SHOULD I DO IT!?NEW THREAD TOPIC !
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From: Santa Monica-SoCal
besides the latter good advice posts, the earlier discussion of financial sloppiness was frightening.
lucky you that you have that kind of money for a use once a week thing. c55 is an auto. 335i manual is better. let ur friends beat u on the drag strip.
lucky you that you have that kind of money for a use once a week thing. c55 is an auto. 335i manual is better. let ur friends beat u on the drag strip.
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From: Scottsdale
Originally Posted by Chris Stack,Jan 3 2007, 08:50 PM
I know. That's why the CPA and an MBA are in the plans for the next 5-7 years.
I don't expect to earn tons of coin just becase I went to a good college, but I do expect to do a little better than Captain English here with his krauted-out AMG.
I don't expect to earn tons of coin just becase I went to a good college, but I do expect to do a little better than Captain English here with his krauted-out AMG.
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From: Scottsdale
Originally Posted by Chris S,Jan 3 2007, 07:18 PM
Please don't take this the wrong way, but IMO you should seek some financial counseling before you do anything. W/o knowing more about your financial situation, none of us can really do more than opine on which car we'd rather have.
I really don't like financing anything (esp. toys like occassional-use vehicles) other than my house, so all my vehicles are paid for in cash. No, they're not as impressive as an AMG Mercedes or BMW, but no payments are nice. I'm planning to order a C6 Z51 this summer, and it will be paid for in cash.
I question whether you'd really be saving much by trading. You'd prob. recognize a big depreciation hit on the AMG, and then sign up for another big new car depreciation hit on the 335i.
Car dealers love customers who think in terms of monthly payments, b/c that usually makes them easier to screw. First think about whether you want to trade into a lower value (but faster depreciating asset), then if so decide how you want to finance it.
W/o knowing more about your financial situation, the best advice I could offer is to sell either your S2000 or your AMG. Do you really need two toys like that, or are you overextending yourself trying to keep up w/ your friends?
Think about about: $650 per month translates into $162.50/day (used 1x/week), plus insurance, gas, mods, tires, etc. Is a 335i really worth it?
I drove one recently, and though it would be a nice daily driver, but it didn't get me all that excited. No way would it replace the S2000 for fun, and the C6 Corvette kills it for a fun weekend car.
My $.02...YMMV.
I really don't like financing anything (esp. toys like occassional-use vehicles) other than my house, so all my vehicles are paid for in cash. No, they're not as impressive as an AMG Mercedes or BMW, but no payments are nice. I'm planning to order a C6 Z51 this summer, and it will be paid for in cash.
I question whether you'd really be saving much by trading. You'd prob. recognize a big depreciation hit on the AMG, and then sign up for another big new car depreciation hit on the 335i.
Car dealers love customers who think in terms of monthly payments, b/c that usually makes them easier to screw. First think about whether you want to trade into a lower value (but faster depreciating asset), then if so decide how you want to finance it.
W/o knowing more about your financial situation, the best advice I could offer is to sell either your S2000 or your AMG. Do you really need two toys like that, or are you overextending yourself trying to keep up w/ your friends?
Think about about: $650 per month translates into $162.50/day (used 1x/week), plus insurance, gas, mods, tires, etc. Is a 335i really worth it?
I drove one recently, and though it would be a nice daily driver, but it didn't get me all that excited. No way would it replace the S2000 for fun, and the C6 Corvette kills it for a fun weekend car.
My $.02...YMMV.
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From: Taipei / NYC Metro
Originally Posted by dombey,Jan 4 2007, 08:50 AM
from a purely financial standpoint, paying cash for anything is generally considered the worst possible method of purchase, unless you have terrible credit & can't borrow at decent rates.
I've always bought my cars with cash up until the S2000. The lease special was too good to pass up.
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From: North Richland Hills, TX
Originally Posted by dombey,Jan 4 2007, 07:50 AM
from a purely financial standpoint, paying cash for anything is generally considered the worst possible method of purchase, unless you have terrible credit & can't borrow at decent rates.
If I pay 5.5% APR on a car loan, that's equiv. to ~ a 7.2% return after tax for a risk free investment! Tell me where I can match that if I finance and invest the money elsewhere. I have plenty of higher risk investments, so the low-risk alternative of putting some in the car provides good diversification.
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From: Arlington Heights, IL
Originally Posted by dombey,Jan 4 2007, 08:44 AM
anything keeping you from doing it now? The ROI is much better the sooner you do it....
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From: West Henrietta UPSTATE NY
Originally Posted by SpoonS,Jan 3 2007, 04:18 PM
WELL IM THINKING of downgrading my car and upgrading property would you guys get rid of a c55 amg v8 monster for a bmw 335i with potential
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From: Scottsdale
Originally Posted by Chris S,Jan 4 2007, 06:07 AM
I absolutely disagree. Yes, if you have to drain your portfolio/savings to do so, but not as a substitute for the low/no risk investment.
If I pay 5.5% APR on a car loan, that's equiv. to ~ a 7.2% return after tax for a risk free investment! Tell me where I can match that if I finance and invest the money elsewhere. I have plenty of higher risk investments, so the low-risk alternative of putting some in the car provides good diversification.
If I pay 5.5% APR on a car loan, that's equiv. to ~ a 7.2% return after tax for a risk free investment! Tell me where I can match that if I finance and invest the money elsewhere. I have plenty of higher risk investments, so the low-risk alternative of putting some in the car provides good diversification.
If you are completely risk-averse, you'll have a hard time finding an investment yielding 7.2% that is risk-free (currently). But if you'll willing to take on a very small amount of risk, it's a piece of cake. Unless you're 75 years old & living on a small fixed income, being completely risk averse isn't really rational--and since you have "risky investments", I assume that isn't the case. You can gain diversification in your portfolio in much, much more efficient ways than essentially sitting out of the market by spending your cash on a car.
I admit that there are a few financial scenarios where paying with cash would make sense (which is why I wrote "generally" in my previous post). However, those scenarios are complicated and rare. For nearly everyone, paying cash is the most expensive approach.
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From: bobville
Originally Posted by Chris Stack,Jan 3 2007, 08:50 PM
I know. That's why the CPA and an MBA are in the plans for the next 5-7 years.
I don't expect to earn tons of coin just becase I went to a good college, but I do expect to do a little better than Captain English here with his krauted-out AMG.
I don't expect to earn tons of coin just becase I went to a good college, but I do expect to do a little better than Captain English here with his krauted-out AMG.