Is it ever okay to borrow money for a car ?

[MonkeyMama]

Just my opinion, but I think you are being sensible. Spending $80K for a car? Now that's insane.

Getting back to the topic at hand, AGREED.

I think this is just to say why OP is having trouble pulling the trigger. I think the rest of the dicussion is kind of irrelevant. I would hope anyone with any common sense would have second thoughts about any single $80,000 purchase.

Of course, I don't know anyone who has done really well financially over the long run, who would spend $80k on a car. So, I suppose it's hard to imagine that it is ever a solid financial choice. I can see that side of the conversation too. The OP has to understand that is not a judgement. It just is what it is. Larger incomes don't tend to be very long-term. It's rare when someone can get away with that and also achieve long-term financial security. If OP Can pull both off, then kudos to them.

[JoeP]

It's just difficult to spend the money after you save it. It seems really odd, but I hit my goal and now I don't really want to get the prize. haha

Then maybe this is telling you something. Rather than spending all that money, and then having car payments, maybe an easier pill to swallow would be multiple smaller expenditures.

We had a small unexpected windfall that put $1000 in my pocket. I found great satisfaction buying several smaller items I've been wanting over the past couple years. Even then, since I've been saving for so long, it is hard to abandon that mode even briefly in order to let go of that money (even though it was basically free).

[disneysteve]

I think this is just to say why OP is having trouble pulling the trigger. I think the rest of the dicussion is kind of irrelevant. I would hope anyone with any common sense would have second thoughts about any single $80,000 purchase.

I guess I just disagree with the line of thinking that an 80K purchase is automatically insane just because it is an 80K purchase. What if OP was buying an 80K boat instead of an 80K car? Would your answer be different since boats are typically much more expensive than cars? Or maybe an 80K RV. Or an 80K condo in his favorite vacation destination?

And does his income matter at all? What if he earns $1 million/year? Is spending 80K on a luxury purchase still insane?

[Barclay]

Getting back to the topic at hand, AGREED.

I think this is just to say why OP is having trouble pulling the trigger. I think the rest of the dicussion is kind of irrelevant. I would hope anyone with any common sense would have second thoughts about any single $80,000 purchase.

Of course, I don't know anyone who has done really well financially over the long run, who would spend $80k on a car. So, I suppose it's hard to imagine that it is ever a solid financial choice. I can see that side of the conversation too. The OP has to understand that is not a judgement. It just is what it is. Larger incomes don't tend to be very long-term. It's rare when someone can get away with that and also achieve long-term financial security. If OP Can pull both off, then kudos to them.

I have to disagree that larger incomes are short term. I think salary decreases are NOT the norm. I think on average, we make more money each and every year, not less.

I know a lot of people who do very well financially and drive very expensive cars.

[Barclay]

I agree with disney steve. If I were spending a fortune on a home, would it be different? If I had a $2000 mortgage instead of a $2000 car loan is that better?

In my mind, the car loan is better because you are all done in 42 months. (in this case)

[feh]

I agree with disney steve. If I were spending a fortune on a home, would it be different? If I had a $2000 mortgage instead of a $2000 car loan is that better?

It certainly would be different - one is for a depreciating asset, while the other is (usually) not.

[Barclay]

I'm not sure it's that different. Paying on a mortgage for the first three years nets you about NOTHING, especially if it's a 30 year mortgage. Paying my car for three years and owning it at the end, will net me something.

I think at the end of the day it's all about choices and priorities.

[feh]

I think at the end of the day it's all about choices and priorities.

It certainly is.

[disneysteve]

If I were spending a fortune on a home, would it be different? If I had a $2000 mortgage instead of a $2000 car loan is that better?

Yes, it would be different. Your home, hopefully, holds its value and appreciates over time, so borrowing money to buy that makes sense. It allows you to leverage your money.

The $80,000 car (bought new I assume) is instantly worth only $70,000 or less the moment you take possession and drive it off the lot. A year later, its worth even less. After 3 years (the longest you should ever take a car loan), it's probably down a third from it's original value.

So no, it isn't the same thing at all. That wasn't the point I was trying to make.

[Barclay]

The car is not new. It's 4 years old and does depreciate but not nearly as fast as a new car. Also, the dealer would like me to believe it won't depreciate after a few thousand dollars...but I aint buyin that nonsense.

[disneysteve]

The car is not new. It's 4 years old and does depreciate but not nearly as fast as a new car.

That's true, though still not the same thing as buying real estate (under normal market conditions).

Bottom line is if you can afford it and all of your other financial needs are met, I see nothing wrong with you buying it. Would I do it? No, even if I had the money, but there are other things that I would spend money on that you might not.