Well, I’m sure this’ll make you all sleep much better at night, but I decided yesterday not to pursue this any further.
First, let me say that a lot of the comments in this thread certainly did influence me. Since I was the one who wanted the car, I was essentially playing devil’s advocate. This is not to say that I didn’t fully believe what I was saying, but as was stated by others in this thread, I was a lot closer to the situation than the rest of you, and therefore was spending money with my heart and not my mind.
Second, if I had been able to get a decent deal, I probably would have done it. But it would have had to have been one hell of a deal.
Third, in order to put down a decent down payment, I’d have to get a different loan. So essentially I’d have two loans for the thing. Not good.
When I got home from the dealership, I took a long nap. When I woke up, I talked to BobbySueZQ about the situation a little further. Having had more time to think about it (again, something that was mentioned in this thread), and being more detached from the situation (with the car NOT in front of me, thank goodness), I decided it would be a foolish endeavor.
Dan, I think you made the right choice. Good for you for having the maturity to wait. One day you’ll be able to afford a kick-ass car AND be able to eat. And I agree with ratatoskK. If you have extra cash, start saving for something that will appreciate in value, like a house.
Not sure I want a house… lotta upkeep for one person, you know? I like my apartment.
Anyway, there are other options. My plan is to wait at least until my car is “positive” equity - that is, I owe less than the value. At least then it’s not a liability.
I can also lease one, or better yet buy one used in a year. Won’t be $37,000 then.
Although you changed your mind one thing I did that helped in getting a good deal was to visit and get prices from several dealerships and play them against each other (like ebay?).
I just told them I could get this car at this price at this dealership after doing research. I got a better deal than I thought I would.
If you have cash, you will also be able to get a better deal.
Thank you, dantheman. I was getting very antsy reading this thread, anticipating the looming financial train wreck you were about to cause yourself.
I’m so glad you decided this was not the perfect deal for you.
So, for you and anyone else thinking of buying or leasing, or who is trying to save up for a house, or doesn’t know what to do with their tanking 401(k)… Please – do not pass “go” and do not collect $200 – go immediately to www.fool.com. Read the sections about 10 steps to buying a new car. They have pages on used cars, leasing vs. buying, and tons of other financial and investing advice ** for people who are not financial planners, investment bankers or stockbrokers **. People like you and me.
BTW, I bought my 95 Honda del sol for $4000 off the sticker price because I followed the advice set forth by the Motley Fools to the letter. I got myself out of $20,000 in debt by following the Motley Fools’ advice to the letter.
Never, ever lease a car. Absolutely worst way to get one.
To me, paying interest is a crime to be avoided if at all possible, as is depreciation. I’m not the kind who needs a status symbol, a masculinity compensator or a chick magnet. I need a car to get places. Though I do enjoy a nice car vs a junker. So if you are the kind who can wait a bit for what they want, what I would do is
1)depending on how much you are paying for the saturn, i’d get out of it and into something that will cost less per month (ie cheap car, 5 years old or so). Even if you still have some payment left on the saturn, it should be less than it was.
2)take the difference in the monthly payment, plus whatever else you have decided that you could afford to pay for your cool car, and put it in a savings account especially created for this purpose)
3)Put the money in every month, no excuses for a year
4)after a year, try to go another year with the old car, keep making the payments to the account
5)buy the car that you are coveting now for half as much, and able to pay a big chunk of it in cash
6)enjoy the extra money, take trips, impress chicks, or save for a house.
And I agree with ratatoskK. If you have extra cash, start saving for something that will appreciate in value, like a house.