I Can "Afford" This Right? (New Car)

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SVT
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I Can "Afford" This Right? (New Car)

Post by SVT » Thu Nov 30, 2017 11:35 am

I'm somewhat seriously considering buying a car (not sure on used or new - leaning towards used) that would cost anywhere from $55k-$75k. Just looking for opinions. A friend who is financially like-minded as me says I should do it but wanted another outside perspective.

Age: 32 and single
Income: $225k
Debt: None
Net Worth: $600k
Breakdown (roughly): $60k cash, $120k taxable, $305k 401k, $90k Roth IRA, $25k HSA
Net Monthly Income: ~$11-12k
Monthly Expenses: $3k-$4k

Lexus RC F if it matters. I'd wait a couple of months and either pay cash for it all, or use some cash and sell some stocks from taxable. Not really interested in a loan.

The Wizard
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Re: I Can "Afford" This Right? (New Car)

Post by The Wizard » Thu Nov 30, 2017 11:37 am

Sounds good. I like the orange color, Molten Pearl.
What are you driving now?
Attempted new signature...

SEAworld9
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Re: I Can "Afford" This Right? (New Car)

Post by SEAworld9 » Thu Nov 30, 2017 11:47 am

i have very similar stats to you. yes, you can.

and no, you should not go buy a camry.

chevca
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Re: I Can "Afford" This Right? (New Car)

Post by chevca » Thu Nov 30, 2017 11:49 am

Yes, you can afford it. Go for it.

bloom2708
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Re: I Can "Afford" This Right? (New Car)

Post by bloom2708 » Thu Nov 30, 2017 11:49 am

You can do it. I like the car. Being single, you answer only to your future retired self. If you do this 4, 5 more times over the next 30 years, you probably retire 5 years later. Your future retired self is a little miffed. :wink:

Can you find a lightly used one or demo and keep it under $50k? You will either use all your cash or go backwards in taxable. Trigger cap gains.

Find one with a small scratch on it and someone else took the huge depreciation hit. That way you don't have to worry about the first scratch an huge initial hit.

Check insurance rates before buying. Rates could be an eye opener. Maybe not.

Good luck and do send photos.
Last edited by bloom2708 on Thu Nov 30, 2017 1:51 pm, edited 2 times in total.
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thangngo
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Re: I Can "Afford" This Right? (New Car)

Post by thangngo » Thu Nov 30, 2017 11:50 am

Yes you can afford it.

The only concern I have is that will you have any life event in the next 10 years? You said you're single now but will it stay that way for the life of the car? You'll need a bigger car/SUV if you start having children. 3 years ago, I bought an used Camaro and love to drive it. But my wife and I start planning to have our first child and she told me that I can't haul my kid around in a Camaro. I hate driving SUV and only do it if I have to. Now I have to think about low cost option to get a bigger car/SUV while keeping my Camaro.

It might not affect your decision to buy a Lexus RC F now. It's a very nice car. You might get a second car/SUV if it comes to that later on.

Olemiss540
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Re: I Can "Afford" This Right? (New Car)

Post by Olemiss540 » Thu Nov 30, 2017 12:11 pm

Sure, you can afford it, just don't do it every 3 or 4 years.... What are you driving now? Have you test driven multiple cars in its segment? Could get a great condition e92 m3 sedan for 30k...... I find the hunt much more fun than the OWN. Also consider buying a toy (second vehicle) and having a reliable, cheap, fun 1st vehicle. 996tt is a hell of a bargain for the money and less worry about depreciation or maintenance if it is a second vehicle....
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

SVT
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Re: I Can "Afford" This Right? (New Car)

Post by SVT » Thu Nov 30, 2017 12:32 pm

I'm currently driving a Fiesta ST. Great, fun, little car. I plan to keep it and have both. Before buying the Fiesta ST last year, I had a SVT Focus for 12 years.

Life events over next 10 years...marriage is almost a certainty. Kids are a question mark. I doubt I'd be keeping the RC F for more than a few years anyway.

