Acura TSX within my means to purchase?

[LegendKiller]

Originally posted by: CrazyDe1
[
That's great and everything but I don't think you're going to be 30, look at your 401k and be like damn, I coulda had 30k more in here. Especially since he's probably going to be able to max out his 401k and IRA regardless making 65k a year and having 0 obligations. Like yeah, it doesn't make the most financial sense in the world but it's plenty affordable on his salary and I'd rather make good financial descisions while having fun.

If the market turns and he really needs to buy a house you can withdraw your money from an IRA penalty free for a first time home purchase.

Also, the time to enjoy this car is now. You're getting the car not only for transportation, but because it's a great looking car and a kid your age in a car that nice makes a statement. It makes a statement when you go out to the bars, it makes a statement when you take a girl on a date. Yeah, you can delay gratification until you're 30 but then you're now the weird guy at the bar and it doesn't make as much of a statement because there's lots of 30 year olds with nice cars.

My buddy, never fails, whenever we go out and meet new girls he takes his cell phone and his keys out (he drives an A4 1.8T). Inevitably he gets a girls # or a conversation gets started because of a car and they're instantly interested. The conversation then goes "how old are you", wow you bought it in cash at 20? I can't tell how many times he's met a girl and used his car keys as an icebreaker.

Heh, I would. but I guess I am in the minority.

Wow, so your friend bought an A4 cash when he was 20. Did he go to college? Parents?

Personally, the chicks that like a guy for his car won't be the type of chick you are going to want to marry. The shallowness that is inherent in that is pretty evident.

My wife married me when I was making 1/2 of what I make now, and we just own one car. Interestingly enough, that was only 6 months ago!

I'd rather put my money into other things, like investing in myself. Having gone through under, grad, and a professional financial certification (much more intensive than IT ones), I can say that the extra cash spent over the past 3 years, has been more than worth it. Especially since I have tripled my salary in as many years.

if I had to do it over again, I would have saved more when I was younger (I am only 27), spent less. However, as it is, we have more than 4k extra cash per month.

Could I go out and buy a damn nice car? Yes, I could. Should I? Probably not, you never know what the future brings. You could lose your job and be screwed. You could all of the sudden get married and have kids but now not have enough to pay for them.

There's a bunch of scenarios that somebody could be faced with. Not preparing for them and delaying gratification just a little bit is a good way to get screwed by a problem.

Lastly. One of the big reasons why this country has problems is because the younger generations just don't get delaying gratifications.

I delayed mine and my wife was able to take almost 4 months off of work to recover from cancer.

You never know about life...

 

[ones3k]

Yeah, lol, how did he afford an a4 with CASH at age 20?

 

[mugs]

Originally posted by: CrazyDe1

My buddy, never fails, whenever we go out and meet new girls he takes his cell phone and his keys out (he drives an A4 1.8T). Inevitably he gets a girls # or a conversation gets started because of a car and they're instantly interested. The conversation then goes "how old are you", wow you bought it in cash at 20? I can't tell how many times he's met a girl and used his car keys as an icebreaker.

They must be some classy chicks if they'll talk to a guy based on the fact that he has an A4. That's not even a great car, or an expensive car.

 

[CrazyDe1]

Originally posted by: LegendKiller

Originally posted by: CrazyDe1
[
That's great and everything but I don't think you're going to be 30, look at your 401k and be like damn, I coulda had 30k more in here. Especially since he's probably going to be able to max out his 401k and IRA regardless making 65k a year and having 0 obligations. Like yeah, it doesn't make the most financial sense in the world but it's plenty affordable on his salary and I'd rather make good financial descisions while having fun.

If the market turns and he really needs to buy a house you can withdraw your money from an IRA penalty free for a first time home purchase.

Also, the time to enjoy this car is now. You're getting the car not only for transportation, but because it's a great looking car and a kid your age in a car that nice makes a statement. It makes a statement when you go out to the bars, it makes a statement when you take a girl on a date. Yeah, you can delay gratification until you're 30 but then you're now the weird guy at the bar and it doesn't make as much of a statement because there's lots of 30 year olds with nice cars.

My buddy, never fails, whenever we go out and meet new girls he takes his cell phone and his keys out (he drives an A4 1.8T). Inevitably he gets a girls # or a conversation gets started because of a car and they're instantly interested. The conversation then goes "how old are you", wow you bought it in cash at 20? I can't tell how many times he's met a girl and used his car keys as an icebreaker.

Heh, I would. but I guess I am in the minority.

Wow, so your friend bought an A4 cash when he was 20. Did he go to college? Parents?

Personally, the chicks that like a guy for his car won't be the type of chick you are going to want to marry. The shallowness that is inherent in that is pretty evident.

My wife married me when I was making 1/2 of what I make now, and we just own one car. Interestingly enough, that was only 6 months ago!

