How to afford a sports car?

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Somenamehere
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How to afford a sports car?

Post by Somenamehere »

I'm 24 single out of college not making alot of money, paid off my student loans , I am becoming frustrated, because after rent, insurance, groceries, gas, Bill's etc I'm only saving $1000/month

No savings (because I put it all on student loans)

And one of my life goals is to own a nice sports car. My dream car budget is ~$40,000.

So if I waited 4 years I'd have the cash to buy the thing outright (I'm scared of loans after student debt).

But then I'd be 28, which to me is very old. And that would whipe out my life savings, and I'd still be in the same tiny apartment. I would have a nice car, but have to park it in a community lot, I want a house someday, so it would mean starting my savings for that alot later.Which at that point I question is it really worth it?

I feel very frustrated because I feel that it was not worth spending 4 years of my life to go to school, to earn more money, and pay back loans, when I could have learned some trade in 6 months and made comparable money and had my car today?
sambb
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Re: How to afford a sports car?

Post by sambb »

best solution is to invest in yourself to raise your income. work harder than others, and enjoy the job and the company mission, and you will advance also. good luck.
Topic Author
Somenamehere
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Re: How to afford a sports car?

Post by Somenamehere »

Yeah I suppose my thought process didnt take into account any raises or promotions over the next few years.

And first year out of school is generally going to be lower paying anyway. I feel like I was in a bit of snit and just wanted to rant.

I should focus on improving myself and therefore my marketability
Cycle
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Re: How to afford a sports car?

Post by Cycle »

I achieved FI in my early 30s. I maxed out my 401k and Roth since I was 24, was contributing a good chunk since I was 22.

Rule 1: keep housing costs low. I owned a 2br/2ba in my early 20s, and rented out the spare bedroom. After getting married, we moved into a duplex and rent out the other half.

Rule 2: don't take in unnecessary debt. I had my work pay for my grad school, or most of it anyways.

Rule 3: keep transportation costs low. Just run the numbers on various scenarios.

Rule 4: pursue a career that pays decently and is interesting

Rule 5: if u choose to marry, choose wisely. Driving a minivan may help scare away any soendthrift suitors.

My plan is to retire at 45 with a 1% SAWR. I couldn't get there if I wasted money in my 20s on a baby boomer obsession (cars). Taking Uber blacks everywhere will be my mode of transportation when I'm not biking (which is rare)

FYI things won't bring you happiness, as soon as you get X you'll want X rev 2.0.
Never look back unless you are planning to go that way
Flyer24
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Re: How to afford a sports car?

Post by Flyer24 »

The time will come when you afford nice things. You have your whole life ahead of you. Lot of people start in worse positions after college.
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corn18
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Re: How to afford a sports car?

Post by corn18 »

Somenamehere wrote: Fri Dec 28, 2018 6:12 pm I'm 24 single out of college not making alot of money, paid off my student loans , I am becoming frustrated, because after rent, insurance, groceries, gas, Bill's etc I'm only saving $1000/month
How much do you spend on rent, insurance, groceries, gas, bills, etc...? If you make a lot of money and only have $1,000 left over, something isn't right. Either you spend a lot or you don't make a lot of money.
Consistently sets low goals and fails to achieve them.
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rob
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Re: How to afford a sports car?

Post by rob »

You can get a starter car for very low dollars... ands learn some fix skills as a side effect.... Look at older cars!
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien
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leeks
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Re: How to afford a sports car?

Post by leeks »

Somenamehere wrote: Fri Dec 28, 2018 6:12 pm But then I'd be 28, which to me is very old.
I'm really really laughing at this part of your statement. I know it sounds ancient to you now, but 28 is still very young.

Seriously though, it is great that you are saving money, avoiding more debt, and considering plans for future large expenditures. This has you way ahead of most of your 20-something peers. The college degree will be worth it in the long run.

Your priorities may change and when you hit $40K in the bank, you may no longer feel that a flashy car is the way for you to get the most satisfaction from that money. This board is going to encourage you to prioritize saving for retirement and building an emergency fund first, before directing savings to "toys."

Start reading more here:
https://www.bogleheads.org/wiki/Getting_started
Last edited by leeks on Fri Dec 28, 2018 8:29 pm, edited 1 time in total.
livesoft
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Re: How to afford a sports car?