I've considered other vehicles in the segment. I'm leaning towards something that isn't FI (forced induction) though. I already have a turbo in the Fiesta and I like the idea of a 5.0 V8. I can't get over the unreliability of a German car anyway, even though the BMWs and Audis do look great. Cadillac ATS-V/CTS-V...ehh. C63 AMG...ehh. I'm a fan of Lexus, so biased towards them.

The $55k-$75k figure covers the range I'd consider for used to new. $50k might be doable.

dcd72
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Re: I Can "Afford" This Right? (New Car)

Post by dcd72 » Thu Nov 30, 2017 1:41 pm

You can absolutely afford it. I'm a little conservative, so I'd likely take $30,000 from cash savings, take out a low-interest loan for the rest, and pay off the loan and replenish the cash savings over the next year or so.

Enjoy the car!

chevca
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Re: I Can "Afford" This Right? (New Car)

Post by chevca » Thu Nov 30, 2017 2:01 pm

SVT wrote:
Thu Nov 30, 2017 12:32 pm
I doubt I'd be keeping the RC F for more than a few years anyway.
I'm not a fan of leasing and would rarely recommend it. But, if this is an almost certainty, have you run the numbers to lease one for a couple/few years?

Jack FFR1846
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Re: I Can "Afford" This Right? (New Car)

Post by Jack FFR1846 » Thu Nov 30, 2017 2:09 pm

I think you can buy that 2 door, rear wheel drive Camry with your income. I would like to point out what I believe would be a far superior 2 door, rear wheel drive Camry that can easily be found for $75k used. That would be a Lotus Evora. The added bonus is that you don't have to settle for the Buick automatic in the Lexus, but can get a proper manual transmission.

(former Elise owner)
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Rifampin
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Re: I Can "Afford" This Right? (New Car)

Post by Rifampin » Thu Nov 30, 2017 2:14 pm

I would recommend a used IS-F. Great reliability with that awesome 5.0 V8. Can be had for 25-35k depending on mileage.

Since you seem to like Ford why not a used GT350. Hello flat plane crank. :D

Olemiss540
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Re: I Can "Afford" This Right? (New Car)

Post by Olemiss540 » Thu Nov 30, 2017 5:42 pm

Rifampin wrote:
Thu Nov 30, 2017 2:14 pm
I would recommend a used IS-F. Great reliability with that awesome 5.0 V8. Can be had for 25-35k depending on mileage.

Since you seem to like Ford why not a used GT350. Hello flat plane crank. :D
Gt350R! Goodbye air conditioning hello Johnny law!
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

Olemiss540
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Re: I Can "Afford" This Right? (New Car)

Post by Olemiss540 » Thu Nov 30, 2017 5:45 pm

SVT wrote:
Thu Nov 30, 2017 12:32 pm
I'm currently driving a Fiesta ST. Great, fun, little car. I plan to keep it and have both. Before buying the Fiesta ST last year, I had a SVT Focus for 12 years.

Life events over next 10 years...marriage is almost a certainty. Kids are a question mark. I doubt I'd be keeping the RC F for more than a few years anyway.

I've considered other vehicles in the segment. I'm leaning towards something that isn't FI (forced induction) though. I already have a turbo in the Fiesta and I like the idea of a 5.0 V8. I can't get over the unreliability of a German car anyway, even though the BMWs and Audis do look great. Cadillac ATS-V/CTS-V...ehh. C63 AMG...ehh. I'm a fan of Lexus, so biased towards them.

