should I buy it?
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should I buy it?
I am a graduating college senior, and I hope to have a job paying me at least 35K a year by the time the sti appears on our shores. With that salary, school payments, and a $32K STi do you think I would be able to afford it? All you older guys, what do you think? Or should I hold on to my crx for a few more years?
Registered User
Joined: Feb 2003
Posts: 37
From: Boston
Frey,
this depends on ALOT of factors...where do you live? what will your rent/mortgage be? what will your monthly school loans be?
how much do you have to put down on the STI added with your trade in value? I think you can afford it if the above factors are at a minimum, what I would do is a cost analysis of ALL your potential bills(loans, rent, utilities, food, gas for car, drinking money HAHA!) w/out a car payment and see what you have left over...then figure out a potential car payment...and to give you an idea, a 72 month loan (which I think you would need depending on your down payment & trade in allowance) with a total $2k down payment and $3k trade allowance to be conservative, your monthly payment would be around $450-460,
check out this link, it's my personal favorite to figure out Auto Loans!! it will even take out state tax deductions on trade ins if your state allows this....
http://www.dinkytown.net/java/AutoLoan.html
this depends on ALOT of factors...where do you live? what will your rent/mortgage be? what will your monthly school loans be?
how much do you have to put down on the STI added with your trade in value? I think you can afford it if the above factors are at a minimum, what I would do is a cost analysis of ALL your potential bills(loans, rent, utilities, food, gas for car, drinking money HAHA!) w/out a car payment and see what you have left over...then figure out a potential car payment...and to give you an idea, a 72 month loan (which I think you would need depending on your down payment & trade in allowance) with a total $2k down payment and $3k trade allowance to be conservative, your monthly payment would be around $450-460,
check out this link, it's my personal favorite to figure out Auto Loans!! it will even take out state tax deductions on trade ins if your state allows this....
http://www.dinkytown.net/java/AutoLoan.html
Even with all the costs mentioned in the above post at minimum, you got to start planning your retirement at the same time (IRA, 401K, monthly savings...). You may not think it's important at this early stage, but the power of compounding is too powerful to be ignored. If you start investing 10 years later, you would never be able to catch up even if you invest more money every month. You also need to consider after-tax income, insurance on the car, etc. The bottom line is you may be able to barely make it but you are not gonna have any money left for anything else. I'm not trying to be discouraging, but early financial planning is important.
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Buy it. If you have to have it. It will eat at you forever if you do not do it. Plan for the future but live for today. Who knows you may never have a chance for retirement or you could die today or live to be a 120. The point is that planning for retirement is important but with the markets and such you could save a fortune and have it all wiped out by an enron type bussiness crash of the markets. But at least you can say you had the STI!!!!!!!
Registered User
Joined: Jan 2003
Posts: 92
From: Santa Rosa, CA
Car Info: 2004 WRX STi
Hey frey51
I'm about as amped about this car as anybody else that reads this forum obsessively. I would love that everybody that has my level of enthusiasm for this car get one. As much as I would love to say go for it, it would, IMO, be a mistake. You're just starting out, do you really want that kind of debt. I made that mistake at your age after college. I had a solid job in the mid 30's, with overtime it was more like high 40's. I had a cool ride (Jeep Grand Cherokee), but I was esentially "car broke".
Take a look at it. Mid 30's = 20k take home, if you're lucky, after everybody gets their cut.
20k/12mo = 1600/mo
400 to 600 rent with roomate depends on where you live, probably no where cheap, otherwise you'll be parking your STi in a crappy neighborhood
150 utilities
250 school loans (mine)
400 food/misc (this is only ~13.5 per day for food),
460 STi per m41surette
150 STi insurence (= 1800/year)
This comes to 1810 to 2010. You may have less loans, live in a cheaper place. Even then 13.50 per day for everything else is just a bummer. The broke don't go out. Of course ignore all of this if you have a huge down payment or outright cash. IMO, the ability to afford anything means that it dose not adversly (at least not too much) affect your lifestyle.
It worked out ok for me. I got a job in the mid 60's after a couple of years of expierence. This made the Jeep affordable. The first couple of years kind of sucked though. I should have waited. I'm sure that there will be a even better STi here in a couple of years. Hope this helps. OMG, I sound old.
I'm about as amped about this car as anybody else that reads this forum obsessively. I would love that everybody that has my level of enthusiasm for this car get one. As much as I would love to say go for it, it would, IMO, be a mistake. You're just starting out, do you really want that kind of debt. I made that mistake at your age after college. I had a solid job in the mid 30's, with overtime it was more like high 40's. I had a cool ride (Jeep Grand Cherokee), but I was esentially "car broke".
Take a look at it. Mid 30's = 20k take home, if you're lucky, after everybody gets their cut.