Post by livesoft »

Have you talked to your friends about this?

I have kids your age and they wouldn't be caught dead posting on Bogleheads.org. :)
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leeks
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Re: How to afford a sports car?

Post by leeks »

corn18 wrote: Fri Dec 28, 2018 8:24 pm
Somenamehere wrote: Fri Dec 28, 2018 6:12 pm I'm 24 single out of college not making alot of money, paid off my student loans , I am becoming frustrated, because after rent, insurance, groceries, gas, Bill's etc I'm only saving $1000/month
How much do you spend on rent, insurance, groceries, gas, bills, etc...? If you make a lot of money and only have $1,000 left over, something isn't right. Either you spend a lot or you don't make a lot of money.
OP said "not making a lot of money." Having paid off student loans and now saving $1,000/month is pretty good for someone making a typical entry-level salary.
Last edited by leeks on Fri Dec 28, 2018 8:31 pm, edited 1 time in total.
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corn18
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Re: How to afford a sports car?

Post by corn18 »

leeks wrote: Fri Dec 28, 2018 8:29 pm
corn18 wrote: Fri Dec 28, 2018 8:24 pm
Somenamehere wrote: Fri Dec 28, 2018 6:12 pm I'm 24 single out of college not making alot of money, paid off my student loans , I am becoming frustrated, because after rent, insurance, groceries, gas, Bill's etc I'm only saving $1000/month
How much do you spend on rent, insurance, groceries, gas, bills, etc...? If you make a lot of money and only have $1,000 left over, something isn't right. Either you spend a lot or you don't make a lot of money.
OP said "not making a lot of money."
Dang, I am an idiot. I blame it on old age.
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TheDDC
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Re: How to afford a sports car?

Post by TheDDC »

Somenamehere wrote: Fri Dec 28, 2018 6:12 pm I'm 24 single out of college not making alot of money, paid off my student loans , I am becoming frustrated, because after rent, insurance, groceries, gas, Bill's etc I'm only saving $1000/month

No savings (because I put it all on student loans)

And one of my life goals is to own a nice sports car. My dream car budget is ~$40,000.

So if I waited 4 years I'd have the cash to buy the thing outright (I'm scared of loans after student debt).

But then I'd be 28, which to me is very old. And that would whipe out my life savings, and I'd still be in the same tiny apartment. I would have a nice car, but have to park it in a community lot, I want a house someday, so it would mean starting my savings for that alot later.Which at that point I question is it really worth it?

I feel very frustrated because I feel that it was not worth spending 4 years of my life to go to school, to earn more money, and pay back loans, when I could have learned some trade in 6 months and made comparable money and had my car today?
How to get there? By not sinking money you don't have into a depreciating asset. Don't worry, we were all there (even at the ripe old age of 28!)

You can pick up a 1996 era Mazda MX-5 Miata for $2,000. Make that a gift to yourself after you max out your retirement accounts.

-TheDDC
Last edited by TheDDC on Fri Dec 28, 2018 8:32 pm, edited 1 time in total.
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dknightd
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Re: How to afford a sports car?

Post by dknightd »

Buy a used one
Retired 2019. So far, so good. I want to wake up every morning. But I want to die in my sleep. Just another conundrum. I think the solution might be afternoon naps ;)
Grt2bOutdoors
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Re: How to afford a sports car?

Post by Grt2bOutdoors »

You can have some things, you may not be able to have everything.
Look at your priorities today:
1) pay off student debt
2) buy sports car
3) get downpayment for house
4) earn more income

Let's rejigger the priorities now:
1) Pay off student debt
2) Stay 24 forever (i wish!)
3) Save downpayment for house
4) Earn more income
5) use higher income to pay mortgage, taxes and save more money for depreciating sports car along with high car insurance.
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Sandtrap
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Re: How to afford a sports car?

Post by Sandtrap »

Somenamehere wrote: Fri Dec 28, 2018 6:12 pm I'm 24 single out of college not making alot of money, paid off my student loans , I am becoming frustrated, because after rent, insurance, groceries, gas, Bill's etc I'm only saving $1000/month

No savings (because I put it all on student loans)

And one of my life goals is to own a nice sports car. My dream car budget is ~$40,000.

So if I waited 4 years I'd have the cash to buy the thing outright (I'm scared of loans after student debt).

