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I can see both sides of this issue. A new car is very nice, but peace of mind is even nicer. Perhaps you could compromise and get a new or new to you Toyota for half the amount the car you're eyeing costs.
Thanks, but if I cant have an Infinti M45 2007 or 2008, I dont want anything. The price is about $27k to $32k depending on the mileage of the car. So the car I want is not really new. Like I mention, the max I can save after my bills are done is like 1100 per month with the new car. Without the new car, I can save about 1850.
We are all victims of our own want's and desires 'cause our needs are largely already met.
You admit that you don't need a new car but yet you lay your soul bare to strangers that do not have your best interest at heart. You do this to seek permission and validation for a childish self admitted want that you know will take funds away from your family unnecessarily to satisfy. Shame on you!
MAN UP AND FORGET THIS NEW CAR CRAP!
Thanks for the advice. We all have wants and desire. Im not self because I want something nice to drive and dont want to settle with a car I dont like driving. Bottom line is eventually, I will have to replace this car. I just thought it would be nice to treat myself to something nice now rather than later. Im just looking for some a good basis not to get the car. maybe another investment route I can take, ROTH IRA or something.
I want lie, I want to be cool in a nice car when I drive. Thats why I went to college and studied and work part time to obtain an education. All these efforts was to have a decent life and be satisfied, not settle. I avoided those credit cards and fashy clothes while my friends enjoyed buying things on credit. My credit score should be atleast on average 700.
I have a question no one has asked OP yet: Is your wife on-board with the $31,000 car idea? Or is she against it and you posted on here hoping we would back YOU up??
When I read your original post again, what jumped out was how "me" centered it is....you say "I want to look cool", "I deserve this", "I'll still be saving $1,100"....you never say "WE."
You are married, part of a team, a "we.". So what random people on city data think really shouldn't matter if you and your wife aren't on the same page re: new car.
Yeah, I do use "me" alot. My wife is indifferent to the decision. She doesnt care which way I go. But she hates that Toyota Corolla. She cools and just want me happy.
You know what, if I got to ask, then apparently it aint time for me to get a new car. Thanks guys/gals. Back to saving and thats it. I will know when the time is right and it dont feel like its the right time. No big deal.
My advice: buy a newer Toyota or Honda for a third of the price you're looking at. It will last just as long and get you the places you want to go to just the same.
I like to add that my savings may need to be up some more. I have about 8k in savings. But my savings a month can increase this.
Having $8k may be a little low considering some of the fixed expenses you have mentioned in the thread. Rule of thumb (yes, again lol) is to have 6 months of expenses in a emergency fund. With the economy still a little bit on the not so good side, it's probably good to have a little more.
I know its fun to want a really nice ride, I would love for my hubby to have his dream car but we try to not get on cloud nine not so much and take it one step at a time. Eventually, we will be there. There will be a time. Patience is key and something that is hard to do!
If you like the Infiniti, maybe look into the Nissan Altima. The Altimas are being offered at 0% for 60 months at the moment starting at about $21k. Not sure if there is a plan for 48 months. At least that's what the Nissan website said for my area; you may have a different offer available to you.
I was totally going to say "BUY THE CAR!!" until I got to this. 5 years is an INSANELY long time to make a $515/mo financial commitment. My personal opinion is if you can't afford the montly payments for a 3 year loan($915/mo for a $31k car @ 4% APR), YOU CAN'T AFFORD THE CAR.
You'd be better of paying a little bit of money to fix the Toyota and saving $600/mo towards a new car so that you'll have more cash to put down at signing.
5 years is a really long time to be 100% sure you'll be able to comfortably afford a $515 monthly payment. Do you live on two incomes? If so, are you 100% sure your wife will still be working for the next 5 years? What if you have another baby and it's a special needs child? What if a parent becomes ill and one of you has to care for them full-time? It's not too difficult to guess where you'll be in 2-3 years.....5 years is a long, long time. 5 years ago, we were all riding home values up the peak and unemployment was at 5%. Where will the next 5 years take us?
I so very much agree. I financed a car over five years ago with payments of 380 dollars per month. I deeply regret it. Our financial situation is just now getting better, but the car still have 10 months left to pay off and lots and lots of miles. Bad mistake. Next time I buy a car it will be use or pre owned and no more than 2 year financing.
Hello. I just need some advice to NOT buy a new car. I dont need a new car, I want one. Plus it feels good when you drive a new car. Im 31 by the way and married with a daughter. And a dog.
here is my cash story now with no care note:
total mortage/month: 1480 bucks, 6%
savings: I have enough for 6 months emergency fund
401K: 5% matched
Ability to save: After paying my bills (mortage, student loan, church dues, cell phone, car insurance, extra stuff and eating out) per month, I have $1800 to save.
