Some Day Soon: The Crave for a 17+ BRZ
 

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)

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.

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.

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.

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

+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.

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

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

Ill keep you guys posted

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.

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

:respekt:

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!

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!

$39k is s nice chunk of dough. Add $1k and make it a round $40,000.

Talk to an investment counselor about putting that money to work.

In 10 years time, assuming a modest 7% return, with no additional deposits the value of that investment is $78,000+. Run the numbers to see how that grows over the next 30 years. And for fun, assume you will add 2500 annually just for the next 10 years and nothing after. Time-value-money is incredibly powerful.

If you use it to buy a car, you will have a 10 year old car.

Money is cheep right now. You should easily find 4-5 year loan for 2% or less.

Never,ever cut into your principal (original pile of money). Even buying a house only put down 20% to avoid PMI.

Set up a spreadsheet laying out your monthly expenses like rent, student loan, utilities, going out money, retirement funding and expected car note. Put in monthly take home pay. If you have been honest with your numbers you will find out your fiscal health.

You have a very speciAl situation that has the potential to make your future life quite nice.

Don't blow it.

The answer about what to do is.. as usual.. .it depends.

What's the interest on your student loans? Is that interest deductible against your income tax (almost certainly, YES)?

What rate do you think you could make if you put some of that money in a Roth IRA? (no tax on the money it makes, ever) How about in a traditional IRA? (deductible against your income on the way in, but you'll pay tax when you start withdrawing it in your retirement) Chances are, you'll probably be able to make more than you're paying in interest, AND you can keep the deduction for your student loan interest while you continue to pay off your loans.

What amount of a car loan is deductible? NONE.

What's the return on your investment in a car, especially a new one? NONE. You start losing money IMMEDIATELY.

So, from a purely financial standpoint, it makes sense to NOT pay off your student loan with a huge one time payment, but use some of your 39K to invest in your future. Continue driving the cheapest car that'll get you where you need to go. Keep investing money as your cash/accounts-on-hand crest whatever your comfortable immediately-accessible threshold is.

Only YOU can decide what the practicality-to-enjoy-your-money/life ratio is for you.

No matter what I made, I always lived as if I didn't make that much, and never as if I made more than 50k/year. When I hit 55, I was free of debt, owned my own house, and was pretty much set for life. NOW I'm driving an FR-S ( but a 2013.. lol.. I'm still a cheapskate), a 560SL, and a Piper Cherokee. Yeah, I could have spent more earlier, but you know what? I had a great time throughout my life. Just depends what YOU need to enjoy your life.

And.... don't take the kid thing lightly. It's not about having enough money to have a kid... it's about providing a healthy family for the child. A securely married Mom and Dad is one of the best things you can give a child. I'm not saying that based upon personal dogma of any kind, although yes, it's my religious belief. I'm saying it based upon objective observation of the literally thousands of students I've taught in my 32 year career. The happiest, most confident and capable students USUALLY (not always) came from traditional married Mom and Dad households. YES, there are plenty of exceptions to that observation, and it takes a GOOD mom and dad to have a good kid. However, it takes a truly EXCEPTIONAL single parent to give a child everything they need.

Sorry.. soap box off.

VERY! similar situation with me except I have my student loan paid off, Datacenter Technician here. I am taking out a loan to build more credit for when I do buy a house. I never use my credit. Probably only going to put down $4-7k on the car. Going to make the minimum payments until I am good and ready to buy a house then pay off the rest of the car quickly. I am not the type of person to live the best years of my life preparing for when I am old and grey... within reason.

this thread makes me feel very financially irresponsible...

Nah everyone has their own way, their will always be things you shoula or coulda done but thats just life, just role with it and as long as you feel secure and happy youre golden

....

Until something happens and you're no longer secure or happy... ;)

Just messin' with ya. Like I said, everyone has to decide for themselves what their security-to-livingforthemoment ratio is. For me, living and enjoying life wasn't synonymous with spending a lot of money, so I didn't spend a lot of money, that's all. As long as no one is counting on you for financial support and security, and you are not a burden on others and remain self-sufficient, then I see no issue with living your financial life any way you wish. The problems arise when you haven't saved enough dough to be self-sufficient when some unforeseen minor (or major) financial need or calamity arises. Having a family changes the equation appreciably and immediately... and pays you unquantifiable dividends in the "Live worth living" column.