But then I'd be 28, which to me is very old. And that would whipe out my life savings, and I'd still be in the same tiny apartment. I would have a nice car, but have to park it in a community lot, I want a house someday, so it would mean starting my savings for that alot later.Which at that point I question is it really worth it?

I feel very frustrated because I feel that it was not worth spending 4 years of my life to go to school, to earn more money, and pay back loans, when I could have learned some trade in 6 months and made comparable money and had my car today?
Okay.
Age 24.
Fast forward a few different scenarios (paths taken) . . . a "minor" 10 years.

1. Age 34. Finishing Medical Residency. Boards completed. Practicing. Salary? Do the math. "Dream Car"? 40k is nothing now. How about 200k?

2. Age 34. Gone through the trades union apprentice program. 2-4 years from age 24. Working. Overtime. Saving. Perhaps a trade job with the fed, state, city, with retirement benefits. But, salary might top out and with time, the body goes "south". But, "dream car" finally in hand. Home with a mortgage. Children. Making ends meat.

3. Age 34. Tiny apartment. Dream car in hand. But now with a lot of miles. Some savings. Saving for a home down payment and mortgage.

Actionable solutions:
1. Invest in yourself, skillset, education, (more than you have now) to increase present and future income stream.

2. Move out of your tiny apartment and get something where you will feel more expansive and alive. Does not have to cost more.

3. Go to night school and additional training/education on your "days off/time off" to increase your income streams and expand self/"self". While others are having days off and sleeping, you're working, learning, getting ahead. (get what you put in).

4. Read:
"Real Life"
https://smile.amazon.com/gp/product/143 ... UTF8&psc=1
"Life Strategies"
https://smile.amazon.com/gp/product/078 ... UTF8&psc=1
"Self Matters"
https://smile.amazon.com/gp/product/074 ... UTF8&psc=1
"The Richest Man"
https://smile.amazon.com/gp/product/045 ... UTF8&psc=1

5. At 24, a 40k sports car? How about thinking bigger as so many things are possible. The world is your "oyster"!!!! Go for it!
:sharebeer
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DrivingFun
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Re: How to afford a sports car?

Post by DrivingFun »

Somenamehere wrote: Fri Dec 28, 2018 6:12 pm I feel very frustrated because I feel that it was not worth spending 4 years of my life to go to school, to earn more money, and pay back loans, when I could have learned some trade in 6 months and made comparable money and had my car today?
I hate to be "that guy" but is any of this really news to you? I hope not, because that's the kind of research you need to do prior to committing to whatever profession you decided to go down.

As far as the car... When I graduated college I bought myself a brand new BMW 330ci, somewhere around $42,000. I think my salary at the time was $50,000, and I only had about $15,000 of student loans. It was everything I thought it would be. That said, two years later I ended up selling it when I faced the fact that it simply wasn't a wise financial decision that early in my life. I sold it (taking a chunky depreciation hit) and bought a used e36 M3, which I kept until my mid 30s, so over a decade. In those 10 years, my salary more than doubled. I bought a house with 20% down. I got married, and had a child. A few years ago I finally let go of the M3 and bought a new Golf R, for about the same money as my first BMW, $40,000. This time I handed them a check, no loans, no obligations.

The moral of the story here is up to you. My suggestion, don't buy new. Buy something used that will scratch that itch for a reasonable price. Without derailing your other aspirations.
venkman
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Re: How to afford a sports car?

Post by venkman »

viewtopic.php?t=214509
One of the easiest ways to save money is buying an inexpensive car. I'll explain:

The savings from buying a less expensive car are enormous. For example, Edmonds give the estimated five-year True Cost to Own of automobiles sold in the United States. Using Edmonds, I compared The True Cost to Own of a new 2017 BMW 340 4-door sedan with a new 2017 Toyota Corolla 4-door sedan (a Toyota similar to one I happily owned). The results are shocking.

The BMW sedan costs $51,467 with a 5-year True Cost to Own of $59,424.

The Toyota Corolla sedan costs $18,628 with a 5-year True Cost to Own of $24,592.

Buying the Toyota saves $34,832 ($59,424 -$24,592) in five years or approximately $4,918 per year.

If, instead of buying a fancier car, you invest your $4,918 annual savings in a Roth IRA at 7% for 40 years (age 25-65) You will have $1,124,176.00 tax-free for your retirement.

