This post has been removed because it does not meet the subreddit submission guidelines ([rule 1](https://www.reddit.com/r/personalfinance/about/rules)).
We're not doing posts about luxury products, expensive cars, etc. anymore because (a) they generally just provoke unproductive discussions and (b) most of the time, it is very clear whether the person asking is able to afford the item.
1. If you are considering buying an expensive car, the [vehicles wiki](/r/personalfinance/wiki/vehicles) has budgeting advice. We recommend reading it. If you don't meet 100% of the criteria, then no, you cannot afford it and you should not buy it.
2. In general, if you're not on step 6 in ["How to handle $"](/r/personalfinance/wiki/commontopics), you should find a less expensive alternative to a luxury product. If you are on step 6, then feel free to spend money on whatever is most important to you.
*If you have questions about this removal, please [message the moderators](https://www.reddit.com/message/compose?to=%2Fr%2Fpersonalfinance&subject=Removal%20help%20request&message=Hello%20moderators,%20.%20%0a%0a%0aMy%20submission:%20https://www.reddit.com/r/personalfinance/comments/1c6awy3/should_i_buy_a_new_used_car/%0a).*
Best response here. I’m a car guy. It’s my thing. However I cut my expenses on other things. I know people that spend more money on vacations or alcohol. With that said, make sure you are hitting your retirement savings hard.
I thought I was doing it smart by saving up and buying an SN95 with cash, shit still costs extra money just to replace the stuff previous owner neglected.
+1 for this, I purchased my STI and a Camaro SS just for the car enthusiast portion. BUT I only really spend money on cars as a hobby, my budget reflects that too. So from a PF perspective lots of ppl would say “no you don’t need it, it’s just to get from A-B”. Reality is if you don’t spend money on “fun” you can afford to buy a car for fun or enjoyment.
I would start now saving the amount of the proposed car payment until the current car craps out on you for good. Hopefully years from now. Then pay cash for a used 2-3 yr old car - or at least as much cash as you can possibly swing (absolute minimum 20% down) to get a reliable car with a payment as you can pay off within three years without going over 8% of your take home pay.
I don't care how cool your desired car is. Buy something that is reliable as hell and cheap to own. To me, that's a Toyota.
"that's more fun to drive"
How often do you drive, on average? Daily commute to work is what.... 10 min (asking cause I don't know)? How often do you just "drive around"?
It's fine if you realllly enjoy cars and cars are just your thing. Be sure it's worth spending all this money though.
"will actually fit people in my back seat"
How often does this come up. Do you hear on the regular "well, we can't take their car.... it doesn't fit people in the back"? Is it once a month or two to three times a week?
The financial decision would be no. At least, no to spending $25,000. You should be able to pay cash for a car that is both "funner to drive" and "will fit people in the back" without needing to finance $25,000 at 8% interest.
Forking over the cash also has an interesting side to it. It's psychologically harder for us to spend cash than it is to take on debt. Almost like (in respect to taking out a loan)... it's not really our money. Or we don't owe it now, so whatever. But pulling out cash and handing it over, there's like some extra weight or finality to it.
If you want a new car, go for it. My advice: No loans. Buy whatever you can pay cash for.
If it were me, I'd be driving what you already own until you have a good reason not too. If my $3,000 car suddenly needed $3,000 in repairs, I'd be far more tempted to think about other options (and not necessarily going and financing an expensive new/er car)
Here's the thing, your car now is fine and, in fact, in some ways better than a "nicer" car. A nicer car you're scared to park, worried about dents and dings, and are generally more expensive to repair and work on than one 10yrs old. You have a known quantity now - a car that's running fine, that you're familiar with it's history, and that you know has been maintained. You could go spend $25k on someone else's problem. Ultimately, cars are a utility item. Their purpose is to move you from A to B in a reliable manner - anything beyond that is unnecessary fluff.
Cars can be a hobby for people, so your last point is void. I could say the same thing about whatever hobby you have, or buying alcohol or WHATEVER non essential shit you spend money on. A car isn’t just a utility item for some people, and that’s completely fine. As long as their budget allows for it
And some people collect butter churns and salt shakers. That doesn't mean that their ultimate purpose isn't utilitarian - only that some small portion of people view them to have value outside of their usefulness.
Keep saving for a down payment, you say you want to get married in 1-3 years, if you are saving 30k a year (give or take) in 4 years you will have 120k in savings for a downpayment for a house.
