Should I get a GT-R?

Magic Bus · 04-18-2014, 03:46 AM

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.

falconfixer · 04-18-2014, 07:05 AM

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 the best advice so far in this thread.

houkouonchi · 04-18-2014, 09:40 AM

Quote:

Originally Posted by falconfixer

This is the best advice so far in this thread.

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.

Quote:

Originally Posted by DjSquall

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

When I was a kid a Lambo was my *dream* car but honestly as I have gotten older and heard all the horror stories of these things randomly combusting I honestly don't think I would want to actually own a lambo now.

Quote:

Originally Posted by 2011 Nismo#91

Don't forget to factor in Uncle Sam will take a nice chunk of that income come next April 15th.

Oh yeah, I am very aware, Actually the number I gave was after factoring in a 40% loss due to taxes. Actual raw amount (which will come in as income) should be in the 190-250k range.

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.

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.

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.

Amj2020 · 04-18-2014, 09:47 AM

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

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.

SterlingDrive · 04-19-2014, 07:09 AM

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.

Well said, thoughtful mature comment...

Sterling

04-18-2014, 03:46 AM	#1 (permalink)
Magic Bus A True Z Fanatic Join Date: May 2012 Location: Honolulu Posts: 1,427 Drives: 17 6MT M2 Rep Power: 18756	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.

04-18-2014, 10:38 AM	#5 (permalink)
my2004Z Enthusiast Member Join Date: Apr 2009 Location: New Mexico, USA Posts: 285 Drives: 09' 370Z w/Sport 7AT Rep Power: 39	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, 09:47 AM	#7 (permalink)
Amj2020 Enthusiast Member Join Date: Mar 2012 Location: NY/LI Posts: 393 Drives: MB Z,Jeep,BMW Rep Power: 15	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