Quote:
Originally Posted by Tcoat
I think what we have here is upbringings in two radically different socioeconomic backgrounds. You make a lot of generalizations when you say what "most people" do but I think you are basing that strictly on your own exposure to a certain group. Where I came from "most people" couldn't buy their own house until they were well into their forties if at all. "Most people" could not buy a new car EVER much less a sports car. The idea of paying to track even a junker is laughable to many since they need to eat. You seem to think that everybody has disposable income for toys. Not the real world for many. Just because they buy a house does not mean for one second that they can get a plaything in a year or two no matter how passionate they are about it.
How many kids do you have? They are expensive and cars had to wait. How many barely put food on the table jobs have you had? If you can scrape together enough to pay for a house instead of paying rent then that is the smart thing to do. That does not mean there is room for sports cars.
When I gave up my race cars to raise a family and get a home it was only "short term" as well. It took longer than I thought it would. This is the real world for MOST PEOPLE.
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You don’t know anything about me old man, or what my mom did to give my brother and I as much opportunities as she could, even if it meant working two jobs and weeks of Macaroni N Cheese. You assume too much.
The fact is the OP is buying during a housing bubble and is likely paying top dollar compared to five years ago. There are very few markets in the US where it is cheaper to buy then rent. In all likelihood, the OP is selling the car to get a better interest rate or qualify for a larger loan. If he can reduce his debt to income ratio then his credit score could improve so he gets a better interest rate; a larger down payment, especially getting to the magic 20%, will reduce interest rates and avoid having to buy private mortgage insurance. This is standard stuff.
Considering the bubble, and the fact that most analysts would consider the market to be flat or to go down over the next five years, the OP must have a stable job and be in it for the long haul. He is likely doing what he is being advised to do to maximize his savings by selling the car before writing a loan. After the loan is secured then he is free to mess up that credit score.
That is, unless he is selling his car to qualify for a home at a value beyond his natural means. This would be irresponsible at any time, but pretty reckless during a housing bubble, and it was a problem we saw all too frequent during the last housing burst. I’m giving to OP some credit that he isn’t so foolish and has enough disposable income to buy responsibly. You seem to act like the man is selling the car and eating beans to scrape the money to buy a home, which isn’t responsible. Anyone who has the disposable income to buy responsibly has the means for a cheap hobby car.