can I afford this car?

[gily25]

Originally Posted by tex24

So I was talking to my dad this morning and this is basically what he said:

He says that it's too expensive. He says that typically, you don't want to be putting a ton of cash down as a first payment since the car depreciates so much right off of the lot. He says it's better to put down a lot less and make the monthly payments on a cheaper car since the cash upfront could be better used for bills etc.

Thoughts?

Read into this...if you buy the car they may decide not to help you if they disagree with your choice. What kind of car did your sister get? I partially agree with your dad, you never know what expenses are coming your way during school (are you depending on a tuition reimbursement plan or scholarships that might get cancelled?). Also it sounds as if you live at home so if you decide to move out where is that going to leave your budget?

Sorry you don't like the above poster's advice but you can't always go by career oriented market projections. Big city salaries get averaged with small town salaries and not everyone who makes it out of the program gets hired or is a good candidate for a job. I think the poster was just urginig you to be cautiously optimistic not condescend and I'm sharing that advice based on my own master's program and career projections.

Either way...you have enough money and enough income to officially afford the car. Have you taken a test drive? Gotten an insurance quote?

[AznBRZer]

Originally Posted by tex24

I understand what you guys are saying, but I won't be graduating with my masters until 2016 most likely. Then a year of working...2017....etc...too long!!

I just want something now. I've never had this much money and I've never had a car and I just wanna splurge. I just don't know if it's completely stupid to spend 25-27k on a car at this point in my life. But I want it so badly right now...

I totally understand how you feel. I didn't get my first car until I was 29(34 now), so believe me: there's still plenty of time. Throw some of that money in an IRA and your future self will thank you for making a good long term decision. I know I did.

edit: I agree with gilly25 and yes, you can afford to buy the car itself with the money you currently have, but insurance, fuel, and maintenance are separate expenses as well as having a financial safety net.

[tex24]

Originally Posted by gily25

Read into this...if you buy the car they may decide not to help you if they disagree with your choice. What kind of car did your sister get? I partially agree with your dad, you never know what expenses are coming your way during school (are you depending on a tuition reimbursement plan or scholarships that might get cancelled?). Also it sounds as if you live at home so if you decide to move out where is that going to leave your budget?

Sorry you don't like the above poster's advice but you can't always go by career oriented market projections. Big city salaries get averaged with small town salaries and not everyone who makes it out of the program gets hired or is a good candidate for a job. I think the poster was just urginig you to be cautiously optimistic not condescend and I'm sharing that advice based on my own master's program and career projections.

Either way...you have enough money and enough income to officially afford the car. Have you taken a test drive? Gotten an insurance quote?

Not yet, I am going to test drive one Saturday morning hopefully

Originally Posted by AznBRZer

I totally understand how you feel. I didn't get my first car until I was 29, so believe me: there's still plenty of time. Throw some of that money in an IRA and your future self will thank you for making a good long term decision. I know I did.

Yeah I understand both of you guys. Most people ITT say I can afford it, but a couple friends say it is really dumb and it would put me in debt and it would waste the 20k I have recently acquired.

What about looking into used? What is the main difference? Warranty?

[jeffchap]

I understand "the wants" completely. This was not a smart purchase for me either, but it's what I wanted. You can't put a price on your happiness. I could've gotten the Civic instead, but every time I got into it, I would've asked myself "what if?". If you can get it without putting yourself in a financial bind, I say go for it. With demand for these cars being what it is, if you take good care of it but end up regretting it, you should be able to resell it without taking too much of a hit.

All that said, keep in mind that I'm almost 50, so my financial situation is probably more stable than yours. I have a pretty good idea what my income and expenses are going to be for the next 10 years. You're still very young, and have lots of time to get a sports car later if you decide not to do it now.

[gily25]

Most factory warranties carry over on CPO under a certain mileage, I haven't checked the specifics on FR-S/BRZ. If you go used you may lose certain insurance discounts so def. get a quote before you settle on new/used. The interest rate has the potential to be higher with used. With a car like this the obvious is that the car might have been driven hard, the benefits are that the car is probably well taken care of and you might get a mod or two included.

