Worried...
02-21-2003, 07:59 AM
#32
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Spend that 10K on a '95 impreza sedan, jspec ej20 motor & suspension, and some auto-tech classes. You'll have your super-fast AWD Subaru, the pride of doing something yourself, and the satasfaction to not make payments.
02-21-2003, 08:10 AM
#33
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Do you know how to use Excel? Spend a couple of hours planning out your life out on Excel. How much do you expect to see you income grow year after year. What percent of your income is going to go into savings each year? What do you expect the average return to be (use historical numbers)?
Buying a car that is almost 100% of my annual income would scare the bejesus out of me. My plan would fall apart. You should be saving as much as you can. I know that priorites are different for different people .. but regardless. If you have any long-term financial goals, a few hours playing in excel will put it all into perspective.
You can make these as detailed and flexible as you like.
Buying a car that is almost 100% of my annual income would scare the bejesus out of me. My plan would fall apart. You should be saving as much as you can. I know that priorites are different for different people .. but regardless. If you have any long-term financial goals, a few hours playing in excel will put it all into perspective.
You can make these as detailed and flexible as you like.
02-21-2003, 09:50 AM
#34
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Man, you guys need to stop talking like this. You're making me reevaluate my frivolous spendings.
02-21-2003, 10:52 AM
#35
Registered User
Join Date: Dec 2002
Location: ny
Posts: 28
Car Info: 2001 impreza rs
i am 21 and in the same boat , I also will probably put around 12grand down but after reading the post i am considering doing something else , what do u guys think is a good investmnet for someone 21 out of college making 40k a year ? besides 401k
thanks
thanks
02-21-2003, 04:07 PM
#36
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Damn....
Maybe the car is not a good investment. Maybe i should tone it down a bit.. That car is my friggin dream though! I could be dead in a few years, who knows. I want to enjoy myself now, while i'm still young. Is there any other cars out there that people are looking at? The rx-8 is pretty hot for 28,000. I just hope i make out well tomorrow with the subbie dealer!
02-21-2003, 04:15 PM
#37
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To subysteve
Stay out of stocks, bonds, and almost all mutual funds with a couple of exceptions I'll mention. Keep most of your money in cash right now due to highly volatile market conditions, even though the return is very low. Then you'll have the funds available to invest in stocks again after the market bottoms out (which it has not yet done). U.S. Treasury based funds are the most secure investment but most banks are fairly safe (for now). Take a smaller percentage of your money (a percentage you could afford to lose) and consider two higher risk areas of investment: (1) a reverse index fund (which is a mutual fund which goes up as the market goes down) and (2) a precious metals fund (since gold prices have been climbing, are presently undergoing some correction, and are poised to climb again). Learn all you can about investment now at this young age and when you're older, you won't have any money worries.
Stay out of stocks, bonds, and almost all mutual funds with a couple of exceptions I'll mention. Keep most of your money in cash right now due to highly volatile market conditions, even though the return is very low. Then you'll have the funds available to invest in stocks again after the market bottoms out (which it has not yet done). U.S. Treasury based funds are the most secure investment but most banks are fairly safe (for now). Take a smaller percentage of your money (a percentage you could afford to lose) and consider two higher risk areas of investment: (1) a reverse index fund (which is a mutual fund which goes up as the market goes down) and (2) a precious metals fund (since gold prices have been climbing, are presently undergoing some correction, and are poised to climb again). Learn all you can about investment now at this young age and when you're older, you won't have any money worries.
Last edited by stiger; 02-21-2003 at 04:22 PM.
02-21-2003, 07:18 PM
#38
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hey oppie, if it's really what you want, don't let anyone change your mind about it. just make your decision and stick to it. either way, you win. and like you said and i totally agree with you. you only live once. just remember though, there are many ways you can spend 35K it doesn't really have to be and "STi". what i would probably do is buy a cheaper car (used WRX or 2.5 rs) and build it up myself. who knows, you could have just as much fun driving it, with tons of power, and everything you like about it, and you may have some money to spare, if you've made the right spending choices.
02-23-2003, 03:19 PM
#39
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Some people are fine eating ramen for the rest of there life. Plus most 21 yrs old dont really give a rat @ss about retirement and whatnot. Im only 22, and i still dont care about 20 yrs from now, it feels like im not gonna live that long.....
This thread is very informative. Ive been debating if i should buy the STi, this thread made me decide not to. Instead im going to use my saving on a down payment for a house, house dont depriciate and a good investement. The STi is the best car for now, in 2-3 yrs who knows.
BTW, after buying a first yr production car w/ a new engine and technology(my sn should tell you what car it was), ive learned my lesson not to buy 1st yr production car.
This thread is very informative. Ive been debating if i should buy the STi, this thread made me decide not to. Instead im going to use my saving on a down payment for a house, house dont depriciate and a good investement. The STi is the best car for now, in 2-3 yrs who knows.
BTW, after buying a first yr production car w/ a new engine and technology(my sn should tell you what car it was), ive learned my lesson not to buy 1st yr production car.
Last edited by ZZT231; 02-23-2003 at 03:21 PM.
02-23-2003, 05:56 PM
#40
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Saturday
I put down 500 to hold one. He said i am the only one so far that has reserved one. He said i should have no problem getting approved..I have to fax the credit application in tomorrow.
Part of me wants to spend the money and part of me does not. I still haven't made my decision yet. Maybe by June/July i will have my mind made up. I am also gonna look at the rx-8. I'm not sure what else is out there that is cool...
Part of me wants to spend the money and part of me does not. I still haven't made my decision yet. Maybe by June/July i will have my mind made up. I am also gonna look at the rx-8. I'm not sure what else is out there that is cool...
