OT: Cars

[Profet]

Shit I mean my current car was already vastly more than that lol. 3 years at no more than 8% of your income?

I mean... Yes? There is no law saying you have to do this, but you asked the question.

This is generally the advice if you're looking to be financially responsible.

You don't want to leverage a depreciating asset. It just doesn't make sense financially or mathematically. You leverage stuff that appreciates (property, business cash flow, etc.)

You're 35, do you have a fully funded emergency fund? How about two times your gross salary saved for retirement?

I know this is out of scope for this forum and topic, but don't "hate future you for making bad money moves and be totally screwed."

 

[Bacon Artemi Bravo]

Grabbed this a couple weeks back off Cars and Bids:

Its a dream to drive. Insane little go-kart. Love it!

 

[aufheben]

I mean... Yes? There is no law saying you have to do this, but you asked the question.

This is generally the advice if you're looking to be financially responsible.

You don't want to leverage a depreciating asset. It just doesn't make sense financially or mathematically. You leverage stuff that appreciates (property, business cash flow, etc.)

You're 35, do you have a fully funded emergency fund? How about two times your gross salary saved for retirement?

I know this is out of scope for this forum and topic, but don't "hate future you for making bad money moves and be totally screwed."

Thanks for the info. Sounds like I already f***ed up. Although to be honest the retirement savings wouldn’t be helped much even if I got a beater.

 

[Profet]

Thanks for the info. Sounds like I already f***ed up. Although to be honest the retirement savings wouldn’t be helped much even if I got a beater.

There is a saying:

The best time to invest was yesterday, the second best time is today.

 

[aufheben]

There is a saying:

The best time to invest was yesterday, the second best time is today.

It just sounds like everyone in here has an awesome ride.

My car is really nice it’s just not a toy. I should have been more responsible in my 20s. The temptation is tough.

 

[NickyFotiu]

Is there like a rule of thumb to determine what car you can afford? My salary is average but my expenses are cheap. I’m 35, rent, no debt, good credit, and some savings.

There are ratios for housing, food, cars etc. Most Americans buy too much. Im the opposite. I buy too little.

It just sounds like everyone in here has an awesome ride.

My car is really nice it’s just not a toy. I should have been more responsible in my 20s. The temptation is tough.

My uncle's friend was once showing off his very expensive watch. My uncle asked him what time it was. The friend said 3:17. My uncle said wow my $25 Casio says its 3:17 as well.

 

[aufheben]

There are ratios for housing, food, cars etc. Most Americans buy too much. Im the opposite. I buy too little.


My uncle's friend was once showing off his very expensive watch. My uncle asked him what time it was. The friend said 3:17. My uncle said wow my $25 Casio says its 3:17 as well.

It’s just like where do you draw the line on living for the future vs living for the present? My mom passed away 10 years before she even hit retirement.

 

[NickyFotiu]

It’s just like where do you draw the line on living for the future vs living for the present? My mom passed away 10 years before she even hit retirement.

Sorry to hear that happened to your mom. I'm a bad example. Always saving and investing but not enjoying the rewards. The week before my moms death she was in the hospital encouraging me to spend. Even in a note she left me she encouraged me to buy things that I would enjoy. When I was really young (ages 3-10) money was tight so I think that made a imprint on me. My mom was right. I really need to figure out a happy medium place or I will die without having spent much of anything.

 

[Profet]

I have an irrational fear of having to eat cat food when I retire...

My brain knows that that is not going to happen based on how much I save/invest, but any time I make a significant purchase I have that fear.

 

[Profet]

It’s just like where do you draw the line on living for the future vs living for the present? My mom passed away 10 years before she even hit retirement.

It's a very hard balancing act.

And honestly it depends on where you are in life.

If you're in your 20's you probably only need to save 10-15% of your gross income for the rest of your working life... and you'll be fine.
If you're in your 30's that number jumps to 25-30%
If you're in your 40's... 35-45%
...

The numbers become untenable the longer you wait.

 

[aufheben]

It's a very hard balancing act.

And honestly it depends on where you are in life.

If you're in your 20's you probably only need to save 10-15% of your gross income for the rest of your working life... and you'll be fine.
If you're in your 30's that number jumps to 25-30%
If you're in your 40's... 35-45%
...

The numbers become untenable the longer you wait.

Right now I’m saving 20-25%. Not to derail the thread, this is honestly just stuff I never learned. I could get this car if I had to have it, but I already bought a new car three years ago. I guess I just need a hobby.

 

[Profet]

Right now I’m saving 20-25%. Not to derail the thread, this is honestly just stuff I never learned. I could get this car if I had to have it, but I already bought a new car three years ago. I guess I just need a hobby.

