wanting an 08 spec b Posted February 22, 2007 Share Posted February 22, 2007 I am in need of advice. I have just recently graduated from school and have landed and excellent paying job. I have a wife and a baby due to come in about 3 wks. I live in NC where we get 1-2" of snow/yr if lucky...but I want awd. I currently drive a '93 impreza (which is an underpowered tank...but i absolutely love it) which I am giving to my niece in August (about the '08 spec b time to purchase). My wife drives an '06 Honda CR-V which has been a very good car for her (and I at times)... I have been eye-ing the spec b for 2 yrs now and I guess you can say that it is almost a love affair. I love the lines...the awd...the safety (esp for our soon to be son or daughter - we chose to be surprised). We can afford the '08...but as the time to purchase is drawing near I am second guessing myself and a lil' insecure with my decision...my wife will stand by any decision I make, but is questioning (and rightly so) purchasing a $35K car concidering we have had to live on a college students income for the last 6 yrs...neither of us have ever experienced the new tax bracket we will be in b/c we have both aspired from extrememly humble beginnings...here is my question: Can anyone think of any reasons why I SHOULD NOT purchase this car (e.g. 'not as family-car as you think' or something that a parent would think of that I have not concidered, etc)...even though I am a 35 yr old man (boy at times) any fatherly (or motherly) advice would help...thank you Link to comment Share on other sites More sharing options...
Th3Franz Posted February 22, 2007 Share Posted February 22, 2007 If it's not a stretch to afford it, by all means, go for it. It's a great family sedan and a lot of fun to drive. -Franz The end of a Legacy http://www.youtube.com/th3franz Link to comment Share on other sites More sharing options...
SWP-LegacyGT Posted February 22, 2007 Share Posted February 22, 2007 out of school, kid on the way and you want a new toy? Link to comment Share on other sites More sharing options...
PhilT Posted February 22, 2007 Share Posted February 22, 2007 Don't underestimate how expensive kids can be That said, do your maths, and if you can afford it why not. You might get a better deal on an '07 Spec B at that time of year though, why the '08 ? Double Award Winning Legacy GT Wagon Link to comment Share on other sites More sharing options...
edkwon Posted February 22, 2007 Share Posted February 22, 2007 So youre deciding between and 08 Spec B....and what? Hearing your other choices would be helpful as well as getting a sense of your general financial situation wihtout getting too personal. In short any Legacy sedan in any trim would make a fine family car. Ed Link to comment Share on other sites More sharing options...
wanting an 08 spec b Posted February 22, 2007 Author Share Posted February 22, 2007 i appreciate all above comments...without getting personal i am gettting paid as an independant contractor at a nearby emergency room making $8-10K/mo...i am setting myself up as an S-corp and paying myself $30k/year plus vehicle expenses...after setting up my own retirement account (SEP), buying my own health care plan, paying monthly payroll taxes, mortgage, school loans, and budegetting for food, water, electric, dogs, etc i still have $1100 left over--(oh and i have also budgeted about $250/mo for baby expenses so i guess that drops me down)... the other vehicles i considered was the tribeca (similar price range - but that is really what my wife wantes to get) and an outback 3.0...i have also looked at the 3 series bmw (but not really serious) as well as an acura tsx or tl...i just want to make the wisest decision, but i know that my emotions can carry me far...(oh and i have also budgeted about $250/mo for baby expenses so i guess that drops me down)...as per why the '08 and not the '07...i never concidered it...you have given me a good thing to think about (esp if there are no major changes)again, thank you to all Link to comment Share on other sites More sharing options...
axis008 Posted February 22, 2007 Share Posted February 22, 2007 worse comes to worse, you can still get the 2.5gt which dealers are able to sell for a few grand less. -ben Link to comment Share on other sites More sharing options...
