Can I afford it: Dodge Challenger

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MrNewEngland
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Can I afford it: Dodge Challenger

Post by MrNewEngland » Mon Dec 18, 2017 5:31 pm

So I guess I spoke a little too soon in my last thread when I said I talked myself out of a bad decision... I am now starting to talk myself back into buy the car.

So here are the details:
2016 Challenger Scat Pack optioned out the way I want it
Asking price $34,900 - if this is firm I walk away.

Me:
Annual salary: just under $90k
Debt: just a mortgage and it's under $75k
Total housing payment: $700 (including mortgage, COA, taxes, insurance)
Not many other huge fixed payments: $50 for internet, $50 for cell, energy bill on the condo ranges but is cheap...

Is this a financial nightmare about to happen or is this a feasible thing to do? I plan to sleep on it again but I'd love to hear your thoughts.

Chuck
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Re: Can I afford it: Dodge Challenger

Post by Chuck » Mon Dec 18, 2017 5:38 pm

2010 Challenger for under $12K.

Teague
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Re: Can I afford it: Dodge Challenger

Post by Teague » Mon Dec 18, 2017 5:39 pm

My thoughts? Demon. Or at least Hellcat it.
Semper Augustus

livesoft
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Re: Can I afford it: Dodge Challenger

Post by livesoft » Mon Dec 18, 2017 5:42 pm

It looks like you are living paycheck-to-paycheck as it is, so I can understand why you are asking whether you can afford this or not.
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PFInterest
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Re: Can I afford it: Dodge Challenger

Post by PFInterest » Mon Dec 18, 2017 5:43 pm

are you paying cash?
what assets do you have?

grettman
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Re: Can I afford it: Dodge Challenger

Post by grettman » Mon Dec 18, 2017 5:45 pm

Don't know enough to say for sure if you can afford it.

What is your net worth?

On track for retirement?

I wouldn't do it if I couldn't pay cash but that is me.

MrNewEngland
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Re: Can I afford it: Dodge Challenger

Post by MrNewEngland » Mon Dec 18, 2017 5:54 pm

Won’t be paying cash but I wouldn’t even if I had the cash: I can get a loan for 2.89% (I checked yesterday).

As for assets:

Roth IRA: $145k
Roth 457: $12k
My 401k : $12k (mostly Roth)
Traditional IRA: $75k
Pension fund: $70k
Condo appraised at $175k

Other than that I have a few grand in various checking/savings accounts but not much else.

sambb
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Re: Can I afford it: Dodge Challenger

Post by sambb » Mon Dec 18, 2017 5:56 pm

you can afford, but it is a little bit of a splurge, and hope that your job is stable and income will increase.
buy a 2017 for a discount too.

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Mlm
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Re: Can I afford it: Dodge Challenger

Post by Mlm » Mon Dec 18, 2017 5:59 pm

How do you plan on paying for it? What are the insurance costs?

barnaclebob
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Re: Can I afford it: Dodge Challenger

Post by barnaclebob » Mon Dec 18, 2017 6:00 pm

Scat pack seems like a poor name choice.

TravelGeek
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Re: Can I afford it: Dodge Challenger

Post by TravelGeek » Mon Dec 18, 2017 6:39 pm

How old are you?

MrNewEngland
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Re: Can I afford it: Dodge Challenger

Post by MrNewEngland » Mon Dec 18, 2017 6:41 pm

TravelGeek wrote:
Mon Dec 18, 2017 6:39 pm
How old are you?
I’ll be 40 next year.

So it has crossed my mind that this may be a mid-life crisis type thing, but I have loved these cars since they came out.

552BB
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Re: Can I afford it: Dodge Challenger

Post by 552BB » Mon Dec 18, 2017 6:49 pm

Good everning BH,



Hello MrNewEngland,


MrNewEngland wrote:
Mon Dec 18, 2017 5:31 pm
So I guess I spoke a little too soon in my last thread when I said I talked myself out of a bad decision... I am now starting to talk myself back into buy the car.

