How much to spend on a nice first car?

[Rampage_Jackson]

Wow, it's hard to believe how many people are advocating buying a used car... that's a great way to get a car with defects that someone didn't want.

[jaydub]

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guids,

Why wouldn't the loan company put all their money into fnbo then? Intro-rates don't count here. If it is going to return more than his loan will charge him for the life of his loan, then yes it is riskier.

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I have no idea.


with online banking, I dont think it would be too hard for him to keep track of his money, and shift it around at a rate better than 5% if he keeps up on it, and keeps finding rates that he likes once the intro rates change.

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guids,

Read some BF&I or maybe some books on the subject. It doesn't seem like arguing with someone who isn't really educated on the subject is going to get me anywhere.

Clayton,

Post the question of borrowing vs paying cash in BF&I for opinions from people who are smarter than both guids and myself at this.

both,

You won't find risk-free investments returning more than the rate his loan is charging him for the life of his loan. Teaser rates or other gimmicks won't change this. I know guids doesn't like to believe this, but I guarantee you it is true. It makes zero sense to think otherwise.

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Also, I am pretty certain taxes will need to be paid on the interest which from a quick scan of your calculations was not included. (Sorry if I missed it)

Dead on about the rates, no FDIC insured savings gets you a true 6%, I believe CFC at 5.6% is currently the closest excluding the intro rates.

Edit: Per El D's request regarding content; you appear by your own admission to be a marginally successful, young player who ran well in a big tourney. I'd keep the truck.

J

[Josem]

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Wow, it's hard to believe how many people are advocating buying a used car... that's a great way to get a car with defects that someone didn't want.

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It may be different in the US, but here in Australia, it is standard practice to inspect the car before purchasing.

In addition, the regional automobile organisation (www.racv.com.au) can do high quality, independent pre-purchase inspections for a small fee.

[SlowHabit]

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SH: Claiming mileage as a business expense is fine. Claiming car payments is like begging to get audited.

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The thought of being audited is dreadful but I pay my taxes and deducting a business vehicle is within the law so I have no problem doing so. Sure, the auditing process will probably waste a lot of my time but I can't let that scare me from saving any moneys, especially when it's legal. And this is coming from a person that's very afraid of the IRS, or else I wouldn't have paid any taxes.

Here is an article I read a long time about using vehicle as a business expense; for those who don't want to read the whole article, the part about vehicle is at the bottom of the page. I do not know if the Act has been changed/amended since because I found a great CPA and there's no way I know anything about tax that he doesn't know. Anyway, I remember thinking "OMG. It's sickening how the rich just keeps getting richers." I obviously want to be part of this sick group.

[El Diablo]

SH,

You are aware that you can only deduct a car for the business use portion of its use, right?

[TheMetetron]

You guys realize if you go to a casino at all regularly it becomes a commute and not a business trip which means you can't deduct mileage or car expenses, right?

This is actually something that I didn't realize until later, but which definitely most people here don't seem to realize.

[Clayton]

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All,

Less finance vs. cash talk, more car suggestions.

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Thanks Eld.

I'm still very unsure, the wire is on the way as we speak. I may be putting down more on taxes than I thought due to my new tax bracket and the self-employment tax. Maybe as much as 40k on the 115 or so that is being wired.

The differing opinions tend to run linearly with age and value of money. Everyone who is older than 35 seems to convey Ray Zee's thoughts, and everyone under 23 seems to agree with KRANTZ. Nobody however agrees with good2cu [img]/images/graemlins/laugh.gif[/img]

- I'm still open to either getting a newer car for 25-35k. Examples: Volkswagon GTI Mk V, '08 Mercedes-Benz C-Class Sport sedan

- Also though open to getting a '04 luxury'ish model. Examples: Infiniti G35.

[Clayton]

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Clayton: If I were you, I'd probably commit the bulk of your "car money" to poker bankroll and give myself a shot at having a lot more money in a year, at which point you'll be in a much more comfortable position to buy a relatively nice car.

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This option is also intriguing, however I don't know how much longer I can take my crappy truck.

Maybe just long enough until I move out of my POS state!

[oddjob]

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You guys realize if you go to a casino at all regularly it becomes a commute and not a business trip which means you can't deduct mileage or car expenses, right?

This is actually something that I didn't realize until later, but which definitely most people here don't seem to realize.

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not if you're self employed. you can write off all the miles.

[SNOWBALL]

I recommend a convertible solara

It performs ok, looks nice, is safe, gets good gas mileage, and isn't too expensive.

I have an earlier model, and couldn't be much happier.