Some Day Soon: The Crave for a 17+ BRZ

[g e]

$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.

[MuseChaser]

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.

[ChaosBlades]

Originally Posted by towch

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!!

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.

[tacos]

this thread makes me feel very financially irresponsible...

[bentleyboii]

Originally Posted by tacos

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

[MuseChaser]

Originally Posted by bentleyboii

.....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.

[bentleyboii]

Originally Posted by MuseChaser

....

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

[goldenfri]

Get a better paying job, problem solved.

[towch]

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


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.

[mrg666]

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.

[soulreapersteve]

Originally Posted by towch

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


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.

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.

[Adam_L]

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.

[Xxyion]

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.

[BaatLuk]

Originally Posted by towch

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!!

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:

.

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!