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How to best afford the dream?

 
Old 01-18-2019, 02:33 PM
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Joe Bloe
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Default How to best afford the dream?

So as with many people here the corvette is my dream car.

I am 24 no debt , making 57k a year (before taxes).
Renting an apartment for ~1100/month

Saving about 1000-1500/month depending on how frugal I am,

I was thinking for my 25th birthday, at the end of the year to buy(finance) a couple year old Corvette. If I save really hard this year I could have around 20k cash, and my current cars worth around 8 in trade,(according to kbb)

Was thinking about a used one around 45-50

Best case means I would only have to finance 17.

Now that being said, it would wipe out all of my savings, and it would take me longer to build back up becuase it would probbably cut my monthly savings in half with payments and insurance increases

So I would still be living in my tiny apartment, but I'd have my dream car.

I know the responsible thing is to save for a house, but the best way I can run that puts me around 29-30 before I can build back up to afford the car, and that's a long time to wait.

What do you guys think?

Last edited by Joe Bloe; 01-18-2019 at 02:34 PM.
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Old 01-18-2019, 02:39 PM
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Call Dave Ramsey.
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Old 01-18-2019, 02:41 PM
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Originally Posted by RRvet View Post
Call Dave Ramsey.
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Old 01-18-2019, 02:44 PM
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Originally Posted by Joe Bloe View Post
So as with many people here the corvette is my dream car.

I am 24 no debt , making 57k a year (before taxes).
Renting an apartment for ~1100/month

Saving about 1000-1500/month depending on how frugal I am,

I was thinking for my 25th birthday, at the end of the year to buy(finance) a couple year old Corvette. If I save really hard this year I could have around 20k cash, and my current cars worth around 8 in trade,(according to kbb)

Was thinking about a used one around 45-50

Best case means I would only have to finance 17.

Now that being said, it would wipe out all of my savings, and it would take me longer to build back up becuase it would probbably cut my monthly savings in half with payments and insurance increases

So I would still be living in my tiny apartment, but I'd have my dream car.

I know the responsible thing is to save for a house, but the best way I can run that puts me around 29-30 before I can build back up to afford the car, and that's a long time to wait.

What do you guys think?
Keep saving. At your age worry about a house first. Once you have a home and family figured out the car will come.
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Old 01-18-2019, 03:01 PM
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get a house first. Need garage for corvette.

If you really want the corvette, get an older model C5 or C6. you can easily find a nice C6 for 25k and below. you can get a very nice C6Z for around 30k.

Also you make more money than me. Although, I am dual income with the spouse.
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Old 01-18-2019, 03:02 PM
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Rebel Yell
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I echo the advise to keep saving. If you wipe your savings out on a car, you could wind up that creek without a paddle. Open you a car savings account for that purpose, and if you must have a Corvette look for a 2006 - 2013 C6 generation as advised above. They are very reliable cars, and prices for well cared for ones is reasonable. Many of us have been where you are now, and understand the want for a Vette, but you can't live in one. So, be careful with your savings. Good luck.

Here's a couple examples of what we're talking about.

http://www.morrisonmotorco.com/displ...theme=morrison

http://www.morrisonmotorco.com/displ...theme=morrison

Last edited by Rebel Yell; 01-18-2019 at 03:05 PM.
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Old 01-18-2019, 03:05 PM
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Screw the Corvette. Parlay your savings into investment income. Accumulate appreciating assets. Increase your financial intelligence. Once you can wipe your *** with hundred dollar bills, buy the Corvette.
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Old 01-18-2019, 03:09 PM
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Originally Posted by Rebel Yell View Post
I echo the advise to keep saving. If you wipe your savings out on a car, you could wind up that creek without a paddle. Open you a car savings account for that purpose, and if you must have a Corvette look for a 2006 - 2013 C6 generation. They are very reliable cars, and prices for well cared for ones is reasonable. Many of us have been where you are now, and understand the want for a Vette, but you can't live in one. So, be careful with your savings. Good luck.
Around OP's age, I was laid off from work. couldnt find work for a while. I didnt have much but I had to move out of the house I was staying at. No apartment would take me since I was on unemployment and didnt have 5 years of consistant work history. Put stuff in storage and ended up sleeping in my Subaru. The worst can and will happen.
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Old 01-18-2019, 03:11 PM
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Yeah c6 isnt going to happen the body style of the 7 is so much better.

the thing is I dont really want a house at this stage in my life.
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Old 01-18-2019, 03:12 PM
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Originally Posted by RRvet View Post
Call Dave Ramsey.
He will tell you how to avoid paying all your credit card debts. He hates debt collectors. I think his approach to not paying one’s debts amounts to theft. Other than that he usually gives good advise. Off topic I know...
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Old 01-18-2019, 03:13 PM
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Guess I'll Find cheaper hobbies until I'm 30-35...
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Old 01-18-2019, 03:14 PM
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Originally Posted by saleen556 View Post
Keep saving. At your age worry about a house first. Once you have a home and family figured out the car will come.
Good advise
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Old 01-18-2019, 03:25 PM
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Originally Posted by Joe Bloe View Post
Guess I'll Find cheaper hobbies until I'm 30-35...
That would be the smart thing to do young man. Keep saving, and it will happen.
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Old 01-18-2019, 03:30 PM
  #14  
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Originally Posted by Joe Bloe View Post
So as with many people here the corvette is my dream car.