So here are the details:
2016 Challenger Scat Pack optioned out the way I want it
Asking price $34,900 - if this is firm I walk away.

Me:
Annual salary: just under $90k
Debt: just a mortgage and it's under $75k
Total housing payment: $700 (including mortgage, COA, taxes, insurance)
Not many other huge fixed payments: $50 for internet, $50 for cell, energy bill on the condo ranges but is cheap...

Is this a financial nightmare about to happen or is this a feasible thing to do? I plan to sleep on it again but I'd love to hear your thoughts.


The Challenger Scat Pack is a sweet ride.

You will love the 6.2 at 485hp.

As a car fan, I love the chrysler products. They have always done things a little wrong.

You know.....

The car is a little too big. The car is a little too loud. Too much brash, not enough finesse.

Chrysler has always been this way because as the third US automaker, they always had to prove their auto bonafides.

But it is a nice modern car with the best retro look (in my opinion).



To the question of can you afford it, of course you can.

Should you, I don't know.



Chuck made a great point. You are buying a used car.

As the next year or two roll by, you will see these cars come onto the market (optioned just the way you like it) with more and more frequency. People get the itch to sell their new hod rods after year 2 and 3. This will also cause the greatest amount of depreciation;

Therefore giving you the best bang for your buck.



Since you are asking here on the boglehead forum, where most try to get the best bang for the buck, I would wait.

If you are patient, let the months roll by. Keep looking. Save your money.

I promise you, you will have more money saved up, and you will find an even nicer jewel of a car for a cheaper price.

More money in the bank.

Less money paid for the car.

And the perfectly optioned Scat Pack Challenger will be just as cool in 6 months, or the next couple of years.



I hope this helped.

Good luck.



:sharebeer

PFInterest
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Re: Can I afford it: Dodge Challenger

Post by PFInterest » Mon Dec 18, 2017 7:04 pm

MrNewEngland wrote:
Mon Dec 18, 2017 5:54 pm
Won’t be paying cash but I wouldn’t even if I had the cash: I can get a loan for 2.89% (I checked yesterday).
you need to shop around. i can get 1.45%.

Thebigc
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Re: Can I afford it: Dodge Challenger

Post by Thebigc » Mon Dec 18, 2017 7:22 pm

R/T or 392 scat? R/T isn't bad bang for the buck. But unless you really like working on cars I would lease it. It's a soft ride compared to other muscle cars, it's really more of a classic cruiser. Big, comfortable, looks great, but it's a dodge and it's running on a 1990's benz frame. Lease it with the summer 275 p zero's the 245's are not enough tire fr the car. Had shoehorn in a 305, 285 staggered setup for my Cat and it still gets loose. Also wait till March/April it's only a few months, the dealers will be looking to clear out the 2017's. Should be able to get a decent challenger for a song, lease or buy, but the early spring lease deals are pretty sweet. Got my cat for $525 a month, no interest, $2400 down. Not bad for a 72k car. 36 months 10,000 miles and don't let them screw you on the tires. P Zero's suck as it is, they are not the latest gen and they just don't grip like the Super sports. If you live someplace war the summer tires are the way to go. If you live someplace with 4 seasons, either opt for two sets of tires or stick with the all seasons but get the 275's you will need the rubber.

I really wouldn't buy a challenger unless you really want to mod it, outside of that a 3 year lease and you should be passed your mid life. Though honestly I don't believe in the mid life crisis. I believe by the time you are in your 40's you can finally afford the things you always wanted. Like you hit 40 and suddenly you can't like awesome cars? Screw that, nobody puts me in a mini van or a Buick. I Like to go fast, if your not first, your last. Have no idea why guy doing what he wants has to equal mid life crises. Only guys that say that are driving around in their torn up mini vans wearing sweater vests and listening to Jazz fusion.

John Laurens
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Re: Can I afford it: Dodge Challenger

Post by John Laurens » Mon Dec 18, 2017 7:29 pm

Nope.

