Need some assistance making a decision.

[Zoh]

Originally Posted by AznBRZer

Are you planning on rolling over the negative equity into a new loan? Cause that's what it sounds like. What's your credit score? That and your income will have a huge effect on whether or not you can get a good rate and if 18.53% is something you got recently(a year or two), I don't see how much better it could be in 3 months. If you currently owe $2000 and it'll only drop to $1500 in November, how the hell do you expect to be able to pay the note on a new $25k+ loan with no down payment?

Personally, I wouldn't even consider buying a brand new car with negative equity on another because that can cause all sorts of problems when trading it in and financing a new one, but that's just me.

Yes I am; the things that have changed since I got my current car loan 2 years ago are:
Income has jumped 60%
Numerous derogatory marks from my youth are no longer on my credit report
I have more available credit as I have an additional credit card I did not have

The reason it will be somewhat better in 3 months:
1. I have only $2000 of credit card debt left to pay off; I can pay this off 100% within 3 months, no problem. This will give me a 0% DTL ratio, with 100% available credit.
2. I have a handful of derogatory marks still on my report that I am going to negotiate to have removed. The grand sum of them adds up to no more than $1000 (I didn't realize most of them were on there)

With 0 debt on my credit cards and no derogatory marks on my report, I will no longer have any black marks on my credit and it should jump a reasonable amount. Do I expect to get 0% APR? No. Do I expect to be able to get to around 5% on a new car? Yes.

Absorbing the $1500 or so of negative equity on my current loan will also bring that $1500 to a far lower interest rate, saving me a portion of it in the long term.

Also, I've factored in the cost of Premium gas (Only about $3-4 more per tank, not a problem. I currently go through 2-3 tanks per month, so this won't add on much) and I've gotten a quote from my current car insurance company of only about $10-$20 per month more for the insurance. Same level of coverage, everything. I have no idea how the heck they calculate it, but that's what I've been quoted.

Additionally, I'm due for another, small raise in the next month or so which should give me an extra $100 a month in take-home pay, which helps quite a bit.

[Dadhawk]

@Zoh you probably don't want to hear this, but you asked for advice so here it goes.

You shouldn't be buying a new car of any kind, you can't afford it.

From what I read, you are in school that you are financing on student loans which means you are already spending more than you make (yes, borrowing money to go to school while working is still spending more than you make).

Right now you need to focus on finishing school, and maybe either paying off the current loan you have at that seriously bad interest rate, or selling your existing car to pay off that loan and get yourself a decent used car you can figure out how to pay for with cash.

That doesn't mean you can't drive a nice car. Heck, I just bought my high school son a Volvo C70 coupe (jet black/fully loaded/Turbo, outruns my FR-S easy in a straight line). It was a $45,000 car new. I paid <$3,750 for it out the door. Sure its 15 years old, but it only has about 100,000 miles on it and it is mechanically sound, and looks brand new with the exception of one scratch on the B pillar.

That is closer to what you should be buying based solely on what you wrote here.

Take that for what its worth, random advice from some guy on the Internet. But, that is what I would tell my own college age sons.

Good luck to you whatever you decide.

[Zoh]

Originally Posted by Dadhawk

@Zoh you probably don't want to hear this, but you asked for advice so here it goes.

You shouldn't be buying a new car of any kind, you can't afford it.

From what I read, you are in school that you are financing on student loans which means you are already spending more than you make (yes, borrowing money to go to school while working is still spending more than you make).

Right now you need to focus on finishing school, and maybe either paying off the current loan you have at that seriously bad interest rate, or selling your existing car to pay off that loan and get yourself a decent used car you can figure out how to pay for with cash.

That doesn't mean you can't drive a nice car. Heck, I just bought my high school son a Volvo C70 coupe (jet black/fully loaded/Turbo, outruns my FR-S easy in a straight line). It was a $45,000 car new. I paid <$3,750 for it out the door. Sure its 15 years old, but it only has about 100,000 miles on it and it is mechanically sound, and looks brand new with the exception of one scratch on the B pillar.

