new guy here, currently drive a 2006 toyota corolla "s". i paid 5gs (life savings) when i was 17 for this car. parents helped me pay the rest, and ever since i got it i've paid for all maintenance, mods, gas, insurance, registration...etc plus a little extra to pay back the parents for the car they helped me buy. ive had a job ever since i was 15 and have always dreamt of having a nice car.

fast forward 3 years and im now turning 20, entering my 3rd year at san jose state university (pay for all this and books as well) and i work for fedex. fedex, thats the whole reason im here asking this question. i make a decent amount of money here doing very little work as in hours (but i work my *** off and make about a g a month) while getting/paying for all health, dental benefits...etc. i plan on working more hours/week in the next half year or so which puts me in the range of 1.5gs/month almost guarenteed so i was looking into purchasing a new car...a dream car sort of. ive always liked g35's, specially the last freshened g35 sedan (the 06 models).

now ive done the math and with the VPP program i could possibly get a 08 6mt sport sedan for 34g's or so with navi and destination fee. i have good credit (710 last i checked a year ago while never paying a cent of interest to credit cards) so id hope to get a decent interest rate. this would put me at about 500-550/month in payments with an 8g downpay for 5yrs with insurance being about 150/month (chose the sedan because a coupe is SUBSTANTIALLY higher insurance wise) now my real question is....am i being childish/naive to be plunking down a 5yr, 37g (assuming its paid off in exactly 4 years and about a 4% interest rate) commitment? i want to be driving a "nice" car since im doing well in school and the look back at my part time job after i graduate as chump change. should i be saving instead for a mortgage or something? im living with the parents til i turn 25. so the 5yr deal would be just about perfect.

opinions?

 

How much do you drive? As you know, gas in the SF bayarea is really expensive. My last fill up was $3.94/gal for Premium. (Also, I'm sure you've done your research and know that the G35 isn't too fuel efficient.)

Personally I use ~$400/mo for gas, $100/mo for insurance, and $500/mo for the car payment which equates to $1000/mo just for my transportation.

I drive ~25k miles per year so leasing is definitely not for me. Depending on your situation, maybe a zero money down lease might be better?

Of course, the biggest factor here is money. It's great you don't pay rent, but are you sure the money that remains after your monthly total car expense will be enough??

BTW, ever look on craigslist? There's always used 07+ G35s listed. You'll be saving a lot of money over a brand new one.

 

yea ive looked at the cost of gas as well and i typically drive 100 miles/week to the light rail station (to get to school and back) and to work (carpool with a coworker and we switch off every week). typically spend about 100-150/month on 87 at about 3.70 lately. so gas costs wouldnt go up insanely considering i only get about 28-29mpg (id say 90% highway) in my corolla anyways

 

How long are you in school for? Assuming 4 years?

Once you get out you can work more hours and have a greater income, if you can live comfortably now and buy this car then I say go for it!

If you think you might be cutting yourself short I would wait till you are working fulltime, in that case you could still afford the car and start saving for a mortgage

 

sorry bro, even with the 8g, and good credit rating. Getting a loan for that for a new credit establisher = not gonna happen (w/out a co-signer).

i was 20 when i bought my 05 sedan (bought in 06). I only needed a 25k loan, with a credit score of 740 and income of 2g/monthly. Denied by everyone except my BofA. w/ a high interest. And i know for DMMN sure your insurance wont be 150/month. Hate to tell you this, but even if its a sedan, Your insurance will consider it as a sports car for your age bc of the power. (telling you this by experience and i've spoken to more insurance agents than you, trust me). Your insurance (if by yourself) will probably be..(2008 SDN?)...= 9-1200/6months. I got quoted at 1200/6months by myself from Farmers and i've had the car for 2 years w/ perfect driving record since day 1!

