Would this be financially irresponsible?

It's no secret that I'm a recent college grad. Unlike most of my co-workers, I'm single/no kids. Although I'm saving and already have saved a good chunk for a down payment on a house some day, I know that the area I'm working in is not somewhere I want to settle down. In lieu of that...

Is it financially irresponsible to buy a car like a C5 Z06, S2000, GTO, etc that will not depreciate significantly in the next three years or so? It would be in cash, I would keep a year's emergency fund, and my 401k is maxed out, along with 6% employer contributions.

My thought was that my future life events could be funded by selling the car (I've seen it time and time again), but it never seemed like a smart idea. Seemed like having 20k sitting in the bank is the smartest option, but if I won't be using it for the near future...?

The Miata's fun, but I don't want to be minivan'd and regretful later on. Anybody older and wiser want to nudge me in the right direction?

No

bgkast wrote: No

Agreed!

Just enabling in the best way possible!

Buying a car like that is never financially responsible. Do it because you can! If you do not do it now you will always regret not making the move when you could. You have your financial house in better order than 95% of the population.

Jump outta perfectly good airplanes, bungee jump and own cars like C5 Z06s and GTOs while you're young.

Sounds to me like you're in the habit of good decisions on that front.

I'm sure it's not the the best possible return on the money, but if you have no costs to finance it, and the depreciation is minimal, that makes it more cost-effective than a loan and depreciation on a Yaris, right?

Datsun1500 wrote: If it is at the bottom of the curve and can be bought for cash. Why not? Worse case you sell it for a few grand less than you bought it for to free up the cash. At that point did you have a few grand worth of fun?

I would say YES. Much more fun than losing that money on a Civic.

If you have the cash then why not go a little older and buy something that is more likely to appreciate?

911, BMW 635, Bentley turbo R, Audi Quattro, etc.....

Although that might just be my wish list and not yours.

Nah - I have some friends who think so, but they buy newer cars that depreciate like crazy. I figure that buying a nice, fun car that doesn't lose value is win-win. It's certainly been working for us so far - I might get bitten with an expensive repair on the 964, but it's been great so far. A year later it's worth more then when I bought it, after putting a bit of time and money into it. Similar experience with BMW M3's.

Nathan

Might not be responsible, but I certainly wouldn't call it irresponsible.

Do it!

Financially irresponsible would be if you made $12/hr, no savings, etc.

You have to reward yourself for making good decisions.

Plus it's only money, you can't take it with you.

If you are worried about being totally irresponsible, than buy the GTO. It has a backseat that you can mount a kid seat in and a trunk you can sto a pack-n-play in it. That option will have you less likely to be minivan'd in the future.

Maybe a GTO isn't an option but like M3 is or something.....

bearmtnmartin wrote: If you have the cash then why not go a little older and buy something that is more likely to appreciate? 911, BMW 635, Bentley turbo R, Audi Quattro, etc..... Although that might just be my wish list and not yours.

Maintenance!

Exceptions include classic muscle cars, though.

OSULemon wrote:

Datsun1500 wrote: If it is at the bottom of the curve and can be bought for cash. Why not? Worse case you sell it for a few grand less than you bought it for to free up the cash. At that point did you have a few grand worth of fun?

I would say YES. Much more fun than losing that money on a Civic.

Seriously. Where I was at your age (I'm making an assumption here) it would've been a horrible decision. Sounds like you've got your E36 M3 together. GO FOR IT! $20k on a used vette beats the ever loving E36 M3 out of $20k on a new accord...assuming you don't need an accord.

If you don't buy that car now, once you do have kids there will be a thousand different little things that make perfect financial and family sense to keep you from buying it. Like braces. Or medical expenses. Or dancing lessions.

Buy it now, drive it until you're tired of it, you have to get your kid braces, or you want to buy a house.

Brett_Murphy wrote: If you don't buy that car now, once you do have kids there will be a thousand different little things that make perfect financial and family sense to keep you from buying it. Like braces. Or medical expenses. Or dancing lessions. Buy it now, drive it until you're tired of it, you have to get your kid braces, or you want to buy a house.

I'm making a list of things that would never have the approval of SWMBO, and buy them now. This includes tools and motorcycles.

Make the 'fun' car a second car. keep a beater for the DD. Your second car will have faster depreciation if you pile up the miles on it. Otherwise, don't crash it or go crazy on mod's. I enjoyed a C4 convertible for several years this way. Sold it for a bit more than I paid (did invest an amount along the way) and put the cash toward a home. Make sure you have good, long term parking/storage.

Gearheadotaku wrote: Make the 'fun' car a second car. keep a beater for the DD. Your second car will have faster depreciation if you pile up the miles on it. Otherwise, don't crash it or go crazy on mod's. I enjoyed a C4 convertible for several years this way. Sold it for a bit more than I paid (did invest an amount along the way) and put the cash toward a home. Make sure you have good, long term parking/storage.

That's a decent idea, but my commute is so short at the moment, 3 miles or so, that I would not rack up too many miles, honestly. I wonder if it would cost me more to have a second car. I think it might.

Also, would I be looking for a low mileage, cherry example, and pay more, or a higher mileage example for cheap? I don't know how much value would be placed on a cherry example in the future, and if it's going to be a DD, it might be safer to start cheaper.

Same goes for mods. Pure stock would be easier to flip, but Corvette mods are expensive, and it's much cheaper to buy already modded.

My C5 in the garage says go for it. You only live once, and being under 30 and paying cash for a less than 10 year old Corvette isn't a bad thing ever.

There's a C6 for 20k on the Vermont CL. Lemmie see if I can find it for you!

???????NMNA

Check with your insurance agent before you buy. Depending on your age, premiums may be high and/or they won't even offer you a policy.

stuart in mn wrote: Check with your insurance agent before you buy. Depending on your age, premiums may be high and/or they won't even offer you a policy.

I have. It's higher than the Miata, but no higher than any other sports cars such as the Mustang. I believe I was quoted around $130/mo.

Do it. I was in a similar situation 2 years ago with the cash in had to buy a nice play car. I bought my S2000 with cash and have loved every minute of it. If I hadn't bought it then, there was no way I could afford it today.

OSULemon wrote:

stuart in mn wrote: Check with your insurance agent before you buy. Depending on your age, premiums may be high and/or they won't even offer you a policy.

I have. It's higher than the Miata, but no higher than any other sports cars such as the Mustang. I believe I was quoted around $130/mo.

I only paid $130 a month now. 43, no tickets, no accidents in 10, liability only on a 2003 landrover. the beauty of living in NJ