That is closer to what you should be buying based solely on what you wrote here.

Take that for what its worth, random advice from some guy on the Internet. But, that is what I would tell my own college age sons.

Good luck to you whatever you decide.

I understand the concepts behind it all, however I've no interest in selling my car to buy a different car I'm going to be just as unhappy with; that seems like a big waste of time and effort for me. I don't care about a car being fast; I'm not racing it. I just want something I'm happy to be in every day. Every single day I get into my car to go to work and I constantly feel shitty about it; it's the ONLY part of my life I'm unsatisfied with. I hate getting into my car every day and having thoughts of "I hate this car. I hate being seen in this. I hate that to make it look decent, I'd have to spend thousands of dollars on it for new front and rear bumpers, headlight refinishing, detailing, and paintwork. I hate that the music I listen to on my drive sounds terrible. I hate the color. I hate the interior. I hate that the hubcaps keep falling off. I hate that the TPMS sensors don't work. I hate that it doesn't accelerate at all when I'm trying to get around someone."

Is it really worth me saving the extra $200 or so a month to put towards student loans that don't go into repayment for several years and putting up with the constant negative psychological impact that this car brings upon me?

I am happy with just about everything else in my life; I love my job; I'm getting my degree in a very well-paid field that has no shortage of jobs; I am dating a very attractive woman who is financially independent; I am happy when I'm at work, when I'm at home, when I'm out... But when I'm in my car, it just drags all of that away. I'm actually embarrassed by my car. I don't like having other people in it, anything. I hate it.

I understand that financially, sure, I could put the money to better use. I don't necessarily NEED a new car. My one does get me from A to B. But if I can spend an extra $200 - $250 of my income (Which has increased significantly more than that amount since getting my current car) in order to get rid of this feeling and to feel better about myself and be happier with my life, surely that sacrifice is worth it?

This would be a car I'd be happy with now, but also happy with when I'm done with college. At that point, I'll hopefully be going into a new job making significantly more money. I'll already be happy with where my life is at, so that extra income can end up being devoted to paying off those student loans. I won't want, nor need a new car. Obviously, I don't know how my relationship life will be in 2 years, or where I'll be living, etc. But I know that it will be one less thing for me to worry about and one little thing that I will be happier with.

To me that money is worth the sacrifice.

Don't underestimate how big of a psychological impact a car can have on somebody. My current car literally makes me depressed anytime I think about it.

[LadyFRZ]

To be honest, I'd wait.

You keep saying $200-250 extra on a car, but that doesn't include extra insurance, gas (premium) and any other costs that could come up.

You're still in school, yes, you're going into a field with "No shortage of jobs" but I know others who were in "no shortage" fields and still are unemployed. Or had an offer that didn't work out.

You have a car, it's not like you're hurting, so until you're a bit more stable financially (credit card debt and student loans), I would hold off on a twin. I'm holding off on a twin for the exact same reason. Yeah, it sucks driving around a kia sedan, but I know I'll be in a twin someday.

It'd be better to wait than something coming up and you having to sell the twin.

[USN.Spence]

I had this same struggle when before I purchased my BRZ. The BRZ's price-tag kept me leaning towards the FRS, but I knew I wouldn't be entirely happy with the FRS as it lacked much of what I loved about the BRZ. All said and done, I waited it out and found my 2013 Galaxy Blue BRZ Limited, and stole it for $22,000 @ 3.9% APR (not bad for 21, with no car credit), and with just under 10k on the odometer. My payment is only $360/mo and my insurance is $120/mo.
You're going to be investing a lot of money, regardless of which way you go. Can you swing an extra $50-$100 a month to own what you really want, so that you don't have to look back and wish you had done it differently?

-Side note; After having the keyless entry, having to use keys to drive company vehicles, ect., is really going to piss you off. Keys are such an inconvenience when you get used to just leaving the FOB in your pocket, and forgetting about it.

[Zoh]

Originally Posted by LadyFRZ

To be honest, I'd wait.