Regards,
John

H-Town
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Re: Can I afford it: Dodge Challenger

Post by H-Town » Mon Dec 18, 2017 7:31 pm

MrNewEngland wrote:
Mon Dec 18, 2017 5:31 pm
So I guess I spoke a little too soon in my last thread when I said I talked myself out of a bad decision... I am now starting to talk myself back into buy the car.

So here are the details:
2016 Challenger Scat Pack optioned out the way I want it
Asking price $34,900 - if this is firm I walk away.

Me:
Annual salary: just under $90k
Debt: just a mortgage and it's under $75k
Total housing payment: $700 (including mortgage, COA, taxes, insurance)
Not many other huge fixed payments: $50 for internet, $50 for cell, energy bill on the condo ranges but is cheap...

Is this a financial nightmare about to happen or is this a feasible thing to do? I plan to sleep on it again but I'd love to hear your thoughts.
Umm no. too expensive. I'd rather get a Camaro SS at 18k.

Pinotage
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Re: Can I afford it: Dodge Challenger

Post by Pinotage » Mon Dec 18, 2017 7:37 pm

OP: What do you drive now?

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Watty
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Re: Can I afford it: Dodge Challenger

Post by Watty » Mon Dec 18, 2017 7:42 pm

MrNewEngland wrote:
Mon Dec 18, 2017 5:31 pm
Is this a financial nightmare about to happen or is this a feasible thing to do? I plan to sleep on it again but I'd love to hear your thoughts.
Something does not add up. You listed about $1,000 in monthly expenses so when add in thing like food, gas, etc your expenses are likely a bit above $2,000 a month. You have $90K in income so where is the rest going? You only have a net worth of around $300K and I would think that it would be higher if your numbers have been the same for a long time.

I really don't think you can afford it until you can pay cash for a car like that.

MrNewEngland
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Re: Can I afford it: Dodge Challenger

Post by MrNewEngland » Mon Dec 18, 2017 7:48 pm

Watty wrote:
Mon Dec 18, 2017 7:42 pm
MrNewEngland wrote:
Mon Dec 18, 2017 5:31 pm
Is this a financial nightmare about to happen or is this a feasible thing to do? I plan to sleep on it again but I'd love to hear your thoughts.
Something does not add up. You listed about $1,000 in monthly expenses so when add in thing like food, gas, etc your expenses are likely a bit above $2,000 a month. You have $90K in income so where is the rest going? You only have a net worth of around $300K and I would think that it would be higher if your numbers have been the same for a long time.

I really don't think you can afford it until you can pay cash for a car like that.
A little over $400k in net worth if you include the $100k of equity in the condo that I’ve paid the loan down.

I save about 40% of my salary right now but you’re right that I haven’t always done that. I made less money until recently but I live the same lifestyle now with increased money to my retirement accounts.
I guess this car would constitute lifestyle creep.

MrNewEngland
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Re: Can I afford it: Dodge Challenger

Post by MrNewEngland » Mon Dec 18, 2017 7:48 pm

Pinotage wrote:
Mon Dec 18, 2017 7:37 pm
OP: What do you drive now?
I lease a Kia and that’s coming due soon.

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bottlecap
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Re: Can I afford it: Dodge Challenger

Post by bottlecap » Mon Dec 18, 2017 7:53 pm

MrNewEngland wrote:
Mon Dec 18, 2017 6:41 pm
TravelGeek wrote:
Mon Dec 18, 2017 6:39 pm
How old are you?
I’ll be 40 next year.

So it has crossed my mind that this may be a mid-life crisis type thing, but I have loved these cars since they came out.
If I were to buy a "fun" car that was new, that's the one I'd get.

But at 40 years old, I don’t think it’s a good decision. What is your retirement plan? Are you on track to meet your goals?

I’m also a little surprised that you think that’s such a good loan rate it’s a no-brainer. It’s not.

