Is my plan stupid? Financial Advice.

Ok currently have an 18 Crosstrek and am at positive equity now or with the next payment.  Honestly it is so slow and boring and Jack of all trades master of none.  

I also have a 95M Miata that is staying for now.

I drive 30k a year. The Crosstrek is my only debt. My savings situation 6% goes to my state retirement, 12% goes to a non-match 401k, full contributing a Roth IRA. Fully funded Emergency Fund.

Plans:

I am really considering getting rid of the Crosstrek this time next year.  

This is likely happening in a couple months regardless of future Crosstrek plans.  I am going to buy something for a new 2-daily to take miles off the Crosstrek and to do a few rallycross' with until I get a rallycross specific car. I am thinking an auto RSX.

I am paying almost double what my payment is to get the Crosstrek paid off sooner/better equity.

I will trade in the Crosstrek and use the equity with maybe a little extra cash to get an actual 4x4(4runner, 120/150 series land cruiser) since I do like offroading. Will free up $750 a month.

Once I have those the Miata will likely be replaced with a c4 or high mileage c5 to use for rallycross.

Am I crazy? Any opinions or alternative solutions.

TLDR: have 95m and Crosstrek. Plans are + RSX, -crosstrek(and debt), +4x4, -miata, +c4/c5

Er... you're planning to rallycross a C4 Corvette? I'm not sure if that is crazy or awesome, but I want to see the videos.

Everything else seems absolutely reasonable other than that I'm not sure how well the automatic transmissions in the RSX hold up.

In reply to MadScientistMatt :

I mean the guy that rallycrosses the c3 Vette is on here so a c4 wouldn't be too different.

Also the RSX is kind of a placeholder right now. Something in the $5k range with an auto, at least 30 highway and faster than the Crosstrek. Is what I am looking for.

You're confusing payments and savings.  

Right now your Subaru is worth about what you owe, so ignore the payments, and realize you have a net $0 asset.  If you sell it you are sitting with no car, and $0 (and no payments).  

That's your starting point.  Make your decisions from there.  

In reply to xflowgolf :

I know that. The car to do rallycross and take miles off the Subaru is happening 100% either way. The Subaru will have a positive equity of $5-7k by this time next year.  So I will trade the Subaru + prob $5k and get the 4x4 which wipes out the debt and gives me $750 a month free to put elsewhere.  The only way the Miata really leaves is if the rallycross specific car is of similar rwd 2 seater flavor.

MrChaos said:

In reply to xflowgolf :

I know that. The car to do rallycross and take miles off the Subaru is happening 100% either way. The Subaru will have a positive equity of $5-7k by this time next year.  So I will trade the Subaru + prob $5k and get the 4x4 which wipes out the debt and gives me $750 a month free to put elsewhere.  The only way the Miata really leaves is if the rallycross specific car is of similar rwd 2 seater flavor.

I guess my question is... why wait a year if you hate the Subaru?  You've already decided to sell it a year from now anyways, you're not upside down on it, so what is the rationale on waiting?  Sell the Subie, buy the 4x4 now financed, make the same payments you would've made on the Subie, and a year from now you're still sitting debt free except you got a year of use in the vehicle you actually want.  Unless I'm missing some other reason you need to keep the Subie that you don't seem to want.  

EDIT:  

Phrased another way... you're going to spend $9,000 on the Subaru over the next year at $750/mo. to end up with a vehicle you're hoping to have $5-7K of equity in.  So you're buying $5-7K equity by spending $9K.  

It's not "stupid" per your original question, as it's a usable depreciable asset and it's reliable transportation, but if your end goal is to end up with a 4x4 and no Subaru, it's not the most efficient way to get there.  

In reply to xflowgolf :

Oh that, I don't actively hate the Subaru at the moment, it is mostly a number of little things that are starting to get on my nerves. It still gets good gas mileage and it will be 2-3 months until I get the rallycross/commuter so the Subaru is fine for now and it won't lose that much value by next year. Once I get the other car the Subaru will still be the best winter commuter this year.

Gas mileage is significantly more important this year than the 4x4. And with the possibility of oil prices rising again I would like to wait on the 4x4.

I still need to research and pick which 4x4 I want and what style of offroading I want it to be able to do with it. So that will take me a few months.

Kinda in the same place..  Except my Rav4 is paid off, but It's reliable..  Haven't found a solution to my pain yet.

Turning over new-ish cars is often a costly proposition, especially if you're working with dealers.  They are going to make money on the deal.  You, not so much.

I would advise anyone that will listen to buy a new or new-ish commuter that is very reliable and very good at the things you NEED it to be good at.  Drive this car until it's paid for and then some.  The longer the better.  Don't race it.  Don't mod it.

In the meantime, you can start looking for fun cars based on your interests and budget and basically go nuts.

The cost of a car has less to do with the amount you own or your monthly payment than it has to do with the miles you drive it.

They are a depreciating 'asset' (if something that depreciates can be considered an asset) that loses value that is most closely approximated by the miles driven.

So, find the cost per mile of each car you want to sell and buy and keep. How many miles per year on each? That will give you the most accurate budget picture.

The only thing I can add here is rallycrossing a Corvette does not sound like good financial advice.

I think the problem with rallyxing a c3 vs a c4/c5 comes down to ground clearance/approach angle and suspension travel.  

Not that I'm discouraging anyone.  

For every problem, there is a solution.

Details on the 95M? That's my favorite miata and I would like to own one someday. 

Otherwise, sounds like a solid plan. 

Depends on what sort of rate you're paying on the Subaru. 

In reply to mazdeuce - Seth :

Subaru is at 2.99%
 

I am thinking ill pick up a Honda Fit this year. Was going to pick up a commuter anyway and the 2nd get Fit seems to be the best option.