Best wishes.
Taylor
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ClevrChico
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Re: How to afford a sports car?

Post by ClevrChico »

Somenamehere wrote: Fri Dec 28, 2018 6:12 pm But then I'd be 28, which to me is very old.
:D :D :D :D :D :D

You'll find that time has a way of speeding up drastically as you age. You'll be middle aged before you know it. If you invest in yourself and career, save, even the mainstream exotics become affordable in time.

Until then, use Turo now and then to get the bug out of your system.
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Sandtrap
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Re: How to afford a sports car?

Post by Sandtrap »

ClevrChico wrote: Fri Dec 28, 2018 9:02 pm
Somenamehere wrote: Fri Dec 28, 2018 6:12 pm But then I'd be 28, which to me is very old.
:D :D :D :D :D :D

You'll find that time has a way of speeding up drastically as you age. You'll be middle aged before you know it. If you invest in yourself and career, save, even the mainstream exotics become affordable in time.

Until then, use Turo now and then to get the bug out of your system.
Yes.
Some say that after age 60 (or other), one ages in "dog years".
:shock:
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Watty
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Re: How to afford a sports car?

Post by Watty »

Somenamehere wrote: Fri Dec 28, 2018 6:12 pm And one of my life goals is to own a nice sports car. My dream car budget is ~$40,000.
In addition to your "dream car" you would also likely want to have a daily driver if you are talking about a performance car.

As others have mentioned buying a much less expensive fun car would make sense, and with a less expensive car you could drive it daily and not worry too much about wearing it out.

I am not a "car guy" but the ones that I know seem to enjoy working on their cars as much as they enjoy driving them so getting a project car would be worth considering.

One thing to keep in mind is that if you spend $10,000 in your 20s instead of saving it that money could grow for 40 years until you are in 60s and be worth maybe $100K (or so) by then. Compounding is amazing.

https://personal.vanguard.com/us/insigh ... ompounding

A figure like $40K is pretty abstract. When looking at choices like this try to look at it in the terms of what you will give up if you don't have the money to spend it on something else. In economics this is called the "opportunity cost".(Google this) For example spending an extra $20K on a car when you are in your 20s might have the opportunity cost of causing you to work five years longer until you can retire.

In addition to the cost of the car you also need to consider the other costs. Insurance is a factor but if you are married when you buy an expensive sports car then your spouse would also need to have a similar budget for their splurges.
Zombies
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Re: How to afford a sports car?

Post by Zombies »

Many moons ago when I was in a similar situation, I decided to go for it and buy a BMW M3. I financed it heavily on a long term plan. The cost of the car was similar to my salary at the time.

My takeaways from that are as follows:

1) If my son in the same situation wanted to do that, I would heavily advise him against it.

2) It was 100% worth it to me. I enjoyed that car for 14 years, and still miss it since I sold it. Although maintenance got expensive in the outer years, for how much enjoyment I got out of it per dollar I’m very glad I made that purchase.

3) I am well aware (now) of the opportunity cost of spending that money back then — similarly, when I went to business school, I incredibly stupidly withdrew from my Roth IRA because hey, it was after tax and penalty free! (Oops) However, I am much happier having spent so many years with a car I was passionate about than having more money in my bank account.

Ultimately this is a personal decision. People who don’t love cars won’t get it, just like people who don’t love watches can’t comprehend why everyone doesn’t have a Casio. Like I said, it’s almost certainly a bad decision, so I would tell my son no way in heck, but if he did it anyway that would be his choice as a 24 year old. And it may just be the right one ;)
runner3081
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Re: How to afford a sports car?

Post by runner3081 »

Flyer24 wrote: Fri Dec 28, 2018 8:22 pm The time will come when you afford nice things.
...and then, some of us decide that nice things aren't worth the hours of work it takes to buy them!

I was there, cycled through cars (3 BMW's, Trucks, etc), fortunately, the most expensive one was $25K and I was able to get out of them for only a small loss (bought used). Nonetheless, not financially savvy moves.

Now, well, I am even happier to drive our 14 and 20 year old beat up cars than I EVER was driving the BMW's. I am just lucky that I figured this out in my early 30's.
satoriboat
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Re: How to afford a sports car?