Also surprised that you don’t seem to have cash on hand.

Despite these red flags, your most important question to answer is whether you have a realistic retirement plan that you are executing. If not, then it’s a no-buy.

Good luck,

JT

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Kenkat
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Re: Can I afford it: Dodge Challenger

Post by Kenkat » Mon Dec 18, 2017 8:03 pm

thangngo wrote:
Mon Dec 18, 2017 7:31 pm
MrNewEngland wrote:
Mon Dec 18, 2017 5:31 pm
So I guess I spoke a little too soon in my last thread when I said I talked myself out of a bad decision... I am now starting to talk myself back into buy the car.

So here are the details:
2016 Challenger Scat Pack optioned out the way I want it
Asking price $34,900 - if this is firm I walk away.

Me:
Annual salary: just under $90k
Debt: just a mortgage and it's under $75k
Total housing payment: $700 (including mortgage, COA, taxes, insurance)
Not many other huge fixed payments: $50 for internet, $50 for cell, energy bill on the condo ranges but is cheap...

Is this a financial nightmare about to happen or is this a feasible thing to do? I plan to sleep on it again but I'd love to hear your thoughts.
Umm no. too expensive. I'd rather get a Camaro SS at 18k.
To be fair, you are probably talking about a 2010 or 2011 1SS with some miles on it at that price point. I love my Camaro but Challenger has its fans also.

To the OP, I’d say yes, you can afford it. It is really a question of you only live once vs. is there something better you could do with $35k? Only you can really answer that.

Pinotage
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Re: Can I afford it: Dodge Challenger

Post by Pinotage » Mon Dec 18, 2017 8:29 pm

MrNewEngland wrote:
Mon Dec 18, 2017 7:48 pm
Pinotage wrote:
Mon Dec 18, 2017 7:37 pm
OP: What do you drive now?
I lease a Kia and that’s coming due soon.
Gotcha.

If not a Challenger, what will you purchase or lease?

The difference between the two is the opportunity cost. So this isn't really a 35K decision. Framed that way, not as bad.

BH is a tough place to ask about non-appliance cars. Some will advocate you buy a 1999 Camry. With snow tires, of course.

Bateauxdriver
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Re: Can I afford it: Dodge Challenger

Post by Bateauxdriver » Mon Dec 18, 2017 9:03 pm

Is you? Must be crazy!

Don't buy that crap. I'm the millionaire next door dude. I drive a Honda with 190k miles. Answers no.

UncleBen
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Re: Can I afford it: Dodge Challenger

Post by UncleBen » Mon Dec 18, 2017 9:31 pm

Dave Ramsey says you can afford it if it is less than 50% of your salary AND you can pay cash. Yes, NO.
Suze says you can afford it if you have an 8 month emergency fund and you finance it for 3 years or less. ?NO

$34,900 @ 2.8% for 3 years = $1,011.86/month!
$30k = $869.79/month

Do you want a car payment that is higher than your mortgage?

Kelmscott
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Re: Can I afford it: Dodge Challenger

Post by Kelmscott » Mon Dec 18, 2017 9:50 pm

barnaclebob wrote:
Mon Dec 18, 2017 6:00 pm
Scat pack seems like a poor name choice.
:P

mortfree
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Re: Can I afford it: Dodge Challenger

Post by mortfree » Mon Dec 18, 2017 9:53 pm

Do you have a garage where you can park this car?

I would want to be sure it is protected from the elements and people.

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whodidntante
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Re: Can I afford it: Dodge Challenger

Post by whodidntante » Mon Dec 18, 2017 9:57 pm

If you promise me that you'll max all your tax advantaged accounts every year, whodidntante blesses your irresponsible decision. Also, sweet car dude. I yawn in the general direction of Honda threads.

