Potential_LGT Posted July 3, 2006 Share Posted July 3, 2006 I just graduated college and i'm going to make around 65k/year at my new job. I am 100% debt free and i do not own a car. I'm thinking of getting a new 2005 model legacy GT for 23k OTD. Its exactly what i want: automatic, NO sunroof ( i hate them), nice comfortable cloth seats, its got everything i want. Only question is: is 23k too much to spend for somebody with my salary? PS. I don't want to come off as bragging. I'm seriously wondering about how much i should spend on my vehicle - i've never owned a car before and i've never really thought much about cars until recently. Thank you Link to comment Share on other sites More sharing options...
lookslikeanevo Posted July 3, 2006 Share Posted July 3, 2006 its up to yu what your other expenses are, as far as 23k OTD, seems a little high being that you can prolly get a new 06 for a few thousand more... as for being able to afford it, yes, i have minimal debt, and make the same a year, and i live great... Current:MY05 SWP wagon - 253/290 UP, AEM CAI, Invidia Q300, tuned@yimisport OLD: MY06 GRP - 274/314 Link to comment Share on other sites More sharing options...
G.T.Subie Posted July 3, 2006 Share Posted July 3, 2006 You should put even a little down if you can. You are better off saving for a couple months then putting a down payment. Because you will be paying more in interest rates, plus your payments would be cheaper. Denial is your best friend Link to comment Share on other sites More sharing options...
ralphyralph5 Posted July 3, 2006 Share Posted July 3, 2006 You'll do Fine!!!!!! Link to comment Share on other sites More sharing options...
Scotty Posted July 3, 2006 Share Posted July 3, 2006 Work 6 months to make sure you still have a job. You don't want to be in a situation where the company does lay offs and you have no money in your pocket. Link to comment Share on other sites More sharing options...
deneb Posted July 3, 2006 Share Posted July 3, 2006 What Scotty said. Take a few months to get an idea of how much income you need to support your lifestyle. Don't forget savings and 401k contributions (might want to think about buying a house too). Also, you might want to consider paying 15% down or so, that covers your first 2 yrs. depreciation. That way you won't be 'upside down' in your loan for a few years in case you decided to sell it. 65k and no debt is doing pretty good, esp right out of college. Link to comment Share on other sites More sharing options...
Claw Posted July 3, 2006 Share Posted July 3, 2006 Yes.. it's visiting these boards here that pull you away from your means. For example.. I could have been happy with my 2005 Legacy GT Limited Wagon (with a 5spd).... Then I came and started reading some of the posts here on mods, addons, and what not, and not only did I find my RE92's to be a pile of smoking poop when I'm driving in the rain, I also found that JazzyMT's stereo mod is far superior to my old FM transmitter. Then I found that iON performance springs add heaps of sweet handling moxie, so I went out on that groupbuy and bought a set. Adding to that is the fact that there is something better than the stock center console armrest, so I went and bought that too from a groupbuy. Link to comment Share on other sites More sharing options...
Legacy05 Posted July 3, 2006 Share Posted July 3, 2006 FYI I make less than that and things are fine on my end Link to comment Share on other sites More sharing options...
raz-0 Posted July 3, 2006 Share Posted July 3, 2006 The money should be workable, but you don't want to finance 100%. Link to comment Share on other sites More sharing options...
mccorry Posted July 4, 2006 Share Posted July 4, 2006 A car is negitive equity... pay as much up front as you can. I think the car is within your budget... the question is just when to buy / how much to put down. I try to pay cash for all of my cars. That would require you to hold off and save for 6-8 months.... Link to comment Share on other sites More sharing options...
OCDetails Posted July 4, 2006 Share Posted July 4, 2006 I just bought a vehicle for 23K. With the tax, licensing, doc fees, etc I ended up financing around $24,500 or so. At 4.75% interest for 60 months I pay about $450 a month. Interest rates blow right now, so get it from your credit union if possible. I've got an 820 on my credit score and the best the dealership could offer me was 6.7% on the interest. My credit union was offering 4.75 so I did that instead. If you want to get a better interest rate then you have to buy new. My Legacy was at 2.9% a year and a half ago. The guy who bought it used is probably paying twice that. I don't know what your credit score is right out of college, but if it is anywhere in the high 600s or low 700s then you shouldn't have a problem getting 6% at least. _________________________________________ “Cleanliness becomes more important as godliness becomes more unlikely.” O C D E T A I L S . C O M OCDETAILS BLOG Link to comment Share on other sites More sharing options...
Legacy BoB Posted July 4, 2006 Share Posted July 4, 2006 Heights is right about where you live making a big difference. If you can you should start your job get a place to live and see what your expenses really are. THen you'll be able to figure out how much you can spend on payments. Link to comment Share on other sites More sharing options...
mccorry Posted July 4, 2006 Share Posted July 4, 2006 ^^^^ Good point. I failed to consider that. Link to comment Share on other sites More sharing options...