I am 24 no debt , making 57k a year (before taxes).
Renting an apartment for ~1100/month

Saving about 1000-1500/month depending on how frugal I am,

I was thinking for my 25th birthday, at the end of the year to buy(finance) a couple year old Corvette. If I save really hard this year I could have around 20k cash, and my current cars worth around 8 in trade,(according to kbb)

Was thinking about a used one around 45-50

Best case means I would only have to finance 17.

Now that being said, it would wipe out all of my savings, and it would take me longer to build back up becuase it would probbably cut my monthly savings in half with payments and insurance increases

So I would still be living in my tiny apartment, but I'd have my dream car.

I know the responsible thing is to save for a house, but the best way I can run that puts me around 29-30 before I can build back up to afford the car, and that's a long time to wait.

What do you guys think?
Interesting... When I was young my dream was to buy one on my 21st birthday. I was in a situation very similar if not identical to yours.

From a financial standpoint the right thing to do is to save/invest the money and buy the house first like others have said.

However, none of us know how long we are here on this tiny planet and if you are as driven and as dedicated for example as I was the car won't really have much effect long term. I chose to buy the corvette at 21. I ended up buying a used C4, not brand new. It wiped out my savings at the time and I had a small 3-4 year loan but the enjoyment I had was something I could not describe back then to anyone but myself. My parents and friends at the time thought I was completely crazy but I felt like I was on top of the world. To date none of my friends have ever owned a Corvette or any sports car and they still think the same way they did 20 years ago along with not having invested a penny... So, the message here is that you can have whatever you want, you just have to be willing to work and fight for it and this is the best country to do this! Don't spend your 1,000 monthly savings on the car, maybe half and invest the other half. Money invested will always yield a lot more return than money sitting in a savings account.

I'm now in my 40's and I've had six of them along with other more expensive toys, the house came in later 20's and it really didn't have much impact. I did however invest what I could from a very young age even it it was $100 here and there. It's time and interest that builds wealth long term and that's why you need to start that at a young age. I would get the car!

Good luck to you!
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Old 01-18-2019, 03:50 PM
  #15  
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If you're making "$57K per year" you should be able to save enough in short order to pay cash for a Corvette. Especially a used one. Provided you're a prodigious saver. I paid cash for my first new Corvette when 25. I also paid cash for my new 2017 Corvette. I found it's not that difficult to do. Just do it!

Last edited by Skid Row Joe; 01-18-2019 at 03:51 PM.
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Old 01-18-2019, 03:51 PM
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Originally Posted by Joe Bloe View Post
Guess I'll Find cheaper hobbies until I'm 30-35...
My quick story. I wanted a Corvette for many years, but I hate debt. I've always been one to pay down debt, but I didn't do a particularly good job investing. Paid off my student loans when I was 27, made my last car payment when I was 28, bought a house at 29. For the next five or six years I kept socking money away, but not investing and not aggressively putting away for retirement. Had a couple fun cars, but they were cheap ($22k and $16k). Around age 35, I finally sat down and did the financial homework I should have done 10 years earlier. I'm sitting good now and finally bought a nice Corvette, but I could be sitting a lot better. The C7 is probably the only "foolish" spend I've ever done that was 5 figures, but I love the hell out of it.

Had I done a better job putting away for retirement or even just investing in a typical brokerage account when I was 25, even if it was just a little bit, I would be sitting a lot better than I am now AND I would have been able to plunk down for the Corvette a few years earlier.

Buy a fun car, but not an expensive one. Put some money away. Buy the kick *** car you want later. You'll enjoy the less expensive car a ton as well, even if it's not a Corvette.
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Old 01-18-2019, 03:51 PM
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Buy the damn car and enjoy it! Do not put all your savings down on it, finance for the longest term available, and make extra payments when you can. I guarantee you that you can afford the car better than 50% of the people on here. Bet on yourself that at your age your income will keep pace with your spending.

All these Dad "want to be" figures are trying to give you investment advice and appear responsible. At 24 you are doing well and it is time to have some fun. If you want a house down the road, find a girlfriend with either a great job or rich parents or preferably both!
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Old 01-18-2019, 04:08 PM
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Absolute worst thing to spend your money on as a young man climbing in his career is to buy an expensive "sports car"... We've all been there, hell, I even did it and if I could reverse time and go back, I would have put more money down on my first house or started an investment portfolio that in 5 to 10 years can pay for that Vette in cash...without touching your savings... Im sorry if Im raining on your parade but I would tell my son the exact same advice.

Kudos to you for working hard and earning your own way!!
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Old 01-18-2019, 04:17 PM
  #19  
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I say get the car...YOLO...it's not going to be 40-50 either by then, way cheaper. Insurance is what will kill you.

Last edited by Garret; 01-18-2019 at 04:18 PM.
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Old 01-18-2019, 04:20 PM
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Originally Posted by JALLEN4 View Post
Buy the damn car and enjoy it! Do not put all your savings down on it, finance for the longest term available, and make extra payments when you can. I guarantee you that you can afford the car better than 50% of the people on here. Bet on yourself that at your age your income will keep pace with your spending.

All these Dad "want to be" figures are trying to give you investment advice and appear responsible. At 24 you are doing well and it is time to have some fun. If you want a house down the road, find a girlfriend with either a great job or rich parents or preferably both!
This is the advice I want to give him, and honestly, financing less than $20k on a car isn't that big of a deal. However, the advice I gave above is the advice I wish someone would have given me. I probably wouldn't have listened anyway.
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