MrNewEngland
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Re: Can I afford it: Dodge Challenger

Post by MrNewEngland » Mon Dec 18, 2017 10:08 pm

whodidntante wrote:
Mon Dec 18, 2017 9:57 pm
If you promise me that you'll max all your tax advantaged accounts every year, whodidntante blesses your irresponsible decision. Also, sweet car dude. I yawn in the general direction of Honda threads.
Because I am a government employee with an HSA I’d have to contribute about $52k to max out my tax advantaged accounts. I don’t do that now, I’m at about $40k (although most of that is Roth). Buying this car would drop me down from that but keep me above the $24k most people can put in a tax advantaged account.

People are very focused on my lack of liquidity but I’ve always done that by design. My EF is basically my contributions to my Roth IRA. I’m single with no kids so I don’t see the need for an EF (or at least not a traditional one).

MrNewEngland
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Re: Can I afford it: Dodge Challenger

Post by MrNewEngland » Mon Dec 18, 2017 10:10 pm

mortfree wrote:
Mon Dec 18, 2017 9:53 pm
Do you have a garage where you can park this car?

I would want to be sure it is protected from the elements and people.
There’s an underground parking deck below the condo and I have a great spot where no one can park next to me.

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whodidntante
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Re: Can I afford it: Dodge Challenger

Post by whodidntante » Mon Dec 18, 2017 10:55 pm

MrNewEngland wrote:
Mon Dec 18, 2017 10:08 pm
whodidntante wrote:
Mon Dec 18, 2017 9:57 pm
If you promise me that you'll max all your tax advantaged accounts every year, whodidntante blesses your irresponsible decision. Also, sweet car dude. I yawn in the general direction of Honda threads.
Because I am a government employee with an HSA I’d have to contribute about $52k to max out my tax advantaged accounts. I don’t do that now, I’m at about $40k (although most of that is Roth). Buying this car would drop me down from that but keep me above the $24k most people can put in a tax advantaged account.

People are very focused on my lack of liquidity but I’ve always done that by design. My EF is basically my contributions to my Roth IRA. I’m single with no kids so I don’t see the need for an EF (or at least not a traditional one).
It's not clear exactly what you are doing, but a single guy making 89.99k should prioritize pre-tax contributions over Roth IMO. The tax savings will get you closer to maxing those accounts.

MrNewEngland
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Re: Can I afford it: Dodge Challenger

Post by MrNewEngland » Mon Dec 18, 2017 11:00 pm

whodidntante wrote:
Mon Dec 18, 2017 10:55 pm
MrNewEngland wrote:
Mon Dec 18, 2017 10:08 pm
whodidntante wrote:
Mon Dec 18, 2017 9:57 pm
If you promise me that you'll max all your tax advantaged accounts every year, whodidntante blesses your irresponsible decision. Also, sweet car dude. I yawn in the general direction of Honda threads.
Because I am a government employee with an HSA I’d have to contribute about $52k to max out my tax advantaged accounts. I don’t do that now, I’m at about $40k (although most of that is Roth). Buying this car would drop me down from that but keep me above the $24k most people can put in a tax advantaged account.

People are very focused on my lack of liquidity but I’ve always done that by design. My EF is basically my contributions to my Roth IRA. I’m single with no kids so I don’t see the need for an EF (or at least not a traditional one).
It's not clear exactly what you are doing, but a single guy making 89.99k should prioritize pre-tax contributions over Roth IMO. The tax savings will get you closer to maxing those accounts.
Why do you say this? I ask because this is something I’ve always struggled with: Roth vs traditional. I’m in the 25% bracket now and my pension should get me into the 25% bracket when I retire. So it seemed like a wash and I chose Roth.

I actually was going to switch and make my contributions traditional but now that it looks like tax cuts are coming it seems to make sense to keep contributing to Roth (on the assumption taxes will go back up when I retire).

I don’t want to get into the politics of it, but that’s my current thought process.