BLACKeNeD Posted July 4, 2006 Share Posted July 4, 2006 defi save a bit and then put some down. I was in the same position when I graduated, and bought a used Audi TT. I financed the wholed thing, 16K. I was paying $1000 a month and payed it off in less than 2 years. I was also living at home and had no other bills...it's doable, but I would at least save a bit and put some $ down... Link to comment Share on other sites More sharing options...
G.T.Subie Posted July 4, 2006 Share Posted July 4, 2006 Yes.. it's visiting these boards here that pull you away from your means. For example.. I could have been happy with my 2005 Legacy GT Limited Wagon (with a 5spd).... Then I came and started reading some of the posts here on mods, addons, and what not, and not only did I find my RE92's to be a pile of smoking poop when I'm driving in the rain, I also found that JazzyMT's stereo mod is far superior to my old FM transmitter. Then I found that iON performance springs add heaps of sweet handling moxie, so I went out on that groupbuy and bought a set. Adding to that is the fact that there is something better than the stock center console armrest, so I went and bought that too from a groupbuy. That is me. Except, I can't stop! Denial is your best friend Link to comment Share on other sites More sharing options...
Potential_LGT Posted July 4, 2006 Author Share Posted July 4, 2006 Uh...hate to rain on the parade here, but where this guy lives is a factor people seem to be forgetting. Cost of living is quite different depending on where you live. When rent is really high (e.g. in NYC) 65K doesnt go that far.. Try it for a while, see how your expenses are and then decide. You dont want to have a nice car, and then no money to go out with in it. i live in eastern MA 45min from boston. Link to comment Share on other sites More sharing options...
pedzola Posted July 4, 2006 Share Posted July 4, 2006 You have a lot to consider. Nobody can tell you what you can "afford" or not. For example if you're looking to buy a house, condo, or rent an apartment inside commuting distance from Boston, you might wanna think about how much that will cost every month. If you're living w/your parents then go buy yourself an M3, cause you're gonna need somethin to help pick up chicks. lol But is it feasible? Sure... I paid $25k OTD for my LGT in October. I put $5k down, and financed about $20k even over 63 months at 5.14%. = $366/month. $150/month for insurance. $350/month for gas (long commute). I make about $54k. I was living in an apartment w/a roommate $600/month for my half of the rent + $200 for my share of utilities. These will be significantly higher for you if you have your own place. I dunno what you get screwed out of in taxes up in MA, but I pull home about $2800/month after taxes. I don't contribute anything to my 401k, and until I moved back home w/my parents to save for grad school, I was breaking even every month. Car + Apartment = 60% of income. The other 40% went to things like food, entertainment, and EVERYTHING ELSE. This includes any and every purchase you make of anything large or small. For example, if you meet a girl, it's all over. A handful of dates and that 40% disappears in no time! O_O!!! Last thought... grad school? Took me 2 years to make the decision to go. Now that I'm going back I wish I had never bought the LGT. It's a lot of debt and a lot of lost $$ in terms of depreciation. If I had to do it all over again I'd get the cheapest decent car I could find. (Honda Fit). But it sounds like you're in a better spot than me anyway. I've still got $15k in student loan debt to pay off, and that extra $10k/year you make might be the difference. *shrug* Hello consumer. And I say unto you, please use exact change. This is my shark. Link to comment Share on other sites More sharing options...
Elec Posted July 4, 2006 Share Posted July 4, 2006 I agree that it depends on your cost of living. The salary number sounds good on paper but doesn't mean a lot until expenses are considered. My rent is around $1200 a month. If I lived in Texas, it could be half that. If I lived in some parts of Cali or Hawaii, it could be twice that. If you have your own place, your cost of living will be a lot higher than with 3 roommates. All that stuff comes into play when deciding, and you should also consider your lifestyle. I can afford my rent, LGT, and other bills on slightly less than what you'll be making, but I don't buy a ton of CDs and DVDs, or go out to eat constantly, or have a GF to suck up all my money If you're pretty conservative about your spending, you'll be ok. If not it may be close. I also agree with others that putting something down is a good idea if you can. I put my trade down plus a check for an extra 3k. The financing girl said "Really? You don't have to you know...". I said "If I don't, I'll either spend it on other things or cut the check next week, which won't lower my payment any." Link to comment Share on other sites More sharing options...
andrew_j Posted July 4, 2006 Share Posted July 4, 2006 Do you need a car immediately? One thing I would seriously check first is the monthly insurance cost (you get a good discount if you pay in full). A LGT is not a cheap car to run(fuel $$$) so make sure you can afford or desire to live near work distance wise. The only thing I would say is establish a budget and don't cut your fun money. Don't let a car kill your budget. When I say fun money this includes vacation, weekend trips etc. I purchased a 95 Honda Civic brand new for $200/month on a $30k salary and found it cramped my lifestyle when I was 22. I however would ski 45 days per year, travel to South America and Europe albiet with backpack. The insurnace was killer as I was a bit niave on checking this before buying. I regretted getting rid of my 1990 Legacy wagon (beige no less). My rent/utilities was only $350/month too. Link to comment Share on other sites More sharing options...
