Bad decision?

[usafLT]

I'm getting side tracked. I have wanted to own a certain type of car for years now and I am now at the point in which between my trade in value and low interest loan, I can get it for about $250 per month. I have dreamed of owning one of these for years (did I mention that). It is used but in great condition (30k miles).

Obvious problem, that is $250/month not going toward FIRE. How do you balance the want in life with FIRE? Right now I'm having a hard time saying "no" to myself, so maybe I'm looking for a reality check here.

 

[haha]

I'm getting side tracked. I have wanted to own a certain type of car for years now and I am now at the point in which between my trade in value and low interest loan, I can get it for about $250 per month. I have dreamed of owning one of these for years (did I mention that). It is used but in great condition (30k miles).

Obvious problem, that is $250/month not going toward FIRE. How do you balance the want in life with FIRE? Right now I'm having a hard time saying "no" to myself, so maybe I'm looking for a reality check here.

So is this car a military secret? If it is a Buick, I'd say pass. A lot of other cars, buy it!

Ha

 

[Bestwifeever]

Go ahead and get it.

If you're going to work another 5 to 7 years to get that pension as discussed on your other thread, go ahead and have fun while you're doing it. Your pension will more than make up for the $250/mo not put into savings.

 

[LOL!]

A one-year loan of $250 a month would not bother me at all.

 

[Bestwifeever]

I didn't realize you are only 25. Most definitely get the car.

 

[Purron]

$250 a month? The rent on my first apartment was $240 a month. If you can't buy the car for cash money I'd say "denied". I'm sure the car is way cool and would make you feel special for a while and impress people who probably don't really give a hoot about you. Reality is this kind of spending may derail plans for early retirement and may be needed later to send future kids through college. Ask Suze Orman if you wish. Don't think you'd get a different answer.

 

[Nords]

Obvious problem, that is $250/month not going toward FIRE. How do you balance the want in life with FIRE? Right now I'm having a hard time saying "no" to myself, so maybe I'm looking for a reality check here.

Ask yourself how many more years you're willing to work to align your current values with your FIRE budget...

And then try to decide which side of the frugality/deprivation line you're on now.

I'm at the point in my life where I didn't welcome the additional responsibility of caring for a "dream car". I felt like that all the way until 2008, when I ran across our 2006 Prius...

 

[Rich_by_the_Bay]

Get the car.

Then use your guilt to be sure you start saving for retirement.

 

[bbbamI]

Good grief...at 25 I didn't know sheep shizzz from wild honey.

Here you are planning for retirement.

If you've got a decent job, no credit card balances with high interest rates, and at least six months of living expenses....buy the car.

You can always sell it if you change your mind on down the ummmm...road.

 

[Texas Proud]

Good grief...at 25 I didn't know sheep shizzz from wild honey.

Here you are planning for retirement.

If you've got a decent job, no credit card balances with high interest rates, and at least six months of living expenses....buy the car.

You can always sell it if you change your mind on down the ummmm...road.

+1

 

[LOL!]

He's not telling us that insurance would be $3500 a year.

 

[W2R]

If you're only 25, you've got nearly your whole life ahead of you in which to get the car of your dreams.

Delayed gratification is so hard! Believe me, I know. Decisions, decisions.

I will make no recommendation other than to think hard about all the associated costs (insurance, repairs, etc), to figure out how much it is really costing you with all those added in, and to consider what other uses if any you might have for that money. Make the wise decision (whichever that turns out to be), not the impulsive decision.

A reading assignment to mull over: The Ant and the Grasshopper

 

[RonBoyd]

A reading assignment to mull over: The Ant and the Grasshopper

As well as: http://www.early-retirement.org/forums/f27/when-your-doctor-says-youre-fi-50864.html#post951852

 

[ERD50]

If you're only 25, you've got nearly your whole life ahead of you in which to get the car of your dreams.

And...

Balance!

-ERD50

 

[stoutboy]

if you can bear the associated costs of the car (loan, insurance maintenance, gas, etc) AND you are still able to fully fund your FIRE and keep your bills paid, then I vote 'yes'--the money should come out of your discretionary spending. Otherwise, D-E-N-I-E-D.

