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    Thread: When is it OK to splurge? A lengthy post detailing my internal conflict about purchasing a car.

    1. Member LuckyDogg's Avatar
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      02-01-2012 07:47 AM #26
      Not to keep bumping my own thread, but I checked my accounts this morning (I do on te first of every month) and my 401k is at $44,000, not $24,000 as originally reported.

      Not sure if I made a typo or looked at the wrong statement... also not sure if that should have any relevance on decision making.


      Definitely feeling good though... not everyday you find 20g

    2. Member JCJetta's Avatar
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      02-01-2012 11:33 AM #27
      Or even consider a MKV, which you can get for half the price of a new GTI. Find a decent, well maintained example, have "just in case" cash set aside for potential issues, and still have a decent car that you won't cringe when you find your first scrape.

      Yeah, scrapes, dents - you live in Chicago. It hurts a lot less to find them on a "cheap" car than it does a brand new one.

      Also, going with the half price daily driver option, you are left open to other vehicular possibilities. One Chicago poster in this thread might have you consider something that floats. Or you could look in to RWD options for weekend pleasure (Miata, Fox Body 5.0, etc.) Or you could consider the crazy idea I had a while back and get a ~2000 Ranger 4.0 4x4 plus 2-place Sea-Doo set up.

      Course, then you need to consider storage.

    3. 02-02-2012 06:25 PM #28
      I LOVE THIS THREAD! I am 27, similar financial freedom. The kicker?.....I did THIS! I bought a $30k GTI, the only splurge of my life. It was a 2008, and by 2010 I just couldn't do it. I had another car (paid for), hated seeing the depreciation, and as a financial minimalist, it just felt like too much car. I sold it privately for a good price and felt so much relief. Not really financially, but mentally. It sounds like you pay a similar amount of attention to your numbers as I do. I justified the purchase, but at the end of the day I couldn't live with paying for more than I need. Now fast forward to present day; the used market is up, way up. I still have a paid for SUV that I utilize for recreational pursuits, dog hauling, trailer towing etc. I was looking to buy a used car that would be economical, easy on gas and all that. I quickly discovered that even over a short 36-month term, a brand-new bare bones Nissan Versa, Kia Rio, or Hyundai Accent, bought brand new would cost about the same as most of the overpriced used cars. I worked all the numbers, and figured out that even when you factor the additional insurance and tax, these new cars would pay for themselves in fuel savings over my 4runner in under 36 months. The 2012 Accent 6-spd that I finally purchased for under $14k (employee program) also gives me the stress relief (HUGE WARRANTY) of not having to worry about repairs, or the re-conditioning that a used car would inevitably need. It is averaging, I'll repeat that for emphasis, AVERAGING 42mpg on my 30 minute commute and will equal money in my pocket well before the 36th, and final payment. I don't regret the decision for even a slight moment. It makes so much financial sense, and even as a 'gear-head', SCCA-member, 'car-guy' person, the balance of affordability and sensibility of this car allow me to enjoy it, unlike the much racier GTI. It sounds strange to some, but if you are programmed the way that I think you are.....don't write off the financially better alternative.

    4. Member LuckyDogg's Avatar
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      02-21-2012 05:59 PM #29
      Well Financial Loungers, I did end up purchasing a GTI.

      Token Instagram Photos:





      I've been walking around with a ****-eating grin for the last two weeks, I am so giddy about this thing it isn't even funny. I purchased a 2011 CPO model that came off lease, so I have the remaining factory warranty plus two years / 24k CPO warranty on top of it. It's fully equipped with 18" Serron wheels, navigation system, HID headlamps, sunroof, etc. Only feature I could ask for would be remote starter, and I'll deal without that one considering it's my first car (I need to aspire for something with the next one, heh).


      I felt were I to purchase a different vehicle, I would get the itch to jump sooner rather than later. This is the car I want and the car I have wanted for a long time, so while I am paying more than an Elantra or a Cruze, I will be happier with it for a longer time, and though that isn't quantifiable, it does have value to me.

