Buying a car?

[fullmoon]

Last year I made $158k and this year the bare minimum I will make is $82k (could be much more but for this we will say I won’t) . Have about $112k saved and no debt. Monthly expenses are $1900 for all rent/utilities. May spend $1500 a month but past couple of months that has increased due to some travel plans. My car is almost on its last leg and I could maybe get $5k on a trade in. I really want a nice car, looking at a price of $50k max. Is this possible? If so what does everyone think I should put down for a down payment? I’ve never really treated myself to anything. I’m 27 and have some what of a decent retirement savings built up and continue to build so I’m not that stressed about that.

 

[bereanish]

@fullmoon I got a very sexy used Lexus for $24k and only 18k miles on it. No need to drop $50k for something cool/nice

 

[ashmarie]

@fullmoon You don't need a $50k car. You need something greater than $80k if you want to be cool.

 

[syuzvr]

@fullmoon People will tell you to buy a used Corolla as this is a finance sub and that's the best financial decision.

If you want to drop $50k on a nice car I say do it. Life is meant to be lived and you'll still be 27 with $60k plus in the bank. Better off than like 95% of people your age.

Just keep in mind other things like your insurance will go up, if you plan on buying a home/condo soon, etc.

 

[emmierose80]

@fullmoon As long as the monthly payment is not >10% of your income, I think you’re okay.
Tbh there’s a lot of savings/asset value talk but imo if it’s something you want, I think you should do it. I was in a similar boat and bought myself a ~40k new SUV. Zero regrets.

 

[thelordisgood117]

@fullmoon Depends on your life. Got kids? Plan to have kids? Got a house? Got any debt?

For reference, my NW worth is little less than 8x yours, and I personally wouldn't spend 50k. I drive a 15+ year old car, nearly 150k miles. Had it for a decade. I want a car that's about 60-65k, but I still won't let myself buy it yet. Told myself if I get my car to 200k miles, then I'll treat myself.

What kind of car do you want? Sports car? Again, if you want a family soon, likely not the most economical choice in the long run. However, would need
to consider the value of owning it now, while you can. Biggest thing to consider is what you plan and imagine your life to look like in the next 5-10 years. If you are single and plan to remain single, I say do it. If you want to retire early, it isn't the wisest choice, but its still about balance.

 

[kathyjenkins]

@fullmoon people don't realize a non luxury car on average is 44k now. yes you can afford it.

look into tax breaks on hybrids and look for 0% financing deals.

If I was going to go full finance goblin I'd get a 1 year old 2023 Mitsubishi Outlander that people cashed the tax break in for at 17k and pay cash and then save the rest for my down payment on my condo

 

[cristal11]

@fullmoon The go to rule is the 20 3 8 rule.

Put at least 20% down, finance for 3 years, and make sure the monthly payment is no more than 8% of your monthly income.

If you can afford it, then definitely put more than 20% down. Cars are awful investments as they lose so much value over such a little amount of time.

 

[thenewfabian]

@fullmoon Do you want to buy a house? If so, I would say hold off. If you are happy renting, go ahead and get the car you want. I put down $20k on my $50k truck and financed for 3 years to get i think it was 1.99%.

 

[kyrani]

@fullmoon Rule of thumb is 1/2 annual income. Look at $40K vehicles instead.

 

[kereena]

@fullmoon I would strongly advise against spending $50k on a car. If you really must get a “nice car”, checkout a 2-3 year old Lexus, Toyota, Honda or Acura. You can spend ~$30k and get a LOT of car. A 2022 Toyota Avalon in the limited trim, with under 30k miles can be found for under $30k and is very premium. It will have a V6, leather, all the bells and whistles while still being extremely reliable and last you 10+ years. A slightly older Lexus es350 with low miles can be found for mid $20k. Heck a brand new accord hybrid touring (top trim) can be had for mid $30k.

You should be trying to pay cash for your car. A paid off car is a bigger flex than any perceived coolness you think you’ll have from a luxury car.

The goal of middle class is to maintain it and continue to build wealth. Luxury cars are not in the equation to that lifestyle.

 

[spiritoffaith]

@fullmoon

I really want a nice car

why

get a car that gets you reliably where you need to go, with air conditioning, and no more car than that.

it's cheaper to kill that "i want something nice" feeling by spending on hobby, or clothes, watches, glasses, literally anything that isn't a car. A car can get totalled the next day. A car needs insurance. maintenance. it deprecates daily.

cars are the single biggest consumer money sink.

 

[koolkat781]

@fullmoon You don’t need a 50k car. There’s plenty of nice 20k cars.

 

[ktb]

@fullmoon If you really want a nice 50k car, buy one. I wouldn't do that on your income, but my expenses are different.

Also, I would probably go for a low mileage slightly used car over brand new, but also check insurance since they sometimes charge considerably more for used. I noticed that years ago when I was last seriously car shopping.

 

[thelordisgood117]

@ktb Eh, markets still bad for used cars. 4 years ago, I would have never in my wildest dreams considered a brand new vehicle. Still worth it to shop around and see what's out there, but often, the light used ones don't have enough of a spread between brand new to make it worth your time.

 

[christiandad]

@fullmoon I got a nice car for 35k @ 3.9% last year. Volkswagen Tiguan. Has everything I wanted with the exception of a heated steering wheel. 50k is not necessary to spend to get a nice car.

 

[jeremiah17]

@fullmoon As long as you maintain a balance of saving and also enhancing your life at the same time, then I don't see any issues with it! Find the right deals and if you can find a nice "cool" car below 50k, even better! Cheers!

 

[mellie]

@fullmoon You don’t need a $50k car. Cars are the absolute worst asset you can possibly buy.

You can get a reliable used car that will last you years for $15K. Look for something 3-7 years old. Pay cash.

Want to be rich? That's how you do it. Not by taking out debt for a $50k car.

 

[andrewk292]

@mellie You aren’t getting much for $15,000 these days. A 3-5 year old car for less than $15,000 literally doesn’t even exist where I am.

The newest year car I could buy for $15K is a 2018, has almost 100,000 miles, and has been in an accident.

 

[mellie]

@andrewk292 There are literally hundreds of cars $15k or less with anywhere from 65-120k miles, which is a great deal. The very first listing was a 2019 CX-3, 70k miles.

Any adult-owned, reasonably maintained car of reliable make/brand are built for 200k plus miles.

You need to do more than a five second google search.