Next car, need some advice

[jmg]

OP, I owned 2 CPO cars back to back out of college. It just doesn't make sense to buy a new car unless you have disposable income. It's probably the worst financial decision you can make, you just lose too much money right off the bat. Years later I have a new M3. If you truly see it in your future, then by all means get it later when you have the financial freedom to do so. Good luck!!!

[FriskyDingo]

Originally Posted by jmg

OP, I owned 2 CPO cars back to back out of college. It just doesn't make sense to buy a new car unless you have disposable income. It's probably the worst financial decision you can make, you just lose too much money right off the bat. Years later I have a new M3. If you truly see it in your future, then by all means get it later when you have the financial freedom to do so. Good luck!!!

This is such a worn-out and tired argument.


And worse, it's not even necessarily true. There is no one-size-fits-all answer with buying cars.


If someone is budgeting properly and wants to buy a new car to reward themselves or because that is their interest, then by all means, go for it.

[jmg]

Originally Posted by FriskyDingo

This is such a worn-out and tired argument.


And worse, it's not even necessarily true. There is no one-size-fits-all answer with buying cars.


If someone is budgeting properly and wants to buy a new car to reward themselves or because that is their interest, then by all means, go for it.

True, there is no one size fits all. And I am NOT saying that anyone who buys a car is making a bad financial decision because I specifically stated "disposable income". If the OP has no disposable income, why would they purchase something with that level of depreciation? Financially it doesn't make sense. What you are arguing is what "disposable income" means. THAT is the variable from person-to-person and it depends on what that person perceives as disposable income. If that person TRULEY feels that have NO DISPOSABLE INCOME, guess what? They shouldn't buy a new car. They should buy used or CPO because a lot of the depreciation has already occurred. Financially, it's the cheaper option. Now, you're definition of disposable income might be different than mine based on your situation, and that's fine. You might feel like you have more disposable income and might feel that it justifies purchasing a new car. That's your prerogative. Basically what I'm saying, in a nutshell, is this:

if you feel like you are on an extremely tight budget with little or no money to spend on a car, they go for the option that costs you the least amount of money. The options that cost you the least amount of money are the one where the loss from depreciation is minimized. Those options are used or CPO.

Sorry for the long winded reply but my logic is sound. God knows I've made emotional purchases. I made those purchases when I had the means to do it.

[Never_Enough]

Keep what you have if it's reliable

[FriskyDingo]

Originally Posted by jmg

True, there is no one size fits all. And I am NOT saying that anyone who buys a car is making a bad financial decision because I specifically stated "disposable income". If the OP has no disposable income, why would they purchase something with that level of depreciation? Financially it doesn't make sense. What you are arguing is what "disposable income" means. THAT is the variable from person-to-person and it depends on what that person perceives as disposable income. If that person TRULEY feels that have NO DISPOSABLE INCOME, guess what? They shouldn't buy a new car. They should buy used or CPO because a lot of the depreciation has already occurred. Financially, it's the cheaper option. Now, you're definition of disposable income might be different than mine based on your situation, and that's fine. You might feel like you have more disposable income and might feel that it justifies purchasing a new car. That's your prerogative. Basically what I'm saying, in a nutshell, is this:

if you feel like you are on an extremely tight budget with little or no money to spend on a car, they go for the option that costs you the least amount of money. The options that cost you the least amount of money are the one where the loss from depreciation is minimized. Those options are used or CPO.

Sorry for the long winded reply but my logic is sound. God knows I've made emotional purchases. I made those purchases when I had the means to do it.

Fair enough. And I guess yes, it is more a debate of one's perception of financial stability/situation.

Even then though, there are so many factors to take into account. Two people could make the same amount of money, but if one chooses to spend a greater portion of their earnings on going out, clothes, events, etc, etc, that other individual might be able to afford and justify spending more on their car. It just comes down to priorities and cash flow to other areas.

I probably spend a healthy amount more on cars than other people with similar income. But I don't have any other expensive hobbies or interests. I don't needlessly blow money on frivolous items. My wife and kids and I don't go out to eat every other night of the week.

Therefore I feel it is okay to spend more money on cars because I spend less in other areas. That's what makes me happy, so it's worth it to me. Maybe in the future that will change, but for now, I'm good with it.

[jmg]

Originally Posted by FriskyDingo

Fair enough. And I guess yes, it is more a debate of one's perception of financial stability/situation.

Even then though, there are so many factors to take into account. Two people could make the same amount of money, but if one chooses to spend a greater portion of their earnings on going out, clothes, events, etc, etc, that other individual might be able to afford and justify spending more on their car. It just comes down to priorities and cash flow to other areas.

I probably spend a healthy amount more on cars than other people with similar income. But I don't have any other expensive hobbies or interests. I don't needlessly blow money on frivolous items. My wife and kids and I don't go out to eat every other night of the week.

Therefore I feel it is okay to spend more money on cars because I spend less in other areas. That's what makes me happy, so it's worth it to me. Maybe in the future that will change, but for now, I'm good with it.

You have disposable income and you have a preference as to how you would like to prioritize things.

I'd also like to add that sometimes the best choice isn't always the best financial one. Much like everything else, there has to be a balance. A BMW isn't the cheapest car out there. It's not 100% financially responsible when you can get a perfectly reliable and functioning Camry for less money. But what fun is that? My CPO cars were Audis... not the best financial choice, but the emotional satisfaction was the best for the price.

[FriskyDingo]

Originally Posted by jmg

You have disposable income and you have a preference as to how you would like to prioritize things.

I'd also like to add that sometimes the best choice isn't always the best financial one. Much like everything else, there has to be a balance. A BMW isn't the cheapest car out there. It's not 100% financially responsible when you can get a perfectly reliable and functioning Camry for less money. But what fun is that? My CPO cars were Audis... not the best financial choice, but the emotional satisfaction was the best for the price.

Well, I'm about to be using this argument and stretching it to the max when I tell my wife I really want to pick up a new RS3, lol.

[Germanauto]

Definitely CPO. Buying new is like taking a wad of cash to a toilet and flushing it. When you have more money to waste it's fine.

I'm a grad student around the same age as you so I understand your perspective.

[rainfall]

If manual, I'd be like 55% WRX / 45% GTI and would be thinking long and hard between the two

but automatic, I'd take the GTI all day. WRX "Auto" is CVT, which isn't anywhere near how good GTI's dual clutch transmission is.

About financing, avoid "payments" as much as possible. Give it a good down payment, don't lease it

[NickyC]

Originally Posted by Germanauto

Definitely CPO. Buying new is like taking a wad of cash to a toilet and flushing it. When you have more money to waste it's fine.

I'm a grad student around the same age as you so I understand your perspective.

Especially considering how overpriced cars are these days. Buy 3-4 years used, let some other schmuck take the depreciation hit or get one off a flease.