Post # 1
So Bees, I have an important grown-up decision to make in the next year! My heart is telling me one thing, but my parents are telling me another! I need your help to decide what to do.
I have a good job, and I have extra money left over every month. I only JUST got this job, and have been living paycheck to paycheck, so I have no money in savings. Next year, I will have a lot (to me!) of extra money left over every month to put into savings (my savings are nonexistent).
With me so far?
Okay, so right now I’m renting, and I like it. I would love to have a house one day, but I would also love to have a new car! My current car is reliable, paid off (yay!) and only has 60K miles (It’s a Honda so it will go forever!). I know the responsible thing to do is use my savings to buy a house in the next year.
HOWEVER, for the last 3 years I have been obsessed with one particular car. I don’t just want ANY new car, I want *this* new car. It’s not even new really, I would buy one used. I would try to pay in all cash (or very close to it) so as not to have a car note.
The kicker is that they stopped making this car in 2008. If I don’t buy one soon, I will not have the opportunity for much longer. They are becoming scarce already. I don’t want to pass up the opportunity to own one, especially when I can afford it and it would make me SO happy. I’ve done all my car research and am confident that I want to buy one.
What do I do? Use my savings for a down payment? Or keep renting and get the dream car?
*** ETA: I’d just like to add that the car is not a Lexus or anything fancy really. It’s completely within my budget.
Post # 3
Save for a down payment…you’ll be able to build such good credit with a house and can use the equity in the future. A car depreciates in value so quickly and is not really an investment. I really think the house is the way to go.
Post # 4
……. even if I can never have the car again? If I pass it up now? 🙁
(lol can you tell which way I am leaning?)
Post # 5
I say SAVE for a down payment!! That is what we are saving for 🙂
Post # 6
Is it an acura rsx????? I only ask because it was my dream car for years and they stopped making a few years ago.
Sorry, but I voted for a house. A car is not an investment at all – they are a money pitt. It is actually more financially responsible for you to keep your honda running (because they are built like tanks (I have an ’01 civic)) rather than buy another used car.
A house is a great investment!
Edit: You will get over your love for the car one day and you will fall in love with another car!
Post # 7
Get the house- You will be so happy you did.
Post # 8
lol I know you are leaning towards the car but you really will find another you love! I promise! A house is so much more valuable than a car. I suggest getting the house, then getting the car in a couple years that you love. 🙂
Post # 9
I will not get over the car….. 🙁 <pouts!>
Post # 10
Buying a house is a very smart long term investment. You will never see that type of return from a car that is twice used and you will still be throwing money into rent! I say down payment for a house all the way!
Post # 11
I”m going to go against the grain and say— GET THE CAR. And by the way this comes from someone who owns a house and loves it… so I’m not anti-house at all. But here are my thoughts.
1) Now is a bad time for you to buy a house because you JUST got this job and you have no savings. In order to be secure in a mortgage you don’t just need a down payment (imo), you need a downpayment plus at least 3 months expenses in savings so if you should lose your job ever you won’t get f’d and end up losing your house. That will take a long time probably– years.
2) you are happy renting and you don’t seem to be wanting to be super settled… whatever you chose now might not be what you wanted in a few years
3) you really want the car and its not going to be around forever
So I say, buy the car, then save for a house.
Post # 12
My thoughts are that I’m young, single, and not really sure if I am ready for a house yet.
But the car? Hell yes I am ready for that car 🙂
Post # 13
I voted for the house until I read your last post. It sounds like you aren’t sure if you are ready for a house yet. And being a new homeowner (6 weeks haha) I can assure you that it is one enormous 30 year responsibility.
Just remember that a house is an investment and a car will dramatically depreciate in value. Also, you could always pay 1/2 in cash and finance the rest. You’ll build up your credit score and still have some money in savings. This will help when you do decide to buy a home because the better credit score you have, the better rate you’ll get.
Post # 14
I not against buying a car, but here are my thoughts/concerns.
1. You have a car that is paid off and reliable. It still has lots of life left in it. You could probably sell this car if needed still and use some of the cash for a new car.
2. Its great that you would be able to pay off the new car.
You said the car is no longer in production. This is very concerning. Over time, the car is going to become more and more costly to maintain. At the end of its life, you may have a much harder time selling it because its outdated.
I know you really love this car, but will you still love it in 5 years when its falling apart, costing an arm and a leg to fix/maintain, and you can’t sell it because no one wants it?
Post # 15
One questions as I don’t know anything about cars – if you buy a car that is no longer manufactured – what happens if something goes wrong with your car – how would you get parts for it? Or, would those parts be super expensive??
I know people rebuild antique cars no longer made, but that seems different from buying a new car with all the computers and whatnot that are on cars nowadays. I would imagine your resale value would not be good either, but that might be a huge concern either.
I’d save a big chunk of the money myself, since you don’t have any savings, but I’m a worryer by nature!
Post # 16
On the flip side, I wouldnt say rush out and buy a house if you aren’t ready. You need to know the location and be “settled” before buying something like that. It really will eat a way a lot of your savings too.
Don’t let the money burn a hole in your pocket. Just because you are making it doesn’t mean you should spend it. Also, before you make either purchase you should make sure you stock away 4-6 months of expenses in case you were to loose your job.