The $55k-$75k figure covers the range I'd consider for used to new. $50k might be doable.
Have you tried a High Performance Driving Event in the ST? May have you reconsidering your priorities! Those can be a blast on track....
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

Pacman
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Re: I Can "Afford" This Right? (New Car)

Post by Pacman » Thu Nov 30, 2017 7:19 pm

I'm slightly younger with similar stats, and personally wouldn't buy it. I like White Coat Investor's rule that you don't buy a new car until you have a million dollars. However, to answer your question, I think you can afford it. The only question is if you can afford the type of girlfriends that the car will attract. :D

TRC
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Re: I Can "Afford" This Right? (New Car)

Post by TRC » Thu Nov 30, 2017 7:37 pm

It is somewhat of a right of passage. I did it when I was 30. 2 years later I realized it was just a car that got me from point a to point b and I sold it. You can clearly afford it (i assume you’d be paying cash?). Once the thrill wears off, you’ll probably come to the same conclusion I did and sell it.

Lonestarz
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Re: I Can "Afford" This Right? (New Car)

Post by Lonestarz » Thu Nov 30, 2017 7:40 pm

That’s a bit much (10% your net worth?).

You can cartainly cover the cost it but question why you have so little saved for your income and age, especially after this bull market. That leads to the affordability question - is having this car worth what you’re giving up?

If you’re buying a car make sure it fits your life for the time you plan to have it. Kids really need at least one car with space. Not many places you can safely drive a fast car fast - and in you’re engaged/planning on kids maybe better to get a safe car. If you don’t want kids and want to live the single lifestyle - go for it.

I’d personally get another moderately price car ($30k accord) to get me to my 40s where the time value of money will be less.

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Re: I Can "Afford" This Right? (New Car)

Post by RRAAYY3 » Thu Nov 30, 2017 7:46 pm

so many nicer cars to waste money on

sschoe2
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Re: I Can "Afford" This Right? (New Car)

Post by sschoe2 » Thu Nov 30, 2017 8:04 pm

You are DENIED

RRAAYY3
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Re: I Can "Afford" This Right? (New Car)

Post by RRAAYY3 » Thu Nov 30, 2017 9:02 pm

Buy a Nissan Skyline GT R

sambb
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Re: I Can "Afford" This Right? (New Car)

Post by sambb » Thu Nov 30, 2017 9:20 pm

32, single, the right answer is a 2014 911 carrera CPO. Get it and be done, and go back to a normal 45k SUV in a few years when you have kids, and save the 911 for weekends. Sell the 911 in 20 years for the same price you are buying it for (not inflation adjusted). Always be that guy with the cool older 911. And enjoy life. Get a few speeding tickets (only for driving 5MPH over, not anything too bad of course). Its great fun. You will pay a lot for maintenance, and it will eventually become a weekend car, alongside a Lexus RX SUV when you get older. But you will love it. Pick a good color, look at vintage porsches. Join the porsche club locally. Hand wash it once in awhile in your driveway at home, have a beer and think about how awesome it is.

Rifampin
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Re: I Can "Afford" This Right? (New Car)

Post by Rifampin » Thu Nov 30, 2017 9:54 pm

sambb wrote:
Thu Nov 30, 2017 9:20 pm
32, single, the right answer is a 997 Turbo CPO. Get it and be done, and go back to a normal 45k SUV in a few years when you have kids, and save the 911 for weekends. Sell the 911 in 20 years for the same price you are buying it for (not inflation adjusted). Always be that guy with the cool older 911. And enjoy life. Get a few speeding tickets (only for driving 5MPH over, not anything too bad of course). Its great fun. You will pay a lot for maintenance, and it will eventually become a weekend car, alongside a Lexus RX SUV when you get older. But you will love it. Pick a good color, look at vintage porsches. Join the porsche club locally. Hand wash it once in awhile in your driveway at home, have a beer and think about how awesome it is.
Fixed that for you.