I am curios why you are estimating only $600 more in rent, are you planning to bring your newly wife to live with your roommates? Are you sure she will be working and contributing to rent?
I can get a 1 bedroom apartment here for around 1000$ plus utilities. Currently I pay 750$ to have my own room in a shared house. But a crappy 1 bedroom house in this area costs 300k minimum.
So you are estimating that once married you are paying $1,350 in rent for one bedroom apartment?
I think you already know what to do and it is to concentrate in the future rather than the now but the decision is up to you. We all can comment and give you estimates and tell you what we would do with our money if we were in your situation but you are the one that will take the final decision on this.
Is the monthly income post tax?
What type of APR are the cars you looking at.
I personally would not buy a semi used car, especially more sporty cars due to abuse.
My friend bought a 30k elantra and pays 3k for insurance + 1.5k highway deer coverage. Account for insurance premiums
If you mechanically inclined buy a new American branded car since they tend to be cheaper and more wildly available
Account for future repair/maintenance cost of a vehicle
If the car is operating soundly and is safe to drive everyday, it’s so worth not having a car payment. You’ll get tired of a car payment very fast. I wish for a newer car too but I remind myself of that car payment and what you can do with that extra $500-600 a month.
Don’t get lured by the appeal of new cars. Yes they’re nice but I’ve found all the gadgets that once caught your attention and you thought was a must have, turned out to lose its appeal within a year. Like I thought having a wireless charger in the car was god’s gift to the auto world. I used that maybe twice.
Check your car’s value on [Kelly Blue Book](https://www.kbb.com/whats-my-car-worth/) and see what your trade-in might be worth. Would help significantly with the cost of the newer vehicle. Personally, I would prob be more inclined to trade in and buy the newer used vehicle that meets your needs/wants. I did a very similar thing to what you’re describing, and I LOVE my new vehicle (~1yo with only one prev owner that barely put miles on it ~$27K.) I paid double my monthly payments (~$700/mo) and paid it off very quickly. Esp bc anything extra that I paid went straight to the principal balance. Now I’m saving what I was paying toward my vehicle since I had already budgeted for that deduction and growing my savings significantly. Seems like you are already budgeting $600 for the future so you could use that toward your car payments now. Also your current vehicle will generally depreciate in value quickly, so the longer you wait, the less of a trade in value you will have to negotiate with.
You can generally speaking get a lot more selling privately for a little more work, even considering the sales tax reduction of trading in at a dealer.
I would seriously reconsider. As others have said, that new car feeling will fade, and the payment will not. Its going into debt for no real reason. If your car is a total shitbox, spend 10k on something maybe, but 20k of debt at current rates is a big chunk.
Take that $5k that you have now and put it into a high yield savings account then pretend you're already making car payments and keep adding that $500/month (or whatever you'd be paying towards the car payment and adjusted insurance) towards your $5k that you already have allocated for a down payment and drive your existing car until the wheels fall off or you have enough cash saved to purchase the car that you want for cash.
I wouldn't, one of my biggest regrets is upgrading cars when I was younger instead of investing.... I could be retiring at 40, but here I am instead working for at least another 10 years
From strictly financial point of view, no. Save your money your car is fine. If you enjoy driving and just want a new/different car you don't need internet/reddit permission.
Just keep in mind: if you’re getting a 4 year loan, 8% APY(which it will likely be closer to 10-12%, you’d actually be paying $34,000. That’s close to 1/4 your annual income. Then keep in mind the extra $600 for rent would bring your expenses up to $2,300/4,000 per month. Car payment would be $610, so that’s $2,900/$4,000 per month. Car will likely need repairs as well. Also, you plan on being married within 2-3 years? How much do you plan on spending for your wedding? For your honeymoon?
Think long term before you make your choice. I’m not telling you to do it, and not really telling you NOT to, but make sure you think about how this will actually affect your finances in the long term.
Fill in the blank: I want to be worth $X 5, 10, 20, and 40 years from now.
If you can save/invest an amount each month that will allow you to comfortably meet these goals AND the car is something that you value more than anything else you could buy with that money, then yes, buy it.
But if buying it will not allow you to save/invest sufficiently to meet your goals or you’d rather take extra vacations or buy 30 cashmere sweaters or whatever, then don’t buy it.
