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Welcome to a lifetime of poverty. The choice to spend your money on replacing an already relatively new vehicle with a newer sportier vehicle is arguably the second worst personal finance decision you could make. The only worse one would be choosing to experiment with heroin and meth.
It doesn't matter how much car you can afford, if you make this decision, you will either regret it for the rest of your life or be too lacking in education to know that it is one of the reasons you will be trapped in poverty. Trying to look rich before becoming rich is the trap that eliminates millions from ever reaching the middle class.
My buddy makes decent money, but is by no means well off. He decided to buy a brand new truck with a MASSIVE monthly payment. I thought this was a bad idea for someone who has a mortgage and other toys to pay off. I mentioned to him that this truck ought to at least last him the next decade, and he said "no I'll keep it until the new redesigned model comes in 5 years then trade it in for that." I asked him if he plans to do that forever, and if he thought about how nice of a house he could afford if he wasn't making a new car payment the rest of his life... well he has become extremely materialistic and has to have every shiny, top of the line thing.
It's sad. He doesn't fathom how not having even a tiny savings is important, and how quickly his high turnover rate job could disappear. His thought process: "make money and spend ALL of it on material possessions"
Isn't this how everyone in history ends up in bankruptcy and thrown back into poverty? How do people never learn?
My buddy makes decent money, but is by no means well off. He decided to buy a brand new truck with a MASSIVE monthly payment. I thought this was a bad idea for someone who has a mortgage and other toys to pay off. I mentioned to him that this truck ought to at least last him the next decade, and he said "no I'll keep it until the new redesigned model comes in 5 years then trade it in for that." I asked him if he plans to do that forever, and if he thought about how nice of a house he could afford if he wasn't making a new car payment the rest of his life... well he has become extremely materialistic and has to have every shiny, top of the line thing.
It's sad. He doesn't fathom how not having even a tiny savings is important, and how quickly his high turnover rate job could disappear. His thought process: "make money and spend ALL of it on material possessions"
Isn't this how everyone in history ends up in bankruptcy and thrown back into poverty? How do people never learn?
That would be growing up, being mature. 'ya think ? Hindsight is 20/20.
6} YOU DO REALIZE it will DROP in value IMMEDIATELY as soon as you drive a brand new one off the lot? IT's called depreciation, about $3-4K worth in that first year as soon as you drive it off the lot.{we just paid $18K for a brand new car less than a year ago, and it is now worth only $12-13K BUT we will keep it for 12 or so years
ALL cars depreciate as soon as you take ownership. Not just new ones, used cars do too, and at a similar rate. Go look at the difference between KBB retail and trade in value on any used car - there's your depreciation.
I already have calculated everything, and the very basic costs me $84/month. I don't know what "high insurance costs for sporty cars" are you talking about, but this is what I can pay right now. All I need to do right now is put my credit card info and it's going to be done.
I'm currently paying $83/month for my 2003 Mustang GT V8. I got it in the same place, the exact same way. Also, I'm not trying to replace any insurance; I did not login into my account. I just calculated this as a new insurance plan.
Why are you guys arguing with me? I've done the insurance thing, I bought it before, I KNOW how to buy car insurance. THAT is what it costs for my case. And if my old V8 Mustang costs that much, it only makes sense that a NEWER, and SAFER car with just a bit more power and V6 instead will cost about as much, at least for the basic plan.
In terms of buying a car, you convinced me. I'm not getting it, it makes sense. I've already said that. Not going to get a new car, especially not the Mustang I wanted, because it doesn't make sense based on what some people here said. I appreciate those with good advise and no unnecessary BS.
However, even then, I don't consider $300/month for 3 years a MASSIVE monthly payment and a big stretch. I'm not looking to start any families, let alone get kids or a mortgage. I do predict my side business to grow from 1k-1.5k a month to about 3k/month by the end of the year. I think I know my plans better than anybody on this thread. Damn the egos of some people. All I asked was if you can educate me on how purchasing a car on loan works and if I can afford it based on current numbers I gave you, but you started giving me life advice, which is something nobody asked you.
Thanks. Consider this closed. Wow, a bunch of know-it-alls...
ALL cars depreciate as soon as you take ownership. Not just new ones, used cars do too, and at a similar rate. Go look at the difference between KBB retail and trade in value on any used car - there's your depreciation.
Uh, DUH! He was referring to buying a brand new 2015 car, so I used "new" as an example.
We also keep our cars at least 12+ years, thereby minimizing depreciation, but I didn't state that either. We traded in a 16 year old '98 on the '14 we just bought I used as the depreciation example, too, no need to point that out...
I think from his post, though, he got all the "right ideas" from posters here.
However, even then, I don't consider $300/month for 3 years a MASSIVE monthly payment and a big stretch. I'm not looking to start any families, let alone get kids or a mortgage. I do predict my side business to grow from 1k-1.5k a month to about 3k/month by the end of the year. I think I know my plans better than anybody on this thread. Damn the egos of some people. All I asked was if you can educate me on how purchasing a car on loan works and if I can afford it based on current numbers I gave you, but you started giving me life advice, which is something nobody asked you.
Thanks. Consider this closed. Wow, a bunch of know-it-alls...
Ronaldon:
I see you have closed the matter. One final thought:
Sorry, but when you ask a quesiton on a forum, you are going to get answers, whether you like them or not. From all spectrums of "my way is right" to "this is what I did" to "this is what to think of"....to "this iS MY expereince" {how I tried to relate it to you.}
Sorry you don't like the avice or the internal bickering that may often go on, but that is how life works. If your info comes up different, you don't have to go by other's experience, but be prepared if your info DOES turn out more like their info in the end. {I use your insurance rate, here, ok maybe YOU got a $84/m on your car and on a new one, but that is NOT the general experience of the general population across the country who are trying to HELP you..to get an accurate one, you DO need to call the insurance man-he knows more than all of us with the pertinent info, and he will gladly take your payment, be it $84/m or $300/m. for your new mustang, which I see you decided not to get. I say smart move!
If you don't want to have that, then don't ask a question. Simple. But then you get no answers!
Simple!
I'm currently paying $83/month for my 2003 Mustang GT V8. I got it in the same place, the exact same way. Also, I'm not trying to replace any insurance; I did not login into my account. I just calculated this as a new insurance plan.
Why are you guys arguing with me? I've done the insurance thing, I bought it before, I KNOW how to buy car insurance. THAT is what it costs for my case. And if my old V8 Mustang costs that much, it only makes sense that a NEWER, and SAFER car with just a bit more power and V6 instead will cost about as much, at least for the basic plan.
So you are saying that a brand new $30k Mustang will cost the same to insure as a 12-yo $5k Mustang?
I already have calculated everything, and the very basic costs me $84/month. I don't know what "high insurance costs for sporty cars" are you talking about, but this is what I can pay right now. All I need to do right now is put my credit card info and it's going to be done.
I'm currently paying $83/month for my 2003 Mustang GT V8. I got it in the same place, the exact same way. Also, I'm not trying to replace any insurance; I did not login into my account. I just calculated this as a new insurance plan.
Why are you guys arguing with me? I've done the insurance thing, I bought it before, I KNOW how to buy car insurance. THAT is what it costs for my case. And if my old V8 Mustang costs that much, it only makes sense that a NEWER, and SAFER car with just a bit more power and V6 instead will cost about as much, at least for the basic plan.
Thanks. Consider this closed. Wow, a bunch of know-it-alls...
You know but you don't know? What?! And we are the know it alls....
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