I'm not an expert on these things, but i dont think you can get around 550/monthly or even a loan for that matter with the credit you've barely established.

i was in the exact place you're in when i was your age, and i'm only 2yrs older than you. I really dont think you need this car especially while your in college paying your own way and only making 1.5g/month. i make 2g/mnth, go to college, have a family business that takes care of everything, yet, money in my pocket is nowhere to be found.

So, to answer your other question. Yes, you're being naive. Its not as always as you plan it out. Just stick with the car you have dude, get the nice car when you're close to graduating. I'd hate for you to buy it and then regret it afterwards when you do all the math on how much you could've saved and buy something else with it.

But if its within your grasp and you want it, DO IT, f* what i or anyone else says, do it, just dont ever complain about it later down the line, bc ppl will just laugh in your face and say, " i told you so." (again, from experience)

 

Oh one would be surprised at the increase in monthly gas cost percentage-wise (especially compared to a corolla's fuel efficiency). City driving in this car QUICKLY negates the 22-24mpg one hopes to get on the freeway. I don't think I have a lead foot, but only average 19.5-20mpg (80% freeway, 20% city).

Anyway, if you plan to sell or trade in your Corolla, hopefully that'll help a lot with your G purchase. Then again, if you bought the Corolla brand new couple years ago, you'll most likely take a hit on depreciation if you sell or trade it in.

Also, everything that Infinite_636 said definitely has merit and I fully agree (considering your limited disclosure re: your financial situation), but in the end it's all up to you.

 

i wish it was 4yrs. realistically itll probably be closer to 5 due to not being able to get classes to graduate on time. once i graduate i hope to make way more than 13gs/year so a 37g car would be nothing...or so ihope.

and @ insurance ive already checked with statefarm and itd be about 1g/6months to fully cover the g if i were to get it. good grades, loyalty discounts, safe driver, etc really helps out. also ive had credit for about 3 years now so im not exactly new to the whole credit thing considering i have about 20gs of credit established already.

but yea realy thinking about it itd be a big risk doing it. but i really want to do it. as friends who have graduated told me....once i graduate the pathetic 12-13gs/year im making now will seem like nothing. specially considering im already on the path to moving up in fedex where the beginning manager makes 60-80gs/year starting with no college degree.

maybe the 09 g37 sedan will come out here so i can grab me an 08 g35 reall cheap

 

you're talking about the future and what you hope you'll be making.

lets talk about what you make now. i thought the same thing bro, and it'll take me another 3yrs to go into what i want. imo, hold off man. i know its nice to have new good looking car and have ppl look at you some what differently. BUT, its not what you drive, its how much you have in the bank that really counts.

 

and like i said, if you think you have all the bases covered and you know you can manage it...then f* what i say and HANDLE IT BRO. just dont regret it or else i'm just gonna say, ' i told u so.' keep us posted and stay alive in the forums.

 

any idea if/when the g37 sedan is making an appearance in the states? would probably be the best time to seriously consider buying the 08 g35s

 

 

Wait until you graduate. I was tempted to buy a brand new car in school too and I waited and it's been much better. All of the hours that you're in class are now spent working, usually making "real" money.

Be patient and wait - good things will come.

 

What he said...

 

Good Advice.

 

A friend of a friend is a mortgage banker. They were telling my friend that what is going on now in our economy is going to make the Depression look comfortable.

Now I really don't believe that. However I'm in the energy field, and I do know more about energy then the average person in the mortgage business. And the reverse is true. So it would be stupid of me to completely dismiss the comments of the financial impact of the mortgage meltdown, by someone in the mortgage business.

(I do however think the impact of energy prices on our economy will have a bigger impact in the mid to long term, than the mortgage situation. But that's a different subject.)

Where am I going with this?

That unless I had a REALLY safe job, I don't think I'd be taking out any unnecessary loans right now. (Or frankly be buying a car that doesn't get good gas mileage - oil isn't going to stop at $120/barrel - unless of course there is a substantial global recession.)

Now is a good time to be cautious with large purchases.