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whodidntante
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Re: Can I afford it: Dodge Challenger

Post by whodidntante » Mon Dec 18, 2017 11:06 pm

MrNewEngland wrote:
Mon Dec 18, 2017 11:00 pm
whodidntante wrote:
Mon Dec 18, 2017 10:55 pm
MrNewEngland wrote:
Mon Dec 18, 2017 10:08 pm
whodidntante wrote:
Mon Dec 18, 2017 9:57 pm
If you promise me that you'll max all your tax advantaged accounts every year, whodidntante blesses your irresponsible decision. Also, sweet car dude. I yawn in the general direction of Honda threads.
Because I am a government employee with an HSA I’d have to contribute about $52k to max out my tax advantaged accounts. I don’t do that now, I’m at about $40k (although most of that is Roth). Buying this car would drop me down from that but keep me above the $24k most people can put in a tax advantaged account.

People are very focused on my lack of liquidity but I’ve always done that by design. My EF is basically my contributions to my Roth IRA. I’m single with no kids so I don’t see the need for an EF (or at least not a traditional one).
It's not clear exactly what you are doing, but a single guy making 89.99k should prioritize pre-tax contributions over Roth IMO. The tax savings will get you closer to maxing those accounts.
Why do you say this? I ask because this is something I’ve always struggled with: Roth vs traditional. I’m in the 25% bracket now and my pension should get me into the 25% bracket when I retire. So it seemed like a wash and I chose Roth.

I actually was going to switch and make my contributions traditional but now that it looks like tax cuts are coming it seems to make sense to keep contributing to Roth (on the assumption taxes will go back up when I retire).

I don’t want to get into the politics of it, but that’s my current thought process.
My own Monte Carlo simulations show I'm almost certainly better off deferring the tax now, and investing the current year tax savings now. The alternative being to pay tax now, letting it grow tax free, and invest less because I lost income to current year tax. I can only get a different result if I make dark assumptions about future tax rates, or if I assume I waste the tax savings on sports cars :happy . Run the numbers and make your own conclusion.
Last edited by whodidntante on Mon Dec 18, 2017 11:57 pm, edited 1 time in total.

H-Town
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Re: Can I afford it: Dodge Challenger

Post by H-Town » Mon Dec 18, 2017 11:54 pm

whodidntante wrote:
Mon Dec 18, 2017 9:57 pm
Also, sweet car dude. I yawn in the general direction of Honda threads.
+1

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ClevrChico
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Re: Can I afford it: Dodge Challenger

Post by ClevrChico » Tue Dec 19, 2017 12:02 am

Unfortunately, if you cannot comfortably pay cash, you can probably not afford it.

That is a cool car, and I've almost pulled the trigger with a similar situation. Looking back, I'm glad I did not.

MrNewEngland
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Re: Can I afford it: Dodge Challenger

Post by MrNewEngland » Tue Dec 19, 2017 12:10 am

ClevrChico wrote:
Tue Dec 19, 2017 12:02 am
Unfortunately, if you cannot comfortably pay cash, you can probably not afford it.
Many in this thread have said this and it makes no sense to me. Basically you’re saying if I had saved less in my retirement accounts and had $40k in a savings account instead of an IRA I’d be in a better position to buy the car.

rgs92
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Re: Can I afford it: Dodge Challenger

Post by rgs92 » Tue Dec 19, 2017 12:17 am

Sure, just get it, no problem. $35K is not really a lot for a new car these days. It's actually financially sensible IMHO.
Just baby it and keep it for 10 years and it should turn out to be a bargain, especially since service on American cars is fairly cheap, nothing like those big Eurocar bills. I vote this is fine and a responsible decision. You would probably end up paying a lot more in the long run for a little Benz C class.

And actually, those big Chryslers do give you a lot of car for the money and I seriously considered one myself. I would not call them an extravagant purchase.

Longtermgrowth
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Re: Can I afford it: Dodge Challenger

Post by Longtermgrowth » Tue Dec 19, 2017 2:45 am

If already maxing out tax advantaged, I would build up taxable savings along with taxable investments before dropping that amount of money on a gas guzzling vehicle.
There is a fella on YouTube leasing a challenger hellcat, Tall Guy Car Reviews, that makes some interesting videos, great personality, but he really can't afford the lease.

