Hey gang looking for some advice from some of the seasoned forum goers who may have been in similar shoes back in the day:

I'm 26 years old and am having an early mid-life crisis... just kidding...sort of.

I've been working full time out of college now for just over 4 years and have a pretty good job making around 70k a year before taxes. I'm not 'rich' but I'm doing pretty good for my age (at least I think so).

Anyways I've been saving my butt off for a house and a new car (I milked my college car, a 1997 Z24 cavalier 5spd manual until it recently needed a ton of work and I sold it for parts).

Due to a long term work assignment out of town, I have a rental car until the end of March. When I get back home I'm going to need new wheels and have considered a ton of different cars but one that keeps popping up on the top of my list is the chevy corvette.

It's American, it's fast, it's cool, and it will put a smile on my face everytime I drive it or look at it.

So here is where I need some help...

I want either

#1 a DSOM 2008 1LT Coupe MN6 (not sure if I want Z51 or not, although I think the bigger brakes and gear ratios may be a good thing).

Advantages: Brand new, LS3 engine, slightly better steering

Disadvantages: No options, more expensive (even a 1LT with nothing else is looking to be $41k + tax and that's for the base colors, probably more like 44k-45k for a 1LT w/Z51 in DSOM)

or

#2 a used 2005-2007 Coupe MN6 in either DSOM or LMB with lower miles (under 20k) and hoping to get a few more options, Z51 and Nav would be nice.

Advantages: Don't suffer depreciation of driving off the lot. Cheaper (probably can get one for $35kish). Might get some more options. May have some custom work already done (clear bra/exhaust/etc)

Disadvantages: May have been beat on a bit, maybe not as good of a warrenty (esp if 2005). May have to travel to get the car (not that big of a deal).

I live in MI so I would definitely need to get a Winter car, so getting a used C6 for mid 30s and saving 5-8k over a new 2008 would allow me to buy a used car with front or AWD for the winter with that extra cash.

So what do you think I should do? Push come to shove I can afford either option. I've always been overly frugal with my monitary decisions so this may be the one time I really want to go all out.

I'm single and not married. No kids, etc. I just don't want to get to a point where I spent so much on the car(s) that getting a house/mortage will be tough. Although I will probably pay cash for the car and may be able to use it as an assest when the bank reviews my credit and $$$ situation. I'm not entirely sure how all of that works. I currently rent a condo but would like to move into a house in the $200-$250k range this summer and will probably rent out 2 or 3 of the rooms.

Any help/words of wisdom would be greatly appreciated.

I have also looked at other cars like the new BMW 135i, BMW 335i (or xi...would eliviate the problem of needing a 2nd vehicle for winter), Infiniti G35x, G37, Lexus IS350, Cadillac CTS-V, Audi Quatro TT, EVO X (gas mpg sucks and too expensive, this was going to be the car I was going to get), subaru wrx sti (don't want a station wagon/hatch).

Overall I keep coming back to the idea of a vette + winter/rainy day car

 

If you fill out a profile you might get some help.

 

done!

 

If you are that monetarily conscious, the choice is obvious (esp. since this will be your first Corvette): go with #2. A used Corvette and a "beater" winter car.

And don't look back on your choice as it will allow you a little better house in a few months, as you say.

 

Personally, I've always shied away from buying used performance cars. At the end of the day, I know how I drive 'em (ie: 'how they're meant to be driven!'), and must assume others do the same. Thus there is a certain minimum wear-and-tear expectation. IMHO of course.

But then I come from the F-Body/GTO world, which is not a "premium" market. Some 'Vettes get beat on; lots don't it seems. But at this car's price point, I'd rather be the one to pop it's cherry and know that it's never been over-revved, sprayed, gone sideways into a gully, etc. Not only that, but in most cases the interest rate for a used car loan will be higher than for a new car loan, and so the payments may not be too far off from one another.

But if there's one piece of advice I'd say takes all precedent, get the house first! Then see how your finances shake out. $70k annual is pretty dang good, but a house will eat up a big chunk of it. It would suck to get the car first, only to find out that now you can't handle property ownership. Just my 2 cents.

 

The house should be purchased first. I did the same thing myself. Single and trying to buy the house and car.

The bank will not look at the car as an asset. The only thing will be that you do not have a car payment.

Buy the house, then buy whichever car makes sense.

If you rent the two rooms to responsible people, buy the new one you want. OR put more money in the bank for a cushion first.