      Out the door my total cost was 30k, the amount I anticipated and budgeted toward. I put just $2500 down (used my CC for some airline miles, but don't worry, I paid it off two days later) and financed the remaining $27500 at 2.9% for 5-years. It's a simple interest loan and the monthly payments are ~$500, but I'm making a $7000 payment toward the principle with my first month's payment.

      I have not yet decided if I should sell some stock to pay more toward the principle or live out the loan terms for a while, but I am comfortable financially and have some time to make this decision.


      On a personal note, I appreciate all of the advice and guidance provided in this thread. I feel most every contributor provided sound, personal advice and sought my best interest. While I did not follow everyone's guidance, it did not fall on deaf ears. Thank you all.

      Time to go drive!
      Last edited by LuckyDogg; 02-21-2012 at 06:09 PM.

    5. Geriatric Member ValveCoverGasket's Avatar
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      02-21-2012 06:22 PM #30
      nice of someone to follow up on one of these posts.


      enjoy the gti!
      probably not how id spend my $30k... but hey... different strokes

    6. Member hugoaswho's Avatar
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      02-22-2012 02:52 PM #31
      congrats!

      I'm in a similar situation as you are unfortunately I did the stupid thing and bought a condo in 2009 with 20% down, that money is now gone since prices have depreciated that much in 2 years. I am happy that I have my own place, nice bathroom and I'm redoing the kitchen and I have a huge garage only 30 min from Manhattan but I am paying 1100k a month with taxes and cannot refinance my rate of 5.375%...

      so the money that I have lost and dumped into the condo could have instead been enjoying a nice car like you. I am driving a 10 yo passat wagon.

      So lesson of the story sometime what seems like the best thing to do, getting a killer deal as I thought on a condo it ended up a BAD deal...and the bad thing like buying a new car and enjoying it is a GOOD deal because in the end you are happy...

    7. 02-23-2012 12:51 PM #32
      Congrats! I am local to you. Next time you are out and about and see a '12 Shadow Blue GTI, shoot me a wave.
      2014 Volkswagen Jetta GLI Edition30, Pure White/Black V-tex/carbon
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      Son of a gun / Master of fate / Bows to no god, kingdom, or state.

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      02-23-2012 07:37 PM #33
      First of all, congratulations! You've got a very strong base for someone at your age. I'm a little green of your position w/r to debt.

      When to splurge and buy a car? When you can buy it with cash and when you plan to keep it. Buying a brand new car always puts you in a position to take a bath on value anyway.


      How about motivating yourself with learning more about buying a new car using the European delivery program?

      Why not a new S4? M3? R32?

    9. 02-24-2012 04:35 AM #34
      thank you[IMG]http://www.********************[/IMG]

    10. Member BetterByDesign's Avatar
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      02-24-2012 09:51 AM #35
      OP put something down on a condo first, see how things work it then grab the GTI.

      To me, your post is about guilt.

      If you get married GTI's and condo's are out the door.

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      02-24-2012 10:49 AM #36
      Quote Originally Posted by BetterByDesign View Post
      If you get married GTI's and condo's are out the door.
      No they don't. Or you married the wrong person.
      Gentlemen, you had my curiosity. But now you have my attention.

    12. Member LuckyDogg's Avatar
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      02-24-2012 02:50 PM #37
      Quote Originally Posted by BetterByDesign View Post
      OP put something down on a condo first, see how things work it then grab the GTI.

      To me, your post is about guilt.

      If you get married GTI's and condo's are out the door.


      Of course my post is about guilt -- wasn't the 'internal conflict' a giveaway.


      I'd like to say my priority is owning a home, but it's not. I live in downtown Chicago and while I love it here, I cannot confidently say I will be living here in five years. In my opinion, that makes purchasing a home a very poor decision at this point. Yes, the market is in a great place, but that still doesn't justify it. Now, without a doubt I should be saving toward a home, and I am, but there is no need for me to purchase one if I don't know where I'm living in 2015.

