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The fact that you are making car payments on the Z and are even worried about insurance costs answers your question...
You can always buy one in a year or two once (paying down your house payment is also not the best thing to do).... If you buy it I'll keep an eye out for the inevitable "Selling GT-R cheap, something came up and can't keep her" thread. |
Boost the Z and pay down the house!!!!
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Even though I am semi-near L.A. I am far enough (right on the border of chino) that the houses are actually semi reasonable here. My house was only 260k (single-story 3 bd 2 bath, 1700 square feet) when I bought it 4 years ago and its actually now worth 340k. I could have just paid for my Z in cash but why blow threw a huge chunk of my savings just to avoid a bit of interest? Honestly I am glad I did not because that money ended up being extremely usefull in allowing me to invest more in the company I work at which is part of the reason I am getting a big payout in the next few weeks (more than enough to buy a GT-R for cash if I wanted). Maybe I just need to go test drive one and see if I like it but do dealers even let people test drive? even with >200k in the bank I would still be concerned about monthly effect on cashflow and insurance and stuff does matter. There is a good chance I could very well afford a GT-R even with a big hike in insurance already on my base salary without the huge checks I will be getting. I would like to still live within my means even if I get a decent sized payout. |
While it appears you have a nice little sum cash and decent income, I wouldn't do it. All you're doing by getting the GTR and keeping the Z is dramatically increasing your expenses in depreciating assets.
At age 28 I would invest the money in a diversified portfolio and build it up. When these investments build up more then use the dividends or income to pay the GTR bill. Leave or re-invest all the capital gains from these investments so your total portfolio balance increases. Be a little more patient, it's not like you have a crappy car now. As for paying off your mortgage, it depends on what your interest rate is. Example, if your mortgage is 3%, and your investments average an annual rate of return of 8%, why use the investment money to pay off the mortgage? But you have to invest the additional money. Let your money work for you instead of you working for your money. Short term sacrifice results in long term pleasure while short term pleasure results in long term suffering. Sorry to be a party pooper but you seem to be in a great position to set yourself up for a nice financial future and get the GTR much easier several years down the road. Good luck to you on whatever you decide. |
Buy the GT-R and put the rest towards the mortgage.
You could potentially die today or tomorrow and you'll miss out on living life! If you're too conservative all your life you're going to miss out on all it has to offer! |
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That's true too. I'm a prime example. TapaTalk for iPhone. |
What's your mortgage balance?
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This is the best advice so far in this thread. |
$1100 a month car payment is absurd imo. pay off the z then go upgrade. driving a payed off Z is so much more satisfying :tup:
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100k a year isn't THAT much for a car this expensive + insurance + mortgage + living expenses. Don't buy it. |
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I say you should look into getting a used Gallardo. One can be easily found for under 100k. Maintenace & insurance is about the same as a GTR, but you get a Lambo ;)
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I was going to say you would make way more than enough money to buy a GTR and easily pay your mortgage in a reasonable manner, but then I read you live in Cali lol. I wouldn't do it lol. If you made ~$150k here in Memphis you could live like a king.
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If you can swing it, do it.
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Seriously? Take a nice vacation so you can feel like you bought yourself something. Pay off the Z if you've still got a note. Make the house the only debt you have. Invest the rest. Revisit the GTR decision after a year of the new salary. Or wait for the redesigned GTR to crater the resale of the current ones and buy a 2013 or 2014 from someone who has to have the new one. |
Id hate to point out the obvious but your posts make me think you are not financially ready to commit to this idea and want someone to talk you into it. I used to do the same thing when I wanted my first sports car, my first Rolex, my first boat all when I was your age. I wanted everyone to convince me it was the right decision to justify a predetermined bad choice. Instead I invested the money I had earned and saved, bought a house, started a family, all of which are very expensive and it turned out to be the right decision. The truth is even with that payout, the money would be much better and more wisely spent in 100 other ways than buying a GT-R. The GT-R will always be there, and so will a lot of other cars in the future that will make you want them instead of the GT-R. Is the GT-R fun, sure but want to know what is more fun, seeing 7 figures in your bank account! You are still very young, give it a few years and let that capital you are making work for you and earn more every month so that you can just say one day screw it, today im going to buy the 2017 GT-R and just flat out be able to afford it:)
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Buy stock in Tesla they are going through the roof, trust me.