 

Look like you have done your homework. I would find a preowned corvette. There are some out there just like new with very low miles and you could possibly save quite a lot of money. The problem is would you be satisfied with one that is not new. Only you can answer that question. Also, living in the north, it's seems almost definite that you would need a second car to drive in some of the winter weather and this would free up money to buy the second vehicle. However, I wouldn't buy the car if it would prevent me from buying real estate. But it seems to me that securing a home wouldn't be a problem for you.

 

I'll temper my first post: I agree, buy the house first.

Why? If you stick to those housing numbers (say, $250K buy, 20% down, mort. of about 750/mo, taxes, insur. etc. of 250/mo) --- you are still at an almost unheard of under 25% of net monthly income! THAT is laudable. And that is BEFORE bringing down your out of pocket costs with renters.

You will have sufficient funds and credit rating to afford a used Vette. And yes, to an extent I share the idea that a used "beat-on" Corvette does exist out there.

But believe me, there are a whole lot more that are babied and broken in just the way you'd do it if you wanted to own it for 40 years---but sold it in 2~!!!!

 

Go new. You have full warranty and all the confidence you need that the car has not been abused or pushed hard. You also get the color and options you want.

 

I almost forgot...

get the Z51 option. You definately wont regret it.

 

Me personally, I never buy used cars. As an alternative you might be able to find a really good deal on a new 07 leftover.

Just a thought, I know the whole "the 08's are newer and better speach" routine but there's nothing wrong with saving some coin and a new 07 is still a great car.

But what do I know, I'm single and bought my new C6 and rent an apartment instead of buying a house. That will probably change next year though, it's about time I get a better tax write-off.

 

Thanks for the insight guys. The only thing hampering my decisions a bit is there is no rush for the house. It just seems like something I should do instead of pouring rent money into a condo. Also with the housing market being in the crapper, now is a great time to buy. Since I work for the feds I'm not in as much danger of losing my job as some of the folks who work for the big 3 (trust me I feel for you guys/gals a lot of my family DOES work for the auto industry and it really sucks right now in Detroit).

One thought I had was, figure out what the 'beater' car will be. I can probably get something decent. I bought my 97 Cavalier for $5900 with 50k miles on it and it lastest me 5 years and up to 130k miles without ANY problems. Even when it 'died' it just needed a water pump and some other minor stuff, but it was cost prohibative to fix it rather than sell it and finally get a new vehicle.

If I get the beater car first, I won't be rushed into the vette (because I litereally need a car as soon as I get back into town). That way I can wait for a nice deal on a used one or figure out the house thing and see if I can afford a brand new 08' or even wait for some good incentives on the 08's once the 09's start showing up around mid year.

My problem is I'm sick of all this waiting around ;-) I want my vette NOW! I guess patience is the price of doing what is right/makes the most sense.

 

Since you will need to buy 2 cars, buy a 06 z51 with Nav and 3lt and a 72 Ford Pinto for the Winter.

 

You certainly are in an excellent position and seem to have your act together.

First, get the house, then consider spending the money on a car. Remember, you do not have a new one first time around.

I know you will do the right thing.

 

I have a DSOM '05 for sale that is in excellent condition and has never been driven hard. Borla exhaust; chrome Z06 style wheels; cashmere interior and the Z51 package for 35K with 16,XXX miles. Great car.

 

i hear ya on the early mid life-kinda sorta deal you got going there--at 26 years old im telling u there is nothing more fun then getting up in the morning and taking your vette out--im sure this doesnt change till your around 86--i know what your going through first hand because i made the same choice when i was 21--i decided to go with the home and it worked out in the end cause now im 26 own a home and on my 6th and 7th vette--the home brings equity--and with that more confidence in your financial decisions--plus u need somewhere to park them! sadly i live in the ny metro area sooo your seriously lucking out with the home price range your looking in---good luck with your choice

 

Hi Michael,
Buying a new or used Vette, and a home is a very big step and should be examined very carefully. Many times much of the pertinent information is omitted when determining the cost basis. Those missing components are very critical.

Personally, I think you should sit down with your bank loan officer and talk real estate/mortgages. The actual mortgage is only a fraction of the financial commitment need for home ownership. Get all the facts and figures.

Do the same when determining the total cost and expense necessary to own a Corvette.

Take your time. You have your whole life in front of you. You'll know what's best. Best of Luck.

~AL~

 

Reading my mind. Mortgage payment, taxes, insurance, upkeep, assoc. fees,reserve fund; the list can get long. Get your "house" in order and then think about the frills. Been there done that.

 

Just one final word to all the advice here is DSOM is only available on 05 and 06 C6's, 07 and 08's are Atomic Orange.