[ST1LE]

Originally Posted by rootus

IMO that's actually pretty aggressive, I'd be uncomfortable dumping 10% of my gross into a car.

My philosophy is slightly different... I finance for the longest term I can get at the lowest rate (usually 5 years, occasionally 6), I never take out a loan at more than the rate of inflation, and I don't put anything down unless I can't really find a sub-inflation loan rate. Hasn't been a problem in a lot of years, and I suspect it will be a while yet before rates start ticking back up.

Definitely agree that if you can't stomach the payment, don't do it. Being beholden to someone for debt with no easy way out is no way to live life. Manage your money as frugally as possible while still having some fun .

Agreed. That's the max 'recommended' amount. I am with you 100%. I more than easily cover the $84K a month mark in this scenario, but still cannot personally stomach much over $500/month, let alone $700 plus.

[motorhead]

Originally Posted by rootus

IMO that's actually pretty aggressive, I'd be uncomfortable dumping 10% of my gross into a car.

My philosophy is slightly different... I finance for the longest term I can get at the lowest rate (usually 5 years, occasionally 6), I never take out a loan at more than the rate of inflation, and I don't put anything down unless I can't really find a sub-inflation loan rate. Hasn't been a problem in a lot of years, and I suspect it will be a while yet before rates start ticking back up.

Definitely agree that if you can't stomach the payment, don't do it. Being beholden to someone for debt with no easy way out is no way to live life. Manage your money as frugally as possible while still having some fun .

Well, I hope you buy gap insurance with that philosophy. That's a quick way to get upside down rapidly.

[shawndean22]

um yea $750 is pretty high when the car is only 46k msrp. You have to look at overall picture; interest rate, OTD price, extras. If you feel comfortable paying that much then by all means, it is your money.

Looks like you are paying extra for something. You should not include trade when buying a new car when looking at overall picture. It may be better not to trade a car in at all....

i also don't agree , with that 20% rule. You shouldn't never put down alot of cash on a car, unless you buy it outright... its a depreciating asset, and you will never get cash value unless it is totaled. Keep that cash and make money on that cash instead of a putting it into a depreciating asset. Dealers always get monthly payment buyers. My friend traded a nismo 370z and 12k cash for a s3. After 6 months he wants something else.... wasted 12k cash when he doesn't even want to keep the car, all because he wanted a certain monthly payment.

[Richard0nee]

Originally Posted by shawndean22

um yea $750 is pretty high when the car is only 46k msrp. You have to look at overall picture; interest rate, OTD price, extras. If you feel comfortable paying that much then by all means, it is your money.

Looks like you are paying extra for something. You should not include trade when buying a new car when looking at overall picture. It may be better not to trade a car in at all....

i also don't agree , with that 20% rule. You shouldn't never put down alot of cash on a car, unless you buy it outright... its a depreciating asset, and you will never get cash value unless it is totaled. Keep that cash and make money on that cash instead of a putting it into a depreciating asset. Dealers always get monthly payment buyers. My friend traded a nismo 370z and 12k cash for a s3. After 6 months he wants something else.... wasted 12k cash when he doesn't even want to keep the car, all because he wanted a certain monthly payment.

I don't agree with this at all.. If one wants to put to put a substantial about down to have cheaper payments i don't see nothing wrong with it. If I have $80k in my savings account and I want to put $40k down towards a $100k car, I don't see a problem with it.. Especially if the payments will be around $800 monthly with a $12,000 gross monthly income.

[Chutzpah]

My advice is no, it’s not worth it. Keep or sell your existing car, save your butt off to buy or pay down an appreciating asset IE house, condo. If you have a 401k w/ match or max it out. I own my house and three cars, free and clear of debt. It hasn’t always been this way, I owed more on my home loan after 10 years of payments and refinancing to buy “nice cars”. You lose on both ends of the deal...car depreciation w/ interest and increased mortgage w/interest. If I got laid off in 2008, it would have been good bye house, cars 401k (that scared me straight) The best time to plan for the future is when you’re young. I’m sure someone told me that to me back in the day, but I was too “smart” to listen....

[rootus]

Originally Posted by motorhead

Well, I hope you buy gap insurance with that philosophy. That's a quick way to get upside down rapidly.

This is the first domestic I've owned in years so I forget how brutal the first year can be, but even then, no I don't generally bother with gap insurance. It's the same situation as if I had just bought the car outright, wouldn't have gap insurance then either.

[4mulafastech]

Originally Posted by Chutzpah

My advice is no, it’s not worth it. Keep or sell your existing car, save your butt off to buy or pay down an appreciating asset IE house, condo. If you have a 401k w/ match or max it out. I own my house and three cars, free and clear of debt. It hasn’t always been this way, I owed more on my home loan after 10 years of payments and refinancing to buy “nice cars”. You lose on both ends of the deal...car depreciation w/ interest and increased mortgage w/interest. If I got laid off in 2008, it would have been good bye house, cars 401k (that scared me straight) The best time to plan for the future is when you’re young. I’m sure someone told me that to me back in the day, but I was too “smart” to listen....

Good advice.

[motorhead]

Originally Posted by rootus

This is the first domestic I've owned in years so I forget how brutal the first year can be, but even then, no I don't generally bother with gap insurance. It's the same situation as if I had just bought the car outright, wouldn't have gap insurance then either.

If you bought the car outright ,and by outright Im assuming you mean cash, you wouldn't need gap insurance because its impossible to get upside down in a car with no money owed on it. Foreign cars loose money rapidly the moment you take them off the lot too.

Long terms with no money down will put you upside down quickly(meaning you will owe more than the car is worth). It's simple math not my opinion. Also the more incentives offered on a new car causes a trickle down effect thus making you even more upside down.
Total a one year old car that has a long term loan with no money down and see if you arent upside down. Once again, its just math.

