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Frankly, if you are engaged all of your thoughts should be "can we afford it?", "is it the best choice for us ?", and "how does it fit into our long range plans?"
I think he's trying to sneak this one in before the "boom gates" come down.
I don't get what that means unless you're saying you plan to sell it at some point...but I thought you said earlier that you planned to hang on to it for quite awhile? That's about the only reason I'd buy such an expensive car NEW - drive it into the ground! Don't let staying ahead of depreciation be some kind of "selling point" for you if you don't intend to sell it - it's irrelevant and should have no particular impact.
Remember just because you can afford something doesn't mean it is good for you...sure, 0% interest sounds great, but you're STILL spending the $30k and interest really makes little difference in that light so don't let the tail wag the dog.
Well, being right side up means if something unexpected happens (e.g. a layoff), it can be sold.
Your initial post was pretty self-centered, but now that you are engaged, you need to change your way of thinking, especially if kids are in the forecast within the next 5 years or so. The question really becomes, "Is it in the best interest of my family for me to buy this car?". And then only you can answer that.
$80K salary
~10-12% yearly bonus
Contribute 16% to 401K
~$26K in 401K (I know this isn't excellent)
$5500 ROTH IRA
$20K cash
Debt:
$950/mo. rent
~$150 utilities
~$1500 paid off monthly on CC (all other expenses including entertainment, food, etc.)
No other debt (no loans)
Vehicle in question:
Reliable vehicle I plan to drive for the next 7+ years and keep as I start a family
Lowest depreciation among all car brands (doesn't matter much I guess?)
~$30K out the door
~$5-6K trade-in
Total cost: $24-25K
Plan to finance full amount at 0% for 48 months
Please let me know your thoughts. Reason I'm looking to get rid of current vehicle is that it's going on 10 years old and has been giving me some maintenance issues. Also it's a want as current vehicle does not really fit my "needs".
As an aside my salary is slightly low for my experience and will be hoping to approach ~$100K within the next year or two.
Do you think I can afford it?
Thank you.
The better question is, why would you WANT a $30,000 car when you can get a fine running car for 1/3 of that cost? Pay cash if you can and avoid the banks! Make your life easier.
The better question is, why would you WANT a $30,000 car when you can get a fine running car for 1/3 of that cost? Pay cash if you can and avoid the banks! Make your life easier.
You could ask this question on damn near anything. Why? It's more than likely a 30k car is going to be better, newer and/or have more features than one costing 10k. Why buy a ribeye when you can eat rice and beans?
Can you afford it from a cash flow perspective? Yes
Sure you can afford it. Any time you buy something you are compromising on other things, but with a 170K household income in the near future those compromises shouldn't be too painful. Just don't let the car dealer talk you into spending 40K on warranties and upgrades.
My only advice is to make sure that your fiancee is on the same page and that she likes the car as well. Once you get married and have a kid, the luxury of having completely separate cars can go away, and you end up driving each other's cars quite a bit. I bought my current car before I met my wife, and she hates it because it is a stick. She reminds me weekly that the next car I get will have to be an automatic.
The better question is, why would you WANT a $30,000 car when you can get a fine running car for 1/3 of that cost? Pay cash if you can and avoid the banks! Make your life easier.
find me a safe, reliable and at least relatively enjoyable vehicle for $15k (out the door price incl taxes).
now if you were to say $20k, OK, you can get a bare bones Subaru Impreza for that price.
in my mind, when you amortize the additional ~$10k over the life of the vehicle, those relatively small dollars are worth some extra comfort and utility.
You could ask this question on damn near anything. Why? It's more than likely a 30k car is going to be better, newer and/or have more features than one costing 10k. Why buy a ribeye when you can eat rice and beans?
Can you afford it from a cash flow perspective? Yes
My response to this is, the better bet is to spend the $10K instead of the $30K and invest the difference.
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