My credit report has no negative accounts, nothing. I have no credit cards. The only loan Im paying now is one student loan and mortage. So, thats ok.
My wife has a 03 Infinti G35 with 127k miles we bought cash 9 months ago when our truck got wrecked. Great car and runs nice. If we want to go out, we drive that car. Our if I want to look cool on a Sat, I take that car and just drop my wife off to work. Our other car is a 1995 Toyota Corrola with 168K miles and its pretty beat up. A/C works but makes lots of rattling noise, pretty dirty and a some dents. But it works fine. I use to drive back and foward to work. I work like 15 minutes from my house. But the car is ugly and havent had a new car in like 7 years and kinda think I deserve one.
The car i want is about 30-31K bucks. 08 Infiniti. Very nice. That Toyota Corrola has a few issues I just been ignoring like back shocks replacements and exhaust muffler. So my new car note will be about $515 a month and my insurance will go about $90 bucks. So I will have a new debt of about $615 to pay for 5 years. Hopefully i get good inrest rate.
I guess this will leave me with about $1100 to save per month.
What do you think? Should I buy the new car and enjoy it? Or just drive the car I have while saving. I work in Oil and Gas as an engineer and just returned from lay off for 4 months as well. Probally need to wait til projects and jobs are back stable as well. But interest rates are good.
Let me know what you think. Im tempted to just get it. Or should I just keep on saving or perhaps investing.
Thanks in advance.
Remember cars do not make any money for you! I live what I say, my cars are 16 and 14 years old. In the next 2 years I am buying newer cars so they will be paid off before I retire.
Good point!!! Let's see, OP has $8,000 in savings. What do we know about him? He has a $1,480/mo mortage and a wife in school for the next 2.5 years. Oh, and he wants to take on a $615/mo commitment on a new car. We also know he's "saving" $1,800 a month....which really isn't true unless he's only been working for 4 months (4 x $1,800 = $7,200).
Let's prented he buys that car this weekend. And loses his job on January 1 with no severance and $300/week in unemployment benefits.
His monthly expenses are $2,095 and let's guess a conservative additional $805/mo for food, gas, health insurance, and bills (electric, phone, etc) for his family of 3. At $2,900 per month in expenses, he will blow through 100% of his savings in 4 months and will be $1700 in the hole every month until he finds a job as that's the gap between income (unemployment bene's) and expenses. Hope he can find a job in 4 months, considering how many people have been out of work for 6, 12, 18, 24++ months.
If he had only practiced restraint and NOT bought that sexy expensive car, his monthly expenses would be $2,285 and his savings + unemployment would last 6 months and he'd only be in the hole $1,085 every month after that.
OP, I don't know how you possibly calculated that you have 6 months savings in an emergency fund because you DON'T. I also don't know how you're "saving" $1,800 a month when you only have 4 months' "savings" in your bank account. Where is that money really going? Do you even know? I suspect that even though you "claim" you'll still be saving $1,200 a month, it will be more like $100 whenever you can. Can you afford to not save? I don't think so.
Thanks for the advice. It makes perfect sense. Thats why I came to the board to ask questions before I make a cruical mistake. The outcome is: Not buying a new car til I increase my savings more, $8K in savings is simply not enough. Who knows, probally get laid off in the next year. So, thank you all alot. And like you said, saving $1800 is what I can save if nothing comes up in the month (change oil, toilet broken, dog got sick, etc,..etc.)
You guys/gals are right. I dont need that damn new car right now. I rather be cool knowing I am debt free for right now. Also, I should be bless I have two vehicles that work. Something breaks, I just get it free.
Again, thanks alot for the hard truth. And I am still cool. LOL
I wouldn't buy a car unless you NEED one. I almost bought a car last year, but mine works great so I am going to run it into the ground.
My coworker collects a pension from his old job and a paycheck from his current job (he is doing very well), but he still drives this old truck that he bought over 10 years ago. It drives me nuts looking at it because it is so old, but I admire his ability to realize what he WANTS vs what he NEEDS.
You wanted advice on what to do with your money instead of buying the car. Here's my advice:
1. Make sure a minimum of 10% of your gross pay is going into a retirement account each month (401k, IRA, whatever).
2. Make sure your family has adequate health insurance and set up any tax-free Health Savings Accounts if necessary (ie, foresee your kid needing braces next year or major dental work needed, etc).
3. Keep saving monthly until you have 12 real months of savings ($2,200 x 12 = $26,000). Because you are a 1 income family, you need even more savings because if you do lose your job, you have ZERO income coming in. Keep this in a liquid account you could make a withdrawl from today if needed (high interest savings account is a good option).
4. Only at this point should you consider additonal savings/investment strategies or begin to entertain buying extravagant toys like a $31,000 car.
Hope this helps you prioritize what to do with your "extra" money each month!
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