[Jonate]

Ok, so I have been contemplating getting the SS after graduation. I even went to check one out with my dad and talk to a sales rep this weekend. Sat in the car, heard the sales pitch, then came price... $47,700 (Black, Sun-Roof, Tint, *Nitrogen :dry: )

Not bad, I figured. Drove back home, and had a talk with my dad... Basically he said he would give me $7,000 for the down payment as a graduation gift. That would require a $40,000 loan. Worked out an amortization schedule and came out with a $720 monthly payment. Then I thought, gas, and insurance. So I rounded off to $1,100 a month. Then I factored in selling my truck and camry plus the $7,000, which worked out to be $485 per month, rounding to $885 on expenses.

Now this got me to thinking, do I really want to get rid of a truck that has been in the family since '92? The emotional value is too high to get rid of it. Second, do I really want $885 of monthly expenses for a car for the next 5 years?

Now, will I be able to make payments? Yes... But is it worth it to get rid of a truck that I highly value and still have to pay a week's worth of work for one car? As of now the answer is not really...

So what I've started doing is researching G8 GTs and GXPs (GXP Preferably)... My favorite color is Pacific Slate, but I would settle for White... That being said there is a Pacific Slate G8 GT for sale 2 hours away for $21,000 (52K Miles) I figure I could haggle to $19,000. That minus $12,000 from graduation present and camry sale seems like an awesome deal to me.

As for the GXP... There is a lady who goes to eat where I've worked as a server while I'm home for breaks and vacations who owns a Pacific Slate GXP (My dream car from Highschool!!!) I've talked to her but never popped the question, "would you ever sell the car." Story goes, her ex worked for Pontiac and bought the GXP at a discount, they divorced and she kept the car... It is for this reason only that I believe she may be willing to part with it (hopefully :mellow: ) If so I would hope for something less than $28,500...

All of this being said, I would like to hear any input on what I should expect, what is reasonable, or what you would do if you were in my position (and yes, I have heard the whole, get a house spiel... got that handled already)...

To all of those who have taken the time to read and reply to this thread, I thank you in advance! :cheers:

 

[2074]

Well I'm going to give some advise I give to all the young people I mentor:

Before spending on your wants (read not necessities) start saving and keep saving until you have at least 2 years worth of income or living expenses (whichever is greater) stashed away!!! Do not incur any new debt except for a house! You are fortunate to have parents giving you a graduation gift that most will never even be able to dream of. Don't squander it on a depreciating asset that you will be paying for with loan interest!

Yeah I know you want ... but I know many many people including people my age that are spendthrifts and if they miss 2 paychecks in a row the house of 'payments due' cards come crashing down and they are in bankruptcy court. Yeah they got all the best of the toys and all the juggling of the payments too.

Please take this in the right way .... I'm sure you parents would be happier if you didn't spend all their hard earned gift money and go into debt and be upsidedown on a car loan until it was almost paid off!

 

[fincherific]

Well I'm going to give some advise I give to all the young people I mentor:

Before spending on your wants (read not necessities) start saving and keep saving until you have at least 2 years worth of income or living expenses (whichever is greater) stashed away!!! Do not incur any new debt except for a house! You are fortunate to have parents giving you a graduation gift that most will never even be able to dream of. Don't squander it on a depreciating asset that you will be paying for with loan interest!

Yeah I know you want ... but I know many many people including people my age that are spendthrifts and if they miss 2 paychecks in a row the house of 'payments due' cards come crashing down and they are in bankruptcy court. Yeah they got all the best of the toys and all the juggling of the payments too.

Please take this in the right way .... I'm sure you parents would be happier if you didn't spend all their hard earned gift money and go into debt and be upsidedown on a car loan until it was almost paid off!

Good advice, there will always be a nice car to spend money on, no need to force it if you think the numbers are too tight. Nothing wrong with waiting. Get your financial foundation established first before committing yourself to a car payment for 5 years. If you're happy with what you've got right now, keep them and save the money you would be spending on the new car in a car fund, don't spend it on something else! Of course get several months' expenses saved first, the advice ranges from anywhere from 3 months to a year. 2 years may be high but if you invest some of that $$ instead of keeping in in a less than 1% savings or money market, that could pay off.

 

[GXPaycheck]

Good advice. Stay out of debt and get some savings in the bank. Jobs come and go. Stuff you own you get to keep. Best way to buy a car is to pay cash! You can always pick up a used G8 and work your way to a new SS.

 

[MOTORHEAD188]

Well said ! More young people need to hear that message. Learn to delay pleasure until you can truly afford it[which means paying cash] and you will win in the long haul.

 

[2074]

Well said ! More young people need to hear that message. Learn to delay pleasure until you can truly afford it[which means paying cash] and you will win in the long haul.

Yes.

I was raised with a depression mentality instilled by my parents and grandparents and except for a house; "if you can't afford to pay cash for it you can't afford it."

I said 2 years because except for McJobs it could easily take that long to replace a lost job in most fields/industries. I'd rather err on being cash rich and toy poor ... the toys will come and you will appreciate them more because you worked for them and understand the value of money.

 

[madzmaxz]

All of this is sound advice and I wish someone had bothered to give me similar advice several decades ago. I want to add one thing. The very fact that you asked should make your parents extremely proud. You obviously are a thoughtful and considerate person. Make sure that a purchase like this is something that is easily affordable over the long term. The one thing I did not see in your analysis were the emergencies and contingencies that crop up over time. Those items -- impossible to calculate -- drive CB750's 2 year, and I don't disagree with him.