Very well Said :thumbsup::D

Get a better paying job, problem solved. ;)

I have decided the monetary value that i will happily come down to :).
$20,000 is what i want to be reset to.
Car cost approximately 30,000 (2017 limited with PP including tax)
Money in bank: $41,000
I need to reach: $46,000


Buy car $46,000 - $30,000 = $16,000
Sell current car (mr2 turbo gen4 3sgte): $4000 - $5000

Money in bank = $16,000 + $4000 = $20,000 :D


I am just going to keep paying my 300 every month for student loan. I have convinced myself that there is no reason to part with such a large amount of money on something that brings me no pleasure.


I have a job interview for paying $75,000...wish me luck lol.

IMHO, I would get a used twin, as others recommended. That will save at least 10K for you. I would check the car finance rate compared to the student loan rate. If car interest rate is lower, you can pay off the part of student loan at least as much as the cost of the car. If the student loan rate is lower, pay the car in cash. Compare your loan rate with the return of an investment account (such as ROTH IRA) before paying off the loan or paying cash for the car. It might be better to invest the cash while paying loan.

What's your student loan rate at?

For some people, paying off a loan is mentally liberating (or burden off your shoulder). But if the rate isn't too high, I'd say keep it and continue to pay it down.

From one IT worker to another, wish you much luck on the interview! I took a lesser position (with lesser pay) for better work schedule. Shall see if I'm still happy by next year. :)

The real question is do you want a new BRZ, or a used one ?

If new, then sure it will set you back roughly $28-30k after taxes, etc. That is the negative, the positive is you'll always know where it's been (especially important if you think you'll drive it 10+ years)

If used, then wait until sometime in '18 or '19 , and get a super clean used low milage '17 for $20-23k (save about $5-7k). This will also give you time to think on color, manual/auto, etc. If you think your MR-2 can make it another 6mo-18mo …. then why not continue to drive it (it's fully depreciated by now… adding 7-12k miles to the car isn't going to change value much)?! In the mean time, maybe pay down the student loan twice as fast by sending $600 per/mo

practicality-to-enjoy-your-money/life ratio ! That's a good one! It's similar to "opportunity cost" , however Opportunity cost is all encompassing. Weigh out the pros/cons , pay down debt… stay consistent, and in the end you'll be fine.

Everyone here has incredibly sound advice. But i'm going to play devil's advocate and play to your young side.

I think you should get the car now. You have plenty of money in the bank and you could easily put down 10k and still be fine. Not only that but you will have enough money in the bank in case some shit goes down and you lose your job.


Here is the reasoning. You are 28. Not getting any younger. While its nice to prepare yourself for life's hardships, what's also nice is being able to experience fun things like a new sports car when you are young enough to enjoy it.


Here is my reasoning (take it with a chunk of salt as i'm pretty biased)

You are young. You have the money. You dont know what will happen in the future and because you can do it now you should.


I'm 32 with a BRZ and an S2000. I did it because i could afford it. Do i own a house? No. I'm also not married and dont plan on having kids. I'm very much of the mentality that if i have the ability to do something while i'm still young then i'm going to do it.

My situation is different though. I've gone through multiple major surgeries and ive experienced first hand that life is very fragile and i cannot be one of those people who work for 99% of their lives just to finally get something that they can barely enjoy because they are too old and medically they cant anymore.


But again. A lot of the above posts are very responsible. I'm just trying to coax the little kid in you to enjoy life a little.

I was/am in a similar situation. Thank you for bringing up this topic! It resonates with me and I am sure with quite a few people on this forum as well. BRZ/86 being an inexpensive, impractical sports car, the targeted audience inevitably faces similar financial situations. Not convinced? There is a video on YouTube showing wife reactions to guys buying an 86: https://youtu.be/8-gBbFxK5qQ.

I've been thinking about getting a BRZ in the last 3+ years now. Only recently I made myself create an account on this forum to start posting and asking people how much they paid for theirs. Why I have waited so long and so patiently? I make enough $ to afford a BRZ comfortably but I put other priorities first e.g. paying off my student loan, buying a house, paying my parents back for their down payment help, putting my son through pre school, saving for retirement, investing for future, and putting aside enough $ in a rainy fund. I am turning 30 this year and I am using that excuse to buy myself a BRZ with PP.

I am impressed by the quality advice offered by this community! Thought I was reading some serious personal finance forum for a minute. Almost every point I would have made has been pretty much covered. I am just going add 2 more points here:

1. PenFed offers 0.9% auto loan for 36 months. Email all the dealers in your area for the best price, let them fight for your business.
2. Please don't take this personally but you are underpaid for being in IT. Assuming you have a degree in computer science or equivalent, you should get paid much more, easily 6-figure. If you are interested in working for a Fortune 15 company, drop me a PM and I can refer you.

Good luck!