Post by satoriboat »

By the time I was your age I wasted tons of time and money on cars. I eventually became a Porsche salesman. And without connecting those two experiences I came to realize that cars are a colossal waste of money. That being said a real sports car before one has a family is one of lifes greatest little pleasures.
But only if you get the greatest sports car of all time, the one, the only the Mazda Miata. Dirt cheap to operate and deadly reliable you can find a ready to go used one for less than five grand. How do I know? I am getting ready to sell mine for less than that and it needs nothing. Cars are a depreciating asset that needs repairs. An old Miata is already depreciated and rarely needs repairs. The biggest no-brainer of all times . Drive on my young friend.
jharkin
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Re: How to afford a sports car?

Post by jharkin »

“28 is very old”


The day will come that you will look back and it will seem very young. And you will kick yourself for still having to get up at 6 am and go to work because you spent frivolously in your 20s.

Having $1k a month to save at 24 is amazing... I barely managed a couple hundred. I had friends who blew all their money on M3s and S4s at that age.. I was jealous, but I’ll probably retire a decade before they do so I got over it fast :)


Wait. The years will go by faster than you can imagine and the car will still be out there down the road when you can easily afford it.
Last edited by jharkin on Sat Dec 29, 2018 6:55 am, edited 1 time in total.
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Sandtrap
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Re: How to afford a sports car?

Post by Sandtrap »

satoriboat wrote: Fri Dec 28, 2018 9:48 pm By the time I was your age I wasted tons of time and money on cars. I eventually became a Porsche salesman. And without connecting those two experiences I came to realize that cars are a colossal waste of money. That being said a real sports car before one has a family is one of lifes greatest little pleasures.
But only if you get the greatest sports car of all time, the one, the only the Mazda Miata. Dirt cheap to operate and deadly reliable you can find a ready to go used one for less than five grand. How do I know? I am getting ready to sell mine for less than that and it needs nothing. Cars are a depreciating asset that needs repairs. An old Miata is already depreciated and rarely needs repairs. The biggest no-brainer of all times . Drive on my young friend.
Interesting points.
A retiree friend has 3 Miata's and 1 Turbo Porche (200k) in his detached garage.
Which one's do you think he drives the most?
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satoriboat
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Re: How to afford a sports car?

Post by satoriboat »

@Sandtrap. Hey... A low powered car that you can push hard and not be cop bait is infinitely more fun than a car the breaks every speed limit in second. Of course a 911 is great, particularly on the Autobahn. Not so much here.
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TxAg
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Re: How to afford a sports car?

Post by TxAg »

You sound 16, not 24. Make sure your priorities are straight.
multiham
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Re: How to afford a sports car?

Post by multiham »

venkman wrote: Fri Dec 28, 2018 8:57 pm viewtopic.php?t=214509
One of the easiest ways to save money is buying an inexpensive car. I'll explain:

The savings from buying a less expensive car are enormous. For example, Edmonds give the estimated five-year True Cost to Own of automobiles sold in the United States. Using Edmonds, I compared The True Cost to Own of a new 2017 BMW 340 4-door sedan with a new 2017 Toyota Corolla 4-door sedan (a Toyota similar to one I happily owned). The results are shocking.

The BMW sedan costs $51,467 with a 5-year True Cost to Own of $59,424.

The Toyota Corolla sedan costs $18,628 with a 5-year True Cost to Own of $24,592.

Buying the Toyota saves $34,832 ($59,424 -$24,592) in five years or approximately $4,918 per year.

If, instead of buying a fancier car, you invest your $4,918 annual savings in a Roth IRA at 7% for 40 years (age 25-65) You will have $1,124,176.00 tax-free for your retirement.

Best wishes.
Taylor
While the message here is strong, please know that this scenario assumes that you have the same $4,918 savings for 40 straight years and invest this amount each year. It does not take into consideration the difference in resale values as I know Toyotas are good, but I can't assume I can keep it for 40 years.

This is my 3rd post on cars on this forum today! My advice is to understand the power of compounding and choose your purchases carefully. If you want the BMW in the example above, figure out a way to get there. Maybe its a side hustle, or giving up vacations, etc. Whatever works for you.

There are many people on this site that spend way more than I would ever consider on travel, food, clothing, etc. Thats whats important to them and they may be willing to sacrifice in other areas. If a car is that important to you, figure out what you have to sacrifice to make it happen. I bought a BMW Z4 when I was in my mid 30's. It was expensive, but I enjoyed every minute I owned that car. Vacations and discretionary spending were a little lighter those years.