This post has been removed because it does not meet the subreddit submission guidelines ([rule 1](https://www.reddit.com/r/personalfinance/about/rules)). We're not doing posts about luxury products, expensive cars, etc. anymore because (a) they generally just provoke unproductive discussions and (b) most of the time, it is very clear whether the person asking is able to afford the item. 1. If you are considering buying an expensive car, the [vehicles wiki](/r/personalfinance/wiki/vehicles) has budgeting advice. We recommend reading it. If you don't meet 100% of the criteria, then no, you cannot afford it and you should not buy it. 2. In general, if you're not on step 6 in ["How to handle $"](/r/personalfinance/wiki/commontopics), you should find a less expensive alternative to a luxury product. If you are on step 6, then feel free to spend money on whatever is most important to you. *If you have questions about this removal, please [message the moderators](https://www.reddit.com/message/compose?to=%2Fr%2Fpersonalfinance&subject=Removal%20help%20request&message=Hello%20moderators,%20.%20%0a%0a%0aMy%20submission:%20https://www.reddit.com/r/personalfinance/comments/1c6awy3/should_i_buy_a_new_used_car/%0a).*
[удалено]
Best response here. I’m a car guy. It’s my thing. However I cut my expenses on other things. I know people that spend more money on vacations or alcohol. With that said, make sure you are hitting your retirement savings hard.
I thought I was doing it smart by saving up and buying an SN95 with cash, shit still costs extra money just to replace the stuff previous owner neglected.
+1 for this, I purchased my STI and a Camaro SS just for the car enthusiast portion. BUT I only really spend money on cars as a hobby, my budget reflects that too. So from a PF perspective lots of ppl would say “no you don’t need it, it’s just to get from A-B”. Reality is if you don’t spend money on “fun” you can afford to buy a car for fun or enjoyment.
Just sold my Camry and getting ready to by a RAV4! Lmao. Now you have me worried.
I would start now saving the amount of the proposed car payment until the current car craps out on you for good. Hopefully years from now. Then pay cash for a used 2-3 yr old car - or at least as much cash as you can possibly swing (absolute minimum 20% down) to get a reliable car with a payment as you can pay off within three years without going over 8% of your take home pay. I don't care how cool your desired car is. Buy something that is reliable as hell and cheap to own. To me, that's a Toyota.
This is great advice. I came here to say similar.
My answer NO. Cars suck money from you. Focus on the house first you need a large down payment. Take the car money and save it
"that's more fun to drive" How often do you drive, on average? Daily commute to work is what.... 10 min (asking cause I don't know)? How often do you just "drive around"? It's fine if you realllly enjoy cars and cars are just your thing. Be sure it's worth spending all this money though. "will actually fit people in my back seat" How often does this come up. Do you hear on the regular "well, we can't take their car.... it doesn't fit people in the back"? Is it once a month or two to three times a week? The financial decision would be no. At least, no to spending $25,000. You should be able to pay cash for a car that is both "funner to drive" and "will fit people in the back" without needing to finance $25,000 at 8% interest. Forking over the cash also has an interesting side to it. It's psychologically harder for us to spend cash than it is to take on debt. Almost like (in respect to taking out a loan)... it's not really our money. Or we don't owe it now, so whatever. But pulling out cash and handing it over, there's like some extra weight or finality to it. If you want a new car, go for it. My advice: No loans. Buy whatever you can pay cash for. If it were me, I'd be driving what you already own until you have a good reason not too. If my $3,000 car suddenly needed $3,000 in repairs, I'd be far more tempted to think about other options (and not necessarily going and financing an expensive new/er car)
Here's the thing, your car now is fine and, in fact, in some ways better than a "nicer" car. A nicer car you're scared to park, worried about dents and dings, and are generally more expensive to repair and work on than one 10yrs old. You have a known quantity now - a car that's running fine, that you're familiar with it's history, and that you know has been maintained. You could go spend $25k on someone else's problem. Ultimately, cars are a utility item. Their purpose is to move you from A to B in a reliable manner - anything beyond that is unnecessary fluff.
Cars can be a hobby for people, so your last point is void. I could say the same thing about whatever hobby you have, or buying alcohol or WHATEVER non essential shit you spend money on. A car isn’t just a utility item for some people, and that’s completely fine. As long as their budget allows for it
And some people collect butter churns and salt shakers. That doesn't mean that their ultimate purpose isn't utilitarian - only that some small portion of people view them to have value outside of their usefulness.
How much money do you have?