You keep saying $200-250 extra on a car, but that doesn't include extra insurance, gas (premium) and any other costs that could come up.

You're still in school, yes, you're going into a field with "No shortage of jobs" but I know others who were in "no shortage" fields and still are unemployed. Or had an offer that didn't work out.

You have a car, it's not like you're hurting, so until you're a bit more stable financially (credit card debt and student loans), I would hold off on a twin. I'm holding off on a twin for the exact same reason. Yeah, it sucks driving around a kia sedan, but I know I'll be in a twin someday.

It'd be better to wait than something coming up and you having to sell the twin.

$200 - $250 a month IS including the gas and insurance premiums.
Premium Gas costs approx $0.25 more per gallon. Both my current car and the BRZ have 13.2 Gallon tanks. This equates to under $3.50 per tank. Currently, I'm filling up my tank about 3 times per month on average; that's an extra $10.50 a month in fuel costs, seeing as the MPG on an AT BRZ is similar to my Versa; that being said, my Versa ADVERTISES 30/36mpg; I am lucky if I get 25 most of the time. The most I've ever been able to get out of it since I got it was 29.5. If the BRZ can get even close to the 25mpg I'm averaging right now (Which I assume it should based on what I've read) my gas costs will barely change.

Secondly, I stated above I've already gotten some insurance quotes and the cost increase for the BRZ over my Versa is about $10 - $20 a month. I expected it to be significantly more, but this is what Progressive are quoting me for the exact same coverage I have now. I don't know why they are so similar in cost to insure considering the price difference of the cars, but that's what they quoted me after going through everything.

My current car payment is $260 a month with an 18.53% interest rate. My income has increased by over $1200 a month since then and my expenses in other areas have actually decreased (Rent, utilities, cell phone bill, food, etc.)

I study computer science and I fly through all of my software development classes with relative ease (To the point where other students come to me for help with their projects). I highly doubt I will have trouble obtaining a well-paying job in the industry after I finish college as this is just my thing; I understand software and I learn the concepts fast. Everyone has their natural talent in some way, right? Well, mine is computers.

[Zoh]

Originally Posted by LadyFRZ

To be honest, I'd wait.

You keep saying $200-250 extra on a car, but that doesn't include extra insurance, gas (premium) and any other costs that could come up.

You're still in school, yes, you're going into a field with "No shortage of jobs" but I know others who were in "no shortage" fields and still are unemployed. Or had an offer that didn't work out.

You have a car, it's not like you're hurting, so until you're a bit more stable financially (credit card debt and student loans), I would hold off on a twin. I'm holding off on a twin for the exact same reason. Yeah, it sucks driving around a kia sedan, but I know I'll be in a twin someday.

It'd be better to wait than something coming up and you having to sell the twin.

If my car was at least in better condition, I wouldn't mind.
Unfortunately, I literally hate everything about it:

It has a beige cloth interior that now looks dirty from sitting on it with jeans.
The exterior is white and has scratches all over from the previous owner.
The headlights are fogged up and need to be refinished, possibly even replaced.
There's a dent in the front bumper my mom put in it when teaching her to drive that can't be popped out.
It's missing 3 hubcaps and the wheels behind are rusting from being in MA for the winter.
The rear seat still has a faint smell of cat pee from helping my mom out and taking her cat to the vet, only to find out she didn't line his box correctly and he peed right through it and it soaked into the seats. In 100+ degree Vegas weather, you can imagine how bad that was for a while.
There is a small chip in the windshield from the previous owner.
At least one of my TPMS does not work so it constantly blinks at me and I'm not shelling out the money to replace it knowing that they go out in this model constantly.
The heat shield is loose and rattles when the car is very cold (Thankfully not an issue here in Vegas)
The previous owner put on his own chrome tip muffler for whatever dumb reason and didn't harness it properly, so it's loose and tends to shake when accelerating. I've had it looked at by a mechanic, they have told me it's nothing to worry about, but they'd still recommend replacing it for a large sum of money I'm not willing to invest in this car.

