[QUOTE]Originally posted by josh3io
[B]my problem was that i have never made a large credit purchase before so i could only get > 9% apr for any loan.

 

I just discussed my current situation with a mortgage dude.

Turns out in my financial situation, I can get the S2000 now and get the condo next year.

Mucho dollars is correct. Thanks, guys. Very reliable people you are. Especially Luder94, S2KALI, PsychoBen and Trojanhorse. If any of you guys are in Seattle, look me up!

 

One thing that mortgage companies look at is your front end/back end debt ratio.

The front end ratio is the percentage of your monthly income that will go to the mortgage payment, including taxes, and PMI if you put down less than 20%. The back end ratio is the total of the mortgage payment plus any other debt. For most people, this generally includes your car payment and any credit card payments. Conservative numbers would be 25% for the front-end ratio and 33-35% for the back-end ratio.

If you buy the S2000 now, you will likely have a large monthly car payment. This will increase your back-end ratio considerably and possibly knock you out of qualifying for a loan, even if you did have the money later to put down on a condo.

Buy the condo first, then buy the car.

 

This was posted back in the days. Sigh. Reminisce.

A lot has happened since:

1) Totaled the S2000 in 1/02.
2) Planned on replacing it with another S2000.
3) Didn't do it.
4) In 3/02, I put down earnest money on a condominium to be completed in early '04. The price is set as I came in on it early and the builder has recently decided to allow no more pre-sales until 1/03 due to brisk sales (they want to keep the appreciation for themselves).
5) Location, location, location: The development is one block away from the busiest recreational park in Seattle (by some per capita stat, it comes second to NY's Central Park).

Totaling the S2000 has been a blessing in disguise. I've learned a lot about how to get the hard-earned money I make work for me and not the reverse.

It would've been foolish for me to get stuck in another car loan.

I've had my play time in the S2000. Now, it's only a matter of time that I'm back in the game. But, you know, life has a way of doing its own thing and it's not about possessions, but for now, this is how it's going to be and I'm excited about the future.

Wish me luck. Thanks, all.

 

Ahh... you chose like most of us. Fun before reality. Glad that things are working out for you.

Marcus

 

condo is a good investment!
a car is absolutely the worst investment you can ever get!
do the right thing!

p.s right thing doesn't equal to fun thing ...
so you make the call!

 

Get the condo first. It will help with your financials later. If the equity in your condo goes up fast enough, you can use it to buy the car anyway. Look into home equity loans or lines of credit.

 

Get the condo. Depreciable assets are no good, which is what a car is. I just made this decision myself. I'll be driving a 97 Nissan Maxima for the next couple more years, but it will be worth it when I sell my condo and buy an Estoril Blue 99 M3 convertible with the profit. And then roll the equity into another place.

 

Didn't I tell you guys I'm getting the condo?

I'm getting the condo!

Yeah, helocs are great. I had no clue about these suckers. Had I known earlier, I might not have ever started off with the car in the first place!

 

with 99.9% of everyone else.. get the condo....