20k/12mo = 1600/mo
400 to 600 rent with roomate depends on where you live, probably no where cheap, otherwise you'll be parking your STi in a crappy neighborhood
150 utilities
250 school loans (mine)
400 food/misc (this is only ~13.5 per day for food),
460 STi per m41surette
150 STi insurence (= 1800/year)
This comes to 1810 to 2010. You may have less loans, live in a cheaper place. Even then 13.50 per day for everything else is just a bummer. The broke don't go out. Of course ignore all of this if you have a huge down payment or outright cash. IMO, the ability to afford anything means that it dose not adversly (at least not too much) affect your lifestyle.
It worked out ok for me. I got a job in the mid 60's after a couple of years of expierence. This made the Jeep affordable. The first couple of years kind of sucked though. I should have waited. I'm sure that there will be a even better STi here in a couple of years. Hope this helps. OMG, I sound old.
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If you were my sibling, I'd say no, don't get the car. You're going to start having bills come in that you haven't accounted for. You don't have a job yet. Before buying a car, find a routine for all your payments/bills. You're better off with the CRX for now and then later on when the STi becomes more available, get it then.
Or you could move back in with mom and dad. You'd be able to afford the STi for sure!
Or you could move back in with mom and dad. You'd be able to afford the STi for sure!
IMO, the ability to afford anything means that it dose not adversly (at least not too much) affect your lifestyle.
Guest
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As much as you want this car, I'd seriously wait.
When I graduated, I was making a good amount more than that and I opted for the $19k RS which was perfect. After a nice raise, I'm making even more and I'm planning on the STi, but it's gonna hit me... luckily I know all my other payments/bills, so I can safely take the hit and still know I'll have enough left over for some savings and emergency funds.
I'd at least wait for 6months or so after you have your place and job, that way you know what all your expenses are. If, after that, you have at least $500/mo that you can just "throw away" and still eat, live, and have fun money then by all means go for it!
And don't forget: DOWN PAYMENT. If you truly have $500/mo to use to pay for the STi, save that money for the first 6 months or so for the downpayment. If you don't put at least $7-8k down, including tradein, then you're gonna be paying more like $600/mo just on loan... not including insurance and gas, which will add up to easily more than another $100-$200/mo.
Just be patient... and remember that the first car you buy when you get a job is nowhere near your last. I'd go for a fun cheaper car for a couple years (maybe an RS like me!! or a celica or something), save up a nice downpayment, work with your finances, then get a nicer car.
Either way... Good luck! And Congrats on your graduation + job!!
When I graduated, I was making a good amount more than that and I opted for the $19k RS which was perfect. After a nice raise, I'm making even more and I'm planning on the STi, but it's gonna hit me... luckily I know all my other payments/bills, so I can safely take the hit and still know I'll have enough left over for some savings and emergency funds.
I'd at least wait for 6months or so after you have your place and job, that way you know what all your expenses are. If, after that, you have at least $500/mo that you can just "throw away" and still eat, live, and have fun money then by all means go for it!
And don't forget: DOWN PAYMENT. If you truly have $500/mo to use to pay for the STi, save that money for the first 6 months or so for the downpayment. If you don't put at least $7-8k down, including tradein, then you're gonna be paying more like $600/mo just on loan... not including insurance and gas, which will add up to easily more than another $100-$200/mo.
Just be patient... and remember that the first car you buy when you get a job is nowhere near your last. I'd go for a fun cheaper car for a couple years (maybe an RS like me!! or a celica or something), save up a nice downpayment, work with your finances, then get a nicer car.
Either way... Good luck! And Congrats on your graduation + job!!
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Don't forget that you are looking at taking out a $30,000 loan with only having a job a short time, living at an address for a short time, and most likely a very limited credit history. Odds are good you won't get approved for a loan with out a co-signer that has really good credit. As someone who tried to buy a New Impreza back in 97 for $16,000, four months after finishing school and working a job paying $30,000, I needed a co-signer. Can't hurt to try, but if they won't give you the loan your best bet is to wait and build up your credit. I know how you feel. I wanted an RS back in 97 but couldn't get the loan, then had too much in credit card debt to buy a WRX back in 01. Now I've got the debt to nothing and should have no problem getting that loan. 
Good luck
Good luck
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Car Info: GDA
Your credit will also decide how much more or less you will have to adjust your payments based on rate and amount financed.
calculate your income to debt ratio and see what percentage you get after all monthly revolving charge accounts, studen loans, cell phone, utilities, rent, etc, etc.
If your on a bi-weekly payroll schedule @ 35K a year salary. your gross income is around $1346 a check, you would fall in the 27% tax bracket. so you will be taking home 25500 a year based on this scenario. Your take home will be $980 a check.
good luck
GDA
calculate your income to debt ratio and see what percentage you get after all monthly revolving charge accounts, studen loans, cell phone, utilities, rent, etc, etc.