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snackdog
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Re: Can I afford it: Dodge Challenger

Post by snackdog » Tue Dec 19, 2017 3:58 am

If you can lease one for zero down and <$300/month it might be affordable on your budget, assuming it is your absolute dream car and you can't live without it.

grettman
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Re: Can I afford it: Dodge Challenger

Post by grettman » Tue Dec 19, 2017 5:03 am

MrNewEngland wrote:
Tue Dec 19, 2017 12:10 am
ClevrChico wrote:
Tue Dec 19, 2017 12:02 am
Unfortunately, if you cannot comfortably pay cash, you can probably not afford it.
Many in this thread have said this and it makes no sense to me. Basically you’re saying if I had saved less in my retirement accounts and had $40k in a savings account instead of an IRA I’d be in a better position to buy the car.
I am one of those in the "pay it with cash or you can't afford it camp" and here is why I say that. First, I am giving advice that I would follow myself... (i.e., what would I do). Second, I consider the contributions to my tax sheltered accounts as a MUST PAY. I must fill up my tax advantaged retirement accounts before I splurge on "wants". This car is a want. So I believe you should only buy the car after you are on track for retirement, paid your retirement accounts first, AND have the cash to buy the car. Several here say you are on track for retirement. That is great if that is the case. I don't know...I haven't run your numbers.

With all of that said, is it a big mistake to buy it and enjoy it now on credit? No. I am just telling you what I would do. When you are 70 yrs old will you notice the impact of this purchase?..no.... but you might notice many other purchases like this if the behavior continues and you if you don't take care of your priorities.

strafe
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Re: Can I afford it: Dodge Challenger

Post by strafe » Tue Dec 19, 2017 5:56 am

Go for it. You can afford it if you want to afford it. You’re right to be cautious making a large purchase.

Budgeting is an exercise in setting priorities.

I think most of the replies telling you ‘no’ reflect others’ personal priorities.

For what it’s worth the Challenger has excellent resale value. Your exposure here is small.

Jags4186
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Re: Can I afford it: Dodge Challenger

Post by Jags4186 » Tue Dec 19, 2017 6:38 am

Go get the car and report back in 6 months if you still like it.

PJR202
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Re: Can I afford it: Dodge Challenger

Post by PJR202 » Tue Dec 19, 2017 7:15 am

Thebigc wrote:
Mon Dec 18, 2017 7:22 pm
R/T or 392 scat? R/T isn't bad bang for the buck. But unless you really like working on cars I would lease it. It's a soft ride compared to other muscle cars, it's really more of a classic cruiser. Big, comfortable, looks great, but it's a dodge and it's running on a 1990's benz frame. Lease it with the summer 275 p zero's the 245's are not enough tire fr the car. Had shoehorn in a 305, 285 staggered setup for my Cat and it still gets loose. Also wait till March/April it's only a few months, the dealers will be looking to clear out the 2017's. Should be able to get a decent challenger for a song, lease or buy, but the early spring lease deals are pretty sweet. Got my cat for $525 a month, no interest, $2400 down. Not bad for a 72k car. 36 months 10,000 miles and don't let them screw you on the tires. P Zero's suck as it is, they are not the latest gen and they just don't grip like the Super sports. If you live someplace war the summer tires are the way to go. If you live someplace with 4 seasons, either opt for two sets of tires or stick with the all seasons but get the 275's you will need the rubber.

I really wouldn't buy a challenger unless you really want to mod it, outside of that a 3 year lease and you should be passed your mid life. Though honestly I don't believe in the mid life crisis. I believe by the time you are in your 40's you can finally afford the things you always wanted. Like you hit 40 and suddenly you can't like awesome cars? Screw that, nobody puts me in a mini van or a Buick. I Like to go fast, if your not first, your last. Have no idea why guy doing what he wants has to equal mid life crises. Only guys that say that are driving around in their torn up mini vans wearing sweater vests and listening to Jazz fusion.
I agree with most of this but Jazz Fusion really sealed it for me..lol. When I bought my 16 GT I heard the midlife crisis thing a few times and I was only 36.

