I want a car!! Any advice??

This forum made possible through the generous support of SDN members, donors, and sponsors. Thank you.
phathead said:
Right, but if you're looking at putting $40,000+ into a car while paying rent vs actually purchasing a home and developing equity, the home wins.
Click to expand...

Definitely, I agree with that.

phathead said:
Case in point, my buddy bought his house four years ago now at $165k. Prior to the market collapsing, the house was appraised at $300+ (a greatly inflated value of course) and it's located in a prime spot in the city. Last year it was reappraised at a shade over $200k.

He essentially picked up $35k in equity already just because he bought it at a great time. He was smart and bought a house that requires only minor cosmetic work (new carpeting and such) and the only planned on being there for 10 years max.
Click to expand...
My point though is how much did your friend pay in interest in those 4 years? We've lived in our house for 2.5 and have paid 3x as much in interest as in principle and we make extra payments. That cuts into your 35K "profit" in a hurry. Not to mention the several grand you pay at closing when you're buying and then when you're selling. That's all I'm saying. You can't just look at "bought for X, sold for Y" you have to factor in everything else you paid. Even at a low interest rate, you pay tons of interest at the beginning of your loan, not to mention the monthly PMI, hazard insurance, and property taxes. We are at 5.5% (refinancing now though) and still pay a metric *hit-tonne in interest every month. When our parents bought their houses, interest at <10% was unheard of; they owned about 1 shingle in equity after a year.

If you are buying a house outright in cash, disregard what I'm saying. Everyone else, listen up.:laugh:
Members don't see this ad.
 
spacecowgirl said:
Definitely, I agree with that.


My point though is how much did your friend pay in interest in those 4 years? We've lived in our house for 2.5 and have paid 3x as much in interest as in principle and we make extra payments. That cuts into your 35K "profit" in a hurry. Not to mention the several grand you pay at closing when you're buying and then when you're selling. That's all I'm saying. You can't just look at "bought for X, sold for Y" you have to factor in everything else you paid. Even at a low interest rate, you pay tons of interest at the beginning of your loan, not to mention the monthly PMI, hazard insurance, and property taxes. We are at 5.5% (refinancing now though) and still pay a metric *hit-tonne in interest every month. When our parents bought their houses, interest at <10% was unheard of; they owned about 1 shingle in equity after a year.

If you are buying a house outright in cash, disregard what I'm saying. Everyone else, listen up.:laugh:
Click to expand...

Yeah, closing costs and don't forget about the 6-8% you pay the real estate agent when you sell the thing. So your place needs to appreciate 6-8% just to break even on that.

And I think it has been said before in this thread, but when you're comparing buying vs. renting, the first thing you want to look at is how much rent you're going to pay. If that is less than or equal to the amount of interest/property taxes/PMI/etc. you're going to pay a month by buying a house, there isn't much of a benefit. Also, how much is your down payment going to be? Can that money be placed in a high yield account or 401k and make more money than it would by being tied up in a house? Buying these days isn't what it used to be. Everyone says the market will turn around eventually, but I don't think that there are any guarantees. The only reason I would consider buying a house at this time is if you plan on living in it for a long time knowing that you will eventually have it paid off and be living payment free or know for sure that you'll get a better return on your money than in other areas (which is very hard to determine). I have many friends that have taken advantage of the buyer's market, but are now disgruntled because they want to sell (but can't) and upgrade since it is still a buyer's market.
 
Last edited:
Are you going to be using the car for work? If so you might want to keep it low key.

Ill always have 2 cars...one for work and one for days off. I kept the first car I ever bought which was a 97 Camaro when I turned 16. I still drive this car daily to work and it never lets me down. On weekends/warm days I have a Viper. I would love to have a daily driver like an m3 or a5, but I know that in the hood I work in it could never fly and Id get comments and be worried about it all the time.

Im thinking about getting rid of both cars soon, the Camaro is going to be replaced with a wrangler and the viper with something italian.
 
Members don't see this ad :)
StallionRx said:
Are you going to be using the car for work? If so you might want to keep it low key.

Ill always have 2 cars...one for work and one for days off. I kept the first car I ever bought which was a 97 Camaro when I turned 16. I still drive this car daily to work and it never lets me down. On weekends/warm days I have a Viper. I would love to have a daily driver like an m3 or a5, but I know that in the hood I work in it could never fly and Id get comments and be worried about it all the time.

Im thinking about getting rid of both cars soon, the Camaro is going to be replaced with a wrangler and the viper with something italian.
Click to expand...

