Advice NOT to buy new car

darrell · ‎12-16-2010

Hello. I just need some advice to NOT buy a new car. I dont need a new car, I want one. Plus it feels good when you drive a new car. Im 31 by the way and married with a daughter. And a dog.

here is my cash story now with no care note:

mortage: 1480

savings: I have enough for 6 months emergency fund

401K: 5% matched

Ability to save: After paying my bills (mortage, student loan, church dues, cell phone, car insurance, extra stuff and eating out) per month, I have $1800 to save.

My credit report has no negative accounts, nothing. I have no credit cards. The only loan Im paying now is one student loan and mortage. So, thats ok.

My wife has a 03 Infinti G35 with 127k miles we bought cash 9 months ago when our truck got wrecked. Great car and runs nice. If we want to go out, we drive that car. Our if I want to look cool on a Sat, I take that car and just drop my wife off to work. Our other car is a 1995 Toyota Corrola with 168K miles and its pretty beat up. A/C works but makes lots of rattling noise, pretty dirty and a some dents. But it works fine. I use to drive back and foward to work. I work like 15 minutes from my house. But the car is ugly and havent had a new car in like 7 years and kinda think I deserve one.

The car i want is about 30-31K bucks. 08 Infiniti. Very nice. That Toyota Corrola has a few issues I just been ignoring like back shocks replacements and exhaust muffler. So my new car note will be about $515 a month and my insurance will go about $90 bucks. So I will have a new debt of about $615 to pay for 5 years. Hopefully i get good inrest rate.

I guess this will leave me with about $1100 to save per month.

What do you think? Should I buy the new car and enjoy it? Or just drive the car I have while saving. I work in Oil and Gas as an engineer and just returned from lay off for 4 months as well. Probally need to wait til projects and jobs are back stable as well. But interest rates are good.

Let me know what you think. Im tempted to just get it

Thanks in advance.

MarineVietVet · ‎12-16-2010

@darrell wrote:
Hello. I just need some advice to NOT buy a new car. I dont need a new car, I want one. Plus it feels good when you drive a new car. Im 31 by the way and married with a daughter. And a dog.

here is my cash story now with no care note:

mortage: 1480
savings: I have enough for 6 months emergency fund
401K: 5% matched
Ability to save: After paying my bills (mortage, student loan, church dues, cell phone, car insurance, extra stuff and eating out) per month, I have $1800 to save.

My credit report has no negative accounts, nothing. I have no credit cards. The only loan Im paying now is one student loan and mortage. So, thats ok.

My wife has a 03 Infinti G35 with 127k miles we bought cash 9 months ago when our truck got wrecked. Great car and runs nice. If we want to go out, we drive that car. Our if I want to look cool on a Sat, I take that car and just drop my wife off to work. Our other car is a 1995 Toyota Corrola with 168K miles and its pretty beat up. A/C works but makes lots of rattling noise, pretty dirty and a some dents. But it works fine. I use to drive back and foward to work. I work like 15 minutes from my house. But the car is ugly and havent had a new car in like 7 years and kinda think I deserve one.

The car i want is about 30-31K bucks. 08 Infiniti. Very nice. That Toyota Corrola has a few issues I just been ignoring like back shocks replacements and exhaust muffler. So my new car note will be about $515 a month and my insurance will go about $90 bucks. So I will have a new debt of about $615 to pay for 5 years. Hopefully i get good inrest rate.

I guess this will leave me with about $1100 to save per month.

What do you think? Should I buy the new car and enjoy it? Or just drive the car I have while saving. I work in Oil and Gas as an engineer and just returned from lay off for 4 months as well. Probally need to wait til projects and jobs are back stable as well. But interest rates are good.

Let me know what you think. Im tempted to just get it

Thanks in advance.

My answer is in your owns words highlighted in red.

Don't buy anything you don't need especially something as expensive as a car.

You say you just came off a 4 month layoff. Think about how you would make that payment if you are laid off again. Build up your savings and you might be able to pay cash for a nice car one of these days.

Just my 2 cents. And I actually do listen to my own advice. I bought a truck new in 1997 and it's still in my driveway. Runs great!!

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Creditaddict · ‎12-16-2010

hey if you like the older Infiniti you bought with cash so much, why not find another USED Infiniti, maybe upgrade and get one with less than 100k miles... and just pay cash again!!

I'm all for Infiniti, I miss mine dearly but I probably would not buy off the showroom floor again... if you have to buy new, at least by like the demo from last year or the service car they sell every year, you could save over 10k that way.

oh and Infiniti/Nissan is pretty laid back with financing... they will tier 1 you with less than 650 credit score.

darrell · ‎12-16-2010

You are right. I dont need a new car. But that Infinti M45 looks good. Its just driving my that 95 Toyota to work and all my friends have nice car, makes me think I am being cheap. Its just the look of the car I drive to work is ugly and I at times think I want something nice to drive in. The old "you only live once" pops up in my head. You have any advice on that.

darrell · ‎12-16-2010

I want the 2007 or 2008 Infinti M45 or M35. They are so sweet. my friend has one.

Creditaddict · ‎12-16-2010

@darrell wrote:
I want the 2007 or 2008 Infinti M45 or M35. They are so sweet. my friend has one.

Yes they are very sweet!!

but if you dropped down to 04-05 G35 you would be down to like 15k range and payments of less than $350

MarineVietVet · ‎12-16-2010

@darrell wrote:
You are right. I dont need a new car. But that Infinti M45 looks good. Its just driving my that 95 Toyota to work and all my friends have nice car, makes me think I am being cheap. Its just the look of the car I drive to work is ugly and I at times think I want something nice to drive in. The old "you only live once" pops up in my head. You have any advice on that.

Yes. Putting the needs of your family before your personal wants.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Creditaddict · ‎12-16-2010

We could always go all Dave Ramsey on you... If you put that $500 a month into a 529 plan for 60 months by the time your daughter goes to college (if she is young) you would have over 100k! Now how is that M45 looking!!! hehe

Anonymous · ‎12-16-2010

1- A 95 Toyota will not last forever, at some point you will need a new car. if $500-$1000 can get you another year out of it you are still saving money over a car payment.

2- The economy is improving but things are still bad, buying a new car/credit obligation when you really do not need one is still somewhat risky.

3- Do not look at the new cars people are driving to work as NEW SHINY Cars, but see them for what they are: monthly debt and car payments.

4-Start immediately putting $600 a month away in the bank to cover your new car obligation. See how you like it.

5- Consider sacrifices you can make to increase that amount saved- from taking alunch to work, not using vending machines or Starbucks. Add that to your savings pool.

Then if you can do that for a year or two, when your car is ready to die finally you have enough in the bank for a new (used one) one or at least a serious down payment on brand new.

darrell · ‎12-16-2010

@Creditaddict wrote:
We could always go all Dave Ramsey on you... If you put that $500 a month into a 529 plan for 60 months by the time your daughter goes to college (if she is young) you would have over 100k! Now how is that M45 looking!!! hehe

Thanks for that advice regarding 529 plan. As far as kids education goes, i will support them, however, Im not paying their college education. Thats the reason for scholarship and student loans. I have an engineering degree and I worked and now Im paying my student loan wats due. My family had no money to send me to college and it made me more responsible. Im telling my kids, if you make A and B in high school and do the right thing, then get a scholarship. If they cant make A and Bs then get a student loan for college. Nothing given for free!!

Is there any other ideas or investing to do with the $500, maybe just save? I probally need to get my mind off this new car stuff until I think this through wisely and plan a retirement one of these days.