Take the money (difference) you would waste on depreciation and insurance increases, and start putting it away NOW to see if you can hang. Then when your car is out of warranty, have someone swap in a 2.5 block into your car and support it with SENSIBLE mods. Be above an STi for less initial and recurring expenses.

I was pretty set on getting an STi a couple years ago, but decided not to for a few reasons that make sense for me personally: I wanted a coupe, I was irritated that even if I bought an STi I would still have to buy aftermarket STi parts to get it to the place I would want it, the '04s were having issues and I cannot handle the '04 STi steering wheel or the '04 in general. '05s are coo, but still too many doors.

As far as me, I paid cash for my '01 RS. This is one reason I cannot afford a swap. I spent my swap money moving me, my cars and my g/f to Hawaii last year and then back again 6 months later. A swap would have been much more rewarding...

 

As far as me, I paid cash for my '98 OBS. This is why I cannot afford a swap.

I went a similar route as wombat. I didn't like having the WRX car payment I had (I bought a condo, so that's mostly why.) My monthly was about 10% of my monthly net. Mortgage was 50%. Insurance was way high, so the WRX had to go.

 

***ka car payment



do what fits w/ your budget...be meticulous about creating a budget...put money aside for 401k, put money aside for general savings (PAY YOURSELF FIRST, ALWAYS), then see what you got left and then decide what you can afford for a car payment.

good luck and enjoy!

 

TRUTH.

The "pay yourself first" is spoken like Robert Kiyosaki.

 

im almost done paying off my 2.5RS....i bought it last march...i ownly owe $504.16 left which will be paid off next fri or even sometime this week
i got sick of doing car payments...plus by me paying it off, im saving like 600$ in interest anyways

 

It depends on which point of your life you're at. What you value more, what your plans are.

My car payment is gonna be in the neighborhood of 15-16% probably, but when I was younger, my car payment was a good 33%, I was barely able to bring myself up to buying my car. And sometimes I think maybe I shoulda picked up a used wrx wagon out of warranty so I can mod it as I want to, and it'd be cheaper than a new one and I don't have to worry about voiding a non existent warranty.

Do you want to buy a house/condo in the near futre? College funds if you're young enough. If you want it go for it. But do you really need a STi? But then, does anyone...are you really gonna go that much faster on the wide open streets in the bay area(yes sarcastic).

My gf asks me, why did you buy all this stuff for your car? I respond, make it go faster, then she says "for what?" 25-35mph speed limits in berkeley...

sorry poorly constructed ideas in no way of a flow, don't want to think...extract what you can

 

That guy is a joker. I like to think of my the money I set aside in my bank every paycheck as another "bill" to pay, so to speak.

 

It depends on how much you love cars also...what if cars are one of the things you value most while living your life?

I would base your car payment off of where you want to be on monthly income. Personally I do it like this: I get paid every 2 weeks. I want to be able to cover all bills and expenses with a single paycheck.

If I can pay rent, food, pge, phone, cable, internet, car, insurance, and student loan all on a single paycheck I'm good. That way you have enough money with the second paycheck for savings, emergencies, and fun.

 

haha, that is the exact same thing I thought when I read that post.

 

damn, stupid, logical i-club! :P I feel like my brain is homer, with smart and stupid homer duking it out, lol.

I could afford the monthly payments and ins but I would be bummed on having no money for random stuff like going to the movies, starbucks, booze, etc....BUT I would have a DOPE car, haha.

Ive thought of the STi wagon swap, that would be my dream, but its a big committment. I have a lot of supporting mods already but it would be at least $12K for 6 speed, big brakes, 2.5L, FP green, injectors, fuel pump, AP, installation....THEN I would have to deal with smog eventually.

DAMN STi's!!!!!!!!!!

 

Just remember that in 10 years the STI will be a pile of ****. Look at a 10 year old M3 and tell me how much P**sy that car would get you today.... no more that I could get without the car .

Do you have a house? Where do you want to be in 5 or 10 years? If you don't get the STI and put aside that equivalent annuity for 5 or 10 years you can buy 1 new one every 10 years just on the interest.

Ever see all those 16 year old punk kids with new cars? There parents often lived frugally and invested, and that's why they can afford to pay cash for shiz like that.

Your wagon is pimp-daddy already, you lucky bastard.

 

You only live once man.

Don't let people fool you with all this "save up for later" stuff all the time. Everyone I know that has money has it because they got windfalls from somewhere. Either their house appreciated to the point where they have 300k in equity, they had a death in the family where there was an insurance/estate, or someone retired with a big pension and realized they should spread some joy around to people because life is all about having a good time while you're here.


By the time you can save up 20% down payment for a house in the Bay Area you could have made that much money in appreciation/tax write offs to refinance. A house used to be the only big thing people needed to save money up to buy, and with the way the housing market is in our area these days I'd say to just keep renting if you're getting it cheap. Yeah, I won't be able to potentially cash out in a few years, but I also won't be stuck with a house that won't sell because everyone is trying to cash out at the same time while in a plateau. Houses have been staying on the market longer and longer lately. I don't see that getting better anytime soon..especially since this season is supposed to be the best for home sales. My best friend is stuck in a house that has 6 others like it in the same neighborhood all for sale. They've been trying to sell for months now. I don't see that getting better anytime soon, and with the way bankruptcy laws are now you can really get youself into trouble if you get in too deep. The housing here is just a big risk now and I don't see these 700k 50 year old homes appreciating much more in the next few years.

 

Haha... Yeah logic sucks sometime. I have never been on a Mommy Sponsorship Program, so I have had to pay my way into each of my cars (except a few beaters that have been free and don't count). I have to say for me personally the short answer is I prefer a cheaper, fun paid off car + all the little fun expenses to one super flashy car and no fun little things. We are all different.

 

You make good points.

 

To further this point, keep in mind that many homes (50% range) have been bought in the last 4 years w/ interest only ARM's.

This means that soon, these mortgages will now increase considerably as interest rates go up, AND the fact that they will now become due to paying off principal in addition to interest.

Combine that with again, interest rates going up, fear of inflation, the stock market, and the housing market, things are going to become tighter for many families.

I'm not a doom and gloom type, but it's simply overwhelming sometimes thinking about complicated buying a home can be in an extremely high demand area.