Should I get a GT-R?

Chuck33079 · 04-18-2014, 09:48 AM

Quote:

Originally Posted by houkouonchi

I know financially it makes more sense to invest than pay off your mortgage but honestly there is risks involved in doing that where as if you pay your mortgage off its done, forever. Also the difference it can make in cash flow can be really nice so I think I would still like to try to pay it off but maybe invest in the interim until I have enough to do that.

It's your only deduction, right? Don't hurry to get rid of it. Invest the money and let it grow. You're not really taking much risk to beat your mortgage interest rate as cheap as money is these days. And you can still cash out and send a check to the mortgage company if things get dicey.

ssmoked · 04-18-2014, 09:48 AM

Quote:

Originally Posted by houkouonchi

Kind of been playing with the idea of getting a GT-R. Basically due to something with my work in the next few weeks I will probably be getting paid out upwards of $120-160k (exact amount is unknown). Its not enough to pay off my mortgage and I should also be getting a bump in my salary (currently making around 100k) but I have no clue how much of a bump. My payments on my 370z (which are almost done) are currently ~$500 and for quite a while I was paying $400/month for my internet and now I pay a lot less for my internet so it seems like the payments would be around $1100/month for a 60k loan on a used GTR with a modest down-payment. This amount seems actually pretty easily doable for me especially if I get a 10-15% bump in salary which it could possibly be even more (some weird circumstances at work I can't go into).

I really don't want to use any of that money I am getting and want to either invest or keep in a savings account to eventually pay off my house so even though I could buy a brand new GT-R in cash I don't think I would do that especially with the 2.5% financing right now. I know there are a few members on here who have both or had a GT-R and went back. I am curious how they liked it compared to the 370z? I am a pretty hard-core manual driver and this is actually the only car I would ever consider getting in an automatic (although with the way the transmission is I don't even know if it should be considered 'automatic).

I guess I wonder if those who are similar to me who have driven both what they think. I know the rear seats are super tiny but the very rare cases I need 3 seats its usually with my sister and she is super tiny so she could probably fit back there and the idea of having 4 seats is kind of nice.

Should I actually get a GT-R or am do you guys suggest I just pay off my Z and save my money and pay my house loan off faster?

My other concern is insurance. My insurance is currently $70/month on my 370Z (I am a male, 28 years old). Its not really a problem if the insurance goes up to $200 or so but if I get dinged with $600/month or something on insurance this may become a no-deal for me. Curious what the other Z drivers think. I think I would still keep my Z and occasionally drive that as well and it be my backup car.

I think the better question would be is your job stable enough to afford the payments on the car, house, and utility... what field are you in anyways?

FuTuRe is Z · 04-18-2014, 09:59 AM

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

Chuck33079 · 04-18-2014, 10:05 AM

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.

kidkotic2001 · 04-18-2014, 10:08 AM

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.

Chuck33079 · 04-18-2014, 10:09 AM

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.

my2004Z · 04-18-2014, 10:38 AM

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.

ElVee · 04-18-2014, 10:44 AM

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.

Fuzzzy · 04-18-2014, 11:37 AM

Quote:

Originally Posted by falconfixer

This is the best advice so far in this thread.

+1

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.

Codename067 · 04-18-2014, 02:36 PM

GTRRRRRRRRRRRRRRRRRRRRRRRRRR!! My next car, I am 90% sure! The other 10% is an E92 M3. Haha.

Quote:

Originally Posted by tjlazer

The 370Z is funner to drive and handles better so if you can, keep the Z. (Z is upgraded with full bolt ons, full exhaust, sways and Swift springs though, GT-R is stock. I'm sure with sways and coils the GT-R would handle a lot better...)

Besides the exhaust...those ups gave your Z an edge over GTRs stock handling???

Serious question! I'm curious to know!

tjlazer · 04-18-2014, 04:42 PM

^ 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!

Waiz · 04-18-2014, 04:44 PM

Quote:

Originally Posted by Magic Bus

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.

This is what I would normally suggest to someone in person but on the forum this advice gets thrown into a black hole.

