YOU can buy a new car in THIS economy???
wow…
wow, I made a reply at 2am, just went through, disregard my double post made like an hour ago
No.
(EDIT)
Buy property at the bottom of the crash.
(/EDIT)
/thread
You’re a tool if you go and buy that.
Plus, everybody knows American cars are so much more awesome.
Can u afford this car? yes, anyone can buy anything with enough financing, this is why the economy today is a steaming pile of dog shit (sub-prime mortgage crisis).
Is is a good idea to spend every dollar and therefore all your energy working to pay for a car from fast and the furious (tokyo drift) instead of completing school and getting a solid job and income?
Also please clarify if the ‘drifting scene’ and the $29k plus insurance and interest (and auto repairs?) is a reasonable investment for a young man who i assume does not own a house.
If you’re 19 and already driving a car worth 10-14K, you probably have a better car than a lot of other 19 year olds.
I had a roommate in college who came from a wealthy family, he drove a brand new Z. He was always getting into trouble with it, speeding tickets, accidents. Unless you have a substantial safety net like this guy did (huge trust fund) don’t do it.
I just sold my wifes minivan. We bought it new, paid it off, and had to sell it because we’re going to Alaska and need 4wd. The KBB price to sell it to a dealer was $8000. The price to buy it from the dealer was $12000. Plus it was still under warranty. We sold it to a retired soldier for $8000 but we still think we got gyped. Bottom line, because of resale values, depreciation, and dealers I’ll never but a new car again.
buying a car is miserable
[quote]heavysession wrote:
it was an idea so i just wanted some opinions, the car would come in round 370 a month im working part time 20-25 hrs a week and im going to comm. college for two yrs and transfering to a calstate. Im taking 12 to 15 units a semester. [/quote]
So let’s put some numbers to what I posted before.
If you can afford $370 per month extra payments incurred from buying this car, then you could afford to stick with your current car that’s worth $10K (so it cannot be too bad; if you just want to change then you could get a differing car worth $3000 more with the $3000 you have earned) and save/invest $370/month.
What happens say three years from now?
Not even counting interest, you have $13K in the bank even if you didn’t keep your $3000 and went and got a more expensive used car now. $16K if you also saved the $3K.
Plus you have whatever the value is of your used car at the time. So in total you have over $20K.
What will you have if you buy the $29K car?
Only whatever its resale value is, which sure as heck won’t be $20K. Say it’s $12K.
So you’re up at least $8000 in just a three year period.
Now what if you keep up with this plan?
Big financial difference in your life. (And a much bigger difference than this if you don’t go spend the whole $20K but instead allow some of it to really grow with time.)
Or another way of looking at it: getting the loan costs you thousands in interest. Over the course of your life, how much will you save by not doing that? And note how in this plan you went from having $13K assets ($10K in your car and $3K from your job) to over $20k. Thus enabling you to buy a more expensive car next time if you want. The next iteration would have you able to buy a new car flat-out for cash. The next iteration after that would allow you to buy an even more expensive new car flat-out for cash if you wanted, or buy the same sort of car you’d be buying with a loan but with many, many thousands of dollars in the bank. After not so much time this will be many tens of thousands of dollars in the bank.
Worth losing that situation just to drive something you can’t afford now?
[quote]Vash wrote:
But, unlike the OP, I’m out of college and not intent on buying a car that looks very similar to an albatross.[/quote]
lol an albatross eh?
Well, it’ll function the same, I imagine.
I forgot your 19.
If you saved $2k/yr till the age of 27 and stopped there, assuming a decent return on your investment you would have millions in retirement by retirement age.
Compare that to someone at the age of 27, that saves $2k/yr till retirement, you would still end up with less money.
Read that over and over again till it finally sicks in, and I just made you a millionaire.
One person saves only for 8 or so years and stops, the other saves for 40 yrs and never catches up.
I wish to GOD that someone had told me this when I was that age.
And notice how saving $390 per month – by staying with a used car in the price range of your current car plus your cash, or just staying in your current car – compares with that $2k/year figure.
It’s more than double that figure.
So say that of the $390, you kept $167 in investment (yielding you the $2k/year figure), and thus allowed $223 per month to go towards saving for the next car. Rather than being flushed down the toilet in interest payments.
Not sure on the math that that is sufficient to be a millionaire by retirement after 8 years of it – not saying it’s wrong, just saying I would have to run it to be able to be able to give a second testimony on it – but with the exponential effect of time, it sure as hell does work out to a very, very large amount.
All for just “suffering” driving a $10K or $13K car for a couple of years instead of a $29K car you don’t have the money for, and then in say three years taking $8000 saved cash (due to paying yourself instead of the bank the $390/month, and this being only $223/month of it) and the remaining resale value of the car and “suffering,” yet again, driving a $13K car.
