Thinking about selling the s2000 for a GTR
05-12-2015, 10:28 PM
#21
With your finances you cannot confertabley afford a gtr. Even though you make 70k and you can come up with the 65-75k cash for a gtr does not mean it's smart.
You don't buy a $10,000 Rolex with $10,001 in your bank account. You don't buy that $400,000 lambo with 500k or even 1 million in your bank account. Same think applys to a gtr.
You don't buy a $10,000 Rolex with $10,001 in your bank account. You don't buy that $400,000 lambo with 500k or even 1 million in your bank account. Same think applys to a gtr.
05-13-2015, 12:50 AM
#22
i have a friend at work who purchased a 2011 M3 for about $52k a couple years ago. Pays about $1000/month in car payment. Yes he can afford it, but why the hell would you want a $1000 car payment??? Its not an investment... GTR or 911 is going to be a nice monthly payment. I much rather have a car i can toy around with and have a small payment or even paid off title such as the S2000. Dont get me wrong, a 911 or a GTR would be TITS...but you need a lot of money to play in that ball game...
05-13-2015, 03:10 AM
#23
I'm the same age as you, and i agree with the older guys and say skip the car purchase. First your car looks awesome and the GT-R is a automatic Pig. It's a great car but i wouldn't give up manual for it.
2nd, I did the same thing your contemplating and upgraded my cars young, @ 23. But i was making more than 4x what you were, and I had a year of savings plus investments. Even than I think it was a stupid idea, only good thing was my 1M cost me $0 to have for 2 years. If you don't have a minimum of 9 months of savings and maxing out your 401k; etc, do not buy this car. Trust me i'd rather have your s2k than the GT-R anyway
2nd, I did the same thing your contemplating and upgraded my cars young, @ 23. But i was making more than 4x what you were, and I had a year of savings plus investments. Even than I think it was a stupid idea, only good thing was my 1M cost me $0 to have for 2 years. If you don't have a minimum of 9 months of savings and maxing out your 401k; etc, do not buy this car. Trust me i'd rather have your s2k than the GT-R anyway
05-13-2015, 03:31 AM
#24
All sound advice. Im that guy with the high car note. $37,000 car with only 1,000 in the bank. Pain in the ass, and eating cheese on crackers for a while too. Worse part is that I'm 38.... 10 more payments on the CR (bonnie) and Im done. I felt i had to make the move back in 3/2010. So worth it now, since finding a CR is getting harder as the years go buy. BUT after reading all the post, I will wait on making another move. Its time to save and invest. Slowly will build the o8 sti, more so to make it last another 80 k miles. OP, I know how you feel.
05-13-2015, 04:47 AM
#25
Community Organizer
I look at this purely from a financial standpoint. If you have that much into the S2000 you own, I would just keep it. You will never get back all the money invested, I don't see the point of taking the hit financially to get into a GT-R. Start a savings fund for the GT-R and plunk down the money on that car later.
05-13-2015, 05:28 AM
#26
Originally Posted by profit_child' timestamp='1431478010' post='23610767
more background to maybe help with advice..
I just turned 25 yrs old I make about 70k a year i graduated UCF i have minimal debt. (girlfriend makes a solid 35k)
I have cash to buy a house but waiting for my girlfriend to finish her current lease (correction i forgot Im engaged)
Let's say you can clear $30-$35 if you clear out your parts and your s2k. That $66k GTR is going to cost you another $5k in sales tax to register in FL (assuming you still live here?). So your actual cost is $70k+ to buy this car. To put it into perspective, that's what you make in a year, before taxes. So say you clear enough from selling stuff to put down $36k and take out a loan for the remaining $35k. Over 4 years (remember, this is a USED car) at 3%. That's nearly $800/month. OUCH!!!
On top of that, are you prepared to also drop $1500 every year on tires? Are you ready to drop $10k+ if the motor or transmission grenades? Because it CAN happen. These are things you need to be prepared for when you buy an expensive car. Otherwise you'll be dumping it for pennies on the dollar when something goes wrong and you can't afford to fix it.
Girlfriends can up and leave, wives can stop working to have babies. When you buy a house, you're in for more surprises. Utilities are more, home insurance will shock you (trust me on this one), and home repair projects will always be more than you expect. Any idea what a new AC unit will set you back when yours conks out in July? Again, trust me on this one. As cool as it sounds right now, you can't afford this car...yet.