02-23-2003, 10:09 PM
#41
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Originally posted by stiger
A good rule of thumb for buying a car is never pay more than 4 months' salary for a car. At your age and with your income level, you'd benefit much more from investing your money and building up some savings rather than blowing it on the hot car of the moment. Self discipline and deferred gratification in the financial arena is almost always the smartest way to go. You won't regret it. You play your cards right and you'll be buying any car you want for cash in not too many years.
A good rule of thumb for buying a car is never pay more than 4 months' salary for a car. At your age and with your income level, you'd benefit much more from investing your money and building up some savings rather than blowing it on the hot car of the moment. Self discipline and deferred gratification in the financial arena is almost always the smartest way to go. You won't regret it. You play your cards right and you'll be buying any car you want for cash in not too many years.
I'm 21 years old and I, at 18, was making three+ times what you make. As of right now I am looking back and damn near crying I didn't heed this advice. Now I'm slowly crawling out of tremendous debt and looking to gain assets and invest inteligently (which includes getting out my WRX lease... I KNOW). Thank heaven I got into this amazing Real Estate Investment Firm or else I'd be living out of a box with a titanium sti shifter as my only possession.
Take a test dirve, take a picture, take it on the chin. In 3-5 years, you'll be rolling in dough so much that you'll be on the AMG messageboard talking about your 12 cyl.
Good looking out Stig.
[If anyone needs REI (real estate invest) advice, just email me, regardless of age and money, anyone can learn to make intelligent investment desicions]
- Lux
Last edited by luxcar101; 02-23-2003 at 10:13 PM.
02-23-2003, 11:01 PM
#42
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Smart man
Way to go luxcar101! You're on your way to financial independence. Let's hope he listens. BTW, Oppie1, not good calling your parents ****ers. I would assume they love you and one of the way love manifests itself by doing the right thing for your kids, not necessarily what they would like you to do. Your parents are doing the right thing. I'd never co-sign a loan for my kids under these circumstances either and I love 'em more than life itself.
02-24-2003, 12:51 AM
#43
Registered User
Join Date: Dec 2002
Location: Austin, TX
Posts: 1,556
I have a question for your guys. Where would it be a good place to learn on how to invest etc.... Most of you seem to know what to do right. And I being 22 would love to learn exactly how to retire at 40. Right now my parents pay all my bills but thats because I go to school full time and work part time. (well not all my bills but the major ones like car insurance etc..) So what would you suggest would be a good way for someone to live well later on in life. Like what would you have done different to change the way you did things when you where younger?
02-24-2003, 08:29 AM
#44
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Anyone who buys an STi and thinks it's a wise decision or a practical one, is kidding themselves. Buying a quick depreciating assest such as a car, is a purchase done more on emotion than on practicality of finance.
There are people willing to eat less or live in a cheaper apartment because they LOVE cars or motorcycles or whatever other sport vehicle. To them, the sport car is important to their life. We all decide what is important to our own life and what will make us happy. If buying the STi on a $30k income will make this persons life happier than more power to him. It is his choice.
If we bought cars for the sake of praticality only, most of use would be driving
a base Impreza or more so a Focus. Afterall, in terms of practical, a car is merely to get you from point a to point b and that's all. It should not matter how well it gets you there as long as it protects you from the elements and gets you to where you are going.
However, that is NOT how the majority of people in the US think. Some of us are sport car fans and we actually enjoy driving not just commuting. Thus, we will spend more on a car and less elsewhere.
My suggestion to the guy wanting to put a $10k deposit on the STi, stop!
Look at the overall monetary layout over the life of the loan. It may actually cost you LESS in the end if you give a smaller down payment up front and make larger payments monthly. $10k is a nice chunk of change that could come in handy in the next 5 years. You may want to have some of it on hand if needed. If not, then it will earn you some interest while the STi loan will cost you interest. Money in the bank can help offset that difference.
T
There are people willing to eat less or live in a cheaper apartment because they LOVE cars or motorcycles or whatever other sport vehicle. To them, the sport car is important to their life. We all decide what is important to our own life and what will make us happy. If buying the STi on a $30k income will make this persons life happier than more power to him. It is his choice.
If we bought cars for the sake of praticality only, most of use would be driving
a base Impreza or more so a Focus. Afterall, in terms of practical, a car is merely to get you from point a to point b and that's all. It should not matter how well it gets you there as long as it protects you from the elements and gets you to where you are going.
However, that is NOT how the majority of people in the US think. Some of us are sport car fans and we actually enjoy driving not just commuting. Thus, we will spend more on a car and less elsewhere.
My suggestion to the guy wanting to put a $10k deposit on the STi, stop!
Look at the overall monetary layout over the life of the loan. It may actually cost you LESS in the end if you give a smaller down payment up front and make larger payments monthly. $10k is a nice chunk of change that could come in handy in the next 5 years. You may want to have some of it on hand if needed. If not, then it will earn you some interest while the STi loan will cost you interest. Money in the bank can help offset that difference.
T
02-24-2003, 01:37 PM
#45
Guest
Posts: n/a
I am in the same ordeal as he is I am 19 soon to be 20 and I am telling you that I really want to by this car.
Think about it like this, college, food, board everything is paid for. So if I buy a car now 100% of the money I make can go to the payments. And once out of college the loan will be nearly paid for anyways. So if I needs to, I can refinance the loan, or sell it a make some money off of it and get something more practical.
Think about it like this, college, food, board everything is paid for. So if I buy a car now 100% of the money I make can go to the payments. And once out of college the loan will be nearly paid for anyways. So if I needs to, I can refinance the loan, or sell it a make some money off of it and get something more practical.
Last edited by HunterKiller; 02-24-2003 at 02:51 PM.