This is a good idea too. When I got my first job out of college I splurged and bought the car that I wanted, a Chrysler 300 when they first hit the market. At the time, I had a Grand Prix that was still in good driving condition, but felt that I didn't need it and sold it. I wish that I had held onto it for driving to work so that I could have extended the life of my 300. I put a lot of miles on the 300 the first 4 years because I drove it and everyone everywhere and luckily recently the miles/year have slowed down because my wife and I bought a workhorse (Mazda 3) that is used for driving to work, long trips, etc. Like I said before, if you're both going to buy cars, get one that you'll both enjoy and one that can be a workhorse. Just my opinion.
 
Best decision ever......
I sold my 350z Roadster, and then I bought a 2003 ford f150 truck.
No more large payments or insurance. Plus I like driving the truck. Makes me feel like I can run over people.:D
My bank account would agree with me too.
 
CUpharmD2013 said:
Buying these days isn't what it used to be. Everyone says the market will turn around eventually, but I don't think that there are any guarantees. The only reason I would consider buying a house at this time is if you plan on living in it for a long time knowing that you will eventually have it paid off and be living payment free or know for sure that you'll get a better return on your money than in other areas (which is very hard to determine).
Click to expand...

I'm not sure buying a house was ever what the lenders and real estate companies will have you think it is. As I said before, I'm not against owning at all, I just want people to realize it's not some super great investment and you'd be better off financially, putting that money in a high yield account like you said. Own because it's fun and you have something that is yours (sort of, the bank owns most of it for a long time), not because Remax says it's the key to your financial future. Own because you love HGTV and fixing stuff and remodeling and personalizing. If your sole purpose is financial, renting is better in most scenarios.

To reiterate phathead's point, buying a house is better than buying a car.
 
My brother-in-law bought a house a few years back. Leaving out the burst, he has sunk 16k into unforseen needed repairs all without any appreciation of the home. He wishes he would have rented. At least then someone else would have footed the bill.
 
I drive an 2001 Ford Focus that is starting to rust out and has 91k on it. It's pretty much a tool that I sit in for 50 min a week to get to work so it seems silly to drop a lot of money on such a gratuitous status symbol.

That being said, get a diesel VW because they are cool, have good mileage and will last 300k. Plus diesel is manly and you get to fuel up next to semi trucks
 
VancTheTank said:
Sparda: is your CC stage two?
Click to expand...

Yes it is. I'm trying to figure out if it would be affordable or even worth it to get to Stage 4. It's front wheel drive, so when I floor it, I never get good traction. I'm already having issues with the clutch slipping.

Check out the stage 4 video from APR.

[YOUTUBE]http://www.youtube.com/watch?v=MtO2dh8BCPA[/YOUTUBE]
 
phathead said:
My point is that right now is a great time to buy a house. If you look around, you can find some massive deals that you can turn into appreciable profit in a few years time once the market picks up.

Case in point, my buddy bought his house four years ago now at $165k. Prior to the market collapsing, the house was appraised at $300+ (a greatly inflated value of course) and it's located in a prime spot in the city. Last year it was reappraised at a shade over $200k.

He essentially picked up $35k in equity already just because he bought it at a great time. He was smart and bought a house that requires only minor cosmetic work (new carpeting and such) and the only planned on being there for 10 years max.

So if you do it right, you can make a killing. I agree, this is not for everyone but the OP already mentioned wanting to go this route which is why I offered my advice on it.
Click to expand...

His house may be appraised at 200K, but there is no way to tell if he'd be able to SELL it for that. Many houses in many markets are selling at below appraisal these days.

I agree with others that money spent to purchase your primary domicile should not be looked at as an investment. Investment (rental) properties are different, of course, but making "a killing" off them can be tricky too. Especially for the landlord who only has a few properties.
 
It's generally not a good idea posting a car picture with the license plate showing...
 
Members don't see this ad :)
People with DMV connections and law enforcement can find your real name and address... and if they have bad intentions they can follow you around, know your habits and jack your car.

However miniscule it is, you basically increase your chance of getting carjacked...
 
Momus said:
People with DMV connections and law enforcement can find your real name and address... and if they have bad intentions they can follow you around, know your habits and jack your car.

However miniscule it is, you basically increase your chance of getting carjacked...
Click to expand...

So I should be worried about a DMV worker scanning the internet for my plate number finding my address and then car jacking me? The same DMV worker who has access to a search-able database of cars and their registration information for 40+ hours a week while at work.
 
A 2011 Hyundai Sonata with the 2.0T is a very nice car for right around $30K. That thing is cranking out around 270 horses and gets pretty darn good gas mileage all on regular unleaded. The inside is all high end soft feel finishes and the exterior looks fantastic.

