Worried...
02-20-2003, 06:05 AM
#16
Guest
Posts: n/a
Taxes and death
Sure people have mentioned that we need to think about insurance for this car but let us remember that we'll be paying taxes right off the bat. I guess I might think of that more often do to the obscene 9.75% sales tax here in TN.
02-20-2003, 08:25 AM
#17
Guest
Posts: n/a
Buy it, yo! The worst that can happen is that you'll find out 4 or 5 months later that you can't afford it and then you'll have sell it. You won't have to worry about someone not buying the car because after 6 months there will still be tons of people that want the car.
You're still young. You can recover from a finacial mistake at an early age. I'm not saying that this is a finacial mistake, I'm just saying that if you don't do this, you'll always look back to this day and wonder "What if...".
You're still young. You can recover from a finacial mistake at an early age. I'm not saying that this is a finacial mistake, I'm just saying that if you don't do this, you'll always look back to this day and wonder "What if...".
02-20-2003, 09:01 AM
#18
Registered User
Join Date: Jan 2003
Location: Santa Rosa, CA
Posts: 92
Car Info: 2004 WRX STi
Can you affor it?
I did this earlier in another post. It's simple. Just do the calculation. But first you should define affordable. My defination of affodable = The ability to make the purchase without the cost adversly affecting your crrent lifestyle.
Can you buy a STi with a 35K/year income? Yes.
Will they give you a loan for 25+K w/ a 10K down payment? Yes.
Can you affor to buy the STi? Well let us see ...
32,000 MSRP (just a guess)
460 Destination
2,560 Tax (8%)
350 Approximate tag and registration in CA
Hopefully there is not a gas guzzlier tax with the STi
35,370 Out the door
25,370 is the note you'll have to carry.
408.58 is the payment at 5% interest and 72 months term
150.00 is the insurence rate you'll get (probably worse than this)
560.00 payment for the ride, not too bad
Now does this fit a 35K income profile.
35K/26weeks = 1346 gross biweekly income
363.46 US income tax
127.87 CA income tax, skip this if not applicable
60 Medicare
83 Social Security
35 Helth insurence
134.60 401K
1346 - (the above) = 542.22
670.09 without state tax
804.69 without state tax & 401k
20,992 net income (no state tax or 401k)
1743 per month
1183 after STi + insurence.
If you live at home and have no bills then 1183 is plenty left. This should not adversly affect your lifestyle. They will give you the loan. Go for it. But this means that if your income situation dose not significantly improve, you'll be in mama's house until you're 26. Is that really worth it?
If you don't live at home and have to make the ends, 1183 is pretty slim pickens after rent and utilities. If you have to pay state income and are smart enough to do 401k, even slimer pickens. This will be a total bummer on your lifestyle. Mac and Cheese and Top ramem will be your friend.
Hope this helps.
Can you buy a STi with a 35K/year income? Yes.
Will they give you a loan for 25+K w/ a 10K down payment? Yes.
Can you affor to buy the STi? Well let us see ...
32,000 MSRP (just a guess)
460 Destination
2,560 Tax (8%)
350 Approximate tag and registration in CA
Hopefully there is not a gas guzzlier tax with the STi
35,370 Out the door
25,370 is the note you'll have to carry.
408.58 is the payment at 5% interest and 72 months term
150.00 is the insurence rate you'll get (probably worse than this)
560.00 payment for the ride, not too bad
Now does this fit a 35K income profile.
35K/26weeks = 1346 gross biweekly income
363.46 US income tax
127.87 CA income tax, skip this if not applicable
60 Medicare
83 Social Security
35 Helth insurence
134.60 401K
1346 - (the above) = 542.22
670.09 without state tax
804.69 without state tax & 401k
20,992 net income (no state tax or 401k)
1743 per month
1183 after STi + insurence.
If you live at home and have no bills then 1183 is plenty left. This should not adversly affect your lifestyle. They will give you the loan. Go for it. But this means that if your income situation dose not significantly improve, you'll be in mama's house until you're 26. Is that really worth it?
If you don't live at home and have to make the ends, 1183 is pretty slim pickens after rent and utilities. If you have to pay state income and are smart enough to do 401k, even slimer pickens. This will be a total bummer on your lifestyle. Mac and Cheese and Top ramem will be your friend.
Hope this helps.