Olemiss540
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Re: I Can "Afford" This Right? (New Car)

Post by Olemiss540 » Thu Nov 30, 2017 10:01 pm

sambb wrote:
Thu Nov 30, 2017 9:20 pm
32, single, the right answer is a 2014 911 carrera CPO. Get it and be done, and go back to a normal 45k SUV in a few years when you have kids, and save the 911 for weekends. Sell the 911 in 20 years for the same price you are buying it for (not inflation adjusted). Always be that guy with the cool older 911. And enjoy life. Get a few speeding tickets (only for driving 5MPH over, not anything too bad of course). Its great fun. You will pay a lot for maintenance, and it will eventually become a weekend car, alongside a Lexus RX SUV when you get older. But you will love it. Pick a good color, look at vintage porsches. Join the porsche club locally. Hand wash it once in awhile in your driveway at home, have a beer and think about how awesome it is.
You have seen what the price of a low mileage 996 carrera goes for haven't you? Maybe a gt3 would be a better hedge against depreciation?
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Watty
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Re: I Can "Afford" This Right? (New Car)

Post by Watty » Thu Nov 30, 2017 10:06 pm

A big question is what you would do with the extra money if you bought a more modest car.

You didn't mention owning a house. There are lots of good reasons to not want to buy a house so that is not a problem but many people will want to buy a house some day and that extra money could be real useful if you do decide to buy a house.

Wolkenspiel
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Re: I Can "Afford" This Right? (New Car)

Post by Wolkenspiel » Thu Nov 30, 2017 10:41 pm

sambb wrote:
Thu Nov 30, 2017 9:20 pm
32, single, the right answer is a 2014 911 carrera CPO. Get it and be done, and go back to a normal 45k SUV in a few years when you have kids, and save the 911 for weekends. Sell the 911 in 20 years for the same price you are buying it for (not inflation adjusted). Always be that guy with the cool older 911. And enjoy life. Get a few speeding tickets (only for driving 5MPH over, not anything too bad of course). Its great fun. You will pay a lot for maintenance, and it will eventually become a weekend car, alongside a Lexus RX SUV when you get older. But you will love it. Pick a good color, look at vintage porsches. Join the porsche club locally. Hand wash it once in awhile in your driveway at home, have a beer and think about how awesome it is.
I got that close to buying a leftover '15 RC F for $15k under MSRP in 2016, but the dealer wouldn't budge for the last $300. Bought a CPO '14 911 C4S instead. RC-F is nice, but 911 is the real deal. Either way, OP can afford it.

Longtermgrowth
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Re: I Can "Afford" This Right? (New Car)

Post by Longtermgrowth » Fri Dec 01, 2017 1:11 am

Why not a base Mustang GT? Strong 5.0 V8, fun to drive with the manual, can run regular fuel while only giving up about 5hp; can buy new for low 30k range...

The above is what runs through my head whenever I see reviews of the more expensive sports cars with very similar performance stats.

Afty
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Re: I Can "Afford" This Right? (New Car)

Post by Afty » Fri Dec 01, 2017 2:01 am

I like the GT350 idea. :twisted:

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snackdog
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Re: I Can "Afford" This Right? (New Car)

Post by snackdog » Fri Dec 01, 2017 4:17 am

If you can keep the payment (or depreciation if paying cash), insurance and gas under 5% of your net monthly income I say go for it. See if you can get a lease deal on a demo for under $400/mo and you might get close.

The car has had rather mixed reviews with a lot of transmission complaints.

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wander
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Re: I Can "Afford" This Right? (New Car)

Post by wander » Fri Dec 01, 2017 5:48 am

This is a joke, right?
Of course, you can.

tim1999
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Re: I Can "Afford" This Right? (New Car)

Post by tim1999 » Fri Dec 01, 2017 6:36 am

Go for it. Even if you decided after a year or two that you didn't like it anymore and sold it, with Lexus resale value, you would lose only an insignificant amount of money.

blastoff
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Re: I Can "Afford" This Right? (New Car)

Post by blastoff » Fri Dec 01, 2017 9:00 am

Is this a situation where at lease could make more sense?

