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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?
seems a little off topic... tl; dr: a country isn’t a household, taxes aren’t like your personal income, debt isn’t the same either, and America can afford a **** ton of Porsches.
Just wanted to say that you are wrong, I have been reading every comment and taking it all in; every few hours I have been checking in on the post. You all make valid points, even the people being unkind. I have decided not to even try and get the loan; my lease ends in 10 months on my M4. I'm going to ride out the lease, and I told myself if I have 150k in the bank after taxes this upcoming January I will finance a lightly used 992 S with some lesser options at around 110-115k.
The reason I have not responded yet is because I have been super overwhelmed with over 5 pages of comments and not sure even where to start!
**Disclaimer** Please do not read this as a sob story, I just wanted to make a few points about what people have been assuming. First of all, the "red flags" of me having 40 inquiries on my credit report. I have always been a very honest person and when I ask for advice I don't sugarcoat things; everything I said is the truth. I come from a very strict Iranian family, my dad forced me to get good grades... my dad never wanted me to pursue my passions, skateboarding and the arts. When I got to UCLA I got a 13% on my first general chemistry midterm. I started posting my artwork online and slowly building a following for myself. During this time my dad was threatening to take his names off of my student loans and cussing me out every day on the phone. Learning about credit, running a business, taxes, etc. was never a conversation I had with anyone so I had to learn it by myself while my business grew and I dropped out of UCLA. When I said I didn't know what credit even was at 23, I wasn't lying! I've just now been doing research and learning a lot about it. The 40 inquiries comes from retail credit cards, actual credit cards just to see if I'd get approved for fun, random car dealerships (literally submitting random credit apps on used car websites, wanting to get an M6 after I got my M4, etc.) I would always get denied so it was just something I would do as a pastime when I'd be interested in a car. It would probably be at over 100 inquiries if they didn't disappear after two years.
While I may be young and stupid to a certain degree, I chose to give you my story with nothing left out; otherwise, it wouldn't be real advice that I'm getting and would not technically apply to my story. I love being on car forums and talking about cars. I've seen a lot of the financing threads in other forums and in this one, one thing people always say is "you'd have to be crazy to let your girlfriend co-sign for you!!" and other rude comments. I knew the response that it would get and I still said it; but I know my relationship with my girlfriend and while, sure, it may be subject to change in the future but we have been together for 5 years, before I even had a penny to my name and the M4 co-sign was never an issue. I also didn't ask for her to co-sign, she offered. I know people here love to give their opinions, and it's fine because I asked for it, but everyone's situation is different and for some, like me, I don't see why my girlfriend co-signing is a bad thing. It helps her credit and she knows that I'm good for the payments.
In my line of work, your appearance is everything. Whenever I meet with a client, they are always impressed by my M4 and make a comment about it. I'm a GRAPHIC DESIGNER, I'm supposed to be a starving artist. I'm supposed to charge $100 for a design that takes me 8 hours to do with 5 revisions. Nope. I built a name for myself, my work is incredible, and I charge what I want. I was talking to my uncle a few weeks ago, a very accomplished lawyer. He was telling me how I'm lucky that in my line of work having a nice car gets me more business, while in his, if he pulls up in a Bentley people think that he's charging too much and try to get a better rate. He said something along those lines, I forget exactly what he said. Basically, when people come to me, they're coming to a "symbol of success" in a way. I made it from nothing through art. So when they see that, they can relate with that and want the same for themselves. It's a bragging right for them to have a design made by me featured in their clothing. Sorry if it's hard for me to articulate my point here, I'm not very good with words.
Another thing. I don't drink, I don't smoke, I don't go out, I've never done drugs. I love my job. I love my family and I'm a home body. I don't spend money on much except clothing. I don't travel or do "vacations" because I don't need a break. The one thing I really enjoy more than anything is getting in my car and driving around. I love driving everywhere, it puts a smile on my face. I love paying 1320 a month for the worst M4 lease deal you'll ever see in your life. I've never thought about retiring because I've never actually worked, I truly love what I do. It's been a wild ride and I'm looking forward to growing more and more. Do I need to be more financially literate? Of course! Is buying any new sports car a bad idea? 100%. I'm sure I'd be just fine in a Toyota Corolla but I don't want a Toyota Corolla, I want to show people in my line of work that I can afford something that they cannot and I'm successful but that I worked hard to get it.
Sorry my mind is all over the place but I guess the biggest point to take here is I will wait to get a 992. Thank you guys so much, specifically to the people defending me in this thread. It means a lot to me. As far the rude and back handed comments, I was totally expecting it. I see it in so many threads here, don't worry I have thick skin! Even though I feel like you could have said things in a nicer way, I definitely took the advice.
Also here's my artwork if anyone is interested in seeing what I do: instagram.com/crimewave This is just my style of artwork that I like to showcase but I'm a Swiss army knife of design; this type of art is not everyone's cup of tea but hope you find something you like even a little!