If you don't want yourself seen in a Hyundai (not sure why as their cars are really nice now), then I'd go for a couple year old Acura, Audi, Mercedes or BMW. Audi, Mercedes and BMW you can get with all-wheel drive, Acura you can if you get a crossover (my wife has an Acura RDX and we love that thing).

I drive a 2003 Toyota Camry that I have put 180K miles on, that thing has been minimally maintained. As a home owner and someone that likes and appreciates nice cars you will like the house better. Don't be a complete fool though and buy a house that only like the top 0.1% in your area can afford because that thing will be a hard sale if you ever wanted or needed to sell it.
 
440190728_otssh-x2.jpg
 
If I end up in Minnesota, I am just going to buy some older truck and just live close enough to work to take public transit. If I end up on the east coast with access to trains/buses, eff having a car man. It is just a big drain on your income. One criticism I have of AZ is that you have to have a car to get around everywhere :(

But, I would def go certified pre-owned on any (semi)luxury car. The repairs alone are going to be thousands- especially on german made gems , mercedez, and lexus. I knew a guy that was an automotiave technician for mercedez. He told me to never buy one and when I asked him why he said it is because he has way more job security than a lot of his buddies from automotive school who are at other dealers (like toyota or nissan). Having a fancy car would be nice and I would def be tempted...but I dunno. Student loans seem so much more important.
 
Momus said:
It's generally not a good idea posting a car picture with the license plate showing...
Click to expand...

It's is a very easy license plate to remember anyway. It means the make and model of my car. One of the reasons why I took that name for the plate is so other members on the VWVortex forums could more easily spot me. A lot of times when a VW driver sees another, they flash a sign. You get a response sometimes if they are part of the V DUB scene, other times they are like "wtf is this person waving/smiling/tailing me for".

One time me and my mom were about to head out somewhere, we're getting inside my car, and some hot chick in another Volkswagen CC drives by, looks and waves at me and drives off. My mom was like, "I thought your gf was a brunette not a redhead." ROFL!
 
I would LOVE to trade in my 6 year old Lexus for this beautiful car. Mercedes Benz S600 is the way to go! :love:

 
Meh. I can never justify getting an expensive/flashy car. I'm all about reliability. I just got a new car, and as long as it does its job, I'm happy. I'd drive a cardboard box on wheels if it was guaranteed to never break down on me. I'm not a big driver anyways, and I don't have anyone that I need to impress. I spend most of the time in my car doing mundane activities (going to school, grocery store, etc.). Nothing fancy. If I was going to treat myself for my hard work, I would use the money for something more memorable (a great vacation) or pay off my student loans, invest, buy a house, etc.
 
GoldfishPharmD said:
Meh. I can never justify getting an expensive/flashy car. I'm all about reliability. I just got a new car, and as long as it does its job, I'm happy. I'd drive a cardboard box on wheels if it was guaranteed to never break down on me. I'm not a big driver anyways, and I don't have anyone that I need to impress. I spend most of the time in my car doing mundane activities (going to school, grocery store, etc.). Nothing fancy. If I was going to treat myself for my hard work, I would use the money for something more memorable (a great vacation) or pay off my student loans, invest, buy a house, etc.
Click to expand...

But don't you want a status symbol to compensate for your lack of self-worth?
 
WVUPharm2007 said:
Looks kinda like a four door Mark VIII.
Click to expand...

Yes, but it is smaller and less comfortable of a ride. It's also been compared to the Mercedes CLS (same designer). Also, kinda like the new Hyundai Sonata.


Seats only 4 people, the middle in the back is essentially a sliding cup holder. When I went to DC couple months ago, my friends decided that I would be the driver and that there were gonna be a total of 5 people going. Then they realized it's a 4 seater. The person sitting in the middle was our anorexic friend and he had to place a pillow on the cupholder before sitting down.

Poor bastard had to endure 4 hours each way of a rough drive.
 
WVUPharm2007 said:
Looks kinda like a four door Mark VIII.
Click to expand...

Ugh, now that I look at this picture, I realized my tints aren't blending in that well. The front window tints are already illegal in the state of NY and only way its gonna look better is if I make the fronts darker, or the rear windows and windshield less darker.

I believe I have 20% transmittance on the rear windshield and rear windows and 35% transmittance on the front windows.
 
SHC1984 said:
If we are going to talk about THE HOTTEST CAR on this PLANET then this car will obviously win EVERYTIME.:laugh: I was just listing cars that are actually affordable to pharmacists. This car is the HOTTEST CAR but you have to be a celebrity or Bill Gates to drive it...:rolleyes:
http://www.egmcartech.com/wp-content/uploads/2008/10/mercedes_slr_mclaren_chrome_image002.jpg
Click to expand...

