Traded the eco premium for a v8

[jtmat]

My thought process is that the higher the downpayment, the lower the monthly payments. Are you recommending lower downpayment and higher monthly payment?

LOL... You know what you can and cannot afford and only you know your total financial picture and where you want to be in life. No one on the internet knows what is best for your financial picture... only you know that for sure.

It is like "buy a house". I waited until late in life to do that... I moved around too much to make a purchase earlier. Also, in some situations I could have purchased but it made better sense for me to rent. I know people who have lost their shirt buying houses... and no, they are not stupid people.

I put a lot down on my mustang as well but that fit my financial picture and it has worked very well for me since the 90s.

Long as you have a financial strategy, my recommendation is to "do you".

Read and listen to people online, but they are telling you what worked for them... their strategy. They don't mention their income, savings, family money, "deals" from friends, etc, etc. When you dig into the real reason people do things it is interesting.

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[Starman]

I think it again goes back to what I said.

1) A 21 year old should not blow $20,000 on a car and 2, nobody should have a car payment at any age that is over 10% of their net monthly income.

This is just something stupid I learned when I was young an hopped cars all the time. Lost a lot of money doing this that I wish I had today.

Use that money when you are young to get yourself into the financial condition to afford a car that you want easily down the road.

Dump $20K on a Mustang today, lose out on buying that Porshe down the road.

 

[Starman]

. I know people who have lost their shirt buying houses... and no, they are not stupid people.

I would argue the opposite. The only way they lost their house was buying into the 2008 bubble pop. There is no way to lose money on a house. They had to have taken a house loan that was *way* to expensive for their means or by buying into some crazy interest scheme. They may have been preyed upon by a lender for this but then I could claim they were probably "stupid people" if they bought into some of the sharks that were out there.

I bought my house in 2005, it went up $100000 in the bubble, the bubble popped and it dropped $150000 and today its worth $50000 more then I bought it for after prices came back. I survived even my negative equity because I did a good old normal 20% down loan with a payment that I could afford even if one of us lost our jobs (25% of net income). I didn't go out and buy a house that was way to big and couldn't afford to pay for over a 15 year period.

 

[MultiMediaWill]

I think it again goes back to what I said.

1) A 21 year old should not blow $20,000 on a car and 2, nobody should have a car payment at any age that is over 10% of their net monthly income.

This is just something stupid I learned when I was young an hopped cars all the time. Lost a lot of money doing this that I wish I had today.

Use that money when you are young to get yourself into the financial condition to afford a car that you want easily down the road.

Putting down $20,000 would take my monthly car payment down to around 10% of monthly income. I'm more than prepared for this car and very confident I can afford it. I have no interests in investing at the moment or buying a house at the moment. I've never bought anything big before (been saving since age 12) and I see no problem spending money on something I really really really want... What's the point of saving forever?

 

[jtmat]

I would argue the opposite. The only way they lost their house was buying into the 2008 bubble pop. There is no way to lose money on a house. They had to have taken a house loan that was *way* to expensive for their means or by buying into some crazy interest scheme. They may have been preyed upon by a lender for this but then I could claim they were probably "stupid people" if they bought into some of the sharks that were out there.

I bought my house in 2005, it went up $100000 in the bubble, the bubble popped and it dropped $150000 and today its worth $50000 more then I bought it for after prices came back. I survived even my negative equity because I did a good old normal 20% down loan with a payment that I could afford even if one of us lost our jobs (25% of net income). I didn't go out and buy a house that was way to big and couldn't afford to pay for over a 15 year period.

Okay internet Dad... glad your house worked out for you.

Bottom line is a house is not a "sure investment". There is more to buying a house than what the market does.

Hell, one friend purchased a house, had proper inspections and then boom, hit with multiple issues over the years. Insurance only goes so far.

But you seem to know it all...

 

[jtmat]

Putting down $20,000 would take my monthly car payment down to around 10% of monthly income. I'm more than prepared for this car and very confident I can afford it. I have no interests in investing at the moment or buying a house at the moment. I've never bought anything big before (been saving since age 12) and I see no problem spending money on something I really really really want... What's the point of saving forever?

You don't save forever... you must live. Just don't live to the point of going bankrupt.

Save 20% of your income toward retirement/emergency fund (which I say is around 6 months of expenses) and you will be fine.