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.

jaedub · 04-18-2014, 04:54 PM

Worry about your house first. Car second. Then your wife

tjlazer · 04-18-2014, 04:59 PM

Yep and when you are 55 you can buy your R35!

houkouonchi · 04-18-2014, 05:40 PM

Quote:

Originally Posted by ssmoked

I think the better question would be is your job stable enough to afford the payments on the car, house, and utility... what field are you in anyways?

I actually work in an extremely desirable field. I am a senior-level Linux Systems Administrator and also do programming (devops). I have actually had recruiters from facebok go find my work email address after I didn't respond to them on linkedin. I honestly don't think I would ever really have trouble finding another job if I needed to. I really like where I work now because I get 25 days a year of vacation as well as 10 sick-days so 35 days a year of paid time off (280 hours per year). Also I telecommute half of the time so I usually don't even have to go into the office.

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.

04-18-2014, 09:59 AM	#63 (permalink)
FuTuRe is Z Enthusiast Member Join Date: Nov 2013 Location: CT Posts: 263 Drives: 2014 370z Rep Power: 11	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 Last edited by FuTuRe is Z; 04-18-2014 at 10:05 AM.

04-18-2014, 10:05 AM	#64 (permalink)
Chuck33079 A True Z Fanatic Join Date: Nov 2011 Location: Houston Posts: 12,265 Drives: 2011 370ztt Rep Power: 29538	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. __________________ 2011 MB Touring-Sport-6sp-Nav/GTM TT/FI TT TDX/JTran/Kosmic/Eibach/Hotchkis/SPC/CSF/RPS/SoThatsWhereAllMyMoneyWent

04-18-2014, 10:08 AM	#65 (permalink)
kidkotic2001 Track Member Join Date: Feb 2011 Location: El Paso, TX Posts: 541 Drives: Like Crazy Rep Power: 15	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. __________________ ThAt WaS a CrAzY nIgHt

04-18-2014, 10:09 AM	#66 (permalink)
Chuck33079 A True Z Fanatic Join Date: Nov 2011 Location: Houston Posts: 12,265 Drives: 2011 370ztt Rep Power: 29538	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. __________________ 2011 MB Touring-Sport-6sp-Nav/GTM TT/FI TT TDX/JTran/Kosmic/Eibach/Hotchkis/SPC/CSF/RPS/SoThatsWhereAllMyMoneyWent

04-18-2014, 04:42 PM	#71 (permalink)
tjlazer A True Z Fanatic Join Date: Dec 2009 Location: Tacoma Age: 52 Posts: 2,496 Drives: Z34, R35 Rep Power: 19	^ 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! __________________ 2009 370Z Monterey Blue,Nismo Conversion,RE-11's, K&N Typhoon intakes,Blue Kickplates,Homelink,FI 18" CBE,ERZ HFCs,Hotchkis sways, Swift Spec-R, EVO-R Highwing, UPREV

04-18-2014, 10:38 AM	#67 (permalink)
my2004Z Enthusiast Member Join Date: Apr 2009 Location: New Mexico, USA Posts: 285 Drives: 09' 370Z w/Sport 7AT Rep Power: 37	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.

04-18-2014, 10:44 AM	#68 (permalink)
ElVee Track Member Join Date: Mar 2013 Location: Iowa Posts: 750 Drives: 13 370z 7at t+s grey Rep Power: 16	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.

04-18-2014, 04:54 PM	#73 (permalink)
jaedub Track Member Join Date: Aug 2010 Location: Los Angeles Posts: 906 Drives: 2010 Black 370Z MT Rep Power: 304	Worry about your house first. Car second. Then your wife

04-18-2014, 04:59 PM	#74 (permalink)
tjlazer A True Z Fanatic Join Date: Dec 2009 Location: Tacoma Age: 52 Posts: 2,496 Drives: Z34, R35 Rep Power: 19	Yep and when you are 55 you can buy your R35! __________________ 2009 370Z Monterey Blue,Nismo Conversion,RE-11's, K&N Typhoon intakes,Blue Kickplates,Homelink,FI 18" CBE,ERZ HFCs,Hotchkis sways, Swift Spec-R, EVO-R Highwing, UPREV