would you buy this car in my situation?

Question

i am 25 years old and have been out of college for 3 years now. I am a cpa in san antonio and have been doing very well for the past three years. I really want to buy a corvette z06 within the next three months, and would like to hear the opinion of people that are out in the real world like myself. I bring in 4200 dollars a month net, and will be getting a raise next april, when i will net around 5000 dollars. I have my own house and have 26 in savings, and another 30k in mutual funds, and about 10k set aside for the car. I also have a 300zx that is in great condition for a trade in(ask dealer for a quote, they said 8-9k, trade in) My father thinks it would be a bad move and would stretch me to thin. I know it would make money tight, but i am single with no relationship in the works, so all the money i make goes towards me. Also i have 23k in retirement already. would someone in my position purchase a 65k car?

i was able to save so much money because i lived with my parents for a year and a hlf after becoming a cpa

please every cpa i know has a very nice car, we all no they are not good purchases, please spare me the lecture

Answer 1

How much of your LIFE is this car going to cost you and is THAT worth the "joy" of driving a sprots car that costs 65K PLUS add the cost of the insurance, plates, taxs, maintence, and repairs and see what the total cost of owning the car is.
You NET 4200 a month so if we say that the car costs 65K plus insuance at your age PLUS taxs PLUS interest PLUS plates and registration PLUS operating cost that car will end up costing OVER 100K to have/operate/own for 5 years. 100K divided by 4200 means that over the next 5 years about 24 months or 2 YEARS OF YOUR LIFE will be spent JUST on the "car". Are you willing to give up 2 years of your life to drive this car for the next 5 and have something worth ...what??? Maybe 15K???
I would rather see you learn to INVEST whatever the car payment would be in someting like rental property that goes UP in value and when you have enough positive cashflow from your investments use THAT money to make the car payments. Set goal to BUY the car BUT ONLY when you use OTHER people's money to pay for it.
A friend of mine WANTED a Mecedes so she read/learned/invested in rental property and when she had enough she bought a new Mecedes BUT can drive the car for FREE and in 5 years she can BUY another one and it still doesn't cost her a penny.
If you are a CPA then treat yourself like a client and would you advise somebody else to spend that high a % of thier net income on an asset that DECLINES in value?

Answer 2

You can financially afford the car. However, it's a downright stupid purchase. The value of your 'investment' will drop considerably the moment you sign to take ownership of the vehicle.

You might want to ask yourself "Who am I trying to impress with this car, other than myself?" The answer will be "No one who really matters".

Buy a different car and save the difference.

My own son has an income which would puts yours to shame. He invests in real estate and mutuals, rather than spending money on a declining value asset.

Are you sure you are actually a CPA ?

Answer 3

Seems like you know the answer.You want someone to validate for you.I read in Consumer Reports Nissan will release a new Z version that eats the vettes and porsches for lunch.Besides you earn the money you only live once.

Answer 4

skip the Corvette. Corvettes are problematic. Check out Consumer Reports for better built cars.

And what if you meet the right girl next year? You'll be spending a lot of money on her and you won't have any for yourself.

Answer 5

There are lots of sports cars out there that are a lot less xpensive
Part of the reason you are ahead right now is living with the parents
Listen to them
These cars depreciate so fast
One vote for no
Get a less expensive sports car & give yourself some room

Answer 6

You can afford it, but consider a used one for about 2/3 the price. If you get a home equity line the interest is deductible.

Answer 7

in the journey that they gained't enable you to take it out for an intensive inspection and diagnosis, pass in this broking service. The mechanic could no longer finished as thorough of an inspection in case you've been to convey him to the lot. they don't look a respected broking service and must be prevented. they're mendacity about the "insurance difficulty".

Answer 8

I guess do it. if you can't find happeness in your life unless you have a big expensive car.

Answer 9

Id do it. you clearly have the money.