 

[usafLT]

Thanks everyone for your insight! It is a 2007 BMW 3 series. I am going to do some serious number crunching and reality checking over the next few days. I'm not always good with delayed satisfaction so maybe some raw facts will make this decision a little easier. I'm going to check the true cost of maintenance and everything else. Right now my vehicle is in the shop every few months for a couple hundred dollars so I am likely to get another vehicle either way... just trying to decide what route to go.

Thanks again!

 

[Texas Proud]

Thanks everyone for your insight! It is a 2007 BMW 3 series. I am going to do some serious number crunching and reality checking over the next few days. I'm not always good with delayed satisfaction so maybe some raw facts will make this decision a little easier. I'm going to check the true cost of maintenance and everything else. Right now my vehicle is in the shop every few months for a couple hundred dollars so I am likely to get another vehicle either way... just trying to decide what route to go.

Thanks again!

Well.... a BMW... then NOOOO....


Do you know what the difference between a BMW and a cactus?



The cactus has the pricks on the outside


OK.. more BMW jokes

 

[Walt34]

He's way ahead of the game even thinking about retirement at 25. When I was 25 I bought an airplane, with only the foggiest notion of what it would cost to maintain and insure. As a result there were a few times I ate one hot dog for dinner instead of two so the package would last the rest of the week. Retirement was so far over the horizon I didn't even think about it. Admittedly the financial/retirement world is a different place now.

But still... if I was 25 I'd do it again. I had a ball with it!

 

[Rambler]

...and you think you will be staying away from the shop by buying a used Beemer

I used to have a 65 mile commute (each way), and almost every day I would see either a Beemer or a Merc on the side of the road, broken down. Only Toyotas or Hondas I ever saw like that would have been 20 odd years old. So, I will probably never own a Beemer. I went to test drive a Merc E350 the other day, but wasn't happy with it either (replacing a Lexus in by November). With all the problems Lexus and Toyota have been having, I might just end up with a bicycle...

R

 

[LOL!]

Don't auto insurance rates drop for young men when they turn 26 and get married?

 

[Danmar]

I own 4 Bimmers. Fantastic autos-the driving experience is much superior to North American built cars. What model 328 or 335? Coupe/sedan/cab? My daughter has a 328Xi sedan I drove it last weekend-great little car. Warranty will last another year (I think) You should then consider buying an extended warranty. This will cost around $1,000 per year but these can be expensive cars to fix. You only live once. I couldn't afford the car I really wanted until I was in my 50's.

 

[brewer12345]

Personally, I would suggest you skip the car. Get something inexpensive and reliable. The dollars you save now are extremely valuable down the road, and this car will cost you a lot more than 250 a month.

 

[HFWR]

The car I really want is one that starts when I turn the key.

Oh, and MUST have a/c...

 

[ls99]

Get the car.

Then use your guilt to be sure you start saving for retirement.

+1

At 25 I did not know what retirement was. Alien concept.
As for the BMW, I liked them during my short station time Germany. Definitely wanted one when finally getting back to the states. Many many years later when returned for good, realized the joys of the Autobahn (no speed limits) did not exist here. Got a VW superbeetle. Retired @59.5 exactly.

 

[FreeAt30]

I'm getting side tracked. I have wanted to own a certain type of car for years now and I am now at the point in which between my trade in value and low interest loan, I can get it for about $250 per month. I have dreamed of owning one of these for years (did I mention that). It is used but in great condition (30k miles).

Obvious problem, that is $250/month not going toward FIRE. How do you balance the want in life with FIRE? Right now I'm having a hard time saying "no" to myself, so maybe I'm looking for a reality check here.

Errr... This consideration is tailored to you because of your age. I'm not too much older than you and I'm not going to point fingers at preference. I'm not a car guy but I have plenty of seemingly frivolous expenses that far exceed $250 a month.

One part of me want to say "You're only young once. Go for it.". The more practical side of me and the habits that got me to FIRE have to point out that if you pay $250 a month for 3 years, you get $9000. If you compound at just 4% for the 22 years after you save the $9000, you'll have $21329. If you keep earning that same net 4%, you'll have an extra cash flow of $853 a year. And you'll still be quite a few years younger than the average retiring person. Everyone can jumble up the numbers as they please.

I suppose the real questions are what do you want, when do you want it, and what are you willing to give up for it.