Can we afford it? And how should we pay?

**ua_guy** · 03-26-2014, 07:09 AM

This is me being honest, no offense intended. Your post sounds a bit like you're asking for permission, even though you're not, there is a twinge of uncertainty about the purchase and its affordability.

Things that would complete the financial picture would be your ages, other debts/expenses including any properties or mortgages, and if you are on track to meet your retirement goals. There's no doubt you have good income and substantial savings, but the question is whether a $60k purchase comes at a substantial opportunity cost to other goals.

If everything else is on track, go for it. I've owned more Camaros than I care to admit, so I'd definitely recommend the ZL1 as weapon of choice.

In thinking about the payment, even putting $30k down is going to put you at a payment of $833/month on a $60k OTD purchase financed at 0% for 36 months. If you are willing to decimate your piece of emergency savings, or reduce DH's by a full 1/3, that is your call.

I would absolutely take the 0% financing option, and I would absolutely put enough cash down to avoid gap insurance or being upside down in the car. While the ZL1 will hold its value better than the other models, it's still going to see typical Camaro depreciation. The car should not be treated as an investment, but as an expense.

**disneysteve** · 03-26-2014, 07:18 AM

How old are you?
What are your current monthly expenses?
How much do you currently have saved for retirement?
What other savings besides EF and retirement do you have?
What percentage of income are you contributing to retirement?
Do you have children? If so, are you saving for college?

**Nika** · 03-26-2014, 07:36 AM

Yes, age and retirement savings have a lot to do with it. (as well as housing cost/value).

Are you maxing out all of your available tax advantageous accounts? (401k and ROTHes for both of you?)

DH and I make more than you guys and a 60K car looks like a sheer insanity from where I'm sitting.

But of course everyone has different priorities. If you don't plan to have kids, don't care about vacations or going out for a couple of years, and the thing that gives you the most joy in life is a fast car, than it should balance out.

**corn18** · 03-26-2014, 08:26 AM

tagging to follow

**snafu** · 03-26-2014, 08:52 AM

you're responsible with debt just by asking the question. Your income reflects a hdigher tier sum an life is too short to desire something easily fulfilled. If DH doesn't get the satisfaction he desires from the longed for purchase, he can sell it.

**disneysteve** · 03-26-2014, 09:03 AM

Originally posted by tomhole View Post

tagging to follow

FYI - If you click on "Thread Tools" on the blue bar above the first post, you can click on "Subscribe to this Thread". You don't need to make a post that way.

**Reggie** · 03-26-2014, 09:41 AM

Originally posted by disneysteve View Post

How old are you?
What are your current monthly expenses?
How much do you currently have saved for retirement?
What other savings besides EF and retirement do you have?
What percentage of income are you contributing to retirement?
Do you have children? If so, are you saving for college?

Expenses- maybe 3000 mth
Retirement- I have $300k DH has 250k. And he is retired military so his pension.
I have a ROTH with $20k. He has $25k ROTH. I have an investment account with Vanguard that is taxable and has about $50k in.
We contribute 17.5k ea to our 401s and 5k to Rothschild
I have twin 19 yo daughters in college and an 8 year old. College savings is in a 529 and should be plenty. I'm only paying for four years. The twins are finishing their second year and live off campus and go to state schools so fairly cheap with their scholarships.
Primary home is paid for and we have two rentals. One has a 100k mortgage, the other is paid off. Total properties have maybe $600k value, prolly closer to $500k if we had to unload them quickly.

We are both hesitant because $60k is a lot of money. It took us a long time to save up and pay cash for our home. It's scary to spend that much but he really loves fast cars.

Oh and I'm 39 and he is 45.

**KTP** · 03-26-2014, 09:48 AM

I just sent the IRS a ZL1 so I say go for it (if the IRS can get one, then so can you!)

**Reggie** · 03-26-2014, 10:00 AM

We owe $119k on the mortgage. I also consigned for my daughters car loan back in January. She bought a 2013 Kia and owes $2400 so worst case I could have to pay that if she lost her job or something but its a really small amount to try and build her up some credit. Her grandmother gave her most of the price of the car and she has the savings to pay it off. She pays extra each month also. Her payment is $84 but she pays $115.

**ua_guy** · 03-26-2014, 10:00 AM

In that case, sign on the line and leave the dealership sideways, in your new ZL1, if that's what you want!

**autoxer** · 03-26-2014, 10:06 AM

I hate the term 'afford it', because it is a very personal decision on where your values are. There is no magic formula that says whether or not you can afford it. It sounds like you have your financial house in order, so as long as this doesn't impede any of your other financial goals, then I'd say go for it.

And I vote for the stingray.

**Reggie** · 03-26-2014, 10:10 AM

For that kind of hp, we would need $100k for a stingray. The mustang has 668hp but its heavier. The Camaro has 580 hp but for $800 you can add about 40 more hp. Try getting that for $55k anywhere else.

**Reggie** · 03-26-2014, 10:46 AM

And for full disclosure, I have 73,100 rewards points in my Chase Rewards account. Just kidding..... Well, not about the points those are real.

**corn18** · 03-26-2014, 11:13 AM

I'm the last guy you want to take spending advice from, but it seems you have all your finances in order. If the ZL1 brings you and your family joy, then go for it. The only caveat I would make is that you owe all of us a ride

Autoxer, is your forum name indicative that you participate in AutoCross?

Tom

Can we afford it? And how should we pay?