In my line of work, your appearance is everything. Whenever I meet with a client, they are always impressed by my M4 and make a comment about it.
That's old school thinking for such a young guy. I used to flash my cars in front of clients to get business but these days a strong website seals the deal before you ever meet them. Mine gets me dates too, just sayin, especially since you're a graphics designer.
Anyway, glad to hear you've revamped your plan, you'll thank yourself when you look back. I would permanently ditch the co-signer plan too no matter who's idea it was.
Your plan is sound. - a pre-owned car in a year or so. The people that get rid of these cars after that amount of time have generally babied, loved, garaged and polished them. Leaving them after 2-3 thousand miles, and they look like a new car. Then you buy it for ~ 20% less.
Checked out your Gram page. Little bit of Banksy in you. Keep at it, and enjoy
Just wanted to say that you are wrong, I have been reading every comment and taking it all in; every few hours I have been checking in on the post. You all make valid points, even the people being unkind. I have decided not to even try and get the loan; my lease ends in 10 months on my M4. I'm going to ride out the lease, and I told myself if I have 150k in the bank after taxes this upcoming January I will finance a lightly used 992 S with some lesser options at around 110-115k.
The reason I have not responded yet is because I have been super overwhelmed with over 5 pages of comments and not sure even where to start!
**Disclaimer** Please do not read this as a sob story, I just wanted to make a few points about what people have been assuming. First of all, the "red flags" of me having 40 inquiries on my credit report. I have always been a very honest person and when I ask for advice I don't sugarcoat things; everything I said is the truth. I come from a very strict Iranian family, my dad forced me to get good grades... my dad never wanted me to pursue my passions, skateboarding and the arts. When I got to UCLA I got a 13% on my first general chemistry midterm. I started posting my artwork online and slowly building a following for myself. During this time my dad was threatening to take his names off of my student loans and cussing me out every day on the phone. Learning about credit, running a business, taxes, etc. was never a conversation I had with anyone so I had to learn it by myself while my business grew and I dropped out of UCLA. When I said I didn't know what credit even was at 23, I wasn't lying! I've just now been doing research and learning a lot about it. The 40 inquiries comes from retail credit cards, actual credit cards just to see if I'd get approved for fun, random car dealerships (literally submitting random credit apps on used car websites, wanting to get an M6 after I got my M4, etc.) I would always get denied so it was just something I would do as a pastime when I'd be interested in a car. It would probably be at over 100 inquiries if they didn't disappear after two years.
While I may be young and stupid to a certain degree, I chose to give you my story with nothing left out; otherwise, it wouldn't be real advice that I'm getting and would not technically apply to my story. I love being on car forums and talking about cars. I've seen a lot of the financing threads in other forums and in this one, one thing people always say is "you'd have to be crazy to let your girlfriend co-sign for you!!" and other rude comments. I knew the response that it would get and I still said it; but I know my relationship with my girlfriend and while, sure, it may be subject to change in the future but we have been together for 5 years, before I even had a penny to my name and the M4 co-sign was never an issue. I also didn't ask for her to co-sign, she offered. I know people here love to give their opinions, and it's fine because I asked for it, but everyone's situation is different and for some, like me, I don't see why my girlfriend co-signing is a bad thing. It helps her credit and she knows that I'm good for the payments.
In my line of work, your appearance is everything. Whenever I meet with a client, they are always impressed by my M4 and make a comment about it. I'm a GRAPHIC DESIGNER, I'm supposed to be a starving artist. I'm supposed to charge $100 for a design that takes me 8 hours to do with 5 revisions. Nope. I built a name for myself, my work is incredible, and I charge what I want. I was talking to my uncle a few weeks ago, a very accomplished lawyer. He was telling me how I'm lucky that in my line of work having a nice car gets me more business, while in his, if he pulls up in a Bentley people think that he's charging too much and try to get a better rate. He said something along those lines, I forget exactly what he said. Basically, when people come to me, they're coming to a "symbol of success" in a way. I made it from nothing through art. So when they see that, they can relate with that and want the same for themselves. It's a bragging right for them to have a design made by me featured in their clothing. Sorry if it's hard for me to articulate my point here, I'm not very good with words.
Another thing. I don't drink, I don't smoke, I don't go out, I've never done drugs. I love my job. I love my family and I'm a home body. I don't spend money on much except clothing. I don't travel or do "vacations" because I don't need a break. The one thing I really enjoy more than anything is getting in my car and driving around. I love driving everywhere, it puts a smile on my face. I love paying 1320 a month for the worst M4 lease deal you'll ever see in your life. I've never thought about retiring because I've never actually worked, I truly love what I do. It's been a wild ride and I'm looking forward to growing more and more. Do I need to be more financially literate? Of course! Is buying any new sports car a bad idea? 100%. I'm sure I'd be just fine in a Toyota Corolla but I don't want a Toyota Corolla, I want to show people in my line of work that I can afford something that they cannot and I'm successful but that I worked hard to get it.