I'd rather put my money into other things, like investing in myself. Having gone through under, grad, and a professional financial certification (much more intensive than IT ones), I can say that the extra cash spent over the past 3 years, has been more than worth it. Especially since I have tripled my salary in as many years.

if I had to do it over again, I would have saved more when I was younger (I am only 27), spent less. However, as it is, we have more than 4k extra cash per month.

Could I go out and buy a damn nice car? Yes, I could. Should I? Probably not, you never know what the future brings. You could lose your job and be screwed. You could all of the sudden get married and have kids but now not have enough to pay for them.

There's a bunch of scenarios that somebody could be faced with. Not preparing for them and delaying gratification just a little bit is a good way to get screwed by a problem.

Lastly. One of the big reasons why this country has problems is because the younger generations just don't get delaying gratifications.

I delayed mine and my wife was able to take almost 4 months off of work to recover from cancer.

You never know about life...

I bought my 30k car (grand cherokee) with cash when I was 16 (thank you alladvantage, and internet click through programs). It's been nice having a nice car all these years and not having to pay on it. However, if I were to do it again I'd probably have used that cash, bought a house in college and rented it to my friends and collected an extra 1200 a month. My parents had a beater for me to drive around anyways.

He funded his own college. He had 2 summers of MS internships that paid something like 28 bucks an hour (all living expenses paid) while he was doing contract work. He made way more doing contract work than he did at the internship. Ended up getting out of school with an MS in electrical and computer engineering before the age of 21 and like 60-80k in the bank.

I agree that you have to be prepared for the unforeseen like losing your job or kids and everything. It is nice to save 4k a month but what are you saving for? What's the difference in retiring at 40 with 4 million and 5 or 6 million? I'll take the 4 million and have some fun while I'm young. Also, you have to keep in mind, at 22 with no expenses and no one you are responsible for except for yourself, losing your job isn't a huge deal. You'll have 3-4k of savings after a few months on the job and with his skillset I don't think he'd have a problem getting another job within a couple months. Of course your situation is different where a wife depends on you, kids will probably depend on you in the near future, and something catastrophic affects your family and not only yourself. Definitely have to have a rainy day fund or a backup plan.

Also, you have to keep in mind that at 22-25 we're not necessarily looking for that long lasting one true love that we want to marry. In fact, most young professionals I know aren't even looking for a relationship, rather a chance to play the field. A few one night stands here and there and some memorable nights though? Priceless.

 

[CrazyDe1]

Originally posted by: ones3k
Yeah, lol, how did he afford an a4 with CASH at age 20?

A couple summers of MS internships, being bored on the job and taking on a bunch of contract work.

 

[CrazyDe1]

Originally posted by: mugs

Originally posted by: CrazyDe1

My buddy, never fails, whenever we go out and meet new girls he takes his cell phone and his keys out (he drives an A4 1.8T). Inevitably he gets a girls # or a conversation gets started because of a car and they're instantly interested. The conversation then goes "how old are you", wow you bought it in cash at 20? I can't tell how many times he's met a girl and used his car keys as an icebreaker.

They must be some classy chicks if they'll talk to a guy based on the fact that he has an A4. That's not even a great car, or an expensive car.

Most aren't so classy...attractive usually, but definitely not what you would call classy. Sometimes pretty dumb too. Audis and VWs have this little switchblade key where you hit a button and the key pops out. She spent 10 minutes staring at it trying to figure out how this little square thing started the car.

Although, we've definitely met our share of cool and attractive girls because the key gives them an opening to start a conversation with us. In fact, there's a few we hangout with pretty regularly.

 

[Dunbar]

Originally posted by: CrazyDe1

Originally posted by: LegendKiller

Originally posted by: CrazyDe1
What's the difference in retiring at 40 with 4 million and 5 or 6 million? I'll take the 4 million and have some fun while I'm young.

He, he, he...

 

[thomsbrain]

Originally posted by: Strk

Originally posted by: mugs

Originally posted by: ones3k

Originally posted by: mugs
You can most likely afford it with a 5 year loan, but that doesn't mean it's a good financial decision.

Exactly, i already know i can afford the damn car, i've looked at my budget situation. I'm asking people if this is a reasonable financial decision?

I don't think it is, but different people have different priorities in life. At your age, your biggest priority should be saving money, not spending it.

Actually, at his age, a car loan is a great idea. Car loans are an incredible source for a credit builder. However, getting a large one is questionable when you're just starting a job. That's why I said I'd wait a few months and build up a decent bank account, then purchase it. Also, by that time, you'll have a little more assurance on if your company likes you

We live in an age where most people that age have had credit cards for years. If they've been paying on time, they already have a solid credit history. the last thing they need is a bunch of debt before they've purchased their first home.

 

[Gunslinger08]

Originally posted by: DougK62

Originally posted by: joshsquall
Buy it. I'm 22 (21 when I purchased) and I bought a 2006 Mustang GT about 4 months ago. 4 year loan = $700 payment, but it's not really difficult to make when you have no other expenses except for lunch, gas, insurance, and cell phone.