Save for retirement now though... compounding will make that money grow for you!

Internet Dad means well... he does not want you to make the same mistakes he did... as most people online.

But they don't know you or your financial situation...

Long as you have a plan, which I guess you do with 30k saved, then you should be okay.

I do agree with the others that education is big, and savings/retirement is huge at your age. Nice cars will come and go.

 

[Starman]

Bottom line is a house is not a "sure investment".

...Said absolutely no intelligent person in the past 3 centuries.

I was looking on Zillow just now at a house near me that was bought in 1984 for $27,000 and is valued at $450,000 today.

Tell him that it wasn't a "sure investment".

Hey... go in there yourself and look at every house in your zip code...

Same thing.

Referencing *one* example which may be .0001% of circumstances in the real world is irrational.

 

[jtmat]

...Said absolutely no intelligent person in the past 3 centuries.

I was looking on Zillow just now at a house near me that was bought in 1984 for $27,000 and is valued at $450,000 today.

Tell him that it wasn't a "sure investment".

Hey... go in there yourself and look at every house in your zip code...

Same thing.

So I'm not intelligent? :lol:

You are truely one odd bird on this forum!!!!

I'm SSSOOO glad I now know a house is a sure investment!!!! Wow... no one has EVER lost money buying a house. Not sure what world I'm living in!!!! :shrug:

 

[Starman]

You are truely one odd bird on this forum!!!!

Statistics is not your strong point?

Taking a 10 city index from 1987 to 2014 including all factors (including inflation and such). houses have on average increased 35%.

That's a sure bet for the vast majority of house owners (lets say 99.9999%).

'nuff said about that.



(Sources: Standard & Poor's; Bureau of Labour Statistics; The Economist)

 

[jtmat]

Statistics is not your strong point?

Taking a 10 city index from 1987 to 2014 including all factors (including inflation and such). houses have on average increased 35%.

That's a sure bet for the vast majority of house owners (lets say 99.9999%).

'nuff said about that.



(Sources: Standard & Poor's; Bureau of Labour Statistics; The Economist)

I made an A in it while in school (undergrad and grad)... learned enough to know that stats can be manipulated to show whatever someone wants to see.

And the biggest word in your entire posts is "average".

And does not take into account individuals making buying decisions in their life.

Stating that buying a house for everyone is a smart decision is simply not true. Fact is you do not know every situation everyone is in.

Sorry... I know you mean well.

As a note, please include the link if you are going to reference something.

With that, I'm done... hey, hit me up in PM if you want to carry on...

 

[Chameleon]

I hate math. Carry on.

 

[MagneticA]

...There is no way to lose money on a house...

:lol:

 

[Old 5 Oh]

I have a 94 F150 SuperCab 4x4 to go with my GT. That old truck, purchased this year with 150k miles for $3800, makes it possible for me to have the Mustang. I use the truck as a truck at least twice a week. It'll probably run forever, and it will keep me from being stranded in the snow, out here in the sticks where the plows aren't always Johnny on the spot. I love that it's a Windsor (5.8L) and all my Fox experience translates.

 

[Old 5 Oh]

I would argue the opposite. The only way they lost their house was buying into the 2008 bubble pop. There is no way to lose money on a house. They had to have taken a house loan that was *way* to expensive for their means or by buying into some crazy interest scheme. They may have been preyed upon by a lender for this but then I could claim they were probably "stupid people" if they bought into some of the sharks that were out there.

I beg to differ. I bought in late 2005, which turned out to be the very top of the market in Central CA. Who knew? Expensive, but affordable (well within the ratios) at the time for our two incomes. Three years later, a divorce, and now there's only one income. The mortgage was too big. Had to sell. Lost a quarter of a mil in equity, and another $30k of the bank's money in a short sale.

Had we been able to live through it, we would be back above water in today's market, just barely, and would have about $220k more in the house than it is worth today, just about 10 years after we bought it.

You can ALWAYS lose money on a house, depending upon the market. I thought having 51% down made me safe. I was wrong.

 

[shahram72]

See, Cali. A $40K car is chump change. Here in SC, it's an expensive car. I honestly don't understand how people even live in California. Not knocking California. I've been there, I see the appeal, but jobs pay the same. Huh? How? Am I supposed to live on the street?

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