[AznBRZer]

Originally Posted by tex24

Yeah I understand both of you guys. Most people ITT say I can afford it, but a couple friends say it is really dumb and it would put me in debt and it would waste the 20k I have recently acquired.

What about looking into used? What is the main difference? Warranty?

Yeah, it is a bit of a waste to blow all your savings on a depreciating asset IMO.

Buying used is no different than buying new in terms of warranty coverage and in fact, a better financial decision. Let someone else eat the depreciation. You'll also pay less in overall taxes. Buying used also gives more leverage when negotiating price. If you wait 3 years, I wouldn't be surprised if you could save like $8k from buying new and you'll still have the option of buying new if you want.

[ilpad]

There is one thing in your budgeting that you left out: mods!

1k for exhaust
2k wheels/tires
300 CAI
800 headers
200 tint
600 taillights

You can say now that youre not going to mod it, but go buy one and lets talk in 6 months and see how much youve done.

[Nevermore]

I'd say do it. Personally, the FR-S was the worst financial decision I could've made because I still owe most of my school loans and live with my parents because I can't afford to move out on what I make (with or without the FR-S, mind you) but I still did it because I just wanted it that bad. You're in a better position than me so if you can live with the extra debt a little longer, why not? Pay as much off as you can as you go of your loans, make a regular car payment and always keep a couple thousand tucked away, just in case.

[86soon2be]

do you guys really pay $300+ a month for this car?.....im glad i waited

[strat61caster]

Originally Posted by 86soon2be

do you guys really pay $300+ a month for this car?.....im glad i waited

$25k financed over 5 years at 0% interest is over $400/month, what difference does waiting make other than saving up for a down payment or hoping to find a deal on a used one? Might as well wait until you can pay cash.

Edit: I put about $10k down and my minimum monthly is about $320, paying it off faster than that though.

[shirker]

Originally Posted by ilpad

There is one thing in your budgeting that you left out: mods!

1k for exhaust
2k wheels/tires
300 CAI
800 headers
200 tint
600 taillights

You can say now that youre not going to mod it, but go buy one and lets talk in 6 months and see how much youve done.

There are two very distinct crowds of people, one that is intrinsically willing to sink a lot of money into costly mods and one that is not, regardless of what they'll both outwardly say. I could have bought an FR-S and put the several thousands saved into mods, but I opted for a limited BRZ with no desire for new performance parts - and I'm in a similar life situation to the OP, mind you. But to each his own.

[shirker]

Originally Posted by Nevermore

I'd say do it. Personally, the FR-S was the worst financial decision I could've made because I still owe most of my school loans and live with my parents because I can't afford to move out on what I make (with or without the FR-S, mind you) but I still did it because I just wanted it that bad. You're in a better position than me so if you can live with the extra debt a little longer, why not? Pay as much off as you can as you go of your loans, make a regular car payment and always keep a couple thousand tucked away, just in case.

Any regrets? AKA would you make that decision all over again?

[86soon2be]

Originally Posted by strat61caster

$25k financed over 5 years at 0% interest is over $400/month, what difference does waiting make other than saving up for a down payment or hoping to find a deal on a used one? Might as well wait until you can pay cash.

Edit: I put about $10k down and my minimum monthly is about $320, paying it off faster than that though.

yea your right, the difference in waiting is getting a deal on a used one and getting certain discounts

[RurumariGhost]

the way i look at it, you have throw depreciation out the window. Let's be serious if you get the car and love it as much as the rest of us, you're not selling it any time soon. I'm 25 and didn't have that amount to put down so right now I'm leasing and plan to buy it out at some point during the lease when I do have cash. I went the route of buying clunkers that I could pay for on the spot...and they all died. not to mention the headaches in figuring out/fixing everything the former owners had not fixed or had not fixed right. In short, they were money pits and had I used the cash I used to buy them as a down payment on a new car I would be ahead of the game now. The way I look at buying a car, you want to buy something you're going to enjoy. I could have gone with a used civic, but I would have wanted to blow my brains out every time I went to drive. Do whats going to make you happiest in the long run, I say put like 6 k down get a loan, start building credit, and enjoy life! good luck with your decision.