Seriously. I'd be happy in a 2009 Toyota Camry that was in good condition with no cosmetic damage and a gray interior. But... If I'm going to get a new car, I may as well get something I actually want. I didn't want this car when I got it, but it was all I could get at the time. I needed a car, I had private financing, and it was one of 3 cars in the area that met the criteria from my financing. Additionally, it was the only one from a dealer who wasn't trying to squeeze every single living penny out of me, and it was the only car that had been maintained well as far as the engine and such went.

I don't think people are quite understanding the severe, negative psychological impact this car has upon me right now.

[cjd]

Regret is a bitch.

Negotiate a fair price and get exactly what you want. Otherwise every time you get in the car you'll "if only" and...

Goto 1.

[Sayte]

Get the Manual transmission. That's the only big advice I have

[Zoh]

I think what I may end up doing is waiting an extra few months and making some large payments towards my current loan so that it is no longer negative equity.

I can get the car down to a point where it has at least SOME equity, before my birthday (In March)... Though I would rather find a secondary source of income for a few months, throw the entire paychecks at my car loan, and just get it out of the way. I work 40 hours a week at my job and make decent money. I'd be happy getting a second job about 15-20 hours a week JUST to throw money at this car.

If I'm lucky, my job will offer everyone overtime this holiday season and I'll pull an extra 20 hours a week for a couple months and just throw that money at it instead. That would amount to a few extra thousand dollars this holiday season that I could throw at the car loan in it's entirety. I'd just prefer not to deal with this car any longer. I seriously hate it with a fiery passion.

[Dadhawk]

Originally Posted by Zoh

I understand the concepts behind it all, however I've no interest in selling my car to buy a different car I'm going to be just as unhappy with.....

Obviously you've already made up your mind, and nothing is going to talk you out of it, which is OK with me, I'm just telling you what I would recommend you do, what I would tell you if we were discussing this face-to-face, and what I would do if in your shoes.


If you would be "just as happy with a 2009 Toyota Camry" then that is really what you should get. It's the "adult" thing to do (delay pleasure now so you can win later). We all have had to do it at times.


I also wasn't suggesting you pay off your student loans now, what I was suggesting is using the money to avoid additional student loans, stop digging the hole deeper.


I also think you may be counting your chickens a little before the hatch as well with the career. You are absolutely correct that its a great field (I'm in it myself) but that does not guarantee you a job once done unless there is something you are relaying in your story. Lots of excellent programmers have mediocre paying jobs.


I realize I'm "weird" in that I don't do car payments. If I can't pay cash for a car, I don't buy it, no matter how much I want it. I've done that since I was 16 with only a couple of very rare exceptions. Car payments will, over time, have a huge impact on your net worth.


Whatever you decide to do, best of luck to you and I hope it works out.

[MrBlaze-65]

I would drive both and determine what you would like from seeing them in person. Try not to get hung up with the sales guy during that time. Those guys are real fire and brimstone one minute then telling you it's the best car in the universe the next if it messes with the dollars and cents. I knew I wanted a BRZ after seeing plenty of FR-S's but when I sat in a limited I knew that's the car I wanted to sit in for the next few years. Shop around and make them fight for your business also, don't be afraid to leave the city or state for your ride if you truly want the best deal. But make sure you pre-negotiate/get it in writing before you make those kinds of trips. You don't want to waste your time and money.

Edit: I'm not much of a financial advice guy, I have no black marks on my credit. I don't think I could offer any advice in that realm. I just always stayed away from large payments and bad interest rates. Paying the bank free money/high interest rates has never sat well with me so I just never did it.

[enjetek]

ive been in the software development industry for almost 10 years and i would warn you to be careful in what your expectations salary wise are. i have seen all sides of the spectrum in regards to what dollar amounts can be obtained regardless of experience by developers.

[enjetek]

i agree with dadhawk...ive seen 'senior' devs range between 60k to 102k..and that isnt even a lot...and yes, starting out of college in ca that should be the MINIMUM a new college grad should get...