timd38

Call the "can I afford" segment of the Suzie Orman Show.

Response "DENIED".

FortMorganAl

I haven't thought about "extra cash" since I was 25. There is no such thing. Every dollar is just like every other dollar. You say you have $2K "extra" you are putting in savings after your loan payments. Why are you borrowing money to put into savings? You do know that the interest you are paying on that money you are borrowing is more than the interest you are getting on savings, don't you? If you are saving $2K/month you are really just paying over $1K/year for the privilege of having a bank loan officer smile every time you come in.

Pay off the pickup NOW! Next, pay off the mortgage. THEN you can think about buying a $60K car knowing that you are financially independent and will never have to worry about "extra cash" for the rest of your life. But until you understand there is NO extra cash as long as you owe someone, you will always be poor.

BTW, don't let the above make you think I'm against borrowing. I currently owe about $70K. Last month it was about $135K. I'm not sure what I will owe next month because I don't know what opportunities I will have to make more with the borrowed money than it costs to borrow it. If there is a good opportunity I might owe $250K but if not I might owe nothing. I borrow to make money, not to buy toys. That's how I can afford to pay cash for my toys. I never borrow without the expectation of increasing my net worth. You, like most people these days, are just increasing the bank's net worth because you think you have "extra cash".

bksnoopy

Quote:

Originally Posted by calmtgguy

Keep saving until 7/1/2012, and pay cash.

I'm also retired and I really don't know how much I have each month. I let my wife give me whatever she sees fit for me to have.

If you can hold out and pay cash, that's what I would do and have done. "Be your own bank and you will run your own life".

Merry Christmas

bksnoopy

I used to think that until I got OLD ... now I'm trying to figure out how to take all my toys with me.

Nueboch

Expect your taxes to go up which will leave you that much less in "extra" cash. Healthcare, cap and trade, amnesty, Bush's tax breaks will expire, it's all coming down the road at break neck speed.

cthusker

troutbum

If you have extra cash, Obama will figure a way to get it.

johnodrake

Good advice!

jimmie jam

$14,237 left over every month. why do you ask?

VET4LES

I have the same problem.

C6~Missle

Only you can decide if the money left is enough to live on...

I can tell you that you will enjoy the car or any other purchase more
if you don't have to worry about it's affect on your budget.

Good luck..

REMIX

Depends on whether or not you think a Corvette is a toy. Mine is a daily driver, so it's a regular business expense...I buy used whenever possible anymore, too. Leasing this just throwing away money IMO. Went through the whole European car on a lease phase as well...been there, done that! I wish I had that money back.

Anyway, if the money is cheap enough, I don't see the harm in financing, especially if you can put the cash to other, better uses. I have one car loan at 4% right now. I like to have lots and lots of cash around, especially in tough economic times like the one we're in since I'm in sales career and depend on commission for 100% of my income. No credit card debt here either.

As a 2nd or 3rd car, I would maybe say you should save your money and pay cash. I know guys with major money sitting in the bank who finance their cars. Everyone's situation is different so there's no one perfect answer to this question.

RMX

haljensen

Extra Cash? No such animal. Take a look at your mortage statement for last year and see how much principal you paid versus how much interest (PROFIT to the Lender) you paid.

dvilin

If you can wait and pay cash or reduce the payment by a couple of hundred a month that is what I would suggest. The ideal situation is being able to purchase the Vette without reducing your current rate of savings.

EuroRod

I own a small construction company. Our sales are down 80% from 2007 numbers (Thanks Obama!) I've had to withdraw between $2000 and $8000 a month for 10 out of the past 12 months to pay expenses. I have two kids in college, and that eats a hugh chunk. Thanks to illegal infestation and the depression, any business in our area that there is, goes so cheap, no one is making any money. Sux.

bksnoopy

Will you adopt me?

Merry Christmas

Swiftrider08

I did not get the impression that you were looking for financial advice!

A few things to keep in mind: Have you checked into car insurance yet? Need to figure that in. Tires! Depending on how much you drive the Vette, you will be looking at anywhere from $1000-$2000 for a set of (4) tires and we all know that on the C6, the tires don't last very long. The OEM tires have an average life of somewhere between 10,000 to 15,000 miles. There will be accessories you will want to buy - happens to all of us.

In the end, you are talking about having around $300 "extra" each week, which is really not that much.

RussellZ

Interesting thread....

I don't buy anything I can't afford. When making a 50K+ purchase you need to look at the big picture. If you only look at how much unspent money you have at the end of the month then you will most likely never have a huge savings when you retire (general statement). You also need to look ahead towards the unpredictable future. If a family member gets sick, will you be able to provide for their medical care? My wife had cancer and my out of pocket medical bills were over 25K a year. This lasted for 7 years! I don't save my money to afford luxuries; rather, I save to be able to take care of my loved ones'.

In 1972 my parents neighbor retired at 30 years old with $1million in the bank. He thought that he was set for life. 20 years later he had to sell his home and reinvent himself in order to provide for his family. He was 50 years old and starting from scratch. I always remember his situation. Sorry if I'm preaching.

Just my .02 cents....

laconiajack

The above statement is true if you have the Z51 option (now called the GS), the Z06 or the the ZR1. If you have the standard suspension or the F55 optional magnetic adjustible suspension you will get twice the tire life, on average 30,000 miles.

The NNIAL8R

At 52 years of age Im close to thinking that...but not quite....One thing is for sure..Im done collecting "toys" (wifey INSISTS)..But that's okay, I think I have enough to last me