SVT
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Re: I Can "Afford" This Right? (New Car)

Post by SVT » Fri Dec 01, 2017 9:23 am

blastoff wrote:
Fri Dec 01, 2017 9:00 am
Is this a situation where at lease could make more sense?
IDK I've thought briefly about it. Leaning towards just buying and paying cash. With the good resale values of Lexus, selling after a couple of years might not be too big of a hit and end up being less than a lease. I would need to look into it more. I wouldn't have a problem with the mileage limits. I could get away with a less than 10k miles per year lease easily.

jlcnuke
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Re: I Can "Afford" This Right? (New Car)

Post by jlcnuke » Fri Dec 01, 2017 9:26 am

My only concern would be paying cash for it.
$60k cash, $120k taxable
$75k eats up ~40% of your current liquid cash. If you're okay with spending 40% of your liquid savings/investments, however, then go for it. I personally prefer to "save up" separately for specific large purchases since using savings/investments NOT originally set aside for that one purchase makes it easy to keep doing that. Next thing you know, your savings/investments haven't grown after 5 years because you keep finding "one more thing" you can afford with them.

Hug401k
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Re: I Can "Afford" This Right? (New Car)

Post by Hug401k » Fri Dec 01, 2017 9:31 am

You've got a $7,000 gap between income and expenses each month. No kids, no wife, no mortgage. Yes, buy it now, get it out of your system, life isn't getting cheaper for future you. Just don't be that guy who takes up 2 parking spots with his fancy car.

SVT
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Re: I Can "Afford" This Right? (New Car)

Post by SVT » Fri Dec 01, 2017 9:37 am

Lonestarz wrote:
Thu Nov 30, 2017 7:40 pm
That’s a bit much (10% your net worth?).

You can cartainly cover the cost it but question why you have so little saved for your income and age, especially after this bull market. That leads to the affordability question - is having this car worth what you’re giving up?

If you’re buying a car make sure it fits your life for the time you plan to have it. Kids really need at least one car with space. Not many places you can safely drive a fast car fast - and in you’re engaged/planning on kids maybe better to get a safe car. If you don’t want kids and want to live the single lifestyle - go for it.

I’d personally get another moderately price car ($30k accord) to get me to my 40s where the time value of money will be less.
Only on Bogleheads can a 32 year old say they're worth $600k and be questioned why they have so little saved. :shock:

In Feb 2011 at the age of 25 I had a -$20k net worth and just started making $60k. I went from a salary of around $140k to $225k just this past Mar/Apr.

AllenSmith
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Re: I Can "Afford" This Right? (New Car)

Post by AllenSmith » Fri Dec 01, 2017 9:47 am

yes, go for it

:sharebeer

LarryAllen
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Re: I Can "Afford" This Right? (New Car)

Post by LarryAllen » Fri Dec 01, 2017 9:49 am

I would wait a month. If you still really want it go shopping Dec 30/31. They really do give better deals at year end in my experience.

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Re: I Can "Afford" This Right? (New Car)

Post by lthenderson » Fri Dec 01, 2017 9:50 am

I think the question you should ask yourself that everyone missed is what are your retirement goals? Spending that much on a vehicle definitely affects how much money you have down the road to play with.

SVT
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Re: I Can "Afford" This Right? (New Car)

Post by SVT » Fri Dec 01, 2017 10:14 am

LarryAllen wrote:
Fri Dec 01, 2017 9:49 am
I would wait a month. If you still really want it go shopping Dec 30/31. They really do give better deals at year end in my experience.
I am. I take a while to make decisions like this. This isn't going to happen in a couple of weeks for sure. Could be a couple of months although I realize that there are good deals this time of year. Plus, I'd have more cash saved up.

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Re: I Can "Afford" This Right? (New Car)

Post by technovelist » Fri Dec 01, 2017 11:36 am

I bought my first sports car (Acura TL Type-S) in 2008, at nearly twice your age. I didn't have a mid-life crisis, I just thought it was awesome and had an excellent reliability probability because it is a Honda product.

You have the same likelihood of lack of problems with a Toyota product.

