Prankster

It really depends on a lot of things..only you can make that judgement. Do you have young kids, do you have any credit card debt or loans, do you have a good retirement/savings plan going, etc..I would still fall on the extreme conservative side..the economy isn't doing so good..anything can happen.

If all that is in check, I still would put enough money down on it to cover the depreciation, so if s__t hit the fan and you had to fire sale it you can get out of any payment plus have some cash back.

Good luck!

pkstr

gilly6993

that's not necessarily true in all markets....

yellerz51

You want to spend an entire years salary on a car? What ever good financial sense you had that got you in the position to have that house paid off will surely guide you through this.

As for the pool.. It's allot like a boat.

We have a boat and a pool and I can tell you that they are nothing more than entertainment for other people and work for me. I don't really go in the pool and when people want to go on the boat I have to do all the work. Last year the boat was stolen and sunk and the insurance wanted to repair it. It's been at the repair center for the last 6 months! When they are done with it I am going to have them sell it, no more boats for me!





As for the Pool... Contractors suck. It took them 18 months to finish and they still never got it right. Never again....

Shodanusmc

Not always. Depending on your location, a pool can actually cause the total value to decrease. Then again, all homes are now down.

Unless you live in the SW, forget about a pool. Just a big drain.

90sundevil

I guess it depends on where you live, here in AZ the pool is a no brainer. You can get the pool and Z06 for the same price of a ZR1.

Shodanusmc

Thats very true, and for that, you can get a terrific pool in AZ. In the Chicago area, they want 3.5 times more for a pool than in the Phx area. We have a home in Anthem, AZ and in the Chicago area. I paid 40K for a real nice pool in 2001....here they wanted 140KL for the same pool, same features. Yes, worth in in AZ, not in most parts of the country.

IndyPacer

True it will add value BUT a pool also limite your perspective buyers numbers.

Bwright

I like your general line of thinking here.

My advice to the OP is not to even consider it in this market even though his home is almost paid off.

Realizing that nearly 75% of cars in country are financed my advice to people on car buying is as follows:

1. Any car you cannot pay off in three years you can't afford.
2. Take your gross salary and multiply it by three.
3. Then minus your taxes which for the OP should be about 40% combined Federal and State.
4. Then take 20% of that. That's how much car (with options and tax) you can comfortably afford.

For the OP: $120K * 3 = $360K. Then -40% in combined taxes = $216,000 net actually available to spend. Finally, 20% of that is $43,200. That's it. Since the home will be paid off soon I would say he can go to 30% of his net salary on a car as I advise 40-50% net on the house with the balance after the 20% on the car split between investment/savings and spending on oneself. At 30% of his three year net he should be able to buy a discounted 1LZ Z06. Don't tell the dealer he intends to pay it off in three years then take five year paper.

Since cars generally depreciate about 50% of sticker in 3-4 years spending more than 20% of your net salary on them simply tells me the buyer is inclined to lose more. If you spend 20% of your net on a car you will lose half of that spend. If you spend 40% you will lose half of that larger spend. Cars cost money, how much do you want to lose?

In the OP's case the actual cost of a ZR1 is not a year's salary since his gross salary is not all his own. It is the after tax or net salary that matters. Some would say it goes deeper to the disposable income or net income after all his mandatory expenses such as mortagage and food are paid but I will just stop at after tax.

As such, given the prevailing cost of a new ZR1 at about $142K currently, the OP is looking at TWO years of NET salary. Even if he really took a five year loan it would eat 40% of his net salary [(120 * 5) - 40% * 0.4 = $144K].

At that point the car would probably only be worth about $60K making his net loss (financed no less) $84K over five years or $16,800 per year. That's $1,400 a month.

Don't do it man.

williocom

is this formula for a single man or for a family. i was just curious as i just graduated from college and was wondering how it would apply to someone like myself. Thanks for your guys help.

Will

gerbie28

Hey if u can do it!!!! I know i would in a heartbeat

Alaska Z06

If you feel you can just do it. Life is to short, enjoy it while you can.

Minks100

Thanks for all your replies.

Special thanks to yellerz51, Bwright, and Teds427 for your detailed responses.

I kinda knew that I did not make enough $$$. I was hoping to get peer pressured into it.

I will wait and see what the used market has to offer in a few years. In the meantime I will go with a Z06 for now.

Cheers

DSOM Z06

In general, If I listened to the financial advice given on this forum to make my buying decisions I would have driven my bicycle off of a cliff a long time ago.

BudgetPlan1

You should spend *two* years salary! But then again, I have 2 'toy' cars and a pool and live in NE Ohio where I can use those things only about 8 months outta the year. So much for my sound decision making. Yes, I am an idiot.

mousecatcher

depends what part of the country you're in.

thanxa

If you have to " justify " a purchase by asking for opinions then you are not anywhere near being ready to spend on a ZR1 . First of all I personally sold 8 of them at between $ 127,000 and $ 212,000 . Not the dealer ,me period . This post is not to be construed as bragging or boasting but rather as an informative post to let everyone know that they are not alone in their I sold them to very wealthy people ,even to a Prince of Dubai . During the course of the past year I entertained another ninety two who called me at all hours of the night , e-mailed me on Xmas ,Hanukah,and New Years

thanxa

If you have to " justify " a purchase by asking for opinions then you are not anywhere near being ready to spend on a ZR1 . First of all I personally sold 8 of them at between $ 127,000 and $ 212,000 . Not the dealer ,me period . This post is not to be construed as bragging or boasting but rather as an informative post to let everyone know that they are not alone in their I sold them to very wealthy people ,even to a Prince of Dubai . During the course of the past year I entertained another ninety two who called me at all hours of the night , e-mailed me on Xmas ,Hanukah,and New Years. The requests came fast and furious , " I will pay cash " , " Call me when you'll take invoice " , or I lost my job and need my deposit back " . The 8 that I did sell the people just sent the money even before they saw or drove the car . Those sales were " real " . We see that everyday in the car business . In today's economy , for every 50 lookers , only one qualifies . If anything , a smart sales manger will recognize that immediately and pass you off to a rookie for practice and one day you will come in and spend $ 150,000 like its $ 150 dollars . I do not sell cars on this board so please dont even ask .

Minks100

Now there is the "poo-poo"ing I was waiting for.

Somebody was bound to put me in my place!!

04_Z06_CE

Lease

Shodanusmc

Not a thing wrong with a Z06....they are dealing and can be had from the high 50's to the mid-60's.....Fast enough for rush hour traffic. Actually based on your income, you should be looking at a C6....get what you can afford.....best of luck.