I am in the military as well, and the number of stares and comments I get from it on base makes it worth it. My situation is a little different being that I just graduated from the Air Force Academy, meaning no loans and done with school, but get something that you want. You will always have the chance to say up money for retirement, but you wont be able to ever enjoy your youth again especially with something that you really have been wanting. You will always think back to yourself, man I wish i got that car, and then regret will start to set in. Yea, car payments will be a bitch but its something you want.....you gotta pay for the things you want and enjoy in life.

Who knows when you will have the chance to get your dream car......you get married (that will prolong getting a nice car becuase of additional payments)..... or you have a child or two (that will certainly delay you from getting the car you want).... by that time who knows how old you will be and when you will get your dream car.

I love my car and take great pride in it, and you cant beat the gas mileage too (thats saving some money right there).

Also, i want to give you a a heads up on the military discount of $1000 or student discount , its not wortht it and is a rip off. Reason being you have to go through the payment plan of toyota and not USAA. The percentages (interest rate plan) Toyota has are terrible compared to USAA. In the end you will save more money not taking the $1000 discount because the USAA interest rate is so low. Hope this helps....

My $.02
 

I have done all of the above

> Stuck it out in a beater
> Bought the shinny awesome car I could barely afford
> Spend and lived within my means

Personally I had to get the shinny awesome car out of my system. It was all I thought about for years. When I bought it, was everything I wanted it to be and I didn't suffer a bit of buyers remorse. If you really want something you'll make it work. In the same breath that short term decision had long term consequences. Life is too short to begin growing regrets, those sorts of things eat away at your soul.

Honesty it's just a car; don't make the mistake of wrapping your self-esteem around material objects.

^^^^ This is single best piece of advice in this thread. Spend $5000 dollars down on a $10,000 nice used Miata with low miles. Parts are cheap, they're easy to work on and there's a zillion different ways to mod one. They're VERY good drivers cars. It's a safe way to build credit. The payments are affordable and the car's fully depreciated so it's easy to get out of if you need to. Your buddy's will give you grief but chicks dig em. It's a WIN WIN WIN situation! :)

ive been in the navy for 8 years

best thing i ever did was buy a brand new vehicle off the lot when i first joined. i got a 6.4%, 6 year loan. now its paid off and i bought the frs.

other people around me were buying used cars. a few year later and thier transmissions were going out or they were having engine uses and guess who wasnt bc he was smart and bought a brand new vehicle......this guy!!

the whole "a car is an investmet" line is bs. you dont buy a car expecting to make money on it. its something that gets you from point A to point B, your not flipping a car for profit here.

i went on 2 deployments and a 1 surge (a short unexpected deoployement) and sure my truck sat in my sisters drive way while i was gone but i knew i was coming home to a realiable vehicle every time. that was 1 less thing to stress about. also going on deployment means in the long run the car will have less miles on it per year.

now i coach people when they first join about buying used/new cars where im stationed at and i always recommend buying new if they can afford b/c 1. your always going to get used to paying what your paying and adjust your financies accordingly 2. being in the military your always going to get promoted and make more money and 3. its far less stress knowing that you have a reliable car to depend on day to day

have someone co sign so you wont have a high interest. but fuck it just buy one, in the long run it will be about the same paying for a new car, as to an old one. old cars always need maintance and blah blah

Well, this kind of misses the point. Our financial lives are defined by numbers. Of course, that is not ALL of our life. But buying a car is fist and foremost dictated by affordability. First determine affordability, and then determine what is the best car for you, within the restrictions of your finances.

The question from the OP was not whether an FRS is a good value, or whether it was the best car to buy. The question he was asking was to determine the FINANCIAL feasibility of buying a new FRS.

So first, he has to decide if the purchase is of value to him. Assuming the answer is YES, then he has to determine if he can afford the purchase. This, of course, has NOTHING to do with its value. Someone might offer him something of great value for a great price, but that does not mean he can afford it.

The OP's question was based on his age, financial position, and his future plans for college. When these issues are considered, the value of an FRS in his life has no place, as he simply can not afford the purchase. Listen to some of the posters who gave you their experiences of purchasing vehicles out of their price range. It messed them up for quite a while.

Don't forget, a bank will be happy to lend you the money and put you in great debt. They don't care about you, just so long as they get their monthly payment. Just because the bank will give you the loan, does not mean you can afford it.

Of course, none of this is black and white, and all of it requires a judgement call. But don't let a beautiful shiny object like an FRS control your financial well being. If you can afford it, buy it. If you can't, don't. It's that simple. Whether you like the car or love it, has nothing to do with it.

That said, an FRS is a great deal and is of super value, but only to people who can afford it.

Wtf! U got 8.2k down payment and a $1k military discount! Get the freaking FR-S! Your payments are going to be like $300 a month! Why buy used with no warranty? Get the FR-S! Get what you want. Your could get deployed and then get hurt and you would have thought man I should have bought that whiteout frs. The frs is only a $25k car. It is not that expensive. The military is going to pay for your college. That is one of the reasons to join the military.

My first car: 1989 240sx ~200k miles on it. Paid cash, it was 1500. Paint, interior, most everything was worn out. I had a blast fixing it up but i was into the car $8,000 when my 2nd engine (SR20DET) started spewing blue smoke and lugging around town. I traded it to a friend for a running G20 worth about 2k.

I lived for that 240, spent 75% of my income per month on it. It was awesome, but when it was over i was in a stock G20 just to get to work.

If you can get a good interest rate and be about 350 a month for a nice new car that will last its not too bad. I spent way more than that on my 240 through repairs upgrades and mods. Granted you may need to keep your car stock till its paid for.

same here, im 20, the FRS is m first car and im having the time of my life.

