Neighbor talked me out of BTD

[kgtest]

I was going to spend 60k on a Camaro Convertible that I "wanted". Was telling the neighbor about it, and she said don't you want to retire early? Keep going on big vacations? I came to my senses and agreed, buying the car does not align with my goals. It was fun dreaming and wishing about it.


The car I never bought, was literally scheduled to order today. nah, nah nah nah... nah nah nah, nah... hey, hey, hey, Gooodbye!

I can afford the car, but money would be well spent saving for the future. Might set my FIRE goal back a year if I bought it. Sure it would be fun, but I bet it would get old after a while.

 

[2HOTinPHX]

What about a used one? Set yourself a price limit say 30K or 20K..then go shopping on a site like CarGurus...use their filters to nail down things like color engine mileage..... shopping is half the fun.

Have you driven one?
Have you spent countless hours watching reviews on YouTube?
Have you checked Craigslist? Here in Phoenix there is no sales tax.... almost makes up for the 110 plus summers... LOL.

There is an elderly lady across the street with a Camaro. Have never talked to her. We call her Camaro lady...almost every morning at 630 we hear her start her Camaro and roar off to wherever she goes.....sweet sound!

 

[COcheesehead]

If you can afford it, you can afford it. If you have to give something up like early retirement or future vacations, you probably can’t afford it.

 

[Healthy Lifestyle]

I did not realize how expensive these cars are. I was thinking more like 40-45k.
I always thought I would treat myself and buy a Mustang,
but not for 60k, and yes I can afford it!

 

[RobbieB]

The Camaro has always been there for those who can't afford a "vette"

 

[street]

The Camaro has always been there for those who can't afford a "vette"

I'm thinking a Vette convertible starts about that same price. I would have to search that but close to that price. I know a guy that buys vette almost every year. Every one of his kids and grandkids own one, he has bought them for them.

 

[TheWizard]

If you can afford it, you can afford it. If you have to give something up like early retirement or future vacations, you probably can’t afford it.

I tend to disagree.
Working people need to keep on track with their retirement savings, we can agree on that.
But it's not necessary to save every dollar beyond basic expenses in order to achieve extreme early retirement.
It's possible to achieve BALANCE in where your money goes to.

In my case, I've only bought new cars since 1975.
Presently I have a 2016 F-150 which cost ruffly the same as that Camaro would have.
I also have a 2008 Mustang convertible which I'm hoping to upgrade to a 2024 MY before too long...

 

[COcheesehead]

I tend to disagree.
Working people need to keep on track with their retirement savings, we can agree on that.
But it's not necessary to save every dollar beyond basic expenses in order to achieve extreme early retirement.
It's possible to achieve BALANCE in where your money goes to.

In my case, I've only bought new cars since 1975.
Presently I have a 2016 F-150 which cost ruffly the same as that Camaro would have.
I also have a 2008 Mustang convertible which I'm hoping to upgrade to a 2024 MY before too long...

I think you misunderstand. My point is what I think you are saying.

 

[freedomatlast]

So, say the 60K you don't spend today is worth 120K when you retire in 2031. Is 120K really going to make a difference if you retire in 2031 or not? If it is, you might be cutting it a little too close. For many that RE'd , 60K is merely a daily market fluctuation.

Also, you might want to rent one for a weekend before you buy. Visibility is really poor in those.

 

[kgtest]

So, say the 60K you don't spend today is worth 120K when you retire in 2031. Is 120K really going to make a difference if you retire in 2031 or not? If it is, you might be cutting it a little too close. For many that RE'd , 60K is merely a daily market fluctuation.

Also, you might want to rent one for a weekend before you buy. Visibility is really poor in those.

Yeah it's more the allure of having more in retirement and sacrificing today. 60k today is likely going to be 120k+ in 2031 (good eye on knowing my ER year) vs the car just being an expense.

I've never spent 60k on a new vehicle before, so its partially the price point. Maybe used would be a better choice for this "want". It wouldn't move the needle a ton in terms of future retirement expenses...nor would it set me back today in terms of cash flow...but just knowing I could double or triple that money in the next 10 years and be able to spend more later was alluring.

Nobody in my family seems interested in the car. So selfishly (which is totally ok) it would just be something that benefits my own desire for a fun car. Then I got to thinking...I could easily take 10 trips to Disney world with 60k... and the family really enjoys these trips we go on... so maybe that is where I spend it instead. DW said she wouldn't even bother to learn how to drive a manual, and isn't keen on the purchase...even though she knows we can afford it.

