ELUSIVE

Given the fact that you didn't have the credit in 2005 to buy a 6 year old used car (even with a co-signer), I'm going to go out on a limb and say that you're not going to be able to qualify for a $110K car with only $65/year income.

Why would you pay off the house before the motorcycle? You can write off the interest on the house.
And if you have the available monthly funds, then why is it going to take you 8 months to pay off the motorcycle loan which is probably very low?

Something just seems fishy here.

99_Carrera

Sure, think it's fishy if you want, but it's exactly how I've done things. A Honda financed at 1.9% was way less concern than a house financed at 4.5% compounded. A huge difference whether or not you can write it off. I opted to get rid of the compound interest before addressing the simple interest. Honestly, I hate to sound rude, but maybe it is you that doesn't understand simple vs. compound interest... Oh and I am taking my time paying off my bike because I can. And save. And spend money elsewhere... etc. I am not trying to speed-pay off my bike right now.


I am wholeheartedly appreciating the reality check. It'll be about a year+ before I pull the trigger on a 911, and I really think that I should give the 997 a long hard look before making any decision. Basically after I pay all my bills I've about $2-2.5k a month to put wherever... hence my considerations of a 991....

Thank you so much for the sound advice!

No HTwo O

Sounds like you are trying (and succeeding) at being very responsible. Good job.

Are you also putting away $16,500 in your 401K or Roth 401K? And an additional $5,000 in a self directed after tax IRA? You need to be doing these types of things too.

Alan Smithee

Save and invest. No possible way to do that with a $65k/year salary and a $2k/month car payment.

For giggles, figure out what a conservative return adding $2k month will net you after four years. Then figure out what a $100k car will cost, with interest and taxes, after a four year loan, less its residual value (say 36%). I think you will be shocked at what you will potentially be throwing away for this car.

Buy a new 911 when it has no impact on your finances.

pt767

To the OP. Do what you want! I like to sleep at night & am not into instant gratification. I wouldn't buy a Pcar unless I could write a check for it...but hey that's me! Being that you're young, I would advise like others have to go the used route. Look for a nice '05/'06 997.1 in the $40's. When the 991 comes, there will be lots of cars for sale. Also...the economy is on shaky ground & more people will be shedding things they really don't need. Debt is the evil that's bringing down this country. Some debt OK....just not too much!

Gliding_Serpent

to the OP,

I am new around here, so take what I say about Porsche with a grain of salt, but I can tell you I make almost 4x what you do (my wife makes what you do) and I am looking into a used Porsche.

Don't fret however, there are great cars to be had on the used market (especially if you are interested in 996). If you have the time, and enjoy DIY, you might even be able to keep the costs of basic maintenance down. The trick is figuring out the cost of maintenance/insurance, etc and the cost of the daily driver that you will still need (some will argue with that).

I am sure you are on it, but don't let a Porsche get in the way of financial stability during retirement. It may be a ways off, but we all need to build that nest egg now (me included). Working at 75 because you have to sucks, I am sure.

Some people say "Live off a third, spend a third, save a third." So you have 1/3 of your salary to squirrel away (assuming you don't need to play catch-up with retirement savings). Buy a Porsche when you have the cold cash, and keep a 5-10K in the pot for the "oh **** where is that oil coming from" fund.

Quadcammer

impressive that you can save 2k to 2.5k on a 3,550 net income.

I'd like to have only 1k to 1.5k in monthly bills.

kosmo

thats funny.

jes999

+1

Between monthly payments, taxes, insurance and depreciation the OP can spend 110% of his after tax income on a car.

JW911

I'd like to know how a $65K salary allowed you to pay off a $180K mortgage in only a few years and you have $30K available for a down payment on a Porsche. Seriously. I must be doing something really wrong.

bbbradley

I also don't see how a $65k salary (assuming no other income sources) and a $100k car is sustainable or a wise decision.

99_Carrera

First I'd like to thank the majority of this forum for answering my questions and giving me such good advice. It's great because while it may not be what I want to hear, it's what I need to hear. And I thank you guys for your unbridled honesty.