It reminds me of the guy who lost a ton of weight eating Big Mac's at McDonalds. As long as your calorie intake (spending) is less than the calories you burn (income) you will lose weight (savings will go up) no matter what food you get the calories from.
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whodidntante
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Re: How to afford a sports car?

Post by whodidntante »

I had a high personality hooptie sporty car at 24. You know the type, full on tuner math, 170 HP+10 HP=400 HP. Sometimes those are the best cars. Forty grand would have been a huge setback on that point, no matter if I took a loan or saved for it.
stimulacra
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Re: How to afford a sports car?

Post by stimulacra »

Somenamehere wrote: Fri Dec 28, 2018 6:12 pm And one of my life goals is to own a nice sports car. My dream car budget is ~$40,000.



But then I'd be 28, which to me is very old.
What's your dream sports car today? How much would a 2018 version of that model cost in 2022? You might be able to get it at age 26 for a lot less than $40k.

How many miles do you drive a year? Lets say you drove 20k miles a year, are you ok with putting those miles on your dream car? Or would you need an additional beater car?

Having a sports car is possible at any age, you just have to de-prioritize other areas of your life/budget.
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Davinci
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Re: How to afford a sports car?

Post by Davinci »

How to afford a sports car?
Somenamehere, you can always drive a nice sports car for $4k, not need to spend $40k. It is a lot of fun since it is a great way to learn mechanics and make changes you want and customize it. Have you thought about buying an old classy sports car and restoring it?

Its funny as when I go to change my oil at Jiffy Lube, there are $50k sports carts parked outside from the 20 year olds working there. I talk to them and one indicated that 80% of his salary goes to the car payment at 10% interest. Sometimes it is better to delay instant gratification for the power of compounding as others wisely pointed out.

Besides, they steal a lot of cars where I live so I see it as a plus to drive a 17 year old junker and not an expensive sports car as I do not worry that it will not be there when I need it.

Best of luck in your search! :sharebeer
" Simplicity is the ultimate sophistication" Leonardo Da Vinci.
abc132
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Re: How to afford a sports car?

Post by abc132 »

Set an investing goal and make that dream sports car a part of it.

I would advise that you keep investing 12k/year wait until you are in your 30's before buying a car you really can't afford. If you find yourself sitting on 200k or more in your early 30's, or getting a big pay increase sooner, you may be able to justify splurging for your dream car. That 40k at age 24 will cost you almost a half million dollars by the time you retire. You will be very rich if you live below your means. You will end up poor if you live above your means.

In the mean time, buy a lower end, reasonably new, used sports car for 10k. Base your decision on what you can afford without sacrificing your investing goals.

90% of the fun, and without sacrificing your future. If you can scrap together enough extra money, spend $3k on racing school (such as Skip Barber high performance 2 day).
johncunningham
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Re: How to afford a sports car?

Post by johncunningham »

I feel like I mostly respond to car posts...

At 24, I was in love with Land Rover defenders, especially British Racing Green, but I drove an inherited Chevy,

At 31, I was in love with e39 M5s. In particular Imola red ones. But I bought a Subaru Impreza.

At 36, with three small kids, a new mortgage, and a relatively busy career, I bought my first “play” car, a Jeep Wrangler 4 door. I ended up selling the Subaru to daily drive the wrangler. My kids and I love it. My wife, less so.

At 42, I have FINALLY, bought myself a sports car. I still lust after defenders, and a clean e39 always catches my eye, but they are getting long in the tooth, and well maintained ones are easily in the 40k plus range. So, I bought a seven year old e93 M3. The First owner kept it in a garage, put no miles on it, had it detailed and serviced annually. The car looks like new, and has 7,300 miles on it.

My point, looking at cars is fun. Test driving cars is fun. Reading about cars is fun. Having savings and money to afford cars is even more fun. I wrote a check for the M3. Price almost doesn’t matter at this point. I have the savings, the 401k, the 529s...

I spent almost a year looking for the right car. When I found it, I put a deposit on it the day it was listed. Over the phone, 2 states away. It is possible to find a good deal, and good value. My M3 has at least 90% of its useful life left. I paid 30% of original MSRP. The first owner ate 50k in depreciation, in seven years, to drive the car 1000 mile a year. I have no idea what his service, tax, registration, and maintenance costs were, it they weren’t zero.

