34, married, no kids, dual income combined made 320k this year, but will probably be making more like 230-250k from now on (getting a new job). I have 104k in student loan debt at 2.6% fixed (488/month for like 20+ years) and a 296k mortgage (around 2000/month with taxes and insurance). No other debt. We almost maxed out all of our retirement accounts this year (fell short on her 401K only because I paid off a lot of student loans). Next year we are definitely budgeting to max out his/her 401ks and backdoor ROTHs.
We live in the city and for the last 5+ years we've been able to get away with just one car since i lived close enough to the hospital to ride a bike, walk, or take a bus. Our current car is a 2008 Honda Element. Paid it off a long time ago and still driving it. We plan on continuing to drive it for another 3-4 years (unless something really expensive breaks on it).
Anyway, since I'm getting a new job outside of the city this year we need a second car. I got really excited about this a couple of months ago and ordered a new BMW i3 (an all electric vehicle). The price is $47,195, but I get a $7,500 tax credit on my 2017 taxes, so real cost to me is $39,695. Plan on financing it with a 3 year loan at 0.74% through a credit union. We started running an AirBNB room a few months ago at our home and the income from that should be able to cover the cost of the car payment most months.
Now that I've ordered it and started thinking about having another monthly payment for the next 3 years, I'm starting to question if it was an okay move. I mean, obviously the best thing would be to pay cash, but I don't have that kind of cash sitting around and I wanted a car that would last the long haul for me (at least 10-12 years ideally). My main justification for it was that the airbnb income would cover it, but obviously I could be investing that extra income instead. But, we do really need a second car and I do really like the idea of a good, well made car that should last me a long time and at the same time is environmentally friendly and cheaper to "fuel." What do you guys think
? Is it really that big of a deal if I pay it off in 3 years at 0.74% and drive it for at least a decade? I wasn't a regular reader of this site back when I ordered it, so now I'm really beating myself up about it.
We live in the city and for the last 5+ years we've been able to get away with just one car since i lived close enough to the hospital to ride a bike, walk, or take a bus. Our current car is a 2008 Honda Element. Paid it off a long time ago and still driving it. We plan on continuing to drive it for another 3-4 years (unless something really expensive breaks on it).
Anyway, since I'm getting a new job outside of the city this year we need a second car. I got really excited about this a couple of months ago and ordered a new BMW i3 (an all electric vehicle). The price is $47,195, but I get a $7,500 tax credit on my 2017 taxes, so real cost to me is $39,695. Plan on financing it with a 3 year loan at 0.74% through a credit union. We started running an AirBNB room a few months ago at our home and the income from that should be able to cover the cost of the car payment most months.
Now that I've ordered it and started thinking about having another monthly payment for the next 3 years, I'm starting to question if it was an okay move. I mean, obviously the best thing would be to pay cash, but I don't have that kind of cash sitting around and I wanted a car that would last the long haul for me (at least 10-12 years ideally). My main justification for it was that the airbnb income would cover it, but obviously I could be investing that extra income instead. But, we do really need a second car and I do really like the idea of a good, well made car that should last me a long time and at the same time is environmentally friendly and cheaper to "fuel." What do you guys think

Comment