Additionally I will have to give the nod on waiting on your GT-R purchase, every vehicle purchase I've mad I've always had buyer's remorse. Please don't feel the same way I do. lol |
Just wait. They'll still be making GTRs in 3 years. How much could that lump sum be if you invested it for three years? At 10% each year, that's $212k. Four years is 230k. 10% is a reasonable rate of return to shoot for. At 10% annually it doubles in 7 years. At 28 your greatest asset is time to let things compound. Use your raise to pay more toward the mortgage if you have to pay it down, but if you're paying under 4% I wouldn't be in any hurry to get rid of the deduction.
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My opinion would be to put that money towards your Mortgage, the faster you pay that off the better you will be. If not use half of that money to go toward your mortgage and invest the rest. Once you finish paying of the house you could get the GTR. I have been contemplating the same but if my bonus comes through like I think it is I am just going to pay my house first. I have about 90k still, I rather pay that off no further worries about home payments.
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Why is everyone in such a hurry to get rid of a low interest rate tax deductible mortgage? If you're paying less than 5% on the note, invest it and make money on the difference. You can always sell the investments and pay off the note if things get tight.
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More often than not when someone makes more money or pays something off they go and get themselves into more debt. Try saving your money for a few years all while working to lower your recurring fixed costs. Cash flow is king especially since it enables geometric growth of investments. Before you know it you'll be able to put 75% down on the next generation version of the GT-R and can pay the rest off quickly.
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0. I didn't read the whole thread. Sorry!
1. Wait until you actually HAVE the money and can afford it if, say, you lose your job next month or whatever deal is going down ends up tanking. (To me, a raise is never a raise until I have it signed and in hand.) 2. If the scenario includes any question about a mortgage, then you deal with the mortgage first. Your house is good debt, and an appreciative asset. Your car, even a GTR, is not good debt and likely will depreciate some. Deal with the mortgage that you have currently, then look at bad debt. But financially, it's really only business between you and your advisor/loan agent, so if you can afford it, feel free. I certainly won't judge any decision if you can afford it. |
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From a not-so-recently retired person who recently took out the first auto loan of his life (to buy a new 370) simply because that was the best financial option at this time. |
GTRRRRRRRRRRRRRRRRRRRRRRRRRR!! My next car, I am 90% sure! The other 10% is an E92 M3. Haha.
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Serious question! I'm curious to know! |
^ well all I know is my Z handles amazing with the Hotchkis sways and Swift Spec R's. Corners like it's on rails, and feels "light" compared to the GT-R. But I'm sure if I got springs/coils and sways it would feel and handle much better! I remember how the 370Z felt stock!
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Your advice is what I have been doing for myself since 2006 and made an average return of at least 15%-20% every year by investing in the market. OP, for a mortgage of $230k just keep paying down your mortgage and save/invest your money instead of looking to drop a big chunk into another car or paying off a mortgage given that it is already a fixed cost. I could easily afford a GT-R or similar priced car right now but I choose to invest that money instead because I have been through the ups and downs of the economy for the last 8 years and I know better than to throw my money at a rapidly depreciating asset. |
Worry about your house first. Car second. Then your wife
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Yep and when you are 55 you can buy your R35! ;)
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Thanks for all the input guys. I think what I really wanted to know is if the GTR is really worth it for people who have both a 370Z and a GTR or who have driven both. Even with a huge chunk of money I did not want to use that to actually buy a GT-R and instead wanted to get a loan and it to be at the level where I could pay it without eating into my savings just with my base salary which probably will be the case. I guess I will just have to find an opportunity to actually go drive one and see how I like it. I think I am probably leaning a bit more towards just paying off the Z and helping my current cash-flow so I can save more and pay off the house quicker though. |
Houkouonchi, sounds like you're a pretty sharp guy and think of things before you react, so I'll just give you some food for thought.
Regarding paying off your mortgage early, there are valid reasons for doing this, especially if your interest rates are on the high side. If not, consider investing the difference in a moderate portfolio (maybe an equal mix of bond/stocks, mutual funds are ok). But once again, you must invest the difference, not spend it. The question we need to ask ourselves is who's better off? Someone who has paid off his mortgage but has no cash or someone who has a $100,000 mortgage but $150,000 in cash? I know what my answer is. Once again, good luck to you. :tiphat: |
man, I am just trying to save for 2k wheels..
life is good man, do what your gut says. |
You thought you had fun driving your Z like an azz, as witnessed in your infamous videos depicting you speeding through downtown LA in traffic (with complete disregard for others' safety)? You can be the king in the GT-R.
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Enjoy life to the fullest! If that means purchasing gozirra, go for it! Yolo~ :) But only do it responsibly.
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