DMan Posted February 22, 2007 Share Posted February 22, 2007 You are making 6 figures and have $1100/mo left to play around with and the new car payment isn't factored into this I'm assuming. $35k car financed with a couple grand down will prob run you $600/mo give or take. You could lease if the numbers are right. Otherwise you could look for a lightly used GT. If you get in over your head with the '08 spec B and have to ditch it early you might regret it. A 35k car when you're making 6 figures isn't crazy though or at least I don't think it is. Buying a 50k+ car might be. Link to comment Share on other sites More sharing options...
melayout Posted February 22, 2007 Share Posted February 22, 2007 Unless you have to, get it used. If your current car can last 2 more years, wait it out and then get an 08 off a lease or something. Let someone else take the initial deprectiation hit. Waiting is even more wise in case of the 08 year model, because it's a major refresh where there are bound to be bugs. Then you will know what to look for when buying a used one, Subaru should have worked out and have TSBs(Technical Service Bulletins) available for most of the bugs. I suggest you invest at least a third of the $1100 in a Roth(after-tax) IRA(Max $4k/yr) and then split the rest between a traditional IRA(pre-tax) and the car payment. Just because you started making 6 figures, especially as a contractor, does not mean the fiuture is guaranted. Instead of depending on estimates/budgets to calculate what you can spend on a car, wait a year to see how the budget and spending actually pans out and readjust the estimates and then you will know what you can really afford. I keed I keeed Link to comment Share on other sites More sharing options...
AKLGT Posted February 22, 2007 Share Posted February 22, 2007 i appreciate all above comments... without getting personal i am gettting paid as an independant contractor at a nearby emergency room making $8-10K/mo...i am setting myself up as an S-corp and paying myself $30k/year plus vehicle expenses...after setting up my own retirement account (SEP), buying my own health care plan, paying monthly payroll taxes, mortgage, school loans, and budegetting for food, water, electric, dogs, etc i still have $1100 left over--(oh and i have also budgeted about $250/mo for baby expenses so i guess that drops me down)... the other vehicles i considered was the tribeca (similar price range - but that is really what my wife wantes to get) and an outback 3.0...i have also looked at the 3 series bmw (but not really serious) as well as an acura tsx or tl...i just want to make the wisest decision, but i know that my emotions can carry me far...(oh and i have also budgeted about $250/mo for baby expenses so i guess that drops me down)... as per why the '08 and not the '07...i never concidered it...you have given me a good thing to think about (esp if there are no major changes) again, thank you to all as someone who has just recently done the same, i'd say better to hold off til you have a handle on the finances and baby. then if all goes as planned, make your move. remember, as SEP, your taxes are sky high, and in that tax bracket it sucks! i know... i owe $4500 to IRS from making over 6 figs for last year.... and that as a W2 employee, NOT SEP like it will be this year. I too plan to give myself a $30K salary with of course, expenses and vehicle allowances, cell phone, etc. but with baby so close on the way, i'd really wait to make sure nothing comes up unexpected before making such a big purchase. plus, by then they should have some decent incentives. OR do what i did, sign up for one of the various organizations that will qualify you for the VIP program (must be a member for 6 months to be eligible). This is why we are waiting til April to buy hubby's STI (it's on the way and scheduled to arrive April). Wiggle wiggle wiggle wiggle wiggle yeah!!! Link to comment Share on other sites More sharing options...
wanting an 08 spec b Posted February 22, 2007 Author Share Posted February 22, 2007 thank you all my current car is a '93 impreza w/ 160k miles...it is still running good, but i usually don't feel good on taking it on any 1-2hr trips to raleigh or durham NC unless i have to...the left back speaker is the only one that works 100% of the time...but as to the other speakers its anyones guess when they want to come on...the paint is chipping in the back and there is a 3" diameter area that has no paint at all...the engine runs ok...no major problems...and i love the car...it has total character (its no babe machine...and that is one of the reasons that i love the car so much...only I know how great of a car it is) - which is the reason why i really am a subaru fan (as well as a mac fan too, but that is another story) my SEP (retirement acount) is maxed out for both Roth and traditional...additionally I have budgeted for a 529 college plan for my new child as well...(the only other concideration i was making was to invest in a Health savings account and just keep the $$ in the account and pay my deductable out of my pocket..the HSA is like an IRA on steroids!)... anyway, it is time that i part with my car...so the august time frame of this year appears to be the right time for change... the budget has included a $650 car payment (guestimate w/ no $ down) and an increase of $130/mo for insurance...but i really like your idea to wait as long as i can so that i can get a feel of my actual spending - good advice...I really thank you Link to comment Share on other sites More sharing options...
