Automotive

At what salary til you should invest into a new car?

  • Last Updated:
  • Jun 13th, 2015 10:32 pm
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Deal Guru
Feb 9, 2006
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blitzforce wrote:
Mar 6th, 2015 12:20 am
The one's I'm interested in are around 30k(+ other IDK fees) and even if interest is 0%, monthly payments are still around $900/month for 3 years until everything is paid off. How do most young adults afford that unless they don't save for down payments for the purchase of a home in the foreseeable future, plus other monthly/annually bills?
Easy
Have mommy and daddy foot all the bills.
Deal Addict
Jan 10, 2007
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"invest"

never. I don't see the point in buying new...ever. Maybe...just maybe near the end of my career where the depreciation hit may not bother me.
Member
Dec 8, 2008
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Lease a car. Even better take over someone else's lease. Who knows what you want in 3 years.
Sr. Member
Feb 25, 2015
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NB
New vs used - you need to run the numbers and estimate the total cost of ownership over the period of X years: depreciation + insurance + maintenance + fuel + cost of borrowing + taxes.

There are cases where it actually makes sense to buy new rather than a 2-3 year old vehicle - many Japanese models depreciate very little in the first few years, while the interest rates are quite a bit higher than mfr-subsidized financing on new cars.

A 5-7 years old beige Corolla is a surefire though, especially if the first owner was a retiree who didn't drive much, but always serviced the car at the dealership.
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Mar 14, 2006
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AudiDude wrote:
Mar 6th, 2015 10:23 am
I have to mirror most of what was said here.
.............

+1 , sounds like something that should be posted in personal finance forum lol
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May 2, 2006
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When your real investments are returning > 30K a year.
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Euphoric wrote:
Mar 6th, 2015 10:29 am
"invest"

never. I don't see the point in buying new...ever. Maybe...just maybe near the end of my career where the depreciation hit may not bother me.
Depends on the situation and how long you keep it as well. If a person plans to keep it for 10 years plus, then depreciation doesnt matter. Last truck I bought was brand new, couldnt find the model I wanted used, and got 0% financing. I was going to save up for it, but by the time I did that, what I need it for now would be passed.

But buying new to just get another one in 3-4 years, that doesnt make sense to me either
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Jul 6, 2008
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Toronto
blitzforce wrote:
Mar 6th, 2015 12:20 am
The one's I'm interested in are around 30k(+ other IDK fees) and even if interest is 0%, monthly payments are still around $900/month for 3 years until everything is paid off. How do most young adults afford that unless they don't save for down payments for the purchase of a home in the foreseeable future, plus other monthly/annually bills?
See that is the normal young adult way of thinking, buy house first, buy car second. The YOLO way is to buy a 60k german performance car with starting 50k salary, live at home for couple years. Don't go shopping, eat out, or go on vacation, wear the same clothes everyday and dress like a bum. #BUDGET BALLER
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Mar 1, 2004
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mingyang wrote:
Mar 6th, 2015 11:24 am
+1 , sounds like something that should be posted in personal finance forum lol
It should. The OP isn't asking about what car he should buy, or even if he needs a car, but when or whether can he afford to make those payments.
Deal Guru
Jun 11, 2005
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if you finance the vehicle, make sure you can pay off the monthly payments if you happen to lose your job. Don't just have enough to pay off a few months when you are unemployed with hopes of finding a new job. Have enough to pay off your entire vehicle.
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Oct 22, 2009
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blitzforce wrote:
Mar 6th, 2015 12:20 am
The one's I'm interested in are around 30k(+ other IDK fees) and even if interest is 0%, monthly payments are still around $900/month for 3 years until everything is paid off. How do most young adults afford that unless they don't save for down payments for the purchase of a home in the foreseeable future, plus other monthly/annually bills?
They don’t. Plain & simple.

I’m not “young” anymore, but most of the staff at my old job (city swimming pools – where I still stay in touch), are. At least 75% are all students.

Of the 30 that work there, most just drive your usual 10k car (give or take $5k) that they/parents either bought or got handed down.

The 10 or so new car owners fall into the following categories:
- They are driving their parent’s cars & lying.
- Mommy & Daddy are footing the bills & paying for my leased BMW (The 1% if you will). There’s a half a dozen like this – Most just have a normal ~$20k compact though.
- They are in 7/8 YEAR terms to lower their payments.
No lie, girl was sporting a brand new Dart recently floating a 96 month payment plan. I made a joke about finally resorting to prostitution since she couldn’t afford that working at the pools. Her response: “BUT IT’S ONLY $229 A MONTH!!”. Same goes for the girl sporting the new ILX – 84 month term there as well.
- They are not saving for anything else. A couple are oblivious, a couple others don’t care.

I fell into the latter category back then too: “Growing up” was 5 years away & I wanted to have a cool modified sport compact like everyone else. I was living at home, had a part time job + full time summer job that was more than paying for tuition & had no other expenses outside of that – It was easy to float a $500 car payment. Wasn’t very smart though, lol.
[OP]
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Nov 22, 2009
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prof_frink wrote:
Mar 6th, 2015 7:42 am
A car isn't an investment.
Investment for your self-esteem. If you are aware of my previous thread in regards to compensation due to a minor accident, you'll know the amount of "your car is shtty dont' bother paying attention to them scratches" replies. I really dislike this feeling of "I broke your sht, so what? It has little market value". If I get a newer/more valuable car, others probably wouldn't give me the same replies.
[OP]
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Quentin5 wrote:
Mar 6th, 2015 9:40 am
I remember reading somewhere that over 70% of millionaires buy used, thats why they are rich. Enough said.
Can you link me to the article? I'm interested in reading it.
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Apr 18, 2009
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blitzforce wrote:
Mar 6th, 2015 1:42 pm
Investment for your self-esteem. If you are aware of my previous thread in regards to compensation due to a minor accident, you'll know the amount of "your car is shtty dont' bother paying attention to them scratches" replies. I really dislike this feeling of "I broke your sht, so what? It has little market value". If I get a newer/more valuable car, others probably wouldn't give me the same replies.
quoting for posterity

you can invest in your self-esteem elsewhere like a career or owning a property etc, not some depreciating thing that will look dated in years.

unless, your self-esteem is only worth a couple of years

OP must still be in high school or something...
[OP]
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DJ_Peanuts22 wrote:
Mar 6th, 2015 9:50 am
Just don't drive a more expensive car than your boss and you'll be fine.
Honestly though, 30k really isn't that much after I've browsed around. Most cars are around this price I think. The only exceptions are like Kia. I may be wrong though.

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