Can you really afford your STI?
02-24-2003, 03:53 PM
#1
Guest
Posts: n/a
Can you really afford your STI?
There has been a lot of talk on these boards about how much one's annual salary should be in order to afford this car. Some claim four months of your gross salary should equal the price of the car.(as a rule of thumb) I say that's bull**** and there are no rules... just smart financing and different personal situations. For instance, I make no where near that amount of money! My spouse and I COMBINED make 65K or a little more at most, yet, we will be able to pay for this car outright, in cash and with some extra mods like GPS and a stereo system. We have this cash sitting around and we still own a house and max out our extra mortgage payments every year and contribute to our RRSPs. I guess having no kids really helps but the point is it really depends on your situation. I think financing the car at subaru's high interest rates should be avoided at all costs... that's why we have chosen to buy it outright. Is this smart? I'm not entirely sure.
02-24-2003, 04:55 PM
#2
Guest
Posts: n/a
If there are no rules, why piddle around with an STi ... go for a 911 twin turbo! End of argument. With that said, buying a car outright is smart unless there's 0% financing (which, to my knowledge, there isn't on the STi).
02-24-2003, 05:04 PM
#3
Registered User
iTrader: (4)
Join Date: Nov 2002
Location: Moraga, CA
Posts: 998
Car Info: 2016 CWP WRX
hey
i think the most important thing to remember with cars is they are not an investmant or an asset, but rather a liability. cars do not appreciate in value (almost all cars, but especially subys). they LOOSE value. if you plan on keeping the car forever, than buying it outright is the right thing to do, if you have the $$. it will save you from paying tons of interest, and you will reek its value in the pleasure of owning the car.
the STi like any other car will loose a signifigant amount of its value quickly. the import numbers are low, and they will make more and import more. this car is going to be a huge hit, just as the EVO is, and prudent buyers will be patient and wait for the first rash of fools who are going to have to sell the car because they got in over there heads and cant afford it. As badly as i want to get a car in the first allocation, i might just very well wait for the price and hype to come down.
look at the price of wrx's. i see them on ebay and autotrader for 17-18k, w/ no miles on them. that is cheap, considering many of those people payed $24-26k w/tax, etc.
but, for most of us the lose of value is inconsequential. it really is up to the individual.
edit: i personally have enjoyed every one of the cars i have owned beyond what i have paid for them. it isnt about the $$ or the lose of $$. it is ALL about the pleasure of tuning and driving it like i stole it. just wanted to make that clear
josh
i think the most important thing to remember with cars is they are not an investmant or an asset, but rather a liability. cars do not appreciate in value (almost all cars, but especially subys). they LOOSE value. if you plan on keeping the car forever, than buying it outright is the right thing to do, if you have the $$. it will save you from paying tons of interest, and you will reek its value in the pleasure of owning the car.
the STi like any other car will loose a signifigant amount of its value quickly. the import numbers are low, and they will make more and import more. this car is going to be a huge hit, just as the EVO is, and prudent buyers will be patient and wait for the first rash of fools who are going to have to sell the car because they got in over there heads and cant afford it. As badly as i want to get a car in the first allocation, i might just very well wait for the price and hype to come down.
look at the price of wrx's. i see them on ebay and autotrader for 17-18k, w/ no miles on them. that is cheap, considering many of those people payed $24-26k w/tax, etc.
but, for most of us the lose of value is inconsequential. it really is up to the individual.
edit: i personally have enjoyed every one of the cars i have owned beyond what i have paid for them. it isnt about the $$ or the lose of $$. it is ALL about the pleasure of tuning and driving it like i stole it. just wanted to make that clear
josh
Last edited by josh; 02-24-2003 at 08:17 PM.
02-24-2003, 05:22 PM
#4
Guest
Posts: n/a
interesting how josh brought up the asset vs liability part
i was looking at RX 7 prices..
93-94 stock between 17G-22G, now thats a good investment..
call it 20 G spent for 10 years of fun is so worth it..
even tho this is pretty rare
really depends on how you appreciate your car.
we value things differently.
i am fresh outta college too.. yet i value STi enough so that i am
dumping out cash for it too.
as long as i am happy.. dont' give a Sh*T what other ppl think.
i was looking at RX 7 prices..