AKLGT Posted February 22, 2007 Share Posted February 22, 2007 if your time frame is fall, then that's just about right. go sign up for mtn biking or the american canoe association. $30 membership will save you $2000 come time to buy the car 6 mos down the road! we plan to purchase 2 vehicles! ALSO, since you are self employed, make sure you keep your current vehicle as the "personal" car and then LEASE the spec B for work so you can write it off. I'm still undecided on what I will end up leasing myself: spec B, new sti hatch, or just an impreza wrx hatch... so many choices. i still have some time (probably aug/sept myself). i was also contemplating on the health savings account, but not quite sure. right now, I'm just going COBRA from my previous employer til i've built my business enough to go from independant contractors to actual employees that i hire to only work for me. right now, i just have a revolving door of people who work here or there to help me out. Also, make sure you put plenty of money in the bank for a fail safe incase something with your contract goes wrong. we make sure we have 2 house payments min at all times, never to be touched! if it is, it's the first thing to be paid back before any other bill! Good luck on your decisions. and keep me informed on your progress. I'm sure the laws are different in NC than AK, but always nice to converse with someone going through similar life issues (no baby on the way for me though). Wiggle wiggle wiggle wiggle wiggle yeah!!! Link to comment Share on other sites More sharing options...
wanting an 08 spec b Posted February 22, 2007 Author Share Posted February 22, 2007 excellent advice (everything)... i am looking into the canoe thing now.... Link to comment Share on other sites More sharing options...
AKLGT Posted February 22, 2007 Share Posted February 22, 2007 remember, you if you don't have a house, even with a child, making 6 figs will KILL you!!!! so get as many write off for the business as possible. starting my own business (new for me) the past month i've gotten some EXCELLENT advice (i cannot take credit). they all said to try and avoid employees as much as possible (however, it will be inevitable for me once i reach a certain point), get a good tax accountant, make sure i have as many write offs as possible, and since my carreer requires me to drive 85% of the time, LEASE a work vehicle so the entire thing is a write off. cheaper payments, and you can turn the car in every few years or so for a new one to do it all over again. just make sure you have a personal vehicle for weekend driving. that's what my LGT will be for. Wiggle wiggle wiggle wiggle wiggle yeah!!! Link to comment Share on other sites More sharing options...
wanting an 08 spec b Posted February 22, 2007 Author Share Posted February 22, 2007 again thank you... i have sought after a reputable CPA whom a couple of other docs are using...additionally i am seeking as many write-offs as plausible so that the corp pays for as much as possible...this way for any dividend left over I will pay fed/state tax and not payroll tax (e.g. medicare, unemployment, soc sec) as for the lease...i have actually decided to just give my self a vehicle allowance that will cover all expenses...that way i can also use it for whatever I want as long as i keep a good milege record when i use it for work etc....is there something about the lease that makes this option more advantageous??? Link to comment Share on other sites More sharing options...
wanting an 08 spec b Posted February 22, 2007 Author Share Posted February 22, 2007 p.s. what other assoc do you recommend...the american canoe assoc link is not working (americancanoe.org) Link to comment Share on other sites More sharing options...