02-20-2003, 09:38 AM
#19
i agree with STidreams. but hey, go for it man, not trying to hold you back. but think about the pain you might have to endure if you find out you can't keep the car. why buy it when you'll end up selling it later. just a thought.
02-20-2003, 09:53 AM
#20
Guest
Posts: n/a
feeling a little better
Thanks a lot for all the help guys! You all helped me out a lot! I'll let everyone know how i made out on saturday.
Peace,
Ryan
Peace,
Ryan
02-20-2003, 09:59 AM
#21
Guest
Posts: n/a
STiDreams
That was a very nice analysis. And you are right, at 21, $150 for insurance would be a very good rate.
Stiger
I know you mean well dude, but by your "rule," you'd have to make at least $96,000 per year to get an STi. My hat off to you for doing whatever you had to do to get that income. I would have to believe that if Subaru was depending on 6-figure incomes to buy the STi, theya would have never brought it to the States.
I'm not proud to say it, but I don't make that much money (but it's a goal). I also believe that a very small percentage of the people who will buy the car make 96k.
As far as Oppie1 goes, I do think it would be a mistake to buy the STi, even if you put down 10k. It's too big of a commitment. Get a slightly used WRX for like $19k, then use the $10k to mod the #&!#@$ out of it. You'll end up with a beautiful 350whp cornering monster.
That was a very nice analysis. And you are right, at 21, $150 for insurance would be a very good rate.
Stiger
I know you mean well dude, but by your "rule," you'd have to make at least $96,000 per year to get an STi. My hat off to you for doing whatever you had to do to get that income. I would have to believe that if Subaru was depending on 6-figure incomes to buy the STi, theya would have never brought it to the States.
I'm not proud to say it, but I don't make that much money (but it's a goal). I also believe that a very small percentage of the people who will buy the car make 96k.
As far as Oppie1 goes, I do think it would be a mistake to buy the STi, even if you put down 10k. It's too big of a commitment. Get a slightly used WRX for like $19k, then use the $10k to mod the #&!#@$ out of it. You'll end up with a beautiful 350whp cornering monster.
02-20-2003, 10:27 AM
#22
Registered User
Join Date: Jan 2003
Posts: 13
I too make $35K a year and I plan on buying an Sti in June. It depends on your bills. Here are my current bills....
Car payment $240
Car Ins. $120
Rent $250(split with girlfriend)
Cell Phone $40
House phone $25
Cable $30
Electric $20-60(varies by months depending on heat/ac)
That adds up to $765 per month. I clear over $900 each check after stock & 401 taken out. That means I have an extra $1035 per month. I barely spend $20 per week on groceries & $20 for food at work per week. That still leaves me with almost $900 extra per month. Even at $450 per month I still have PLENTY of money left to live comfortably.
I calculated at $35K for the car after everything with the $13K minimum I plan to put down(over 33%) my car payment at 7% interest(Will probably be lower, I have 6.5% on my current car) will be $435 a month, that is the highest payment I will make. If I am lucky enough to qualify for 0% interest like they have from time to time that payment goes down to $366. Even at $435 and let's say my insurance goes up to $170 per month I still have over $600 extra per month minimum. Just do some calculating of your bills.
Car payment $240
Car Ins. $120
Rent $250(split with girlfriend)
Cell Phone $40
House phone $25
Cable $30
Electric $20-60(varies by months depending on heat/ac)
That adds up to $765 per month. I clear over $900 each check after stock & 401 taken out. That means I have an extra $1035 per month. I barely spend $20 per week on groceries & $20 for food at work per week. That still leaves me with almost $900 extra per month. Even at $450 per month I still have PLENTY of money left to live comfortably.
I calculated at $35K for the car after everything with the $13K minimum I plan to put down(over 33%) my car payment at 7% interest(Will probably be lower, I have 6.5% on my current car) will be $435 a month, that is the highest payment I will make. If I am lucky enough to qualify for 0% interest like they have from time to time that payment goes down to $366. Even at $435 and let's say my insurance goes up to $170 per month I still have over $600 extra per month minimum. Just do some calculating of your bills.
02-20-2003, 11:11 AM
#23
Guest
Posts: n/a
oil changes
gas
entertainment
water?
clothes
loans/credit cards/debts?
I don't know where you live, but an STi in a $500/month apartment complex around here is begging for vermon attention. Get a good alarm system.
gas
entertainment
water?
clothes
loans/credit cards/debts?