93-94 stock between 17G-22G, now thats a good investment..
call it 20 G spent for 10 years of fun is so worth it..
even tho this is pretty rare
really depends on how you appreciate your car.
we value things differently.
i am fresh outta college too.. yet i value STi enough so that i am
dumping out cash for it too.
as long as i am happy.. dont' give a Sh*T what other ppl think.
02-24-2003, 06:16 PM
#6
Guest
Posts: n/a
A little OT, but I see WRX's (2002) going for $20K in my area with low miles (>20K). Of course, we get bad weather (ie: snow).
02-24-2003, 06:35 PM
#7
Registered User
Join Date: Jan 2003
Location: Santa Rosa, CA
Posts: 92
Car Info: 2004 WRX STi
essogas, the guy that was saying 4 months gross income also said 6 month if you're hitch. (65k/12) * 6 = 32,500. Pretty close to the price, IMO. You seem to fit that guy's profile fairly well. You're in a pretty sweet spot compared to many. Most of the "don't buy" statememt from the group was for the guy with the 35 k/year job.
At 35k/year gross, he certainly can buy the STi. It will dominate his expendature. For the % income that it will take to own his STi, I hope it provides that much pleasure. If it does, then it's worth it. If it doesn't, he's going to be unhappy with something that should be pure pleasure. You can't really enjoy it if it's stressing you about making your ends. There will be a better STi(or some better car) in a few years. If things work out for him like they should (upwardly direction), this thing will be pure pleasure then. I'm not saying he shouldn't get it. His money = His decision.
For me, a 35K purchase is very major. It will still be a little of a pain in the behind, even with a sizable down-payment and short financing term(bigger payment but better rates). I'm not sweating my ends though. This thing is going to be pure pleasure.
At 35k/year gross, he certainly can buy the STi. It will dominate his expendature. For the % income that it will take to own his STi, I hope it provides that much pleasure. If it does, then it's worth it. If it doesn't, he's going to be unhappy with something that should be pure pleasure. You can't really enjoy it if it's stressing you about making your ends. There will be a better STi(or some better car) in a few years. If things work out for him like they should (upwardly direction), this thing will be pure pleasure then. I'm not saying he shouldn't get it. His money = His decision.
For me, a 35K purchase is very major. It will still be a little of a pain in the behind, even with a sizable down-payment and short financing term(bigger payment but better rates). I'm not sweating my ends though. This thing is going to be pure pleasure.
02-24-2003, 06:50 PM
#8
Guest
Posts: n/a
Thats what I believe. I want to spend my last 3 years of school as a blast. And if I can do it while paying the payments easily. So I think I am going to do something for me that I want really bad. Its supposed to be some of the funnest years of your life so before i have to go to work everyday I am going to go to class in style. At least thats how I feel.
02-24-2003, 07:29 PM
#9
Registered User
Join Date: Jan 2003
Location: Central PA
Posts: 24
Car Info: Silver/Silver
It is very difficult to think rationally when it comes to a car like the STi. Anyone that has a clue about the potential of this car (most people on this board) will be vulnerable when it comes to clear financial thinking. So I’m not surprised to see many posts concerning people trying to "stretch" their dollars to own this car. Hey, we’re not talking about a Honda Accord LX here.
As for me, my company will be footing the bill for the STi—the least they could do for the hell they put me through.
As for me, my company will be footing the bill for the STi—the least they could do for the hell they put me through.
02-24-2003, 07:34 PM
#10
Guest
Posts: n/a
well i think im lucky !!! because i ran into some money just when the sti gets here, so i will buy it outright and tune the crap out of it ..this car for me will only be a toy!!!!hmmm better put some away for tickets lol!!!!