Actually, Bill Gates has always driven the Lexus LS series, he truly know the value of $. SHC1984, whatever you do DO NOT buy a s600, they are junk (I have 5 friends who work for Mercedes that can vouch for that) plus what else depreciates from 100k to 10k in just 7-8 years? All while killing you with costly repairs, plus they just look like a bit more angular verion of the old s class (00-05), which were also abysmal representations of the automotive art
 
tongiecc said:
Actually, Bill Gates has always driven the Lexus LS series, he truly know the value of $. SHC1984, whatever you do DO NOT buy a s600, they are junk (I have 5 friends who work for Mercedes that can vouch for that) plus what else depreciates from 100k to 10k in just 7-8 years? All while killing you with costly repairs, plus they just look like a bit more angular verion of the old s class (00-05), which were also abysmal representations of the automotive art
Click to expand...

I have a Lexus ES right now. It is pretty good on gasoline. :) Good call, r there any Mercedes worth buying? I always love Lexus and Mercedes.
 
SHC1984 said:
I have a Lexus ES right now. It is pretty good on gasoline. :) Good call, r there any Mercedes worth buying? I always love Lexus and Mercedes.
Click to expand...

Nice pick on the es, IMHO the ES or IS is the best bang 4 the buck, GS or LS if u want to spend more $$. I totally am w/you on the desire to get a Benz, they definitely have good looks/performance but the poor reliability detracts greatly from the reputation, I guess you just have to decide on whether you'd be willing to pony up several grand extra per year for repairs. The C or E classes are likely better than the S as they can be had for 1/3 to 1/2 the price respectively, and they will stay around the same price range of what the s class of a similar year would depreciate to, thus you would lose less in depreciation on these; and pretty much 95% of the population wouldn't know the diff between a C and an S class, all they see is the benz emblem.
 
tongiecc said:
Nice pick on the es, IMHO the ES or IS is the best bang 4 the buck, GS or LS if u want to spend more $$. I totally am w/you on the desire to get a Benz, they definitely have good looks/performance but the poor reliability detracts greatly from the reputation, I guess you just have to decide on whether you'd be willing to pony up several grand extra per year for repairs. The C or E classes are likely better than the S as they can be had for 1/3 to 1/2 the price respectively, and they will stay around the same price range of what the s class of a similar year would depreciate to, thus you would lose less in depreciation on these; and pretty much 95% of the population wouldn't know the diff between a C and an S class, all they see is the benz emblem.
Click to expand...

yeah I agree. I think I only want a mercedes b/c I never own one before! lol...
but it is obviously smarter to put most of your money especially during the first few years on saving on a down payment for your future house and paying off student loans. I most likely will drive my current car/living in a apartment until all my student loans are paid off.

I also think unless you are super rich it is best to buy a car that has 10K to 20K miles on it...buying a brand new car is a waste of money too .
 
I rode around in a Lexus IS the other day. Very, very nice car, I liked it a lot.
 
SHC1984 said:
I also think unless you are super rich it is best to buy a car that has 10K to 20K miles on it...buying a brand new car is a waste of money too .
Click to expand...

Not if you use the cash for clunkers program like I did last year. Thank you dems!
 
Interesting point about Bill Gates. Apparently even Warren Buffet drives around in an old car. Me, I'm a Mazda fan. Had an M626 which I traded in with 135k miles. Never would aceept a pint of oil even after all that mileage. Then down to an M3 which really loved. Now at 77 on what may be my last car, an M2. Comfortable and economical. Only fault , a bit of road noise.
In the UK, style and economy come together in a Mini Cooper.
johnep
 
phathead said:
For the love of God do not by a brand new car. One of the worst financial purchases you can make is buying a new car. You lose thousands of dollars in value the minute you drive it off the lot.

Find something 'new' with under 10,000k miles.
Click to expand...

Getting 0% APR changes this equation when purchasing a new car if you're financing.

That being said, as someone who got to use an aunt's BMW 5 series for a year while she was away, I wanted to offer my $0.02.

I like cars, and at first, I was all "wow, cool I'm driving a BMW 5 series". But over a couple of months, I got used to the car. It then becomes just another car. It's not like every time you enter the car, you feel the excitement that you feel the first time you use the car - even the excitement you feel while researching the car.

On the other hand, If I had $40,000 of my loans paid off, I will feel that extra $250/month that I now have, every single month, forever.