Or if you want, maybe you could have saved some other money – above and beyond the $390 per month that was saved, and possible to save, due to not having to make the car payments, rather than dipping further into those funds – during those three years and buy yourself a $20K car.
At that point, you’ll have earned it and can truly afford it.
And as Jehovasfitness pointed out, long-term the difference in your life will be absolutely huge. All for “suffering” driving a still entirely decent and good car. That’s the only cost, for benefits going way, way beyond that cost.
Save your money for a couple years and hope that Toyota/Subaru actually put this thing into production.
http://carscoop.blogspot.com/2008/06/2011-subaru-toyota-rwd-coupe-first-spy.html
[quote]jehovasfitness wrote:
I forgot your 19.
If you saved $2k/yr till the age of 27 and stopped there, assuming a decent return on your investment you would have millions in retirement by retirement age.
Compare that to someone at the age of 27, that saves $2k/yr till retirement, you would still end up with less money.
Read that over and over again till it finally sicks in, and I just made you a millionaire.
One person saves only for 8 or so years and stops, the other saves for 40 yrs and never catches up.
I wish to GOD that someone had told me this when I was that age.[/quote]
thnks for the advice man you made some Extremely good points… ill just stick with the used car for now
[quote]Bill Roberts wrote:
And notice how saving $390 per month – by staying with a used car in the price range of your current car plus your cash, or just staying in your current car – compares with that $2k/year figure.
It’s more than double that figure.
So say that of the $390, you kept $167 in investment (yielding you the $2k/year figure), and thus allowed $223 per month to go towards saving for the next car. Rather than being flushed down the toilet in interest payments.
Not sure on the math that that is sufficient to be a millionaire by retirement after 8 years of it – not saying it’s wrong, just saying I would have to run it to be able to be able to give a second testimony on it – but with the exponential effect of time, it sure as hell does work out to a very, very large amount.
All for just “suffering” driving a $10K or $13K car for a couple of years instead of a $29K car you don’t have the money for, and then in say three years taking $8000 saved cash (due to paying yourself instead of the bank the $390/month, and this being only $223/month of it) and the remaining resale value of the car and “suffering,” yet again, driving a $13K car.
Or if you want, maybe you could have saved some other money – above and beyond the $390 per month that was saved, and possible to save, due to not having to make the car payments, rather than dipping further into those funds – during those three years and buy yourself a $20K car.
At that point, you’ll have earned it and can truly afford it.
And as Jehovasfitness pointed out, long-term the difference in your life will be absolutely huge. All for “suffering” driving a still entirely decent and good car. That’s the only cost, for benefits going way, way beyond that cost.
[/quote]
thanks for the advice, yeah i didnt take into account retirement funds
Even if you didn’t care about retirement funds – but jehova’s advice on that is great and you will do so well if you were to follow it – and all you did with the $390 was saving it for the next car, you’d soon be buying if desired better cars for cash-on-the-barrelhead, instead of needing yet another loan and flushing yet more thousands down the toilet for interest.
And at that point, finding yourself able to put away only say $250 a month towards the next car, rather than making a much larger loan payment. And so being way ahead of the game.
But better yet is to follow jehova’s advice and use only some of the saved money towards the next car and the remainder towards retirement. It’ll take a little longer to get to higher end cars, but will be well worth it, and again will save you an incredible amount of money in wasted interest payments.
Wow… excellent advice Bill Roberts. You seem to know your stuff. Im gonna write that down.
BTW… If you want girls, and speed. Buy a used motorcycle. I have a tuned hayabusa i got for 7k and it can beat any 100K rich-boy car. ;D
[quote]jehovasfitness wrote:
I forgot your 19.
If you saved $2k/yr till the age of 27 and stopped there, assuming a decent return on your investment you would have millions in retirement by retirement age.
[/quote]
The 8 initial years gives you 20,053.13, at 5% compound with an annual addition of 2k a year. Lets save that for 40 years @ 5% compound - that’s a net total of 141,173.81. Not even close to millions.
[quote]jehovasfitness wrote:
Compare that to someone at the age of 27, that saves $2k/yr till retirement, you would still end up with less money.
[/quote]
40 years of 2k/year, at 5% compound is $253,679.53
I’m confused … ? Did you mean 2k/year without any interest?
no, buying new cars is a waste of money… the more expensive the car new, the more it drops each year…
two examples…
Hummer h2 : new 75k for an 09… wait 5 years and an 03 sells for 16.5k
Land rover, range rover: new 55 to 80k depending on options… 99 - 03 goes for 5 to 13k…
do the math… I personally would buy a 3 to 5 year old car and still get a relitivly new car for a fraction of the price…
these have steeper drop offs then the car you are looking at because they cost more new, but you will still loose over 5k the first 5 minutes you own the car…
Also, that is a crap drifting car… if you really are interested in that you need to do some reading and research… otherwise you will just look like a wanabe poser…