Another good rule of thumb to add to that is the total value of all the things you have with motors and wheels should be no more than 50% of your annual income. Vehicles are, for the most part, depreciating assets so you are losing money on them.

To the OP, the advice you are being given is sound, regardless of your income level. Let someone else take the "new car" depreciation hit. That is what I usually do, the FR-S was an exception to my own rule on that.

When I make an exception its because I am fitting them into my "toys" category and pay the "new car" depreciation up front (which means a 40% to 100% down payment).

5 of the last 7 cars I have purchased had 30K to 110K miles on them when I purchased them. Of those 2 were still under warranty, and 3 were not. I basically "self insured" for warranty on the other 3. None of them had any major repairs required within the first 3 years/50,000 miles of my ownership. Was I lucky? Not really. I selected carefully, had a prepurchase inspection done by a trusted source, and took care of them.

So, in short, the advice you are being given is solid financial advice. Problem is, for nearly everyone on this forum, a car purchase is not just a financial decision. In the end, you have to be happy with the decision, and be able to live with it.

This.....good advice, well said

No its not and thats why you have missed the point. Sure our lives are influenced by finances but defined??....no way!!

I don't think he was asking that at all....he was asking whether it was a good idea, I understood he had it worked out re affordability and was cool. The question is not financial feasability its financial responsibility. The answer to that is of course it isn't financially responsible....to which I refer to the above from raul. It is all about VALUE but the decision must be without regret.....from your responses to date I'm not sure you can say that, and if you can't don't buy it, do the financially responsible thing and buy a cheap used car

I would buy used but this is the only car I really want and buying it used would mean I have to wait several more years.

fuck that

maybe not as long as you think!.there is always the possibility of
owners "bailing" on the car because of financial issues,especially if
a "lean" is on the car!

yes! there can be no room for regret! after careful assessment of your "personal" financial situation,you! and only you! can arrive at the correct decision!

That's not true. The Hyundai dealership had a used Raven AT. They were only asking a mere 30k for it. :lol:

I asked how they came across it, and he said the girl that bought it said it was too small inside. Who buys a sports car when they want a roomy vehicle?

just do whatever you want, it's your own money who cares about bunch of guys that you don't even know saids lol.

YOLO.

That is all.

Get what you want. Unless your just buying into the hype. For all the memories I already have in this car, and the cruises I have planned with the misses (thinking road trip to California, me in my FRS her, in her lovely 91 MR2) I don't think id have it any other way ^^. I'm 25, about to buy a house in a year or two... just enjoy it man. Even if it does put you into a paycheck to paycheck situation, you will value what you have in the long run.

I think life experiences ultimately effect how your are as a whole. And for those who have lived paycheck to paycheck and are finally out, do you think you would be as smart with your money now had you never been in that situation to begin with? At least thats how I think ^^. Learn yourself, and learn through others. =) What good is working for your money if your not buying what you want.

but it is usually harder to get approved for a loan on a used car (older than a few years) than a new one

Most financial advisors recommend you have at least 6 months living expenses in the bank. OK, let's say you can only muster 3 months. Or even 2 months. OK, or even 1 month. But paycheck to paycheck? So it's OK to buy a $25-30,000 car even if you have to live paycheck to paycheck? Seriously, this is a terrible idea to create a paycheck to paycheck lifestyle when you currently have a nice savings account.

It taught me a lot of things when I had to learn on my own. Sometimes when you got through it yourself things click. You can judge what I said all you want. He is young, its not like he has a family a home and just dropping all that money. In my post there is no mention of how much he is going to put down or anything.

And its exactly what it is, a savings account. You still can live paycheck to paycheck while having a healthy savings account. That is why its called a savings account. Last time I checked you put money aside to not tap into it. I live paycheck to paycheck while putting in 500-700 a month into savings. Doesn't mean I am in a bad financial situation.

I know someones gonna say something about paycheck to paycheck generally means you don't have any money to put aside, and maybe that is the difference as I see it, I consider savings a bill that must be paid, therefore its calculated as that, as oppose to money that can be "put aside".

One does not have to go broke to understand what it means to go broke. So one can think, "if I spend too much money now, I predict I might very well screw myself in the future, therefor I will not buy a new car now."

You can't redefine the meaning of living paycheck to paycheck in order to validate your point. Living paycheck to paycheck does indeed mean you can not pay your bills without receiving every paycheck. Here is the definition (from the web):

Definition of 'Paycheck-To-Paycheck'
An expression used to describe an individual who would be unable to meet financial obligations if unemployed because his or her salary is predominantly devoted to expenses. Persons subsisting paycheck-to-paycheck have limited or no savings, and are at greater financial risk if suddenly unemployed than individuals who have amassed a cushion of savings.

Investopedia explains 'Paycheck-To-Paycheck'
Persons living paycheck-to-paycheck are often referred to as the working poor. Individuals with high paying jobs may also be in a similar situation if outgoing expenses equal (or even exceed) incoming salary.

No one should elect to live paycheck to paycheck in order to get a new car. But if you want to "go for it" just to see what happens. . . . . .

It's real simple. Buying a new car without a steady source of income, at 19, at 6% interest, is a very poor financial decision. When you are 25, you'll want to go back in time and slap the shit out of your 19 year old self.

I went against the general opinion that I should have kept my Prelude instead of getting the FR-S. I was 19 also when I got it.

If you're smart about your money, which it seems you are if you've saved up $8200, then you know what you can and can't do. I have no regrets about my decision to lease an FR-S. I also pay for college at the same time. Don't let all the old people of the world down what you aspire to have lol.

Isn't that a quote from the Shawshank Redemption when Red goes before the parole board for the last time?

it is! he wanted to talk some sense into that young kid!
i remember the scene! great flick!