I know life is not about being a bank account, so the logic above only holds true up to a point. I don't know, it's a preference at the end of the day that only you can make. good luck.
 
tongiecc said:
Nice pick on the es, IMHO the ES or IS is the best bang 4 the buck, GS or LS if u want to spend more $$. I totally am w/you on the desire to get a Benz, they definitely have good looks/performance but the poor reliability detracts greatly from the reputation, I guess you just have to decide on whether you'd be willing to pony up several grand extra per year for repairs. The C or E classes are likely better than the S as they can be had for 1/3 to 1/2 the price respectively, and they will stay around the same price range of what the s class of a similar year would depreciate to, thus you would lose less in depreciation on these; and pretty much 95% of the population wouldn't know the diff between a C and an S class, all they see is the benz emblem.
Click to expand...

Only Lexus I'd buy is the IS-F. Or the LFA if I won the lottery.
 
Last edited:
johnep34 said:
Interesting point about Bill Gates.
Click to expand...

Sam Walton, the founder of Walmart, drives a old ford pick up truck. Most very rich people are not very showy with their money. Most of the rich people I know live in million dollar houses but they drive hondas or nissians b/c cars really are a waste of money. Buying expensive houses are okay, but buying expensive cars is a waste.
 
People who drive in $50,000+ car need to compensate for their small weiner.

You lose around $3000-5000 for $25k car every year you own the car whether your drive it or not... $3k/year just for show off, no thanks...
 
spacecowgirl said:
Definitely, I agree with that.


My point though is how much did your friend pay in interest in those 4 years? We've lived in our house for 2.5 and have paid 3x as much in interest as in principle and we make extra payments. That cuts into your 35K "profit" in a hurry. Not to mention the several grand you pay at closing when you're buying and then when you're selling. That's all I'm saying. You can't just look at "bought for X, sold for Y" you have to factor in everything else you paid. Even at a low interest rate, you pay tons of interest at the beginning of your loan, not to mention the monthly PMI, hazard insurance, and property taxes. We are at 5.5% (refinancing now though) and still pay a metric *hit-tonne in interest every month. When our parents bought their houses, interest at <10% was unheard of; they owned about 1 shingle in equity after a year.

If you are buying a house outright in cash, disregard what I'm saying. Everyone else, listen up.:laugh:
Click to expand...

Sorry, I shoulda clarified, that $35k, or so, includes interest. I realize you have to factor everything else in, that was beat into my head so many times in my accounting and finance courses that I pretty much hear it in my sleep lol.

All4MyDaughter said:
His house may be appraised at 200K, but there is no way to tell if he'd be able to SELL it for that. Many houses in many markets are selling at below appraisal these days.

I agree with others that money spent to purchase your primary domicile should not be looked at as an investment. Investment (rental) properties are different, of course, but making "a killing" off them can be tricky too. Especially for the landlord who only has a few properties.
Click to expand...

His house would definitely sell for $200k right now, maybe more. He is in one of the most desirable cities in the country, in one of the best neighborhoods in that city. I won't get in to the dirty details on why he got such a good deal on it, but it was priced way, WAY under the avg house price in the area.

Even when you factor in inflated pricing.
 
What about building a siiiiick rice rocket? Silvia S13/S14 with SR20DET motor? Redo the entire interior? Nice ride under 15k?
 
Last edited:
SHC1984 said:
Sam Walton, the founder of Walmart, drives a old ford pick up truck. Most very rich people are not very showy with their money. Most of the rich people I know live in million dollar houses but they drive hondas or nissians b/c cars really are a waste of money. Buying expensive houses are okay, but buying expensive cars is a waste.
Click to expand...

I wonder what kinda mileage he gets where he is. Sam Walton died almost 20 years ago.
 
I own a Honda Fit and its relatively a cheap car. I get good gas mileage (avg. 44-45mpg) out of the thing and its a very good car IMO.
 
gotta love people who are always reliable for the LOLs :love:
 
You must log in or register to reply here.
Next unread thread

Similar threads

BidingMyTime
"America's Frontline Doctors" (anti-vaxxers) want to sue pharmacists
Replies
6
Views
1K
RxPreceptor
RxPreceptor
Old Timer
Help Wanted Pharmacy Student
Replies
3
Views
664
mentos
mentos
VA77
PrePharmers - You want to win $200?
Replies
1
Views
941
Gombrich12
G
P
What do you want future MDs to know?
Replies
22
Views
2K
297point1
297point1
J
New Zealand pharmacist wanting to work in USA
Replies
8
Views
2K
nickw2401
N
Top