LIZARD Posted July 4, 2006 Share Posted July 4, 2006 i live in eastern MA 45min from boston. Well, north or south of beantown? Really doesn't matter. Rent won't really be an issue, unless you're living in lux. apt. or something. Prob. can get a lower price on an '05, put a bit down for a down payment, 5 year loan, make double PRINCIPAL payments and pay off in 3 yrs. (depends on int. rate). Based on geographics you can afford to: a) save in a 401k/403b; b)make 2x principal payments on car; c) pay rent; and 4)have enough $$ for fuel, and be able to eat EVERY DAY!! Seriously, not a big dilemma for you. Just pay CASH for all the mods you will be doing. Stage2.5376, TDC ProTune,blah blah blahhhh and....Alky/H20 injection Link to comment Share on other sites More sharing options...
Garandman Posted July 4, 2006 Share Posted July 4, 2006 I just graduated college and i'm going to make around 65k/year at my new job. I am 100% debt free and i do not own a car. I'm thinking of getting a new 2005 model legacy GT for 23k OTD. Its exactly what i want: automatic, NO sunroof ( i hate them), nice comfortable cloth seats, its got everything i want. Only question is: is 23k too much to spend for somebody with my salary? First of all, congratulations on thinking first before acting. That reflects good judgement. Find out what interest rate you are paying (probably 7% or so) and if you can pay the note off early. You may not have enough credit history to get a good rate. Do you have sales tax or other fees you'll have to pay? If you don't have the cash that has to be financed - for years. What are your living expenses? Will you be contributing to a 401K? If you're paid every two weeks you'll net somewhere between $1,500 and $1,700 per pay period. You should be setting aside a significant portion initially to build a cash reserve equal to six months of expenses. You'll also have living expenses, and renting an apartment often requires a couple months rent for security and prepayment.The very first thing to do is establish a budget. There are many websites like Personal Budgeting and Money Saving Tips available. Buying a new car that you really want for $23,000 isn't a terrible choice. You need a car, and an old beater could require repairs and still be an old beater. But being able to make the payments is not the same as being able to afford it. If the job doesn't work out and you need to sell, you will take a big bath. You may even owe more on the note than the car is worth used, known as being "upside down," an even worse financial disaster. And do not make the mistake of thinking that most of the women you want to date will date you if you have a new car but not if you don't. If you want to meet more women, buy a dog. Keep in mind that new or nearly new cars lose $200 to $500 in value per month for the first few years. If you buy something for transportation for the summer and develop a cash reserve, while you will have to sell your used car in the meantime, you will be in much better financial condition. And in the Fall the new models will be out which puts even more downward pressure on new or near-new cars. Who Dares Wins スバル Link to comment Share on other sites More sharing options...
SteveFromMass Posted July 4, 2006 Share Posted July 4, 2006 As eager as you are to own a legacy, my best advice is to focus your cash flow other than a depreciable asset. Save, and save big. I did a fairly well job of it when I graduated in 1995 and 10 years later I paid cash for my 06 LGT. Also remember that standard of living is something that can get out of hand real fast. I have personal seen people making 120k back in 1999 since go bankrupt If you want more details on what I would do, just PM me. Steven Link to comment Share on other sites More sharing options...
Potential_LGT Posted July 4, 2006 Author Share Posted July 4, 2006 As eager as you are to own a legacy, my best advice is to focus your cash flow other than a depreciable asset. Save, and save big. I did a fairly well job of it when I graduated in 1995 and 10 years later I paid cash for my 06 LGT. Also remember that standard of living is something that can get out of hand real fast. I have personal seen people making 120k back in 1999 since go bankrupt If you want more details on what I would do, just PM me. Thing is, i'm a total cheap ass. I just want a nice car to drive to make my commute that much more enjoyable. Link to comment Share on other sites More sharing options...
rallispec Posted July 4, 2006 Share Posted July 4, 2006 24k out the door, 100% financing - you'll probably be paying around $450/mo. You're probably bringing in close to $4000 each month after taxes? Unless you're rent is REALLY high - i can't think of a single reason you couldnt afford the LGT. Link to comment Share on other sites More sharing options...
Scotty Posted July 4, 2006 Share Posted July 4, 2006 If you are a cheap ass, are you okay with paying premium gas and dealing with mediocre gas mileage? Link to comment Share on other sites More sharing options...
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