Go chase after cars, but lower your budget, and try to find things that are fully depreciated. Save money, have fun, live life, but 40k on a 50k income is too much.

John
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Re: How to afford a sports car?

Post by Jack FFR1846 »

Name the car! Us car guys will critique your choice and give you alternatives. $40k is a pretty big budget for a car. Some I can think of at that price:

996 turbo with dents/scratches from an encounter with some hedges
A new Miata
A N/A Lotus Evora
A very nice, late Lotus Elise
An 09 Nissan GT-R
A low mile Maserati Quattroporte
A BMW Z3 M
A 92 Acura NSX
A very nice 964 Porsche 911 N/A
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bottlecap
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Re: How to afford a sports car?

Post by bottlecap »

You can't afford it. Rather than focus on a dream car, why not focus putting yourself in a position to get your dream job? The cars and riches will follow.

This is real life. Going to school for 4 years isn't an accomplishment that warrants a sports car. Or even a large salary.

Actually, you have it better than real life. Most 24 year-olds can't save $1,000 a month. Most 40 year-olds can't.

Besides, you're not supposed to get your dream car or dream house or dream whatever at 24. You're supposed to grow up and figure out what is really important in life.

Good luck,

JT
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Re: How to afford a sports car?

Post by dknightd »

Somenamehere wrote: Fri Dec 28, 2018 6:12 pm And one of my life goals is to own a nice sports car. My dream car budget is ~$40,000.
What are some of your other life goals? Perhaps prioritize them. You do not have to achieve all of them in the first 10 years after finishing school ;) You likely have many good years ahead of you :)
Retired 2019. So far, so good. I want to wake up every morning. But I want to die in my sleep. Just another conundrum. I think the solution might be afternoon naps ;)
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Re: How to afford a sports car?

Post by Sandtrap »

bottlecap wrote: Sat Dec 29, 2018 8:14 am You can't afford it. Rather than focus on a dream car, why not focus putting yourself in a position to get your dream job? The cars and riches will follow.

This is real life. Going to school for 4 years isn't an accomplishment that warrants a sports car. Or even a large salary.

Actually, you have it better than real life. Most 24 year-olds can't save $1,000 a month. Most 40 year-olds can't.

Besides, you're not supposed to get your dream car or dream house or dream whatever at 24. You're supposed to grow up and figure out what is really important in life.

Good luck,

JT
+1
Outstanding!
well said, "bottlecap" :happy
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Re: How to afford a sports car?

Post by Kenkat »

Getting something used is the obvious answer. You can get something very nice, fun, sporty, etc. for easily half of $40,000; a third or less even is possible depending on the specific car.
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Re: How to afford a sports car?

Post by dknightd »

Somenamehere wrote: Fri Dec 28, 2018 8:03 pm Yeah I suppose my thought process didnt take into account any raises or promotions over the next few years.

And first year out of school is generally going to be lower paying anyway. I feel like I was in a bit of snit and just wanted to rant.

I should focus on improving myself and therefore my marketability
:)
Retired 2019. So far, so good. I want to wake up every morning. But I want to die in my sleep. Just another conundrum. I think the solution might be afternoon naps ;)
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Re: How to afford a sports car?

Post by Bammerman »

[/quote]
You can pick up a 1996 era Mazda MX-5 Miata for $2,000. Make that a gift to yourself after you max out your retirement accounts.
[/quote]

That's just what I was going to say! The Miata is a great, fun, and reliable sports car. I owned one for seven years and still regret selling it. Get yourself a good used Miata and save the rest of the money.
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Post by hdas »

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Last edited by hdas on Wed Jan 29, 2020 1:47 pm, edited 2 times in total.
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Re: How to afford a sports car?

Post by JackoC »

Somenamehere wrote: Fri Dec 28, 2018 6:12 pm I'm 24 single out of college not making alot of money, paid off my student loans , I am becoming frustrated, because after rent, insurance, groceries, gas, Bill's etc I'm only saving $1000/month
You can disclose what you want, but it's less useful to judge $1k a month v 'don't make a lot' v just saying how much you make. This is somewhat relevant in case you did spend a lot of current savings on a car, as to how fast you'd make up for this assuming you focus going forward on making more money. And IMO *if* young people are highly focused on accumulating money, they should be focused on how to *make* more of it above all else. Relatively restrained spending is one pillar of accumulating money, but making more is the principle one, IMO, especially if you're young enough to relatively easily change your earning trajectory.