Do yourself a favor and do not listen to people on a car forum about money advice. Find someone you believe you can trust who is an expert in finance or read as much as possible about the subject so that you can at least make an informed judgement.

Now for my opinion based on life experience, which you should take lightly as I am no finance major. But I am 44 years old, a scientist, with a family, , 2 kids, a house, two Subarus (4 cars all together) and relatively debt free.

Paying off debt is pretty much never a bad idea. Yes some debt that can provide tax relief (like mortgage interest) can be fine, but not having that mortgage interest would be better.

As for the car, it is really a want so only you can decide how strong that want is. Clearly, there is nothing wrong with living a little and taking a chance on yourself.

Also with your savings you are way ahead of most your age, so it tells me you are sensible.

Also make sure you are contributing to your 401K. Find a way - compounding works.

Eh...systems admin wont be making 6 figures unless you are in a lead position. But he is still underpaid. At the same time his location might be part of it. I do basically the same and make significantly more than he does, but i'm also in California so realistically we make the same lol.

You started off by telling OP not to listen to anyone's advice here but went on to give him your advice? :lol:

I might add one more point: if OP ends up getting a BRZ, do not mod it. You will save $ on mods and have a much easier time selling it. I've learned this with my Evo. With the BRZ, at most I will only add a few STi pieces here and there.

To get the most accurate numbers, check glassdoor, neither of us are salary experts here. I am also in CA so the salary number seemed low to me. Last time I checked Maryland/DC area isn't exactly that much more affordable than CA.

Invest the cash, find a higher paying job, and find the balance in life. Life is short but you still have to live it responsibly.

Yeah let me clarify. In no way am i encouraging you to be irresponsible. Live within your means and dont live like you make twice what you actually make.

I just wanted to give the other side of the coin as everyone else is talking about paying off debts or buying a house first or whatnot. There is something to say about enjoying your youth at least a bit before you settle down.

[QUOTE=BaatLuk;2934281]You started off by telling OP not to listen to anyone's advice here but went on to give him your advice? :lol:

/QUOTE]

Yes, but I said don't listen to me:)

A couple of quick things for OP:

• First, what are your student loan interest rates? If they're low (~5%), you'll probably just want to pay your set payment plans rather than paying them off early because...
• ...of my second point. Take the money sitting in your bank, minus a nice cushion that can handle unexpected expenses, and invest it. You could be making anywhere from 5-10% returns on that money annually. As long as your rate of return beats your student loan interest rate, you're better off investing any money instead of putting a lump sum toward your loans (since you're making more money than you're paying in interest). This brings me to my last point...
• ...If you do decide to get the BRZ, make sure you pay whatever down payment which brings your payments to a doable level, then finance the rest. Again, if you're financing at 1.9% (like me, who is younger than yourself), you're better off investing the money you'd spend paying entirely in cash, and pocketing the difference between your interest rate and your investment rate of return.

Can't really tell you whether to get the car, but I can say my 2017 with PP is amazing fun to drive. Very happy with it. Hope this helps!

THIS!
If i get the car i only plan to get the sti pack mod. I am done with modding after the mr2.

For those wondering what my loan rate is, I attached it. I plan to use my bonus and tax return to pay off one of the $5000 by the beginning of next year, leaving me with 3 loans to pay and on.

I am thinking of a plan to pay 3k to 4k cash not including monthly payment every year.

Pay off the unsub'd loan. The rest don't look too bad especially if you can deduct the interest from your taxes. If I were you, I'd still pay down majority of the loans before pulling the trigger on a BRZ.

In comparison to other cars/trucks the BRZ/86 is less practical on some levels, however in the sports car world it's more versatile / practical then most other sports cars (in that it gets good MPG…. low/mid 30's better then most sports cars, and you can at least fold down the rear seats and get something big in the back- bicycle, etc). A true 2-seater sports car, they've got the worst versatility (NSX … or most Porsche cars ) and lower MPG.

Great point! But most people don't cross shop the twin with NSX or Porsche. Most likely they are also looking at Civic Si and other hot hatches e.g. Focus ST, Fiesta ST, GTI etc. Those are FWD but can be used as an everyday car. If BRZ was my only car and I had to carry people/stuff all the time, I'd think twice as well.

The only cars in a similar category ( RWD, sport coupe) and price that I can think of off the top of my head in the last 15 years (all V6… less MPG) are a 350z / 370z (not so sure how much back seat room they have, probably similar or less then the BRZ/ 86) or a G35 (hard to find in Manual). Also a IS300 , that is a I6 … supra engine… less MPG , but has good back seating.

The one that I suppose comes to mind would be a IS250 (they also made it AWD) , but that is a heavy car, 4cyl , good seating.