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Too Frugal? - New Car

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  • #16
    There is nothing frugal about an 80k car

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    • #17
      The hassle of parking a car in a big city would get to me. The nicer the car the more upset you will be when you scratch it. If you move and have a commute then a sports car makes sense. Try renting one on the weekends. When you decide it makes sense buy a used porshe. I paid cash for one I found on ebay motors. I got the sportscar thing out of my system for a reasonable price.

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      • #18
        Originally posted by CordMcNally View Post
        Rent one for a month and see if it’s something you still enjoy. I’ve got a sports car that I drove less than 30 miles in the last 12 months. I still enjoy it but life can sometimes make it difficult. It mainly sits in the garage under a cover and on a battery tender.
        Knowing what you know now, would you have purchased it?

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        • #19
          I concur with the opinion of perhaps buying a slightly used car for this purchase. You get to scratch the itch of owning a sports car with less of the "pain" of having the value depreciate. It isn't exactly the most frugal purchase, but if you can still achieve your financial goals, ans seeing as you are debt free otherwise, then it theoretically won't kill you.

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          • #20
            Gotta at least tell us what the car is

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            • #21
              Originally posted by MPMD View Post

              very good take.

              build the muscles of frugality before you start justifying splurges.

              400k is a lot of money but 80k is still a lot of car.

              you can probably get 90% of what you want here for half the money.

              we are older, make more money, and have less money tied up in cars. and we are not particularly frugal.
              80k for a car you don’t need and will hardly use. Silly, regardless of finances but dumb financially too.

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              • #22
                Originally posted by TheDangerZone View Post
                Sure but only if and when you can pay for it in cash and after putting away the requisite amount towards wealth building, getting an e fund, disability, etc. WCI recommends this as well.

                Don’t take out a large loan on a new, depreciating asset one year after training. Aside from making sense financially, saving up the cash will make you appreciate the purchase and help you answer your own question as to whether or not it’s literally “worth it.

                For myself, I’m a car person. A few years after starting practice, and after we had a solid financial footing with the above, and after I saw we could meet our savings goals for the year, I paid for a sports car in cash. No regrets.
                I 100% agree with your statement about cash. I realize it’s dumb, but I can’t bring myself to spend the cash I have on an upgrade. We’re saving ~1/3 of our income, have a mortgage at 2.75% <2x income without other debt and have a 50k EF and stable job - but still….I just can’t do it. By all objective measures, it would be reasonable to do. We have the cash, but…..man….it feels different than a monthly payment. It’s just so much money on something that will provide fleeting happiness and end up worthless. For all those that talk down about early mortgage pay off, I’d much rather have a paid off mortgage than a shiny new car. That industry really knows how to separate people from their money. I’ve heard Dave Ramsey say you shouldn’t buy a new car unless you have a million dollar net worth; although I don’t necessarily think this should be a hard and fast rule, and I think there is a big difference between a new Honda and new luxury vehicle, it’s not bad advice.

                Also, I re-read the thread title. No, you are absolutely not being too frugal. Nothing about this is frugal. As above, you certainly can afford it. It is likely unwise and very far from frugal. If you had a multiple 7 figure net worth and had been lusting over a specific car for the past decade plus but didn’t buy it because of the sticker price, that would likely be too frugal. If you decided that you need a car and only wanted to spend $5k on a car with 200k miles and no airbags, that would be too frugal.

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                • #23
                  Originally posted by StateOfMyHead View Post

                  Knowing what you know now, would you have purchased it?
                  Yes. I drove it every day for 7 years and I’ve had it for 14 years total.

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                  • #24
                    Originally posted by CordMcNally View Post

                    Yes. I drove it every day for 7 years and I’ve had it for 14 years total.
                    What is it?

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                    • #25
                      Originally posted by VentAlarm View Post

                      What is it?
                      2001 Z06. Still a fun car but not worth much these days.

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                      • #26
                        Originally posted by CordMcNally View Post

                        2001 Z06. Still a fun car but not worth much these days.
                        Nice. When I grew up, I had a neighbor with a cherry red stingray. I thought that was the prettiest car ever built.

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                        • #27
                          I'm a car guy myself and have a weekend fun car, but it wasn't 80k and I can drive it every weekend. I'm not so sure about 80k for ~6mo of weekends per year, unless you'd drive it during winter. That's a lot of coin for X drives per year. If it was a dream car for life, maybe. But if it's just to scratch an itch, maybe rent and see how you feel about it after awhile. What car?

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                          • #28
                            Originally posted by cards67 View Post
                            What car?
                            This is probably pretty important. It also depends on what you want out of the car as you can usually get what you're wanting for cheaper. Are you looking for straight line speed? Handling? Is it a fancy brand emblem and prestige you're after? Do you want the car to shake and smell like gas at idle? Etc., etc.

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                            • #29
                              I have to say, I haven't logged into this site in years. I usually just read, but this speaks to me.

                              Having a commute that doesn't require you do drive your toy opens up all the options. I think you can definitely afford it. However, you can buy a ton of car for a whole lot less money, especially if it doesn't need to always start when you turn the key, or get you to the hospital in a foot of snow.

                              Think real classics, or semi modern classics. I have an e93 M3 as a toy. I also live in the northeast. In a suburb. 4 miles from work. April to November, on nice days, the top is down and the drive is glorious. 400 plus horsepower. high revving V8, convertible, glorious. Its also pretty understated and clean ones in decent shape can be found in the 30's all day long. Last non turbo V8 in ANY BMW. fast enough that you can't use half the power on the road anyway. I paid cash, have a garage bay for it, and get the oil changed every other fall. In nearly three years of driving it, I have put on not quite 10,000 spectacular smile filled miles. It stickered in the mid eighties. First owner took an absolute bath on it. As the second owner, I keep it clean, and keep it out of the salt, but otherwise I drive it like its stolen. No worries at the grocery store, or home depot, or the hospital garage. It's 10 years old. Still super fun. AND, although you can't count on this, if you are smart about what you purchase, it will likely suffer minimal to no depreciation.

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                              • #30
                                “I've always wanted a sports car (70-80k MSRP) and thought of making it a treat to myself when I would be able to afford it.”

                                One year out, 99% sure you can’t “afford it”.
                                Let’s get real. You talked about a lease, a way to finance a depreciating asset. You can afford the payment, not of buying it but of just “renting it” and you didn’t mention the purchase option amount. What’s with that?

                                Welcome to the Forum. That said, I think you will find that your emotional urge is to make a “big spend” just for the satisfaction that you finally can. Yes, you will be able to finance about any car you wish, Whether this is wise is a different question.

                                I think you find this is making poor value judgement, unforced error financially and that there are much better options. Wait two more years and pay cash (if you must). I don’t think you will write the check and don’t think you really want to spend it now or later.

                                Consider this, google race car driving experience northeast. Now that might be an experience worth paying for, but not buying the car.
                                https://www.thextremexperience.com/t...otor-speedway/

                                The only thing you should finance is a house with a mortgage. Simple rule, if you won’t or can’t write the check, then you can’t afford it. That was YOUR criteria, you cannot afford it.
                                Right? You attempted to rationalize it with the monthly payment example.

                                Poor behavioral finance , fix that by not doing that for any purchase as others have mentioned. Congratulations on the first year.
                                Last edited by Tim; 09-13-2021, 12:38 AM.

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