How much to spend on a nice first car?
 

Background: Recently I had a large tournament score and made 120k before taxes which I am about to wire out.

I want to allocate this money towards a new car and have a financial advisor put the rest into a savings/mutual fund thing. I am not very knowledgeable on the subject of finance, but my dad has friends that do so thankfully they are helping me.

Before I ask them, I figured I would ask you guys in regards to my situation and what would be most beneficial:

- I'm almost 21 and I currently have a lease prepaid for on my current apt for the next 11 months. I am living with college friends, however I am on break from college. There is a 50/50 chance I will either move to another part of the country after that 11 months or stay another 12 months in current town and then move when everyone graduates. The plan is to go back to taking classes in either journalism or business when I move to the west coast.

- I anticipate the living costs of the next place I move to to be significantly more expensive than current living arrangements (compare college town in Georgia to anywhere on the west coast).

- Given these facts, it would be wise to allocate a fair amount towards that and not necessarily ball out on a car. However, there is the thing about "I only live once", and for the last 5 or 6 years I have been driving a crappy 1994 Nissan truck. Part of me wants to splurge, however part of me wants to be responsible for my financial situation in the upcoming years.

Another important factor is that I am not incredibly successful at poker and do not figure to make enough in the next 12 calendar months to make the current issue a "non problem". If I made 100k before taxes next calendar year, I would be thrilled. But I'm working on that now that I have a new small bankroll of 5k set aside to grind into something meaningful.

So, given this information, if you guys were in my spot, how expensive a car would you guys go for? I have a good idea in mind as to what to do, but I know this forum contains numerous older and wiser posters than I who could have valuable things to add.

Thanks in advance.

Re: How much to spend on a nice first car?
 

Only useful advice I can give you is buy used. Do not buy a brand new car.

Re: How much to spend on a nice first car?
 

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Only useful advice I can give you is buy used. Do not buy a brand new car.

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Re: How much to spend on a nice first car?
 

You do only live once. For exactly this reason, you should invest as much money as possible into various investments.

Nice cars are great, but there are a lot of things in life that are nicer, if you can wait. At 21, you have so much time for the investments to compound and then you'll really be able to reap the benefits later.

Re: How much to spend on a nice first car?
 

Clay, I dont know [censored] about cars or anything else, but if u make sub 100k next year id be very surprised.

especially not working or taking classes for the first half?

id prob be looking to spend 40k or so if i was you, but not anything more.

and id buy a beamer too, just cuz they are ill

Re: How much to spend on a nice first car?
 

Get an '03 or '04, moderate mileage, bottom-level luxury car. $15-$20k, nice, won't ruin your budget.

Re: How much to spend on a nice first car?
 

[ QUOTE ]
[ QUOTE ]
Only useful advice I can give you is buy used. Do not buy a brand new car.

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Re: How much to spend on a nice first car?
 

120 less say 30 for taxes= 90. then 30 for next years expenses. leaves 60 for your net worth plus what you had before. how much of that is going for a car. you made a nice score. bank it and let it grow. or spend it and later find a way to earn more.
i cant see ever spending 20% or more of what you got on a car or anything that depreciates.

Re: How much to spend on a nice first car?
 

[ QUOTE ]
Get an '03 or '04, moderate mileage, bottom-level luxury car. $15-$20k, nice, won't ruin your budget.

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That's what I did- Saab 9-3 ftw!!

Re: How much to spend on a nice first car?
 

buy a house (for 90-120k in cash)
rent it out for 600+ a month

use the 600/ month for the payments on a nice car

build equity
?????

profit.