I don't know where you live, but an STi in a $500/month apartment complex around here is begging for vermon attention. Get a good alarm system.
02-20-2003, 11:33 AM
#24
Registered User
Join Date: Jan 2003
Posts: 13
Ok $30 every 3 months for an oil change. My girlfriend and I are stay at home types so we hardly spend any money on entertainment, we may go out every other weekend which usually cost no more than $40 for both of us together. Neither of us drink or smoke. We have a big 2 bedroom apartment in a good part of town right by a hospital. Water is included in rent, I have more clothes than I need. I usually just spend money once a year on clothes. I'm 27 have perfect credit and have NEVER needed a credit card or loans. I see no point in one. Every car I have owned has had thousands in work in them which I paid out of my pocket. It is called money management. Gas $20 per week. Hardly puts any more strain on my wallet.
02-20-2003, 12:10 PM
#25
Guest
Posts: n/a
Don't just think that if you can't afford it that you can just sell it and get out of it. You may be upside down on the investment meaning you owe more on it than it's worth. In which case you might want to skip the investment all together
02-20-2003, 12:45 PM
#26
Guest
Posts: n/a
I plan on trading in my 2000 Mustang Vert, I'm 22 and got that car when I was 19. Its paid off now.
I think that it based on the person not how much it costs.
If you want the car and are willing to do what needs to be done to get/keep the car then go for it. But if you just want it to get you places then your better off with a commuter car
I think that it based on the person not how much it costs.
If you want the car and are willing to do what needs to be done to get/keep the car then go for it. But if you just want it to get you places then your better off with a commuter car
02-20-2003, 12:55 PM
#27
Guest
Posts: n/a
Re: Worried...
Originally posted by Oppie1
My parents will not cosign for a loan (****ers)!
My parents will not cosign for a loan (****ers)!
Subaru does NOT care if the people buying their car can afford the payments or not. Subaru KNOWS that there are plenty of people who are willing to push themselves to the financial limit in order to buy the STI. Do YOU want to be one of those people?
I have nothing to gain by giving you this advise, and I dont want to see you or anyone else get into financial mayhem because of a car.
It's a double-edged sword. You're gonna have to learn to live AND die by it.
Good luck in whatever path you decide to take.
02-20-2003, 05:15 PM
#28
Guest
Posts: n/a
Re: Re: Worried...
Originally posted by 97itr153
The reason your parents didn't cosign your loan is because they (like a lot of experienced people on this board) know that you will be living on the edge by buying a 32k car. Kudos to them!
Subaru does NOT care if the people buying their car can afford the payments or not. Subaru KNOWS that there are plenty of people who are willing to push themselves to the financial limit in order to buy the STI. Do YOU want to be one of those people?
I have nothing to gain by giving you this advise, and I dont want to see you or anyone else get into financial mayhem because of a car.
It's a double-edged sword. You're gonna have to learn to live AND die by it.
Good luck in whatever path you decide to take.
The reason your parents didn't cosign your loan is because they (like a lot of experienced people on this board) know that you will be living on the edge by buying a 32k car. Kudos to them!
Subaru does NOT care if the people buying their car can afford the payments or not. Subaru KNOWS that there are plenty of people who are willing to push themselves to the financial limit in order to buy the STI. Do YOU want to be one of those people?
I have nothing to gain by giving you this advise, and I dont want to see you or anyone else get into financial mayhem because of a car.
It's a double-edged sword. You're gonna have to learn to live AND die by it.
Good luck in whatever path you decide to take.
02-20-2003, 06:01 PM
#29
that's true, however, it's not taking into consideration the insurance payments, which may be high, no one really knows as of this moment. also, there may be other bills that may need to be paid in the near future. you do have a very good point about making the payments, givin that there aren't other things that come up. this world is forever changing. it's better to be safe than sorry.
02-20-2003, 08:39 PM
#30
Guest
Posts: n/a
Re: Re: Re: Worried...
Originally posted by VSOP
You guys are really missing the fact that he will be putting down a down payment over 10g's that would make it the same as buying a 22K car when it comes to monthly payments. If he pays over 3-4 years its not that big of a paymnet
You guys are really missing the fact that he will be putting down a down payment over 10g's that would make it the same as buying a 22K car when it comes to monthly payments. If he pays over 3-4 years its not that big of a paymnet
The question is NOT just whether you can cover your bills over the next five years. Life is a chess game. You have got to think more than one move ahead if you want to win.