Maybe we need a personal finance thread. lol

 

[NickyFotiu]

Right now I’m saving 20-25%. Not to derail the thread, this is honestly just stuff I never learned. I could get this car if I had to have it, but I already bought a new car three years ago. I guess I just need a hobby.

Saving 20-25% is actually very good. Much more than most so you are doing well. What car are you looking at? Would you pay cash or get a loan? If a loan at what rate?

 

[aufheben]

Saving 20-25% is actually very good. Much more than most so you are doing well. What car are you looking at? Would you pay cash or get a loan? If a loan at what rate?

2023 Subaru WRX Limited
$2000 off the MSRP
1.90% APR
$14,000 trade-in
$2000 down

Then there’s the insurance and gas. This car is +$100/month to insurance. It chugs premium gas and I drive ~80 miles every weekday. It’s totally a stupid decision.

I’ve unfortunately been surrounded my entire life by people with awesome cars. My dad had BMW, Land Rover, Audi. One friend has had a BMW, VW Golf R32*, VW Golf R. Another had a WRX, Audi R8**, fifteen upgraded Jeep Cherokees. Another had a BMW***.

*almost killed him
**stupidest decision of his life.
***lost his license

 

[Profet]

2023 Subaru WRX Limited
$2000 off the MSRP
1.90% APR
$14,000 trade-in
$2000 down

Then there’s the insurance and gas. This car is +$100/month to insurance. It chugs premium gas and I drive ~80 miles every weekday. It’s totally a stupid decision. I’ve unfortunately been surrounded my entire life by people with awesome cars. My dad had BMW, Land Rover, Audi.

The obvious solution is to increase that down payment.

Aggressively saving for a few months can make a huge difference in things like this... it also puts it in perspective. If it hurts to save aggressively for it, do you really want/need it?

 

[aufheben]

The obvious solution is to increase that down payment.

Aggressively saving for a few months can make a huge difference in things like this... it also puts it in perspective. If it hurts to save aggressively for it, do you really want/need it?

I’ve resigned myself to just saving as much as I can and seeing what’s on Car Max in November. It just has to be 2019-or-later because I’m too accustomed to Apple CarPlay.

 

[NickyFotiu]

2023 Subaru WRX Limited
$2000 off the MSRP
1.90% APR
$14,000 trade-in
$2000 down

Then there’s the insurance and gas. This car is +$100/month to insurance. It chugs premium gas and I drive ~80 miles every weekday. It’s totally a stupid decision. I’ve unfortunately been surrounded my entire life by people with awesome cars. My dad had BMW, Land Rover, Audi. One friend has had a BMW, VW Golf R32*, VW Golf R. Another had a WRX, Audi R8**, fifteen upgraded Jeep Cherokees. Another had a BMW***.

*almost killed him
**stupidest decision of his life.
***lost his license

Its a 2023 but you mentioned MSRP. Is it used? What is the actual price? 1.9% is a great rate since 6-12 month treasuries are paying 5%. Everything is relative. Those cars seem reasonable. My neighbor has a Bentley and a Ferrari.

The obvious solution is to increase that down payment.

Aggressively saving for a few months can make a huge difference in things like this... it also puts it in perspective. If it hurts to save aggressively for it, do you really want/need it?

No offense but depending on the state and his tax bracket at 1.90% I'd consider borrowing as much as possible and put the rest in a T bill at 5%.

 

[aufheben]

Its a 2023 but you mentioned MSRP. Is it used? What is the actual price? 1.9% is a great rate since 6-12 month treasuries are paying 5%. Everything is relative. Those cars seem reasonable. My neighbor has a Bentley and a Ferrari.


No offense but depending on the state and his tax bracket at 1.90% I'd consider borrowing as much as possible and put the rest in a T bill at 5%.

It’s unused. The transport wrap is still on it. The sales price is $37k, which admittedly makes me cringe. The base trim is $32k. It’s stupid even looking at it but I saw the APR and fell into the trap. A red WRX is like a cop beacon which I also have to factor into the costs along with the high insurance and gas chugging.

 

[NickyFotiu]

It’s unused. The transport wrap is still on it. The sales price is $37k, which admittedly makes me cringe.

I'm sad to say $37k is not a lot for a car nowadays. It is a crazy market even for many used cars. If it makes you feel better some dealers are charging $25k-$50k over MSRP for Vettes and Porsches nowadays. If you are interested in that car I would ask for at least 10% off MSRP since its a 2023 and we are looking at May 2024. Subaru does a good job retaining value but it doesn't hurt to ask.

By the way its easy for me to spend your money. Meanwhile I'm overly frugal.

 

[Profet]

No offense but depending on the state and his tax bracket at 1.90% I'd consider borrowing as much as possible and put the rest in a T bill at 5%.