I ran FIRECalc and it says we have 100% success rate so long as we continue to earn and save what we did last year for the next 8 years.

55k plus sales tax, registration and of course the added maintenance costs of a third vehicle (insurance, oil changes, new tires since those things are like 305 F1 racing tires that only hold tread to about 5,000 miles).

I might keep thinking about it. Just a little longer. So maybe I'm not 100% talked out of it. It seems though if I am not 100% "all-in" than maybe it might be something I regret. Who knows.

I rented the same car in Austin, TX a few months ago. it was a REALLY fun car. Visibility wasn't any worse than a Corvette, or any other sports car I've been in.

For 60k I could rent QUITE a few different sports cars, QUITE a few times and still walk out ahead. Certainly a car like this isn't an investment, and that is kind of messing with me, since we have been in total saver mode pushing as much dough as we can into the markets.

 

[freedomatlast]

Another way to look at it is if you buy it, you're really not out 60K forever. Say you keep and enjoy it a year or two and have some fun and then sell it for 40 or 45k. Also, as dealer inventories become larger, there might be some better deals with discounts in the months ahead.

I just spent in the 40's on a loaded SUV. I had been looking for a couple of years and finally found a dealer willing to deal so I pulled the trigger. I did think about it for a little bit but the brand I chose has good resale value, so that helped make the decision a little easier.

 

[Sunset]

And I thought I was blowing the dough 8 years ago when I spent ~$32K to buy my Toyota Sienna.

 

[RobbieB]

For only 20 grand more you can get a Corvette

 

[2HOTinPHX]

Have you considered other cars? What do you plan to do with it?
Do you have nice twisty roads you see yourself cruising along. A popular drivers car like a Miata might be a good option. Better to drive a slow car fast than a fast car slow... In a Miata you can have fun without breaking the speed limit. 40 mph feels faster...while today's higher horsepower car 80 feels like 40 and is more suitable for fun on a track.
Nice write up....
https://www.hagerty.com/media/new-car-reviews/review-2021-mazda-miata-mx-5-club/

 

[brucethebroker]

What about a used one? Set yourself a price limit say 30K or 20K..then go shopping on a site like CarGurus...use their filters to nail down things like color engine mileage..... shopping is half the fun.

Have you driven one?
Have you spent countless hours watching reviews on YouTube?
Have you checked Craigslist? Here in Phoenix there is no sales tax.... almost makes up for the 110 plus summers... LOL.

There is an elderly lady across the street with a Camaro. Have never talked to her. We call her Camaro lady...almost every morning at 630 we hear her start her Camaro and roar off to wherever she goes.....sweet sound!

Seems like a song i remember........

 

[DrRoy]

The advice goes that you should buy experiences, not things. I do some of both, but spend much less on the things.

 

[aja8888]

Over my lifetime I have had several Corvettes, Mustangs, MGBs, BMWs, etc, (convertibles). Buy a clean used one, drive it until you are tired of it (maybe years?), then sell it. The car won't be a compete loss if you keep it up.

Have fun, investing isn't everything it's made up to be.

 

[marko]

Another way to look at it is if you buy it, you're really not out 60K forever. Say you keep and enjoy it a year or two and have some fun and then sell it for 40 or 45k.

How about leasing the car?

Leasing generally gets you more car for a lot less money. Sort of renting it for a period without the hassle of selling it later. Tool around in it for 3 or 4 years, turn it in just as the brakes need replacing and RE happy.

I've been leasing luxury vehicles for over 35 years now. Cars that I would never pay retail to own, nor could I have afforded them.

 

[athena53]

Ah, does that bring back memories. When I met my first husband his credit was in the toilet, he didn't have a dime saved and he had a fully-loaded Camaro on order. I had a paid-for car. When the Camaro came in I took on the car loan- it was $10,000 in 1984- and he added the $2,000 from sale of his old car. What can I say? My biological clock was screaming at me. The title was in his name and the loan in mine- we had to execute some extra paperwork for that. Compounded at 4% that $10,000 would be $46,000. Ugh. Well, the eventual marriage produced my wonderful son and my 3 grandchildren. There's that.

I'm a firm believer in enjoying some of your $$ along the way. Cars are not my priority but travel is. Having a second husband who was 15 years older made me realize that we shouldn't save all the travel for when I retired. Life has no guarantees. When my investments tanked during the financial crisis it was also nice to remember some of the good things we'd done- places we'd visited, causes we'd supported.