 

[brianch]

debt sucks

thats my only advice

first hand experience

 

[Jonate]

I'm surprised the number of people who have taken the time to read and reply, Thanks!

Not that I disagree on CB750's "2 year plan" but I've always heard six months to a year. I figure six months to a year is fine IMO. It shouldn't be hard to find a job with an accounting degree, but that's beside the point...

Anyways, the reason why I contemplated the SS is because it has everything I could ask for in a car, but I have come to the conclusion that the payments are not worth it for me. I won't be able to save as much as I would like to, and what's the whole point of getting a degree IMO? Making a higher income to be able to save and grow...

Also, my camry is reaching its 200,000 mile mark. My suspension is giving out, rear valve-cover gasket is broken, it needs new tires, the driver door is rusting bad, and it's almost in need of a complete tune-up. That's a pretty chunk of change that I will need to fork over to prolong the camry's life. To this I add, I was offered $5,000 for the camry, as is, by a friend... $5,000 that I know I will never be offered again for that car...

As for emergencies, as of now I have ~$9,000 in a savings account, which is strictly for emergencies. I am aware that there is no return in a savings account, but it's secure and its readily available. I also have a 40% stake in a foreclosed home my brother and I invested in about a year and a half ago...

All of that being said I believe a G8 GT/GXP would be more attainable/reasonable and is something that I will continue to look at for the time being. I am patient and I am analyzing the situation at this point because it gives me ample time (6 months to a year) to weigh my options and make a rational decision...

Once again, I appreciate the time yall are taking read and respond! :cheers:

 

[2074]

I'm surprised the number of people who have taken the time to read and reply, Thanks!

Not that I disagree on CB750's "2 year plan" but I've always heard six months to a year. I figure six months to a year is fine IMO. It shouldn't be hard to find a job with an accounting degree, but that's beside the point...

As for emergencies, as of now I have ~$9,000 in a savings account, which is strictly for emergencies. I am aware that there is no return in a savings account, but it's secure and its readily available.

Once again, I appreciate the time yall are taking read and respond! :cheers:

Emergencies also include sickness, accident, family stuff, etal.

Ally Bank Money Market pays .86% on all balances you get free checks, electronic transfers, no fees and FDIC insured. A place to keep some limited easy access emergency/mad money. And we own it 'cause we bailed it out in GM/Cerberus/Chrysler's bankruptcy.

 

[ChevySS]

I got to agree with this advice. I am almost 30 years old and the last time I bought a car was when I was 19. Throughout my 20s, I was tempted many times to buy a new car, a nicer car, a faster car... but I abstained. I exercised self control. I got a better job, wife had a baby, I had to sell my motorcycle, bought a van for the baby. We bought a house. Then, the right time came. It just felt right and I took the leap and bought the SS. I needed a 4-door but yet something I could keep for a long time and enjoy. Something that wouldn't necessarily break the bank in terms of maintenance.

Long story short, if it doesn't feel right, don't do it. Don't push your budget to its limits for instant gratification. You will get much more pleasure out of careful planning.

 

[Frank Rizzo]

You should buy the Pontiac!!!

That car payment is insane and I'm saying you can't afford that realistically.

Please dont stretch to buy a depreciating asset like a car. Stretch to buy a house.

30 years from now, you are going to be saying "I wish I started saving for retirement earlier" and the car won't even be a memory.

You seem like a really smart kid, so think about this little tidbit (credit to Dave Ramsey):

But when you discover how wealthy you’d be if you invested that student loan or car payment instead of sending it to the bank, it can just about make you sick. Some members of My Total Money Makeover know what that feeling is like as well as the tough road to be free from it.

We asked our members to list their highest ever monthly payment that wasn’t on the house. We then calculated what that would be worth if invested for 30 years at 12% interest.

Here are the top 10:

My student loans were originally about $840. (invested for 30 years equals $2,965,128) —Julie in Texas

We were paying $850 to a debt solutions company, a combination of five credit cards. (invested for 30 years equals $3,000,426) —Doug in Texas

Mine is the $925 that is taken out every month for my STUPID 401(k) loan! (invested for 30 years equals $3,265,170) —Kathy in California

It was $1,020 for 12 different loan payments a month. I sometimes had to renew a loan just to make a payment on one that was due. (invested for 30 years equals $3,600,511) —Denise in South Carolina

Get ready … $1,100 to Chase on an account that had close to $40,000 on it. Most of that $1,100 went to interest. (invested for 30 years equals $3,882,904) —Nancy in Colorado

We paid $1,150 every single month for a leased BMW convertible. (invested for 30 years equals $4,059,402) —Christina in Arizona

Between the student loan payments for my husband and me, the total is $1,215. And they aren't getting killed anytime soon either. (invested for 30 years equals $4,288,845) —Erika in Georgia

In 1998, we had $1,385 per month to cash flow one year of our oldest son’s college for what the scholarships didn't cover. That was a painful year. (invested for 30 years equals $4,888,930) —John and Dee in New Jersey

My student loan total just went up to $1,432 and I'm only about to begin working on the principal in July, if all goes well. (invested for 30 years equals $5,054,836) —Amy in Massachusetts

Between the $965 a month for a 2000 Cadillac Escalade and then $550 for insurance, I was paying $1,515. (invested for 30 years equals $5,347,819.—Aaron in Texas