There's a few things I'll address, but I will state this first and foremost. I am who I am, have what I have and state things honestly. Those that attempt to question my integrity and financial claims can do so until you are still dissatisfied. I have not had, nor will ever have, any intention to falsely represent myself on any internet site... I honestly do not know what one would expect to gain from doing so. But these critics need to understand (1) I never said I made 65k a year for the last 6 years of my life. (2) Was married for 4.5 years (yes that means other income), and (3) I did not mention any other income that I may have acquired within that time frame. Nor did I say that I currently have an entire 30k to put down on a p-car. All I have stated has been my current income and marital status. So stop being overly critical and rushed to judgement. I have nothing to prove to you here and this is the last I will say about the subject.

On to some of the more pertinent subject matters....

996 vs. 997 vs. 991: I liked my 996 but do not want to go back to one. Upgrading from a base to a better 996 doesn't really appeal to me, either. I put about 1,000 miles on my dad's 996 tt x-50 aero and mixed up the driving from back roads to highways. While it had monstrous power on the straight, in the curves it was just so front-heavy it felt cumbersome and honestly made me long for my base c-2. I hate to say it, but the trade-off for the awd isn't worth it. Even at that power output. I have also considered a 996 gt2, especially since the price-point if these have plummeted close to the awd-tt range. But after sitting in one I was left completely unimpressed. It was too stripped down for what you are paying... imho. Overall, while I did enjoy the 996, I am definitely ready to go to at least a 997. They look better to me, have way more power than my '99 base did and I really should get one instead of wasting so much on a 991. And when it comes to the 991, besides the 400 HP s being 15 HP more than its' predecessor, I absolutely love the design of the new wing. The biggest turnoff is the center console. "Nice... but cheap" comes to mind.

As far as maintenance goes, it's really a non-issue. $1000 for rear ps2s, (or whatever tire Porsche is using now) every 10k miles, and $220.00 oil changes... probably more around $250.00 now... honestly, these cars are bulletproof, and these costs are negligible for a car that holds up so well under extreme driving. (Except for those brass synchronizers, which I hope Porsche remedied in the 997...)

Daily driver is done. I actually started the project when I still had my 996. I wanted something reliable that attracts absolutely no attention. (I hate the attention a Porsche gives you from others), but yet was somewhat of a silent stunner when someone would actually study it. Fun to drive was also a concern. So I ended up doing a full restoration of one of these... http://img120.imageshack.us/i/picture008fo3.jpg/ The end result was exactly what I had intended. No one ever gives the car any attention, it's fun to drive, and if the still-running 304,000 mile engine that I yanked out of it gives any inclination to the reliability...

On to retirement and investing... Guys I have to say that there is some really great advice going on in this thread. The 1/3, 1/3, 1,3 plan is profound and I am surprised that I've never heard of it before. I personally am not too fond of investments right now. I would say gold, silver and certain foreign currencies, yeah I may be interested in doing that... but watching this economy slowly die isn't making me want to invest, in fact I pulled my investments a while back and haven't looked back in anger... at all. I'll be patient and wait for the resurgence. Then I'll weigh my options. As far as retirement, I have a pretty different situation. If I am lucky enough to live to retirement age, I will be taken care of financially. Not that I like to think about it, or plan that way... But if I am unlucky enough to watch myself wither, inheritance would make a mockery of whatever I saved for retirement.

Again, I have to say that there has been some unparalleled great truth in a majority of these posts. I think you guys are right in saying that in my situation, a 991 would be about the worst decision I could make. Thanks again for being so encouraging in the right ways.

BT ZR1

Respectfully, this is the way to go"
Reality is I doubt the 991 is that much of an upgrade to warrant 50k+ over a used 997, i think the sensible choice so you dont put yourself in a financial bind and constant stress about trying to maintain a new porsche is to just buy a used one. There are those out here that trade in every few years as they have the finances to do so, but there are a few of us whom dont mind owning something used. We end up saving tons on depreciation with a subtle loss in performance due to not having the latest technology."

BSL

A good estimate on what a bank/finance company will approve for a car loan is 20-25% maximum of your gross take home. If I remember correctly, this was also looking at 20% down.