How much to spend on a nice first car? - Page 4

SomethingClever · #31 09-04-2007, 02:06 PM

Take the motorcycle safety class for $200, then buy this for $8k:

LDO

good2cu · #32 09-04-2007, 02:07 PM

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Put that 90k in an account getting 5%, thats 4500/yr, or 375 a month. Oddly enough, 375 is exactly what my car payment is (04 escalade, 29k miles when bought, with 2k down). The [censored] part is insurance, at 21, its going to be pretty expensive, Im 25, 1 accident 3 years ago and mine is 1800/YR, but I also have a couple other cars on there. After 5 years you still have your 90k and your car paid off. I dont know what your financial situation is, but if you are planning on around 100k for next year, its not like buying a car is going to send you to the poorhouse...I dont understand that thinking from a lot of posters..wtf? if you enjoy a nice car, buy it.

PS- if you arent buying brand new, your interest rate is going to measurably larger, that is a trade off you should factor in. I went through penfed.org, and got 5.9% which is better than youll get on a used car from any dealer.

and good2cu, wtf is a mizartati/mizartai? do you mean maserati?

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yea maserati. I dunno wtf happened. I googled my [censored] up spelling then I thought I copy/pasted over the correct spelling. I guess im just retarded.

chisness · #33 09-04-2007, 02:50 PM

i thought the mizertati spelling was hilarious

BigPoppa · #34 09-04-2007, 03:44 PM

I never claimed to be anything other than a nit.
In fact, I'm likely the nittiest on BR nits in EDF.

guids: Why would he want to finance when he has cash?

geormiet · #35 09-04-2007, 04:03 PM

I think the key is to learn to not want the car.

I'd listen to the poster who said that if you get a better car your standards will readjust after a few weeks and your level of satisfaction will basically be the same.

Just decide what your reasons are for getting the car. If you are a driving enthusiast and like nice cars then this is the best argument for splurging. If you want to up your social status is probably the worst reason. Then there is everything in between.

I drive a pretty crappy car but it's comfortable, reliable, and has a nice stereo so it satisfies my needs. I went through a period a couple months ago where i was really set on getting a good car, but somehow i got over that phase.

Once I discovered that the majority of people driving around in the new audis and bmws don't actually own the car outright and are stretching themselves thinly to look wealthy it made me not to want to be a part of that game.

oddjob · #36 09-04-2007, 04:07 PM

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you people are [censored] nits!!!!

thats why if you ask this question in El D forum, you also have to ask it in BBV4Life. the correct answer will be somewhere in between.

I'm buying a car soon, not going nuts, but at 22 I'd like something nice rather than just a car that gets me from A to B. I'm going to be spending about 25k

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can't argue with this amount of life experience

guids · #37 09-04-2007, 04:54 PM

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I never claimed to be anything other than a nit.
In fact, I'm likely the nittiest on BR nits in EDF.

guids: Why would he want to finance when he has cash?

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He says he has 90k, say he buys a car for 20k out of the 90k in cash, he is left with 70k to earn some interest. Suppose 5% interest in a "safe account", after 5 years he has about 89,339. If he puts 90k into an account, he is earning 4,500 /yr in interest, which is 375/year for car payments, at the end he is left with 90k, plus at a young age, making paymentws month in and month out is great for his credit. Im assuming he is incorporated/llc, so you can mess around with your taxes to even everything out so you arent losing much that way either.

bobman0330 · #38 09-04-2007, 05:04 PM

[ QUOTE ]
[ QUOTE ]
I never claimed to be anything other than a nit.
In fact, I'm likely the nittiest on BR nits in EDF.

guids: Why would he want to finance when he has cash?

[/ QUOTE ]

He says he has 90k, say he buys a car for 20k out of the 90k in cash, he is left with 70k to earn some interest. Suppose 5% interest in a "safe account", after 5 years he has about 89,339. If he puts 90k into an account, he is earning 4,500 /yr in interest, which is 375/year for car payments, at the end he is left with 90k, plus at a young age, making paymentws month in and month out is great for his credit. Im assuming he is incorporated/llc, so you can mess around with your taxes to even everything out so you arent losing much that way either.

[/ QUOTE ]

I'm not going to go through all the math, but there's no way that borrowing money at 5.9% and investing it at 5% is going to result in him having more money.

oddjob · #39 09-04-2007, 05:08 PM

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I'm not going to go through all the math, but there's no way that borrowing money at 5.9% and investing it at 5% is going to result in him having more money.

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i'm no accountant or anything, but aren't you borrowing 20k at 5.9 and investing 90k at 5%?

jba · #40 09-04-2007, 05:13 PM

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[ QUOTE ]
I'm not going to go through all the math, but there's no way that borrowing money at 5.9% and investing it at 5% is going to result in him having more money.

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i'm no accountant or anything, but aren't you borrowing 20k at 5.9 and investing 90k at 5%?

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yeah but the other way you are still investing 70k at 5%. bob is right, what guids is talking about is impossible.