On car, I dreamed of getting a $20k car when I landed a $20k/yr job right out of college ($20k then~$70k now). I didn't* and don't particularly regret it, nor really super glad I didn't either though. Again, everyone's situation differs but what I'm most glad I did, money wise (money is not nearly everything in life, to me) was greatly increase my income after switching careers around the time I got 'old' (when I was around 28 :D ).

*I stuck with my peppy and fun used Fiat 124, till it rusted out, as that car would usually do after a short life by today's standards. Then didn't have a car for some years after that, and didn't get a new performance car till it was a quite small % of annual income.
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Re: How to afford a sports car?

Post by snackdog »

As others have said, a '96 Miata with a manual is better and more fun to drive than most of the $40,000 sports cars out there today.
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Re: How to afford a sports car?

Post by corn18 »

You could do what I did and buy what you wanted when you wanted it with no delayed gratification. That landed me with a -$200,000 net worth at age 47 with no savings at all and no hope of ever retiring. I had 4 cars all with loans, a house that was worth less than the mortgage, an RV, a horse, horse trailer, college coming up with nothing to pay for it. And I was paying off credit cards with other credit cards. Everyone thought we were rich. We were one bad day away from bankruptcy.
Consistently sets low goals and fails to achieve them.
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Re: How to afford a sports car?

Post by dknightd »

You could live to 100+ or die next month. Try to plan for both ;)
Retired 2019. So far, so good. I want to wake up every morning. But I want to die in my sleep. Just another conundrum. I think the solution might be afternoon naps ;)
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Re: How to afford a sports car?

Post by warner25 »

livesoft wrote: Fri Dec 28, 2018 8:27 pm I have kids your age and they wouldn't be caught dead posting on Bogleheads.org. :)
Because their dad reads every post or some other reason?

Luckily my dad is a spendthrift, so I think saving money is cool. He has two sports cars while I have a 10-year old Prius.
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Re: How to afford a sports car?

Post by TxAg »

There's a 20-something that lives around the corner from us. He drives a new Tesla with a customized license plate reading "SUP GRL". Did I mention he lives with his parents and parks on the street?

This is not a swanky neighborhood.

My point is...his priorities are all out of whack. There's being young and dumb, and then there's being young and DUMB!
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Re: How to afford a sports car?

Post by bgf »

corn18 wrote: Sat Dec 29, 2018 9:27 am You could do what I did and buy what you wanted when you wanted it with no delayed gratification. That landed me with a -$200,000 net worth at age 47 with no savings at all and no hope of ever retiring. I had 4 cars all with loans, a house that was worth less than the mortgage, an RV, a horse, horse trailer, college coming up with nothing to pay for it. And I was paying off credit cards with other credit cards. Everyone thought we were rich. We were one bad day away from bankruptcy.
i know you've mentioned this before but every time I read your story it hits me like a ton of bricks.
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"
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Re: How to afford a sports car?

Post by Good Listener »

I think the best way to afford it is not to get it. Unless you are expecting a big inheritance, you need to save for your future. I suggest you consider rethinking your priorities and consider whether having a sportscar now will help you later. Good luck.
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Re: How to afford a sports car?

Post by stoptothink »

TxAg wrote: Sat Dec 29, 2018 1:33 pm There's a 20-something that lives around the corner from us. He drives a new Tesla with a customized license plate reading "SUP GRL". Did I mention he lives with his parents and parks on the street?

This is not a swanky neighborhood.

My point is...his priorities are all out of whack. There's being young and dumb, and then there's being young and DUMB!
Two houses down from me is a 26yr old recently married young man. He is working on his undergrad and works in the call center of my employer and his wife does eyelashes out of their home. He has a brand new model 3 (and a humongous TESLA sticker on his garage wall) and his wife drives a late model Audi A4. Super nice young couple, but I am curious how exactly they afford a $270k home and ~$100k in cars when there is almost no way their combined income is $50k/yr. My guess is, like many of my other neighbors (I have found out in the last few years), they have very generous parents.
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