Can I afford it?

[psuicyde king]

Thanks guys, last night I actually came to the same conclusion. I'm going to try to hit my house goal early, then save and pay cash for whatever my new dream car is!

[disneysteve]

25k incentive, which we've received all 5 years i've been on the job

Just because you've always gotten it doesn't mean you will always get it or that it will always be the same amount. What happens to your budget if it is only 20K this year? How about 10K? If not getting the full bonus that you expect would pose a problem, then your budget needs to be reworked to not include that bonus money.

If the bonus comes, great. Spend it, save it, do whatever you want with it. But make sure that you can still pay all of your bills and meet all of your savings goals even if the bonus doesn't come.

[boosami]

Buying that car is not going to put you in financial hardship. However, here is how I think of it...

If you had enough savings in your account to purchase that $45k car flat out, would you buy it? Or would it bother you to spend all that money on a car knowing you would have been almost as happy with a much less expensive one?

It is really easy to justify financing something you want because you don't have to front all the money. I've talked myself out of many superfluous purchases by looking at it like that.

If I'm willing to finance, but wouldn't be willing to buy flat out, it's not a good buy. I'm not trying to talk you out of it... I'm a single person and I own two expensive cars for personal use--both bought flat out--so I understand

[GREENBACK]

Buying that car is not going to put you in financial hardship. However, here is how I think of it...

If you had enough savings in your account to purchase that $45k car flat out, would you buy it? Or would it bother you to spend all that money on a car knowing you would have been almost as happy with a much less expensive one?

It is really easy to justify financing something you want because you don't have to front all the money. I've talked myself out of many superfluous purchases by looking at it like that.

If I'm willing to finance, but wouldn't be willing to buy flat out, it's not a good buy. I'm not trying to talk you out of it... I'm a single person and I own two expensive cars for personal use--both bought flat out--so I understand

I like your line of thinking and operate the same way on major purchases. Writing a check for 45k or handing over 45k in $100 bills is way different than sending off 1k to some bank every month.
I don't think anyone gets this idea until they truly have to do it. You really get to see how much this guts your savings when you pay major cash like this.

[money blogger]

Do not buy the car. If you put the money into an investment and let it compound you would be able to have many more fantastic cars in the future.

Do today what others won't so you can have tomorrow what others don't

[psuicyde king]

Buying that car is not going to put you in financial hardship. However, here is how I think of it...

If you had enough savings in your account to purchase that $45k car flat out, would you buy it? Or would it bother you to spend all that money on a car knowing you would have been almost as happy with a much less expensive one?

It is really easy to justify financing something you want because you don't have to front all the money. I've talked myself out of many superfluous purchases by looking at it like that.

If I'm willing to finance, but wouldn't be willing to buy flat out, it's not a good buy. I'm not trying to talk you out of it... I'm a single person and I own two expensive cars for personal use--both bought flat out--so I understand

This is a great perspective - I appreciate you sharing. The funny thing is last year I was in a similar boat looking at buying my motorcycle. $13,500 was the tag and I was bouncing back and forth. I bought it, and would have written a check for it flat out, except I got 2.9% - I think we'd all agree to finance at that rate and invest the rest. It a great decision, and I'm loving every single mile of it. That being said, 45 > 13 =D. As much as I want to enjoy now, I agree with the group that it's the best decision all around to wait.

[sandrark]

This has been a great thread for me to read - I'm considering a similar decision. The difference is that I have a lot of cash to put down. As a result, my car payment on the remaining $15K will be ~ $345 a month or so.

I have a solid job, I have a written budget, I save ~ 20% of my gross salary, I have no debt other than the house mortgage, I have ~ 14 months of expenses in savings, and I have (supposedly) a pension as well. All signs are positive, yet I'm still delaying to sock away even more cash. I think I am the tightwad an earlier poster mentioned.

I agree with an earlier poster as well - having at least a 30% downpayment limits the risk you'll ever be upside down on a loan.

Sandi

[nancy2584]

If you buy the car,you will have too much pressure.

[Bimmer]

I'm going to try to hit my house goal early, then save and pay cash for whatever my new dream car is!

This is the big statement for me. You can buy your dream car now, but what happens when that new dream car comes along in a few years? You could trap yourself in a vicious cycle.

You can buy some fabulous cars for half the price of what you are looking at.

[Runaway Finances]

Instead of making a car payment, make it to yourself. Set up a "car account" somewhere and make a payment to each each month. When you have built up enough money to buy the car you want, then buy it! But, you are paying CASH for the car.

What got our country in the financial mess that we're in is Americans buying what they wanted, when they wanted it, regardless whether they could afford it or not.

It's ridiculous how much we spend on cars, but as long as you pay cash for it and that purchase fits within your other financial goals, then more power to you.