Look up a 2016 Camaro and see what its worth. A 2SS automatic is around $33,500 according to the black book. New it was around $45,000. You're talking over $11,000 drop in one year.
Hell financing the taxes and other fees in (wich you are doing with no money down) and you will most likely already be upside before you ever drive it off the lot.
It all just math.

[metros11]

Originally Posted by Chutzpah

My advice is no, it’s not worth it. Keep or sell your existing car, save your butt off to buy or pay down an appreciating asset IE house, condo. If you have a 401k w/ match or max it out. I own my house and three cars, free and clear of debt. It hasn’t always been this way, I owed more on my home loan after 10 years of payments and refinancing to buy “nice cars”. You lose on both ends of the deal...car depreciation w/ interest and increased mortgage w/interest. If I got laid off in 2008, it would have been good bye house, cars 401k (that scared me straight) The best time to plan for the future is when you’re young. I’m sure someone told me that to me back in the day, but I was too “smart” to listen....

Great advise, OP would be wise to listen.

[Richard0nee]

OP, your income and expenses will play a large role whether or not it's a smart purchase.

One thing the forum don't know about living in Southern Cali is that a descent house in a descent neighborhood is over $700k. That's right, $700k for a descent house. A $400k house will get in the ghetto, unsafe neighborhood.

I lived in Los Angeles county for 38 years, trust me I know how it is. It's not like Texas, Ohio where you can buy a nice house for $150k.

So buying that dream house where everyone is telling you is a tall order unless you're making at least $150k a year with $80k down.

The 1LE will be on back on our mind every night. If you can afford to, do it. No one ever sed a the 1LE is an appreciating asset, it's a toy. You can die next week, lose a job, lose the house, etc.. you live once my friend

[georgez32]

Originally Posted by Richard0nee

OP, your income and expenses will play a large role whether or not it's a smart purchase.

One thing the forum don't know about living in Southern Cali is that a descent house in a descent neighborhood is over $700k. That's right, $700k for a descent house. A $400k house will get in the ghetto, unsafe neighborhood.

I lived in Los Angeles county for 38 years, trust me I know how it is. It's not like Texas, Ohio where you can buy a nice house for $150k.

So buying that dream house where everyone is telling you is a tall order unless you're making at least $150k a year with $80k down.

The 1LE will be on back on our mind every night. If you can afford to, do it. No one ever sed a the 1LE is an appreciating asset, it's a toy. You can die next week, lose a job, lose the house, etc.. you live once my friend

Oh man I wish I could buy a house for 700k, here in vancouver housing market is a downright joke...a teardown home is ~1-1.2 mil in an average neighborhood, a decent home is anywhere from 1.5-2 mil, same with the bay area, many colleagues in tech with 150k+ income can barely afford to live there, its absolutely insane...I guess location really matters when it comes to disposable income, and I think car like these are definately not a necessity, more of a fun thing to have if you can afford it

[motorhead]

Originally Posted by Richard0nee

OP, your income and expenses will play a large role whether or not it's a smart purchase.

One thing the forum don't know about living in Southern Cali is that a descent house in a descent neighborhood is over $700k. That's right, $700k for a descent house. A $400k house will get in the ghetto, unsafe neighborhood.

I lived in Los Angeles county for 38 years, trust me I know how it is. It's not like Texas, Ohio where you can buy a nice house for $150k.

So buying that dream house where everyone is telling you is a tall order unless you're making at least $150k a year with $80k down.

The 1LE will be on back on our mind every night. If you can afford to, do it. No one ever sed a the 1LE is an appreciating asset, it's a toy. You can die next week, lose a job, lose the house, etc.. you live once my friend

Ill stick with good old Central PA. 400grand will get you a very large highend home on 5 or more acres. I can't understand why anyone would want to live where 400grand buys you a dump. I'll never be able to relate to that.

[Richard0nee]

Originally Posted by georgez32

Oh man I wish I could buy a house for 700k, here in vancouver housing market is a downright joke...a teardown home is ~1-1.2 mil in an average neighborhood, a decent home is anywhere from 1.5-2 mil, same with the bay area, many colleagues in tech with 150k+ income can barely afford to live there, its absolutely insane...I guess location really matters when it comes to disposable income, and I think car like these are definately not a necessity, more of a fun thing to have if you can afford it

Remind me to stay away from Vancouver lol! The only people who own out here in Southern Cal bought their house in the early 90's when it was arond $150-$250k. Now it's triple - quadruple that.

Originally Posted by motorhead

Ill stick with good old Central PA. 400grand will get you a very large highend home on 5 or more acres. I can't understand why anyone would want to live where 400grand buys you a dump. I'll never be able to relate to that.

I will get out of here soon. I hate Southern Cal with a passion.

1. Smog every other year after 5 years new
2. Exhaust noise can't exceed over 95 db and will have to go back to stock
3. Random smog checks on the road just to **** with you.
4. Can't really put any CAI intake on cuz of emissions
5. Expensive as shit to buy a house
6. Weather isn't all that great, 89* today in almost mid December
7. Tax is 9.75% in my area code
8. Traffic, the effin traffic!! Ugh lol

Aiming for Seattle, cooler weather (I love rain actually), no sales tax, houses are somewhat cheaper.

But yeah OP, the 1LE is awesome! lol

[LateBrakeU2]

Originally Posted by motorhead

I can't understand why anyone would want to live where 400grand buys you a dump. I'll never be able to relate to that.

It's the middle of Dec and it's eighty degrees, and there's plenty of good jobs. Traffic is beyond comprehension and they're going socialist, best days are in the rear view and soon it will be for me too.