Oh.. mathematically you are 100% right.

But I find people get in the way of math. And what usually happens is they set the money aside in a HYSA for a few months...and then life happens and it gets used for something else.

I'm sad to say $37k is not a lot for a car nowadays. It is a crazy market even for many used cars. If it makes you feel better some dealers are charging $25k-$50k over MSRP for Vettes and Porsches nowadays. If you are interested in that car I would ask for at least 10% off MSRP since its a 2023 and we are looking at May 2024. Subaru does a good job retaining value but it doesn't hurt to ask.

By the way its easy for me to spend your money. Meanwhile I'm overly frugal.

Yep... $37k is actually way under the average purchase price of a new vehicle today.


That said... there is absolutely no reason to have to finance $37k for more than three years unless you can't afford the car.

 

[Elvis P]

It’s unused. The transport wrap is still on it. The sales price is $37k, which admittedly makes me cringe. The base trim is $32k. It’s stupid even looking at it but I saw the APR and fell into the trap. A red WRX is like a cop beacon which I also have to factor into the costs along with the high insurance and gas chugging.

Hybrid

It's crazy. You can get a better car for less $ that gets much better mileage, uses non-premium gas, and the insurance is cheaper.

 

[aufheben]

I'm sad to say $37k is not a lot for a car nowadays. It is a crazy market even for many used cars. If it makes you feel better some dealers are charging $25k-$50k over MSRP for Vettes and Porsches nowadays. If you are interested in that car I would ask for at least 10% off MSRP since its a 2023 and we are looking at May 2024. Subaru does a good job retaining value but it doesn't hurt to ask.

By the way its easy for me to spend your money. Meanwhile I'm overly frugal.

It’s also sad to say this wouldn’t even be close to the worst financial decision I’ve ever made. I lived on-campus in Manhattan for a Fine Arts degree, spent two years in Canada with no job, freelanced until I was 30, etc. But still, 37k is a lot even at 1.9% APR. I know it’s a Subaru not a Ferrari but it’s one of the most impractical non-luxury sedans available.

Oh.. mathematically you are 100% right.

But I find people get in the way of math. And what usually happens is they set the money aside in a HYSA for a few months...and then life happens and it gets used for something else.


Yep... $37k is actually way under the average purchase price of a new vehicle today.


That said... there is absolutely no reason to have to finance $37k for more than three years unless you can't afford the car.

Really? What’s the average purchase price of a new vehicle? Edit: wow $48,000 as of March 2023. Jesus people are spending a lot on cars.

 

[aufheben]

Hybrid

It's crazy. You can get a better car for less $ that gets much better mileage, uses non-premium gas, and the insurance is cheaper.

I have a car like that. It’s the third car I’ve owned and all three have been the same model. The only reason I’m even thinking about a new one is because my life is zero fun. I don’t have a family, don’t have a house, don’t have a goal. I’m just a guy with a job I don’t hate, a couple pet lizards, and a 40-mile commute. If I didn’t drive a lot I wouldn’t care but I drive over 20k miles a year. It was nice to have something to think about for a week though.

 

[NickyFotiu]

I have a car like that. It’s the third car I’ve owned and all three have been the same model. The only reason I’m even thinking about a new one is because my life is zero fun. I don’t have a family, don’t have a house, don’t have a goal. I’m just a guy with a job I don’t hate, a couple pet lizards, and a 40-mile commute. If I didn’t drive a lot I wouldn’t care but I drive over 20k miles a year.

If you drive 20k a year and can afford an upgrade then you should enjoy the ride. I'm not saying it has to be that car though. You might get more bang for your buck with a slightly used car. I do not know your age or location but a house may be in your future as well if you do not live in a crazy priced state. Do not sell yourself short. A job is more than many people. You also have your NYR hobby. I do not want to give financial advice without knowing your situation but I do hope you add some fun. I'm actually in a blessed position financially but not having much fun either. I need to add some as well.

 

[aufheben]

If you drive 20k a year and can afford an upgrade then you should enjoy the ride. I'm not saying it has to be that car though. You might get more bang for your buck with a slightly used car. I do not know your age or location but a house may be in your future as well if you do not live in a crazy priced state. Do not sell yourself short. A job is more than many people. You also have your NYR hobby. I do not want to give financial advice without knowing your situation but I do hope you add some fun. I'm actually in a blessed position financially but not having much fun either. I need to add some as well.

I can afford it with some sacrifice but it’s such a stupid car for someone who bought a good commuter car three years ago. I’m just trying to fill a hole in my life. On the other hand even a bad decision would at least give my mind something to think about. But I’ve already kind of derailed the thread enough, although I did learn some things and appreciate all the advice.