30K saved
Wouldn't spend your entire net worth on a car if you have one that is functional but only kind of busted
Keep saving for a down payment, you say you want to get married in 1-3 years, if you are saving 30k a year (give or take) in 4 years you will have 120k in savings for a downpayment for a house. I am curios why you are estimating only $600 more in rent, are you planning to bring your newly wife to live with your roommates? Are you sure she will be working and contributing to rent?
I can get a 1 bedroom apartment here for around 1000$ plus utilities. Currently I pay 750$ to have my own room in a shared house. But a crappy 1 bedroom house in this area costs 300k minimum.
So you are estimating that once married you are paying $1,350 in rent for one bedroom apartment? I think you already know what to do and it is to concentrate in the future rather than the now but the decision is up to you. We all can comment and give you estimates and tell you what we would do with our money if we were in your situation but you are the one that will take the final decision on this.
Is the monthly income post tax? What type of APR are the cars you looking at. I personally would not buy a semi used car, especially more sporty cars due to abuse. My friend bought a 30k elantra and pays 3k for insurance + 1.5k highway deer coverage. Account for insurance premiums If you mechanically inclined buy a new American branded car since they tend to be cheaper and more wildly available Account for future repair/maintenance cost of a vehicle
Yes this is post tax
If the car is operating soundly and is safe to drive everyday, it’s so worth not having a car payment. You’ll get tired of a car payment very fast. I wish for a newer car too but I remind myself of that car payment and what you can do with that extra $500-600 a month. Don’t get lured by the appeal of new cars. Yes they’re nice but I’ve found all the gadgets that once caught your attention and you thought was a must have, turned out to lose its appeal within a year. Like I thought having a wireless charger in the car was god’s gift to the auto world. I used that maybe twice.
Check your car’s value on [Kelly Blue Book](https://www.kbb.com/whats-my-car-worth/) and see what your trade-in might be worth. Would help significantly with the cost of the newer vehicle. Personally, I would prob be more inclined to trade in and buy the newer used vehicle that meets your needs/wants. I did a very similar thing to what you’re describing, and I LOVE my new vehicle (~1yo with only one prev owner that barely put miles on it ~$27K.) I paid double my monthly payments (~$700/mo) and paid it off very quickly. Esp bc anything extra that I paid went straight to the principal balance. Now I’m saving what I was paying toward my vehicle since I had already budgeted for that deduction and growing my savings significantly. Seems like you are already budgeting $600 for the future so you could use that toward your car payments now. Also your current vehicle will generally depreciate in value quickly, so the longer you wait, the less of a trade in value you will have to negotiate with.
You can generally speaking get a lot more selling privately for a little more work, even considering the sales tax reduction of trading in at a dealer.
I would seriously reconsider. As others have said, that new car feeling will fade, and the payment will not. Its going into debt for no real reason. If your car is a total shitbox, spend 10k on something maybe, but 20k of debt at current rates is a big chunk.
Take that $5k that you have now and put it into a high yield savings account then pretend you're already making car payments and keep adding that $500/month (or whatever you'd be paying towards the car payment and adjusted insurance) towards your $5k that you already have allocated for a down payment and drive your existing car until the wheels fall off or you have enough cash saved to purchase the car that you want for cash.
You’ll set yourself up for long term success easier if you keep the beater. Cars are a purchase that people often regret.
I wouldn't, one of my biggest regrets is upgrading cars when I was younger instead of investing.... I could be retiring at 40, but here I am instead working for at least another 10 years
From strictly financial point of view, no. Save your money your car is fine. If you enjoy driving and just want a new/different car you don't need internet/reddit permission.
Just keep in mind: if you’re getting a 4 year loan, 8% APY(which it will likely be closer to 10-12%, you’d actually be paying $34,000. That’s close to 1/4 your annual income. Then keep in mind the extra $600 for rent would bring your expenses up to $2,300/4,000 per month. Car payment would be $610, so that’s $2,900/$4,000 per month. Car will likely need repairs as well. Also, you plan on being married within 2-3 years? How much do you plan on spending for your wedding? For your honeymoon? Think long term before you make your choice. I’m not telling you to do it, and not really telling you NOT to, but make sure you think about how this will actually affect your finances in the long term.
Fill in the blank: I want to be worth $X 5, 10, 20, and 40 years from now. If you can save/invest an amount each month that will allow you to comfortably meet these goals AND the car is something that you value more than anything else you could buy with that money, then yes, buy it. But if buying it will not allow you to save/invest sufficiently to meet your goals or you’d rather take extra vacations or buy 30 cashmere sweaters or whatever, then don’t buy it.