02-24-2003, 07:59 PM
#11
Guest
Posts: n/a
interesting perspective
i was watching the Suze Orman show this weekend on CNBC and she brought up an interesting point...
you need to ask yourself whether you want to do what is best for you or what is best for your money. once you answer that, the decision to purchase or save becomes much clearer.
am i just rationalizing an unwise purchase by saying i want to do what's best for me? maybe, but you gotta spend your money somehow and there are worse places to start than buying a STi.
also, if this car turns out to be half as good as we all think it will be, i don't think the standard depreciation scales will apply to it. someone above mentioned a '93-94 RX-7 going for around $20k. Gen IV Supras are the same way, often going for mid 30k's to low 40k's for '94-98 models with anywhere from 20-80k on them. ideally, you will be able to have the STi for 5-6 years, put 60-70k miles on it, and then sell it for $15-20k. i don't know about ya'll, but approx. $3k/yr in depreciation for the priviledge of driving the STi isn't too shabby.
you need to ask yourself whether you want to do what is best for you or what is best for your money. once you answer that, the decision to purchase or save becomes much clearer.
am i just rationalizing an unwise purchase by saying i want to do what's best for me? maybe, but you gotta spend your money somehow and there are worse places to start than buying a STi.
also, if this car turns out to be half as good as we all think it will be, i don't think the standard depreciation scales will apply to it. someone above mentioned a '93-94 RX-7 going for around $20k. Gen IV Supras are the same way, often going for mid 30k's to low 40k's for '94-98 models with anywhere from 20-80k on them. ideally, you will be able to have the STi for 5-6 years, put 60-70k miles on it, and then sell it for $15-20k. i don't know about ya'll, but approx. $3k/yr in depreciation for the priviledge of driving the STi isn't too shabby.
02-24-2003, 09:14 PM
#13
Registered User
Join Date: Dec 2002
Location: columbia,md
Posts: 134
Car Info: 03 wrx,944 turbo racecar, Lexus is300
Income versus STI issue..
I have a very good income and so does my fiance. I spend 20-30 grand a year on racing my Porsche and paying for Panoz and this year, Speedvision GT rides. So for me to actually purchase something that will last longer than an afternoon of sweat and fender banging is great !! I have contracted someone to do my race proposals and sponsor packages, so the idea of a 35k very rare Subaru sounds good,...it all comes down to your indivisual situation.
The real problem is, now my fiance really wants a Skyline ,..baddd..
.
TO ANYONE WHO HAS TO SELL MOUNTAIN BIKES AND FLAT SCREEN TV'S AND HOUSEHOLD APPLIANCES TO GET AN STI,...DO IT CAUSE' THAT STUFF YOU CAN REPLACE.... THE STI,..WELL WHAT IF THEY ONLY MAKE IT FOR 2 YEARS, OR 1 YEAR,..YOU'LL BE LOOKIN' AT THE STAINLESS STEEL FRIDGE REGRETTIN' NOT GETTING THE STI.......
944 TURBO GUY
The real problem is, now my fiance really wants a Skyline ,..baddd..
.
TO ANYONE WHO HAS TO SELL MOUNTAIN BIKES AND FLAT SCREEN TV'S AND HOUSEHOLD APPLIANCES TO GET AN STI,...DO IT CAUSE' THAT STUFF YOU CAN REPLACE.... THE STI,..WELL WHAT IF THEY ONLY MAKE IT FOR 2 YEARS, OR 1 YEAR,..YOU'LL BE LOOKIN' AT THE STAINLESS STEEL FRIDGE REGRETTIN' NOT GETTING THE STI.......
944 TURBO GUY
02-24-2003, 09:32 PM
#14
Guest
Posts: n/a
Originally posted by josh
the STi like any other car will loose a signifigant amount of its value quickly. the import numbers are low, and they will make more and import more. this car is going to be a huge hit, just as the EVO is, and prudent buyers will be patient and wait for the first rash of fools who are going to have to sell the car because they got in over there heads and cant afford it
the STi like any other car will loose a signifigant amount of its value quickly. the import numbers are low, and they will make more and import more. this car is going to be a huge hit, just as the EVO is, and prudent buyers will be patient and wait for the first rash of fools who are going to have to sell the car because they got in over there heads and cant afford it
02-24-2003, 09:38 PM
#15
Guest
Posts: n/a
...though I'll wait until there's enough of them on the used car market so that there isn't as much price pressure on the new ones.