AKLGT Posted February 22, 2007 Share Posted February 22, 2007 you get to write off 100% of it, not just mileage and the % of use. ALL of it.... lower payments too. just my thoughts, but i also won't have all the wear and tear of my car. That is why a lot of businesses will lease vs purchase. you don't have to deal with the depreciation and logs. it's a PITA to remember to write down where you went to, miles driven, etc. that's what i have to do right now. Wiggle wiggle wiggle wiggle wiggle yeah!!! Link to comment Share on other sites More sharing options...
AKLGT Posted February 22, 2007 Share Posted February 22, 2007 there are a couple. there was a thread long ago (when i signed up). i think i was subaru VIP program or something. try and search for it. it had a list of the various organizations. i know the mountain biking one, leave no trace, and some other ones. i chose ACA because hubby and i enjoy whitewater rafting and kayaking. i'd rather actually support something we enjoy and participate in. Wiggle wiggle wiggle wiggle wiggle yeah!!! Link to comment Share on other sites More sharing options...
wanting an 08 spec b Posted February 22, 2007 Author Share Posted February 22, 2007 oh man!! you rock!!! there are so many to choose from...and different benefits for each...gsafweb.org actually gives you a hand held gps or $150 LL bean gift certificate on top of the $$ you save on the subaru!! Link to comment Share on other sites More sharing options...
AKLGT Posted February 22, 2007 Share Posted February 22, 2007 yep, i believe it's 2% UNDER dealer invoice. it's a set price. you contact the organization and they send out a packet to you and to the dealer you choose. we'll be buying from the local dealer (hubby works for them). Wiggle wiggle wiggle wiggle wiggle yeah!!! Link to comment Share on other sites More sharing options...
rjundi Posted February 22, 2007 Share Posted February 22, 2007 If you afford it go for it. However my only hesitation on recommending it would be if you do not live in a house or decent house you like do that first. At least real estate is relatively cheap in NC compared to my locale. Link to comment Share on other sites More sharing options...
OzSTi Posted February 22, 2007 Share Posted February 22, 2007 Here, this will help you decide; http://i141.photobucket.com/albums/r80/OzSTi/lib4.jpg I think our current '07 will be your '08. http://i141.photobucket.com/albums/r80/OzSTi/DSCN2719.jpg Optional front grill. http://i141.photobucket.com/albums/r80/OzSTi/DSCN2724.jpg This helping any??? The spec B is a very family oriented car (much more so than my old STi). Happy decisions. Best not to choose something you don't want. Link to comment Share on other sites More sharing options...
zmarko Posted February 22, 2007 Share Posted February 22, 2007 $250 a month child expense? Kids can be MUCH more expensive than that, especially when they're newborns. You'll have a lot of stuff to buy for the kid. Also as some others have stated, if you're currently renting, and thinking of buying a home soon......do that first. Where in NC are you? I see you state that it's an hour or so to Raleigh/Durham. Link to comment Share on other sites More sharing options...
one69chev Posted February 22, 2007 Share Posted February 22, 2007 by all means buy the subie car of your dreams, but then buy a cheap, safe tank to drive the fam around in...... why? when your youngster gets sick and hurls all over the car, would you want it in the subie or in the daily driver? this scenario happened to my wife and i after just pulling out of the drive thru at taco bell, and it's almost a bet that the nicer you keep your cars interior witha newborn, the more it'll get puked on-----it's like gravity, you can't escape it.... so buy the subie and then use another car you are so meticulous about for tranporting young 'ens.....your sanity and temper will thank you for it..... congrats btw...... Link to comment Share on other sites More sharing options...
krzyss Posted February 22, 2007 Share Posted February 22, 2007 My take. Wait for child to be born. Does your wife plan on nursing or not? Diapers alone can run 100 per month. With children wagons make more sense. Stroller may not even fit in the trunk. Unluckily Subaru killed Legacy wagon. I would wait for kid to be born and check how much you really spend. Then buy a wagon of your choice. Krzys Link to comment Share on other sites More sharing options...
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