And you can afford it. So I say go ahead.
In theory, theory and practice are identical. In practice, they often differ.

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Re: I Can "Afford" This Right? (New Car)

Post by RRAAYY3 » Fri Dec 01, 2017 12:38 pm

You can afford it - do it

If you can save for retirement, cover expenses, and still have the money to play with for a car like this - do it

So many people on here get caught up in penny pinching every cent for 20+ years from now - enjoy life during the accumulation process too

EnjoyIt
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Re: I Can "Afford" This Right? (New Car)

Post by EnjoyIt » Fri Dec 01, 2017 1:12 pm

Yes you can afford it, I agree getting it out of your system now is probably a good idea. Paying cash reallymakes a difference when buying an expensive car. I think it puts the whole thing into perspective. I would still likely recommend used. let someone else take the initial depreciation hit. Drive it for 2-3 years and then move on with life. As another poster above said I too would prefer a Lotus or a Prosche that you can then keep for the next 20 years as your fun car. I just don't see the lexus being a hot commodity in the future. Before you buy, take inventory of what your savings goal is, when you may want to retire and with how much expenses and see how dropping $50-$75k now will affect that.

Disclaimer: I like cars and dropped $65k on a car 5 years ago. Still driving it today. Will likely drive it for another 5-7 years before getting something else. I doubt I will be spending that much on a car ever again. It just isn't worth it once you realize what you get out of owning it and how much it actually costs you in the very long run. I now would spend my money elsewhere that would provide me more joy. For example a $20-$30k sports car and take it to the track a few times a year. Driving around town in a powerful sports car just seams silly now.
Last edited by EnjoyIt on Fri Dec 01, 2017 1:19 pm, edited 1 time in total.

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Re: I Can "Afford" This Right? (New Car)

Post by technovelist » Fri Dec 01, 2017 1:18 pm

EnjoyIt wrote:
Fri Dec 01, 2017 1:12 pm
Yes you can afford it, I agree getting it out of your system now is probably a good idea. Paying cash really helps. I would still likely recommend used. let someone else take the initial depreciation hit. Drive it for 2-3 years and then move on with life. As another poster above said I too would prefer a Lotus or a Prosche that you can then keep for the next 20 years as your fun car. I just don't see the lexus being a hot commodity in the future.
I also don't see enormous repair bills with a Lexus.
In theory, theory and practice are identical. In practice, they often differ.

investor997
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Re: I Can "Afford" This Right? (New Car)

Post by investor997 » Fri Dec 01, 2017 1:43 pm

Personally, I would lease something. Luxury cars usually have subsidized lease rates and if you buy/finance them, it'll almost certainly cost you more to own than leasing would. Check out leasehackr.com to see what kinds of deals people are getting.

If you really want to buy something and not lease, then the correct thing to do is to look for a 2013-2015 991 Carrera S. Look for something that had a ~$120K MSRP that you can buy now for say, $60-75K. The p-car is WAY better than the Lexus.

(997.2 owner here - got it used a little over 3 years ago - awesome car and pretty reliable to boot...)

HardHitter
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Re: I Can "Afford" This Right? (New Car)

Post by HardHitter » Fri Dec 01, 2017 1:51 pm

Didn't read everyone's response, but you can afford it. To be honest, depending on what you're looking for, don't buy that Lexus if you're wanting a "sports car". Severely overpriced and under powered.

I picked up a 2007 911 Turbo for myself within that price range. Best bargain for a car that does everything.

If I had the money, I'd buy a gated Murcielago and hold on to that for dear life. For $150-$175K, you're looking at a beautiful/rare car that will begin to appreciate.

rad doc
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Re: I Can "Afford" This Right? (New Car)

Post by rad doc » Fri Dec 01, 2017 2:32 pm

HardHitter wrote:
Fri Dec 01, 2017 1:51 pm
Didn't read everyone's response, but you can afford it. To be honest, depending on what you're looking for, don't buy that Lexus if you're wanting a "sports car". Severely overpriced and under powered.