      And to boot, my S/O loves the GTI.

    13. 03-08-2012 07:12 PM #38

    14. Senior Member dunhamjr's Avatar
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      03-09-2012 01:10 AM #39
      Quote Originally Posted by BetterByDesign View Post
      OP put something down on a condo first, see how things work it then grab the GTI.

      To me, your post is about guilt.

      If you get married GTI's and condo's are out the door.
      OP already bought the car.

      And if you marry the correct person then NOTHING is out the door. I had 1 car and was renting when I met my wife. Now we have two houses (primary and rental) and have 5 cars. (two on loans cause DUH at 0% and 2.9%)

      As long as purchases don't affect quality of life/savings/retirement planning/etc, why they hell would it matter if you spend $30k on a GTI or $30k on a Camry...?
      Last edited by dunhamjr; 03-09-2012 at 01:16 AM.
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    15. Member maskedSONY's Avatar
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      03-16-2012 03:10 PM #40


      I'm glad to see you splurged. It's good to do this because if you never exercise your sweet tooth and spend a bit, you'll just keep it pent up inside and then snap at some point later on. I actually purchased a 2007 Accord, CPO, in Nov 2010 because I wanted to rid myself of my old Protege, which was constantly needing repairs. With the Accord I've gotten a tremendous value and I'm looking forward to driving it for the next decade. I simply won't get rid of it and plan to extract every penny out of it.

      I hope its not too late to say this - but don't sell your stock positions. Seriously, let those grow, because if they are properly placed, even after the hit you will take in taxes, they will be a boon that you can use as you continue onwards into your 30s. It nice to have money to sit on, and to manage your debt properly, but as long as you are getting money loaned to you at a very good rate then you may as well be patient and put the money to work elsewhere. Just don't miss a payment, but don't overpay as well.

      Enjoy your car - I don't know what your priorities are, but if you do want a family and a wifey, your car choices will be extremely crimped in the future. Consider this one your pride and joy.
      Quote Originally Posted by Turbiodiesel!
      It really is the perfect, no excuses all-rounder for the rich guy who's accustomed to having it all - the Hybrid version especially. It's like an F-150 Raptor banged an M5 in the men's room of a biker bar. Nobody really wanted the results, but damn - what a set of genes.

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      04-22-2012 09:50 PM #41
      Buy a used car that isn't a VW. For example, I am money savvy as well and don't want to spend a lot of a car so I bought 2 cars.

      Sounds crazy I know, but.

      2004 Accord - Paid 8G cash.

      2002 S2000 - Paid 14 cash.

      Will drive both for 2 - 3 years, then sell the Accord for 6 - 7K and the S2000 for no less than 12K. Total cost of ownership is the key, when you have money the monthly's do not matter or the initial lump sum, just TCO.

      I can have these two cars for 3 years and spend a total of 4 - 5K maximum. Use the crazy high resale value of certain cars and strong used car market to your advantage.

      New cars are for suckers. My S2000 I picked up from an old man and it is almost mint and drives like new. Accord same deal, bought from old man still looks and runs new.

      If you buy that GTI for 30K, it will cost you about 10K to own it for 3 years. Buy something a little older that has taken 80% of its depreciation already, drive it for a few years and walk away.

      This is of course if you want to drive anything other than a GTI, which should be too difficult to get over. It's a nice car but I don't know anyone who would dream to own one. I get not wanting to drive an older German car, it would scare me too but there has to be something else out there that won't nickel and dime you yet something you can really enjoy.


      I see I am late to the party, but what I typed above stands as general rule that I don't think enough people use to their advantage.

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      04-25-2012 01:48 PM #42
      If I was 27 again, I would invest, invest, and invest. Take risks and this is a great time to invest and I seriously don't think you should be splurging yet.

      Have you made an investment yet that paid dividends yet?

      I bought Apple stocks at 50 and people at the time were saying Dell would kick Apple to the curb. Look where the 2 companies are now.

      I never splurge unless one of my investments popped and give me a small windfall.

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