Are you saving for retirement yet? I can't emphasize how important it is to start early. You should aim to sock away at least 10% from the start, and aim to increase that every year until you are maxing out your 401k or whatever's available to you. Cars are cool and all, but so is being able to buy food when you're old and don't want to or can't work anymore.
To put things further into perspective for you, my wife and I combined earn not quite 3x what you guys do, an I'm not yet comfortable with the idea of dropping $70k on a car. The most we've ever spent on a car was low $40s (used).
i could get at least 40k for the s and parts by the end of the year im sure... so i would only be finacing about 25k
my girlfriend and I are not having kids anytime soon... she has been on BC and preventative measures for a long time now. im sure it would be more of a planning then an accident now.. The insurance isnt a problem... main focus really is if i want to get a loan for 25k or not thats all it comes down too... i have a savings for a house... and i would probally pay off the GTR in less then 2 years... if i decide to go that route... and i was real lucky at my previous job and did great with there profit sharing im in telecommunications now.. they fiance.. makes a solid 35k now but will be getting a 20% raise due to some new banking certificated ( mortgage broker/ personal banker...
I understand the concern for the future retirement ect. ect. I have a good savings were i could buy the r35 outright if i really really really wanted too... but i wouldnt...
05-13-2015, 05:36 AM
#27
I'm the same age as you, and i agree with the older guys and say skip the car purchase. First your car looks awesome and the GT-R is a automatic Pig. It's a great car but i wouldn't give up manual for it.
2nd, I did the same thing your contemplating and upgraded my cars young, @ 23. But i was making more than 4x what you were, and I had a year of savings plus investments. Even than I think it was a stupid idea, only good thing was my 1M cost me $0 to have for 2 years. If you don't have a minimum of 9 months of savings and maxing out your 401k; etc, do not buy this car. Trust me i'd rather have your s2k than the GT-R anyway
2nd, I did the same thing your contemplating and upgraded my cars young, @ 23. But i was making more than 4x what you were, and I had a year of savings plus investments. Even than I think it was a stupid idea, only good thing was my 1M cost me $0 to have for 2 years. If you don't have a minimum of 9 months of savings and maxing out your 401k; etc, do not buy this car. Trust me i'd rather have your s2k than the GT-R anyway
05-13-2015, 05:38 AM
#28
I look at this purely from a financial standpoint. If you have that much into the S2000 you own, I would just keep it. You will never get back all the money invested, I don't see the point of taking the hit financially to get into a GT-R. Start a savings fund for the GT-R and plunk down the money on that car later.
05-13-2015, 05:39 AM
#29
Again, OP. Don't be discouraged. The fact that you asked means that you were having reservations, which puts you ahead of the game. Also, you're starting out making good money. Just keep doing what you're doing because it's working, and eventually you'll look back and say, "Man, what was I thinking back then?" as you pay cash for whatever toy catches your fancy.
05-13-2015, 05:41 AM
#30
I agree with all the above OP. I am 4 years older than you and 4 years ago I was in about the same position as you are financially. The best move I ever did was tone down my car buying escalation (I went from a 16k car to 24k, 30k, 35k, 40k etc and actually realized I was never any happier with the more expensive car.
I decided to take all my extra investment income(stock market) and go and get an advanced degree at night while I was working. That was the best decision for me personally.
Now everyones situation is different, but looking back on it I kinda regret buying all the expensive cars that only made me happy for 6 months and then I got bored. I could've used that extra cash flow to make more investments in my future.
My general rule of thumb for financially responsible car buying is as such:
- Non car enthusiasts should spend about ~30% of yearly gross income on a vehicle (ex: Income = 100k, buy a 30-35k car)
- car enthusiasts view this differently as a hobby so i suggest no more than ~40% (40-45k car per 100k income)
(I do financial planning as a hobby, i am no expert and do not pretend to be one)
I decided to take all my extra investment income(stock market) and go and get an advanced degree at night while I was working. That was the best decision for me personally.
Now everyones situation is different, but looking back on it I kinda regret buying all the expensive cars that only made me happy for 6 months and then I got bored. I could've used that extra cash flow to make more investments in my future.
My general rule of thumb for financially responsible car buying is as such:
- Non car enthusiasts should spend about ~30% of yearly gross income on a vehicle (ex: Income = 100k, buy a 30-35k car)
- car enthusiasts view this differently as a hobby so i suggest no more than ~40% (40-45k car per 100k income)
(I do financial planning as a hobby, i am no expert and do not pretend to be one)