OP I say go for it if you can knock a couple grand off the price. I'm very similar to you in age and financial position. I've wanted a mustang or Camaro (then challenger) since high school but life kept getting in the way. I finally had money+opportunity+1.7% and went for it before my kids get college age and expenses ramp up. I made the decision before I took a deeper interest in personal finance but I'm changing other things to work around it because after a year and a half as mostly my daily driver I still LOVE getting behind the wheel and blasting that 6 speed all over the place. It makes a 70 mile round trip commute much more fun and tunnels and underpasses are great for echo and annoying the public.

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wander
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Re: Can I afford it: Dodge Challenger

Post by wander » Tue Dec 19, 2017 7:20 am

At your age, I would prefer to have $400k - $500k (5 times your salary) in retirement fund than a car. I think if you do not have cash to buy it, then you cannot afford it.

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Devil's Advocate
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Re: Can I afford it: Dodge Challenger

Post by Devil's Advocate » Tue Dec 19, 2017 7:26 am

My view is if you don't pay cash then you can't afford it.

You seem to think that I am advocating you to not put in as much to your retirement funds. I disagree. You should be paying as much into your retirement AND saving for a cash only car.

I would advocate this if you were buying a vanilla used Honda Camry.

You need to sacrifice in other areas of your life for this car and not sacrifice your retirement savings.

Delaying gratification has paid off well for me. I'd advise you to try it!

It's a sweet ride I'm sure!

DA

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StevieG72
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Re: Can I afford it: Dodge Challenger

Post by StevieG72 » Tue Dec 19, 2017 7:36 am

It is a cool car / expensive toy.

At your income, I say you should not be buying toys in this price range.

You will regret this purchase, it may be hard to resell a used car in this price range.

Find a happy medium between a leased Kia and a 485 HP sports car?

485 HP is overkill in city traffic, you will the the first to the next stoplight but that thrill will be fleeting.
Fools think their own way is right, but the wise listen to others.

coachd50
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Re: Can I afford it: Dodge Challenger

Post by coachd50 » Tue Dec 19, 2017 7:55 am

MrNewEngland wrote:
Tue Dec 19, 2017 12:10 am
ClevrChico wrote:
Tue Dec 19, 2017 12:02 am
Unfortunately, if you cannot comfortably pay cash, you can probably not afford it.
Many in this thread have said this and it makes no sense to me. Basically you’re saying if I had saved less in my retirement accounts and had $40k in a savings account instead of an IRA I’d be in a better position to buy the car.
No, what people are saying is that if your cashflow is great enough to maximize your retirement accounts AND still be able to accumulate cash on hand, then you can afford it. It is all about allocation of scarce resources (your income) and value, both economic and personal.

Remember, your sweet ride will sit in parking spaces, move at a turtle's pace in traffic,accumulate dead bugs and bird poop, etc just as well as a 12 year old boring sedan so in the eyes of many posters, you are buying a toy. That is why they feel that it should be a comfortable cash purchase.

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tainted-meat
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Location: Kentucky

Re: Can I afford it: Dodge Challenger

Post by tainted-meat » Tue Dec 19, 2017 8:15 am

You can afford it and should buy it if you really want it.

Kids are a lot more expensive than that car - and most people do it on far less income (I know from my own experience :happy ).

Let us know what you do and if you get it post a picture. The Challenger is my favorite sports car that is still affordable.

ljb1234
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Re: Can I afford it: Dodge Challenger

Post by ljb1234 » Tue Dec 19, 2017 8:33 am

Can you afford it? No

Even though loan rates are low, if you can't afford to pay cash, you shouldn't buy it.

But you are an adult and don't need anyone's permission.

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