Sorry my mind is all over the place but I guess the biggest point to take here is I will wait to get a 992. Thank you guys so much, specifically to the people defending me in this thread. It means a lot to me. As far the rude and back handed comments, I was totally expecting it. I see it in so many threads here, don't worry I have thick skin! Even though I feel like you could have said things in a nicer way, I definitely took the advice.
Also here's my artwork if anyone is interested in seeing what I do: instagram.com/crimewave This is just my style of artwork that I like to showcase but I'm a Swiss army knife of design; this type of art is not everyone's cup of tea but hope you find something you like even a little!
Cheers! Wish you the best OP. I think that decision makes the most sense... try to have patience... tough when you're young and you're used to moving 1000 mph. I started becoming a little less 'must have it now' when I got into my 30's.
In the near future you will have 150k in the bank and then you are going to buy a used 911 for over 100k?
Tell us you are not serious.....
He said if he has 150K in the bank, he will finance a car that cost 110 to 115K. What is the problem financing a car that cost less than the amount of money you have in your bank account? I would venture to say, that the majority of people finance cars that cost way more than what they have in the bank. Are you implying, that since he would have the cash to buy it without financing, he should pay cash to save on the interest charges?
He said if he has 150K in the bank, he will finance a car that cost 110 to 115K. What is the problem financing a car that cost less than the amount of money you have in your bank account? I would venture to say, that the majority of people finance cars that cost way more than what they have in the bank. Are you implying, that since he would have the cash to buy it without financing, he should pay cash to save on the interest charges?
it’s unclear if he means a total net worth of 150K or cash on hand of 150K. wee bit of difference. Steve probably guessed the former, and it’s not unreasonable to question the wisdom of that. I wouldn’t personally feel comfortable without a few such years under the belt. Independent contracting is tough and income often unpredictable. The M4 is a fine car.
On the other hand, if he’s starting from near 0 and he has free cash flow of 150K / yr then financing a 100k car over 6 years is very affordable. For a guy who isn’t taking crazy vacations or enjoying any other sins (Do it! Youth wasted on young!), choosing the car to be his thing while otherwise saving 150k / yr is a respectable choice.
it’s unclear if he means a total net worth of 150K or cash on hand of 150K. wee bit of difference. Steve probably guessed the former, and it’s not unreasonable to question the wisdom of that. I wouldn’t personally feel comfortable without a few such years under the belt. Independent contracting is tough and income often unpredictable. The M4 is a fine car.
On the other hand, if he’s starting from near 0 and he has free cash flow of 150K / yr then financing a 100k car over 6 years is very affordable. For a guy who isn’t taking crazy vacations or enjoying any other sins (Do it! Youth wasted on young!), choosing the car to be his thing while otherwise saving 150k / yr is a respectable choice.
He specifically said, and I quote, "if I have 150k in the bank".
Again, thank you guys so much for the support and the help; it means more to me than you know!
The more I look at this deal, the more I know it's definitely not the right thing to do. I'm glad that I was initially rejected from the financing and there will be another great 911 that I can purchase in a year.
I was just looking now and there are 991.2 Carrera S's with 2,000 miles on the odometer, selling for 30k under their MSRP. (from 141k to 110k). If I ride out my M4 lease for the next ten months and get a CPO 992 I would be saving around $650 a month over 72 months which is almost 50k! Crazy. That's definitely my plan of action.
Thank you guys again for the financial advice but especially the kind words, support and encouragement.
Before you buy a new $150k Porsche I believe you should own your home, have retirement accounts, top credit sorted out, little or no debt other than mortgage, and enough cash to buy the car outright if you wanted to, even if you ultimately take a loan. You should have a large savings as well. there’s plenty of less costly cars that are great to own/ lease while you work your way there. Otherwise at best it’s imprudent at worst dangerous financially and will impede your future economic growth and fiscal health. Buy a used 991 I’m sure those are an awesome way to hold you over a few years. Just my 2 cents. Good luck, much respect to everyone’s opinion and path to success.
Before you buy a new $150k Porsche I believe you should own your home, have retirement accounts, top credit sorted out, little or no debt other than mortgage, and enough cash to buy the car outright if you wanted to, even if you ultimately take a loan. You should have a large savings as well. there’s plenty of less costly cars that are great to own/ lease while you work your way there. Otherwise at best it’s imprudent at worst dangerous financially and will impede your future economic growth and fiscal health. Buy a used 991 I’m sure those are an awesome way to hold you over a few years. Just my 2 cents. Good luck, much respect to everyone’s opinion and path to success.
This is the philosophy I've followed, but it's not for everyone. It's very conservative.
Cars are not as big a deal as something like a house - you can sell a car (ie to a dealer) in one day. Granted you may take a bath, but it can be done. I think the critical issue - can you afford the depreciation and/or negative equity if the sh*t hits the fan?
03-01-2020, 11:41 PM
