New car: need a reality check please

[feh]

I know, right?

Just got a call back from the Acura dealer and they gave me a good price on a new TLX. $40,795, $1,200 lower than I expected. If they offered me $14,000 for my truck, I would be out the door in a new TLX V6 AWD Advanced for $29,000. That's very tempting.

Do you really want to spend $40K on a car when you know you can get a perfectly good one to suit your purposes for half of that?

I know you can afford it Tom, but that's not the point.

[Jluke]

Well, I just stopped by the Acura dealer to see the ILX. That is a Honda Civic for a $10k premium. But then I saw the TLX. It is an Accord for a $10k premium. But I fell in love with it. No way I can buy an Accord now. I will always second guess the decision. So now I'm $10k short.

I know you're a super earner and 10k is probably about 1 month net salary, but I think if you read the sentence above, you are 10k short. and you are being asked to pay a 10k premium

I fall in this trap all of the time. For example, I want item x. it comes in 3 levels for $10000, $20000 or $30000. Each time I tell myself if I'm spending 20k what's another 10k on top of that.

At the end of the day, you're driving a car.

Personally, I'd buy the Honda and put the 10k towards the Tesla or R8 fund.

[Singuy]

The notion of buying a new car just to save on gas doesn't compute mathematically.

Say you drive 25k miles/year.
You are saving about 2k/year on gas if the new car gets 26mpg and your old gets 14mpg.

Because you are putting so many miles on the new car, it will certainly depreciate more than 2k/year(especially a luxury car). Expect a 60% residual value after only 2-3 years of ownership because you put so many miles on it.

I would get a used Lexus off craigslist and drive it for the quiet ride and comfort if your purpose is trying to save money/gas/increase comfort

But you also make like 30k/month so whatever right?

If you REALLY want to save, get yourself an used volt. Their residual value is literally crap especially since the new model came out. You can walk away with one off lease with 40k miles on it for 10k if you want. It gets 30 mpg when the battery is depleted so it's not bad at all. Also with the increase weight of the car due to the battery, you should expect pretty decent comfort.

[ua_guy]

$40k? That's what you can pick up a lightly used 2014+ Audi A6 TDI for right now. We own one and it's got big car comfort, AWD, and that 3.0 diesel is a monster. It averages about 40mpg and pulls like a train. 0-60 in 5 seconds which is pretty impressive for such a huge, fat, and heavy car.

I just don't find that the new/used luxury Acura, Honda, Toyota models are a good value. Too high of resale, too much like their lower-cost counterparts to command such a premium.

[corn18]

The notion of buying a new car just to save on gas doesn't compute mathematically.

Say you drive 25k miles/year.
You are saving about 2k/year on gas if the new car gets 26mpg and your old gets 14mpg.

I agree.

Because you are putting so many miles on the new car, it will certainly depreciate more than 2k/year(especially a luxury car). Expect a 60% residual value after only 2-3 years of ownership because you put so many miles on it.

I'm ok with that since I plan to keep it 8 years.

I would get a used Lexus off craigslist and drive it for the quiet ride and comfort if your purpose is trying to save money/gas/increase comfort

Used is still an option.

But you also make like 30k/month so whatever right?

That's what got me into a lot of debt in the past. Trying to be smarter now. The Millionaire Next Door would say get a used Accord LX as a straight trade for my truck. That's the voice that won't let me pull the trigger on a $40k car.

If you REALLY want to save, get yourself an used volt. Their residual value is literally crap especially since the new model came out. You can walk away with one off lease with 40k miles on it for 10k if you want. It gets 30 mpg when the battery is depleted so it's not bad at all. Also with the increase weight of the car due to the battery, you should expect pretty decent comfort.

[corn18]

$40k? That's what you can pick up a lightly used 2014+ Audi A6 TDI for right now. We own one and it's got big car comfort, AWD, and that 3.0 diesel is a monster. It averages about 40mpg and pulls like a train. 0-60 in 5 seconds which is pretty impressive for such a huge, fat, and heavy car.

I just don't find that the new/used luxury Acura, Honda, Toyota models are a good value. Too high of resale, too much like their lower-cost counterparts to command such a premium.

I checked AutoTrader and you are spot on. Just no TDI's near me, so have to figure that out if I want to buy one.

[Snydley]

I really really like acuras. I'm on my 2nd, my dad is on his 4th-5th. To me, they are very comfortable/nice (and I sometimes deal with a long city commute) and worth the value. Oh, and nothing has ever gone wrong with these cars! All I do is change the oil. My dad drives his past 200K before he sells.

[corn18]

The car affordability calculator says I can afford a $324,000 car.

[Singuy]

The car affordability calculator says I can afford a $324,000 car.

Meaning you make like 70k/month..lol. So yeah..eat a month of rice and beans and get a Tesla.

[corn18]

Meaning you make like 70k/month..lol. So yeah..eat a month of rice and beans and get a Tesla.

Don't make that much.

[FLA]

I vote get that car you want!

[ua_guy]

I checked AutoTrader and you are spot on. Just no TDI's near me, so have to figure that out if I want to buy one.

Of course, that's not to say don't get the car you want, but if time is on your side, maybe go drive one for fun.

If you might be into the diesel thing, I really, I mean REALLY was impressed by the newer diesel Jeep Grand Cherokees. For between 40-45 you can get one brand new and pretty much loaded to the hilt. Same thing...monster torque, 420ft/lb and they ride heavy and quiet going down the road.

Would you be willing to share with us what you do at some point? Maybe I missed it in another thread, but you sound like you have a very good income and as I contemplate a big career change in my 30's I'm always interested to hear others' stories. Maybe PM me?

[corn18]

Of course, that's not to say don't get the car you want, but if time is on your side, maybe go drive one for fun.

If you might be into the diesel thing, I really, I mean REALLY was impressed by the newer diesel Jeep Grand Cherokees. For between 40-45 you can get one brand new and pretty much loaded to the hilt. Same thing...monster torque, 420ft/lb and they ride heavy and quiet going down the road.

Would you be willing to share with us what you do at some point? Maybe I missed it in another thread, but you sound like you have a very good income and as I contemplate a big career change in my 30's I'm always interested to hear others' stories. Maybe PM me?

You are the second person to recommend an A6 TDI. Good friend of mine has one, too and he loves it. So I think I will take the time to track one down and give it a go.

1988-2008 Navy fighter / test pilot
2008-2015 VP of Business Development at a major defense contractor
2015 - present President of a company inside the same major defense contractor

I got lucky or maybe I planned correctly and stayed connected with my buddies after they got out of the Navy and I stayed in. That allowed me to find a great job when I retired and move up quickly.

Tom

[bjl584]

Buy the car. You have the cash to do it. I wouldn't overthink it or split hairs pondering over being able to save a little here or there if you buy something else, wait a little while, new vs. used, etc.

You have the money saved. Pull the trigger. That's what saving money to be able to buy things is all about in my opinion.

[Singuy]

I second that! If you are debt free and you are accumulating wealth currently with a super high income..spending 30-40k as a one time purchase is not going to make a dent. I guess you can say that this is the first sip of beer after being sober for so long...but I'm sure you are stronger than that