Need help figuring out if I can afford an FR-S.

[suaveflooder]

Originally Posted by trevorovert

(if good credit easily) finance <2%

easily invest >2%


dunno what's ridiculous about that
regardless of OP's situation, it is not fair to say about every situation that financing is expensive.

His comment was about "toys" being financed. You should never finance a "toy" Better paid for in cash. This is ESPECIALLY true for a depreciating asset. If this was a 4 door civic, I probably wouldn't have commented as it's practical, will last 300k miles and is cheap to operate.

Edit: I get what you're saying. And in a world where he was more set up, with a practical daily and a house, I would agree with you 100%.

[86-tundra]

Originally Posted by suaveflooder

His comment was about "toys" being financed. You should never finance a "toy" Better paid for in cash. This is ESPECIALLY true for a depreciating asset. If this was a 4 door civic, I probably wouldn't have commented as it's practical, will last 300k miles and is cheap to operate.

I financed my "toy" (2nd car) nearly completely.

I hereby fire you as my financial adviser. I'm a financial adviser's worst nightmare anyways. I've got most of my life's savings in hemp stocks!!


meanwhile




(I'm being a little sarcastic and not trying to be an ass. Just think it's unfair to say that financing is always expensive. financing my $25k car costs me around $2k, and allows me to have it now vs in 4 years. I'd rather have it now)

(also I agree OP should not buy the car given his financial circumstances)

[suaveflooder]

Originally Posted by trevorovert

I financed my "toy" nearly completely.

I hereby fire you as my financial adviser.


meanwhile

Which is why you aren't one

Go ask a guy how much his ferrari payments are and come back and tell me how he responds. Last time I saw the question asked, the guy laughed and very politely said that he didn't have a payment" He WILL however probably have one for his DD mercedes or BMW. He has made it. He is wealthy. You simply don't pay for "Toys" in cash. It's a young mindset and it's foolish. My uncle is a millionaire. His daily is a diesel Audi and he's financed it (although he could easily pay for it in cash), his off road toy was paid for in cash.

[extrashaky]

I suspect that if you crunched the numbers you could make it work on paper. The problem is that you would be so close to broke that ANY unexpected expense would put you in the hole. Get a speeding ticket? You won't have enough money left over to pay it. Insurance goes up? Same. Rent increase? Medical expense? Have to bail a friend out of jail? Lose your job?

I can't possibly list all the things that could happen. But mark my words. If you put yourself that close to the line, you're just daring the universe to smite you.

[suaveflooder]

Originally Posted by trevorovert

I financed my "toy" (2nd car) nearly completely.

I hereby fire you as my financial adviser. I'm a financial adviser's worst nightmare anyways. I've got most of my life's savings in hemp stocks!!


meanwhile




(I'm being a little sarcastic and not trying to be an ass. Just think it's unfair to say that financing is always expensive. financing my $25k car costs me around $2k, and allows me to have it now vs in 4 years. I'd rather have it now)

(also I agree OP should not buy the car given his financial circumstances)

LOL, in response to your ninja edit, sounds like we agree. I don't always think financing is a bad option. Most financial advisors will advise against a car. I honestly have no issues with it as long as your interest is low and you are funding your investments (IRA's, 401k's ect), saving, and making your bills. In that case, why not? You are planning for the future, prepared for today, and enjoying something you love. I would however advise against those who change cars every couple years. ALWAYS having a payment and financing is kind of a waste of money IMHO.

[TM]

Originally Posted by forzajuve

Financing can be cheap but it entirely depends on his credit score, down-payment amount and how many years he will be financing for.

More importantly, and perhaps you will know, given his driving record, AND the fact he is 24 years old, will a bank or dealership/bank let someone with that background and being that young finance? Has someone ever been denied financing or w/e? Seems like he has a few things working against him...

I didn't know they take into account driving record when financing.

I had multiple accidents and tickets and I was 23 when I purchased my BRZ. The credit union approved me for 1.74% and Subaru matched it.

[ericmpena]

I wouldn't do it. I bought a new car one time thinking, "I can afford it..." even though I thought I had enough in my budget. What ended up happening was that I worked my ass off all month just to pay rent, utilities, groceries, gas, car payment, etc...and at the end of it all I had no money to go out with friends, spend on myself, spend on my gf, etc.

Sure, you may be able to afford it, but think about what it's going to leave you for yourself. Think of it this way, what's the point in having a nice new car if you don't even have money leftover to go anywhere with it??

IMO, it wouldn't be a good time for you to get a new car. Enjoy the extra cast in your pocket now or start saving up to make a bigger down payment. And of course, you're going to want some extra spending money for mods. This car definitely will suck the money out of you. Wait until you have more income before you purchase this car.

[86-tundra]

Originally Posted by suaveflooder

LOL, in response to your ninja edit, sounds like we agree. I don't always think financing is a bad option. Most financial advisors will advise against a car. I honestly have no issues with it as long as your interest is low and you are funding your investments (IRA's, 401k's ect), saving, and making your bills. In that case, why not? You are planning for the future, prepared for today, and enjoying something you love. I would however advise against those who change cars every couple years. ALWAYS having a payment and financing is kind of a waste of money IMHO.

haha dude I am the king of ninja edits. Well yeah of course but like I've said in other threads - that is what separates us from non car loving people... we love cars, we spend money on cars. Of course rich people's financial adviser's are cringing every time their clients go buy a ferrari. just part of life.

imo you gotta reward your self some how. always have to have something to motivate you. for me it's cars.

[86-tundra]

Originally Posted by TM

I didn't know they take into account driving record when financing.

I had multiple accidents and tickets and I was 23 when I purchased my BRZ. The credit union approved me for 1.74% and Subaru matched it.

the definitely don't take driving record when it comes to financing.. they couldn't care less if you wreck it.

[Shawnofthedead]

Insurance with 2 tickets will probably be around 200$ as well if you have decent credit you'd have to put down a fair down payment. I'd go new it's aimless to go used honestly just me though.

[forzajuve]

I am not saying they do because I don't know either. I was just wondering IF they take that into account or not. In your case they didn't which is encouraging for the OP.

BUT what is not encouraging is his monthly insurance rate + car payments. Not going to be easy...

[ZOMFGAARON]

Don't jump in too soon I'm 20 pay $480 a month and sometimes I regret it. But love the car. If I could do it over I would of waited a little longer.

[extrashaky]

Originally Posted by suaveflooder

Most financial advisors will advise against a car.

LOL. So financial advisers advise everyone to walk to work?

I keep seeing that posted on various threads, and it just doesn't make any sense. A financial adviser will ask what your financial goals are, then try to help you attain them. If you can't afford a certain unnecessary expense, they'll tell you. But if you can afford it, they're not going to make value judgments on how you choose to spend your money. Besides, in most areas in the US, having a car is a necessary expense, and this one is not that expensive.

Originally Posted by TM

I didn't know they take into account driving record when financing.

Neither my credit union nor the dealership asked about my driving record at all. I can't speak for all lenders, but I don't see why they would care. They're more interested in your ability to pay back the loan.

I think people are getting loans mixed up with insurance rates.

[BrianFRS]

Thanks again everyone, but don't worry, I won't be pulling any triggers yet. Priorities before desires.