Maverick787

‘I do think you have that element here, but I do think some are really trying to help just may come across weird. I have a friend that carries 10k in monthly car payments, and has variable income and times he scrambles. He thinks its cool to have all the cars, and he calls me cheap because I will only buy in my view way less than I can afford. I’ve seen so many get into trouble over cars ........I just see a flag with paying rent, and financing expensive toys. Been around the block a few times .......love cars but will not let them own me it’s just stuff.

AKSteve

I kind of care, but I don't want to stress over it or worry about it all of the time. Maybe if my credit rating really, really sucked I would make it a bigger priority.

For our next lesson, could you explain the national debt?

rk-d

Honestly don't know where you are coming up with this. OP's post is riddled with red flags. People are trying to tell him to wait. Be patient. Don't stretch yourself to buy a TOY. If you have to struggle to make it happen - that's your cue: Don't do it. This should be fun, not stressful.

chance6

Maverick, I totally understand that perspective, for sure. It's always good to have that financial margin available in case of the unknown. I think $10k per month in car payments would cause me to have a heart attack!

chance6

I understand the advice point of view to the OP, but then you have the extra comments criticizing him, talking down to him, "he doesn't have a 401(k)", etc...good Lord why can't we just be respectful to each other, this isn't Twitter, we're human beings that love Porsches.

It's not just this thread, it's others. Value threads. People start bragging about their net worth. It's terrible.

rk-d

With my old car, I was on the Turbo board and that forum was way worse. You had to run your credit score before posting in there. The GT3 forum is probably the most conspicuous. If I'm ever feeling good about myself, I just take a look at the "Show your Garage" thread and that fixes that.

TheBen

The monthly payment on the m4 sounds like a bit of a ripoff...

faizaan2000

I'm not one to dive into financial advise threads like this but your profile is so similar to mine that I can't help but chime in. I'm 30 now, but similar to you started my business when I was 26 and was making a similar monthly income, and had an M3 and was looking at moving into a Porsche, which I bought at 28. I get where the people saying not to buy a toy or take on any debt are coming from, but I also understand the desire to buy and enjoy a nice car while you're young, especially if you love cars and it's a priority for you like it was for me.

I'm gonna jump on the soapbox for a minute and strongly advise you not to consider what you can afford based on monthly payment but rather total cost of ownership for the period you're planning to have the car. Given that you're $12k underwater on the M4, if you add that to what you've already spent on it you'll have a better idea of what it's actually cost you for a short time you've had it. It's easy to see a 1500 - 2500 payment and think it's very affordable but that's not what you're actually spending on the car unless you keep it the whole 5 - 7 years you finance it or at least till you're no longer underwater. Without putting at least the 12k, plus taxes, plus another 15-20k down you're going to be underwater for at least couple years and so your effective cost for the car will be much higher than you think those few years. If your take home is around $150k then $30-40k starts looking a lot worse for annual ownership cost for the first couple years of having the car. You'll also be in the unpleasant position of having to maintain that income just to pay rent and car payments.

That being said there's really 3 options. Wait and put enough money down. Second, wait a bit less and spend under $100k and get something CPO. You'll have a much easier time getting financing and your effective costs will be much lower as the depreciation will be slower, allowing you to get caught up on the negative equity for the M4. Third, if you wait till you have 2 years of tax returns showing that income level you'll have a much easier time getting financed for stuff. Personally, I ended up putting a deposit on a 911 for $125k then changed my mind and picked up a Cayman for $71k and it was definitely the right choice for me.

sgtm7

New cars depreciate faster than you can drive them off the lot. Your experience with your M4 should have shown you that. Save your money, and pay cash for a used one.

BSO

If you're set on a Porsche and this deal falls through, get your money back and walk away.

Revisit a Porsche when you've gotten you credit score up, debts down and saved some of the added income you're earning. I've seen what happens when you get caught spending high and then your income takes a hit for whatever reasons. Not pleasant.

High end cars aren't a need, they're a want. At your age, get on a sound financial basis first before looking to spend big money (992 C2S starts at 114K and goes north from there). That's close to 50% of your highest projected yearly salary, higher than what published guidelines counsel for a car budget.

I won't get into credit ratings, you can educate yourself on that. Don't let desires cloud your judgement. In the end you decide what's best for you. You may have done this, but look at lease v. buy to see what is better for you.

Good luck.

RDH

LexVan

Caller ID.
Straight to voicemail.
Delete message.

Penn4S

First you are doing really well financially now so congrats on that. But no one should buy a Porsche by the "skin of their teeth".
It could just be a little early for you take the plunge. Be patient. Owning a 911 will be just as sweet in a year as it will be Monday. In a year you will eat away some of that negative equity on the M4 and you will have time to get your credit rating up even more. Pay off the credit card balances too and keep your balances at zero when you use them for a year too and your rating will go up more.
Owning a 911 should not be a burden it should be an awesome experience. You're almost there don't jump in too early.

stevensivak

Well I guess income and financial intelligence are not related in any way whatsoever...

Dan Nagy

Ditto. OP, you are off to a great start. If I were in your shoes at that age, I would be going for a 911, no question about that. Just check a few other institutions. You are young - live and enjoy it. There is plenty of time for saving, and you’ll get there when your priorities change.

The twenty-five bucks a month to monitor your credit is a good idea, too. Experience will show you how many hard pulls, but will also show you how they affect your score. It was also show how they score for various markets. I also have all the credit bureaus locked so nobody can do a hard pull unless I unlock them.