I picked up a 2007 911 Turbo for myself within that price range. Best bargain for a car that does everything.

If I had the money, I'd buy a gated Murcielago and hold on to that for dear life. For $150-$175K, you're looking at a beautiful/rare car that will begin to appreciate.
Agree. Rc f is a bloated pig. No thanks.

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Re: I Can "Afford" This Right? (New Car)

Post by stoptothink » Fri Dec 01, 2017 2:52 pm

rad doc wrote:
Fri Dec 01, 2017 2:32 pm
HardHitter wrote:
Fri Dec 01, 2017 1:51 pm
Didn't read everyone's response, but you can afford it. To be honest, depending on what you're looking for, don't buy that Lexus if you're wanting a "sports car". Severely overpriced and under powered.

I picked up a 2007 911 Turbo for myself within that price range. Best bargain for a car that does everything.

If I had the money, I'd buy a gated Murcielago and hold on to that for dear life. For $150-$175K, you're looking at a beautiful/rare car that will begin to appreciate.
Agree. Rc f is a bloated pig. No thanks.
Yeah, I don't know about underpowered, but it is way too heavy to be as fun as an actual sports car.

harrington
Posts: 133
Joined: Tue Jun 21, 2011 9:09 am

Re: I Can "Afford" This Right? (New Car)

Post by harrington » Fri Dec 01, 2017 2:55 pm

Yes you can but I hate spending money on a depreciating asset. I can afford to drive anything but I choose to drive a Fiat 500 with well over 100,000 miles on it.

panchilly
Posts: 212
Joined: Sat May 14, 2016 9:57 am

Re: I Can "Afford" This Right? (New Car)

Post by panchilly » Fri Dec 01, 2017 4:27 pm

SVT wrote:
Thu Nov 30, 2017 11:35 am
I'm somewhat seriously considering buying a car (not sure on used or new - leaning towards used) that would cost anywhere from $55k-$75k. Just looking for opinions. A friend who is financially like-minded as me says I should do it but wanted another outside perspective.

Age: 32 and single
Income: $225k
Debt: None
Net Worth: $600k
Breakdown (roughly): $60k cash, $120k taxable, $305k 401k, $90k Roth IRA, $25k HSA
Net Monthly Income: ~$11-12k
Monthly Expenses: $3k-$4k

Lexus RC F if it matters. I'd wait a couple of months and either pay cash for it all, or use some cash and sell some stocks from taxable. Not really interested in a loan.
You don't have a house?

I would not buy the car until you own your own home. Don't be that guy who has a 75k sports car in a freaking apartment building. Please don't be that guy.

technovelist
Posts: 2917
Joined: Wed Dec 30, 2009 9:02 pm
Contact:

Re: I Can "Afford" This Right? (New Car)

Post by technovelist » Fri Dec 01, 2017 7:29 pm

panchilly wrote:
Fri Dec 01, 2017 4:27 pm
SVT wrote:
Thu Nov 30, 2017 11:35 am
I'm somewhat seriously considering buying a car (not sure on used or new - leaning towards used) that would cost anywhere from $55k-$75k. Just looking for opinions. A friend who is financially like-minded as me says I should do it but wanted another outside perspective.

Age: 32 and single
Income: $225k
Debt: None
Net Worth: $600k
Breakdown (roughly): $60k cash, $120k taxable, $305k 401k, $90k Roth IRA, $25k HSA
Net Monthly Income: ~$11-12k
Monthly Expenses: $3k-$4k

Lexus RC F if it matters. I'd wait a couple of months and either pay cash for it all, or use some cash and sell some stocks from taxable. Not really interested in a loan.
You don't have a house?

I would not buy the car until you own your own home. Don't be that guy who has a 75k sports car in a freaking apartment building. Please don't be that guy.
Why not? There is no rule that says everyone must own a house.
In theory, theory and practice are identical. In practice, they often differ.

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