So, I know im crazy, but im sick and tired of living my mundane day to day life.... i want to actually enjoy it while im still young and i need some advice.... I just bought a house a month ago, and now i want to lease sports car. The question is, should i lease? is it a good way to go? Should i not get a new car? am i stretching myself out...?? Here are the facts Wage ~60-70k Mortgage - ~1700$ I dont really have any other debt Car i want to lease Porsche Cayman S - MSRP or 70k Lease would be about 700$ plus 4000$ due at signing.... (for 36 months) So, is this a smart thing to do? i know its not an investment, but i wanna do something before i completly settle down... Am i stretching myself out to much?? Thanks for your suggestions (ahead of time )
Leases are for people with money to burn Do you really want to give away about 10,000 a year for 3 years...for a car...that you dont even own.....and thats before insurance and gas. Its your life but that sounds like a bad very unpractical idea
You don't need a new car to have fun. There are plenty of used sports cars out there for 1/3 the price http://portland.craigslist.org/clc/ctd/1749201120.html
Your first year cost is like $12k. That is fucking insane, you can buy a new car for cash with that much. Leasing is good for business owners for the write-off or young single guys who want to appear like they have more money than they actually have (lots get 3 series BMWs though, this is twice that)
You can get a sweeet used car for like 30k-40k. Like a drop-top benz. But then again, if you're not pushing mid-6 figures, you're going to be looking weird pulling into Taco Bell in that shit.
Leasing is generally the worst way to go. On pure "money matters" stuff, NEVER buy a new car. The depreciation on a new $30k vehicle is about the same over the 3 year lease as tossing a $100 bill out the window every week. Car companies know this, so that when they price out the lease, YOU end up paying for the depreciation (and profit to the dealer), while living under the restrictions on mileage, use, etc. that they put into the contracts. Now, if that car smell is worth losing 400 a month on...then go for it. BTW, Mortgage is a bit high, percentage-wise. Not saying it's crippling, but you generally want to be in the 25%-of-monthly-gross sweet spot for mortgages. 1700 out of your 5000-or-so a month is almost 35%. Honestly, though it's not sexy, you'd be pretty good by getting close to maxing out a 401k and Roth. NOthing says "daring" like compounding interest. Or buying a sexy car, but a 2 y/o one or something.
Damn it, you guys are downers!!!! i cant buy the car cause its 70k!!! so leasing it is kind of the only choice (if i want this car) But it looks like everyone is pretty against it
Ok the issue with buying a car for 30-40k is i would put a substantial down payment and then i would have a high monthly payment, and then i know i wanna sell it in three years, and that might be difficult to do
http://www.automotive.com/2007/porsche/cayman/cars-for-sale/12/index.html or, since I noticed you said Cayman "s"... http://www.automotive.com/cars-for-...n S&customer.address.zip=97007&skipStart=true if you take that 4k downpayment, and finance 30k over 48 months somewhere for 6% (reasonable, with your debt and salary and not supposing horrible credit), you'd pay 4k down and 700 a month for a car that you'd own outright in 4 years, instead of turning it back in to the dealer at 3. http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx
yeah, either way its a bad idea. Wait until you make more money and then buy as a reward. If you plan to start a family in 3 years though, maybe you can do it. 700 a month car payment for a lease would suck. I mean, its just another check I guess. If it makes you happy do it....I'd rather have 700 bucks more every month though. That'd make me more happy.
You would need to have at least $30k in saving and some in retirement depending on your age. Like what has been said leasing is a terrible idea. Looking at your income even without any other debts but your Mortgage you can't afford that car. You shouldn't ever lease a car and it is better to buy a low mileage used car. Even if you buy a new car you shouldn't ever take a loan longer then 3 years. If you need to take a longer loan it probably means you can't afford the car. I'm not sure how old you are but taking the 30k and putting it in saving you probably would have a ton of money by the time your ready to retire. Sorry, it is a bad idea IMO and you will regret it soon after the excitement of driving a new car wears off. I know from personal experience. When I was 20-40 years old I would buy a new car every 1-3 years and most were very expensive sports cars. It was a terrible mistake even though I made a lot of money it really is a waste and would love to have that money now.
