Help for young college student

**KaleighMaeA** · 03-01-2011, 12:41 PM

Well, if you are that set financially I think it is OK to splurge. Here is my only bit of advice on that topic, though I am sure there are more qualified people to answer.

1) I would consider buying one used maybe only a year or two old. Why take the huge depreciation hit up front, let someone else take the biggest hit for you.

2) If you are dead set on a new one I would say that's completely ok too, but rather than take out a loan for it save up the money first and pay cash. If you're making that much you should have plenty of money to put aside for a vehicle, and then you would not have that debt against you.

3) If you're really wanting to make a big purchase putting the money into a house would be much smarter, but like I said if you want the car you can save up and pay cash and not have to worry about paying the interest. Look at your interest rate and get on a loan calculator and see how much you'd end up paying back versus how much you borrowed. A lot of times this is really eye opening.

Goodluck!

**KaleighMaeA** · 03-01-2011, 12:42 PM

Edit: didn't realize you mentioned the car was a 2008 making it used... ignore part about buying a used car sounds like that's what you're planning on anyway!

**SirSwine** · 03-01-2011, 12:51 PM

Thank you for the wonderful advice!

**MonkeyMama** · 03-01-2011, 01:48 PM

I think it depends what your other expenses and housing situation is. From what you shared, sounds like you can afford it. I'd say go ahead if you could pay cash. (Save up for it first - will be very rewarding and make you really second guess if that is how you want to spend that money!)

That said, only if you are happy to rent indefinitely. If you do plan to buy a home, I believe that money would be much better spent on a home.

I am fairly against spending a lot of money on a car, but I live in a higher cost area where you generally have to choose house or car (anything above $10k-ish, anyway). If rent is only $500/month, I think you can probably afford the car. I am presuming you can save an extraordinary percentage of your income, even with the car purchase. You have shared a $90k+ income plus $6k housing expenses. That said, don't rush into anything, save up, make sure job is steady, etc.

**MonkeyMama** · 03-01-2011, 01:52 PM

Originally posted by SirSwine View Post

I want to buy fast European car. BMW M3 year 2008, 48000USD. Only big purchase. Is this wise?

P.S. I do not think "wise" is the word I would use for that purchase.

If it wise to spend almost $50k on something that will be worthless in 10 years? Um, no.

I stand by everything I said in my last post, but then I saw that you asked if it was "wise."

**khosta** · 03-02-2011, 07:10 AM

If you can afford it and can still "live" with your finances after purchasing the car, then do it!!! Treat yourself!!! But don't drive too fast!

**littleroc02us** · 03-02-2011, 09:08 AM

Originally posted by SirSwine View Post

8 years of college almost over. Graduate with a doctorate degree and a job that pays 51/hr. Work 36-44 hrs a week in a small Texas city. Rent, electric, cable, etc. is a flat $500USD/mo.
Chinese government pay for school so no debt. Full US citizen in 5 yr.
I want to buy fast European car. BMW M3 year 2008, 48000USD. Only big purchase. Is this wise?

Doctoritis is setting in hugh?

Help for young college student