need some advice from some financial guru's

[jonlax]

Now i am in no sort of financial trouble but i want some insight from someone that has more knowldge than me on this subject. I feel that i live well and have financial freedom for a 21 year old. Anyway here is the dilemma I recently sold my RX7. I am looking into a new car but not sure if i want or can afford it. heres the info

Currently i make about 1900 a month after taxes and bills.
I have 10,000 saved up in my savings account and a few thousand in other accounts. I do not want to use much of my savings account because its my "nest egg" that if i need for a rainy day. I will be separating from the army in a year and 3 months after i return from my 2.5 deployment so that money will help me survive when i get out initally. I already have a job lined up with ford which is a signed contract. The car i am looking at is a 2007 Honda S2000 with 9,000 miles on it. They are asking 21,500 after tax and tags in PA. I will be taking a 10,000 dollar loan which has a Fixed APR of 3.55% that i have already been approved for. I will be making about 3300 with out taxes in iraq so from what i see i can afford it. I just want to make sure since i tend to get excited and i do not want to over extend myself thus me asking around here. Thanks for the input.

Jon

 

[techieman33]

I would wait until you get out of the army, or at least back in the country for good. I don't see much of a point in buying another car just to have it sit there while your overseas.

 

[jonlax]

as of right now i am thinking i will be buying half way threw my deployment so the 08' drop down in price.

 

[toypaseo]

I also vote to wait, even though that appears to be a decent deal.

I would bank up as much as you can, go hit the dealers with a huge amount, and lowball them big time. You would have the upper hand.

 

[Flandry]

This is how it sounds to me:

• You want to buy a car that seems to be a good deal. But you can't be there to confirm it is personally.
• It's a few thousand off the used retail value with a fairly low APR. But this is at a time when it's not unusual to see $10K+ discounts on new cars, companies like GM are extending deep discounts to previously excluded models like corvettes, and even Toyota offering 0% financing.
• You want to buy it at a time even large car dealerships are suddenly closing. But you can't be there to close the deal and take possession.
• You believe it's a car payment you can afford. But by conventional affordability calculations, only just.
• You want to base this decision on your upcoming job. But though you have a piece of paper, you don't actually have the job.
• You believe its a solid job. But it's with a beleaguered manufacturer during a time of unprecedented unprofitability for the industry.
• You believe it's a good job. But you have no proof it won't turn out to be the job from hell and you might find it unworkable.
• You don't have six months of living expenses saved. But you want to drain your capital at a point when you'll be in a transition and may need it most. And you want to do it at a time when even large banks are strapped for cash.

All for a car and a price you're not likely to have a problem matching later.

I agree with the others. Wait.

 

[Donner]

It's not in your budget. That purchase would reduce your income, and it's not a purchase you need. Continue funding your savings instead (and) like everyone has said, "Why now?" This purchase is not for you? Stay out of financial trouble, don't make this purchase yet.

 

[gijoecam]

This is how it sounds to me:

• You want to buy a car that seems to be a good deal. But you can't be there to confirm it is personally.
• It's a few thousand off the used retail value with a fairly low APR. But this is at a time when it's not unusual to see $10K+ discounts on new cars, companies like GM are extending deep discounts to previously excluded models like corvettes, and even Toyota offering 0% financing.
• You want to buy it at a time even large car dealerships are suddenly closing. But you can't be there to close the deal and take possession.
• You believe it's a car payment you can afford. But by conventional affordability calculations, only just.
• You want to base this decision on your upcoming job. But though you have a piece of paper, you don't actually have the job.
• You believe its a solid job. But it's with a beleaguered manufacturer during a time of unprecedented unprofitability for the industry.
• You believe it's a good job. But you have no proof it won't turn out to be the job from hell and you might find it unworkable.
• You don't have six months of living expenses saved. But you want to drain your capital at a point when you'll be in a transition and may need it most. And you want to do it at a time when even large banks are strapped for cash.

All for a car and a price you're not likely to have a problem matching later.

I agree with the others. Wait.

Well said!!

I agree with everyone... Wait... another deal will come along when the time is right.

-Joe

 

[Dan Whitaker]

On top of that it's a HONDA

 

[jonlax]

On top of that it's a HONDA

This is one thing i do not like.

In my opinion yes its a honda and yes it gets 25+ on the highway it will also last well into the 150k mark with little to no problems. Its not that expensive to operate and they are FUN to drive. Its everything i have been looking for since the RX-7 is more expensive to operate and parts are not cheap by no means. Im keeping my explorer but i will not buy into the american car unless they make it fun fast and easy to operate with out killing the bank just to fill it up. This is a big problem with the US car market. Since when does a sports car weight 3500+ pounds? I think i will stick to my cheap to operate and userfriendly car. Oh and by the way i think i asked a financial question not an opinion on if it was american or not.

Thanks.

 

[Dan Whitaker]

That is financial help. Keep our money in the USA where it belongs.

I don't like the fact that the USA (which you are serving) is buying foreign made cars and aiding our economic problems.