If your on a bi-weekly payroll schedule @ 35K a year salary. your gross income is around $1346 a check, you would fall in the 27% tax bracket. so you will be taking home 25500 a year based on this scenario. Your take home will be $980 a check.
good luck
GDA
Registered User
Joined: Jan 2003
Posts: 92
From: Santa Rosa, CA
Car Info: 2004 WRX STi
It would be nice if all that was taken out was Uncle Sam's share.
35k/26 = 1346
Uncle Sam's share
.27*1346 = 363.46
Uncle Cali's share (skip this if WA, FL, ...)
.095*1346 = 127.87
Uncle Medicare's share
~ 60
Uncle SS's share (which you will never see a red cent)
~ 83
Uncle Helth Insurence's share (you can't afford to sikp this one)
~ 35
Don't forget uncle 401's share (better be doing this one)
.10*1346 = 134.60
1346 - (363.46 + 127.87 + 60 + 83 + 35 + 134.6) = 542.22
if you live in WA, FL, or a couple of other state you can skip the 127.87
1346 - (...) = 670.09
if you skip the 401 (big mistake)
1346 - (...) = 804.69
This comes to about 20,992 a year or 1743 a month. Not exactly chump change, but not rolling in it either. If you sub out about 610 for STi + insurence, it's doable but very tight. Live in a cheap appartment, take your girl out on chep dates, living tight for a car. Not exactly fun.
Drive a used 2002 WRX, afford nice places to take your girl, go on nice vacations (well good ones anyways), have extra for whatever. Still driving a nice ride, but living large (well medium).
Once again, OMG, I sound old.
/younger self mode on
Forget everything I said above. Just do it. Starve for this killer **** if you have to. You just got off the Top Ramen and Mac and Cheese. You can go a couple more years on it.
35k/26 = 1346
Uncle Sam's share
.27*1346 = 363.46
Uncle Cali's share (skip this if WA, FL, ...)
.095*1346 = 127.87
Uncle Medicare's share
~ 60
Uncle SS's share (which you will never see a red cent)
~ 83
Uncle Helth Insurence's share (you can't afford to sikp this one)
~ 35
Don't forget uncle 401's share (better be doing this one)
.10*1346 = 134.60
1346 - (363.46 + 127.87 + 60 + 83 + 35 + 134.6) = 542.22
if you live in WA, FL, or a couple of other state you can skip the 127.87
1346 - (...) = 670.09
if you skip the 401 (big mistake)
1346 - (...) = 804.69
This comes to about 20,992 a year or 1743 a month. Not exactly chump change, but not rolling in it either. If you sub out about 610 for STi + insurence, it's doable but very tight. Live in a cheap appartment, take your girl out on chep dates, living tight for a car. Not exactly fun.
Drive a used 2002 WRX, afford nice places to take your girl, go on nice vacations (well good ones anyways), have extra for whatever. Still driving a nice ride, but living large (well medium).
Once again, OMG, I sound old.
/younger self mode on
Forget everything I said above. Just do it. Starve for this killer **** if you have to. You just got off the Top Ramen and Mac and Cheese. You can go a couple more years on it.
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STiDreams has a great head on his shoulders. That's one of the best breakdowns I've seen. You basically have two choices: Have an STi and be broke (Remember, it'll probably have worse gas mileage than the WRX and the Rex isn't the most thrifty car when it comes to gas mileage. It's pretty good, but not exactly economy). Or have the WRX and be able to do things. I'm 26 and married. Trust me, I'm earning a little above your salary and with all the household bills, etc, it ADDS UP. haha. But if you still really want it, then heck, just get it and be happy.
Rex
Rex
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Thank You
My god, you guys sure sound like you know what your talking about. Everything that you said is what my father is going to say if I decide to get the STi. I agree with each of your points, and really dont need the pain of the extra 600 bucks a month right out of school. I guess it would be a good idea to wait, at least a few months, to see how I sit financially. I honestly thank each of you for your opinon on this matter.
Thank you
Fry
mfrey@radford.edu
Thank you
Fry
mfrey@radford.edu
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personally i'm in the same boat. I graduated college a year agoa And then went travelling for a year and now I'm back. I'd love to buy an STI. but the job market sucks the big one right now. ( though I might have a job as a Subaru saleseman in acouple weeks ) I'd say it can't hurt to wait, the STI will only get better and cheaper. and most likely you won't get financed until you get a job. hold up on it I know driving a college car sucks but do it for a while (i drive a toyota previa minivan) and then get a bit more secure and then buy the STI. by that time Subaru will have fixed all the bugs with the new motor and gobs of aftermarket parts will be available.
) I'd say it can't hurt to wait, the STI will only get better and cheaper. and most likely you won't get financed until you get a job. hold up on it I know driving a college car sucks but do it for a while (i drive a toyota previa minivan) and then get a bit more secure and then buy the STI. by that time Subaru will have fixed all the bugs with the new motor and gobs of aftermarket parts will be available.