So... give it some thought. Don't stash it all away for "someday". The splurge may not be a fully-loaded Camaro but something else. You'd mentioned multiple trips- the good thing about travel is that you'd be less likely to shell out $60K in one lump as you would with a car. You can adjust if things change over the years.

 

[OfficeSpace]

The Camaro has always been there for those who can't afford a "vette"

Over my lifetime I have had several Corvettes, Mustangs, MGBs, BMWs, etc, (convertibles). Buy a clean used one, drive it until you are tired of it (maybe years?), then sell it. The car won't be a compete loss if you keep it up.

In 2015, I bought a C6 Corvette Z06 from the original owner at just over $30k. For the next five years, I thoroughly enjoyed blasting around the rural back roads of north central / western Maryland and south central Pennsylvania. It was an absolute hoot, and somehow I managed to get only one speeding ticket. In 2019, I sold it for just under $30k, so the ROI was pretty hard to beat. It was a very special (and woefully impractical) car that I never would have considered purchasing new ($80k sticker) so could not have owned otherwise. Zero regrets!

Have you considered other cars? What do you plan to do with it?
Do you have nice twisty roads you see yourself cruising along. A popular drivers car like a Miata might be a good option. Better to drive a slow car fast than a fast car slow... In a Miata you can have fun without breaking the speed limit. 40 mph feels faster...while today's higher horsepower car 80 feels like 40 and is more suitable for fun on a track.

Admittedly, this argument has merit. A race car (effectively) is a handful on the street. I love rowing through gears, but my C6Z could exceed 60mph in first, limiting opportunity to do much more than short-shift. Track time is a different story, of course...

It was not a good car for c*mmuting yet I felt compelled to drive it as much as possible, and eventually I realized that more sitting was not what I needed while still w*rking so ultimately opted to trade road & track thrills for mountain biking and hiking with our newly adopted shepweiler pup. I FI/REd two years later, and DW is FI/REing next month (woot!), so this speed junkie / gear head will let things settle for a while before deciding what's next (the new Kia EV6 GT looks fun!)...

Good luck!

 

[Popeye]

For only 20 grand more you can get a Corvette

Not if you go for the Z06!

 

[Badger]

It was not a good car for c*mmuting yet I felt compelled to drive it as much as possible, and eventually I realized that more sitting was not what I needed while still w*orking so ultimately opted to trade road & track thrills for mountain biking and hiking with our newly adopted shepweiler pup. I FI/REd two years later, and DW is FI/REing next month (woot!), so this speed junkie / gear head will let things settle for a while before deciding what's next (the new Kia EV6 GT looks fun!)...

Good luck!

Given the choice I would opt for the dog.

Cheers!

 

[marko]

I'm a firm believer in enjoying some of your $$ along the way. Cars are not my priority but travel is. Having a second husband who was 15 years older made me realize that we shouldn't save all the travel for when I retired. Life has no guarantees. When my investments tanked during the financial crisis it was also nice to remember some of the good things we'd done- places we'd visited, causes we'd supported.

So... give it some thought. Don't stash it all away for "someday". The splurge may not be a fully-loaded Camaro but something else. You'd mentioned multiple trips- the good thing about travel is that you'd be less likely to shell out $60K in one lump as you would with a car. You can adjust if things change over the years.

+1. Wisdom! Had a friend who's uncle really wanted a pool. His wife wouldnt hear of it claiming it would hurt the resale value of the house. They lived there for another 28 years and then the uncle died. For what?

YOLO

 

[Time2]

My 28 yr old son is living with us for the last two years. He has a good job and is saving over 65% of his income. He has recently brought home some flyers from apartments and checking on prices. He's looking at $1500 a month rent. I pointed out 2 years of rent will cost you $36,000 plus you will have a lot of additional expenses, could total $50,000. Using MMM's 10 year thought about saving now, that could grow to over $130,000 in 10 years. We'll see if he BTD or not. We enjoy having him around, plus, he's our free tech support!

 

[Midpack]

If you can afford it, you can afford it. If you have to give something up like early retirement or future vacations, you probably can’t afford it.

Doesn’t matter what anyone else says - this is the decision each of us have to make for ourselves many times before and during retirement. DW had her mid-life crisis car at 45 yo. I resisted until last week at age 68. YOLO