Ouch. You'll end up hating your choice soon...

Why? I still have more than enough money to enjoy life and save a ton. I don't live my life just to pinch pennies and save so that I can enjoy my $1 million for 3 years between retirement and death. This portion of my life is way too long for me to not enjoy it and have the things I want because I'm always "looking towards the future".

 

[mitaiwan82]

OP: Get a used TSX...it's a Honda so you know it'll last a long time anyways

Originally posted by: joshsquall

Originally posted by: DougK62

Originally posted by: joshsquall
Buy it. I'm 22 (21 when I purchased) and I bought a 2006 Mustang GT about 4 months ago. 4 year loan = $700 payment, but it's not really difficult to make when you have no other expenses except for lunch, gas, insurance, and cell phone.

Ouch. You'll end up hating your choice soon...

Why? I still have more than enough money to enjoy life and save a ton. I don't live my life just to pinch pennies and save so that I can enjoy my $1 million for 3 years between retirement and death. This portion of my life is way too long for me to not enjoy it and have the things I want because I'm always "looking towards the future".

1) live with parents
2) have no expenses
3) blow everything on material goods
4) ....
5) Profit!!$ FTW

 

[Accipiter22]

Originally posted by: ones3k
To put a long story short, i will be starting my first salaried job on July 10th at an annual salary of 65,000/yr. I will also need to buy my first car and i am seriously considering the 2006 Acura TSX with a MSRP of 28,500.

I've looked a the numbers, i can easily afford this car, but i'm more concerned about the financial decision. In your opinion, would it be considered extravagant for me to finance such a car with my salary? Is buying a TSX a sound financial decision?

EDIT: I will be living in eastern massachusetts, I'm single, 22 years old, cost of rent will be in the range of 5k to 12k per year. I have no student loans, no debts, nothing.

where in eastern mass can you find 5k a year for rent???? everything iv'e looked at has been 12

 

[ones3k]

roomate

 

[puffff]

If cars will be your number one hobby, go ahead and buy it.

Like previous posts have said, you don't have to be a miser and scrimp every penny. You'll spend some fun money over the year to treat yourself. You can easily afford that car if you choose to.

Just keep in mind you cant have everything. Maybe you'll have to sacrifice that luxurious vacation every year. Maybe you'll have to cut back on those nights out at the bars. Sure, you might think to yourself 'I don't need a Carribean cruise every summer', but can you be sure you'll have the same sentiment 3 years from now, when you'll probably still be paying off the TSX?

Buying a luxury car as your first will severely limit your flexibility in the future. It's probably a bigger purchase than you realize. You're just entering the real world, are you positive you want to do this?

 

[Dunbar]

If you are 100% sure you will have a roommate, go ahead and buy the car, you can easily afford it. I guess at 22 you're not too old to live with a roommate (I know I am).

 

[m2kewl]

you're only 22, go for it!

life's too short to be missing out on things you want!!

 

[imported_Scourge]

Buy the car. All of these people making it seem like you'll be unable to save a dime if you buy the car, etc. are full of it. You're young, and you're making enough money to buy a 30 thousand dollar car.

- Do make sure you like your job before you get the car. If you purchase the car, and then find out that your job is not going to work out for whatever reason- then you're in a spot. But so long as the job is a sure thing, then you know what to do.

 

[Strk]

Originally posted by: Scourge
Buy the car. All of these people making it seem like you'll be unable to save a dime if you buy the car, etc. are full of it. You're young, and you're making enough money to buy a 30 thousand dollar car.

- Do make sure you like your job before you get the car. If you purchase the car, and then find out that your job is not going to work out for whatever reason- then you're in a spot. But so long as the job is a sure thing, then you know what to do.

Aye, that's another reason why I've been pushing the waiting idea. I've known quite a few people who thoroughly hate the companies they start with right out of college. Having a bit extra in the bank and being sure about your employment status make for a much better decision.

 

[ones3k]

yeah, i may wait

 

[python023]

Buy a 2005 TSX and save from the "drive it off the lot lose value" hit.

 

[ones3k]

bump

 

[xrax]

your first car shouldn't be that expensive. 65K isn't that much after the taxman takes his cut, especially in Taxechusettes. Insurance is going to be expensive too. Get a Hyundai if you must buy new maybe wait for a memorial day sale. Tax, title, registration will add to the total. See if you qualify for any discounts on new cars through your employer. your looking at $600/mo payment + $200/mo insurance on a 5 year loan.

 

[ones3k]

are you serious? 200/month for insurance?

 

[spidey07]

Originally posted by: ones3k
are you serious? 200/month for insurance?

LOL!

 

[ones3k]

Originally posted by: spidey07

Originally posted by: ones3k
are you serious? 200/month for insurance?

LOL!

I thought insurance would be around 150/month

 

[ones3k]

By the way spidey07, arent you the same guy who claimed a single male earning 65k/year is considered LOWER middle class? Could you please explain that one to me?