How much of your annual income did your NSX cost you?

[MF-DIF]

First post so greetings to all. What pertcentage of your annual income did your guys NSX's cost you total? Im asking this because i've wanted an NSX before I could even drive, now im 23, new grad with an entry level 30k a year job. Im serious thinking of getting a mid 26k NSX but everyone around me thinks im crazy. They dont understand my obsession with this car. Ive worked out my monthly expenses to include insurance and a $400 month car payment for 60 months on the NSX and I still have around $600 left over per month, not including food and entertainment. What do you guys think, too much too soon? Mind you this NSX would complete one of my true life goals.

 

[RSO 34]

Save your money until you can truly afford it. Going into debt for a depreciating asset, even if it is an NSX, simply is not worth it. You also have to consider if this is going to be your daily driver or merely a second car. If you can only afford to own one car and you will need it as a daily driver including commuting to work and driving year-round in inclement weather, buy a dependable car like an Accord coming off a three year lease. Then save your money until you are not calculating how much you have leftover for food.

 

[Lazarus]

I'm not sure how agressive lending institutions are in the US these days, but my guess is it'll be hard to get a loan (especially for 5 years) for a car as old as a US$26,000 NSX must be. The bank or finance company would probably look more closely at the borrowing power of the person buying the car rather than the actual value of the collateral in such a case, and if you're a fresh graduate without much working experience, it could be an uphill battle. Of course, if you've already got that loan secured or pre-approved, then just ignore what I've said so far.

In any event, going into debt to buy a used car is probably not the best way to kick off your working life. Wait a few more years, save up some capital, invest a little, buy a house, put some into a good life insurance plan, THEN think about getting an NSX or whatever big toy strikes your fancy at that time. Don't mean to rain on your parade, but us oldies have been through a lot and I would really have appreciated a few words of wisdom when I was your age. Good luck.

 

[MF-DIF]

Save your money until you can truly afford it. Going into debt for a depreciating asset, even if it is an NSX, simply is not worth it. You also have to consider if this is going to be your daily driver or merely a second car. If you can only afford to own one car and you will need it as a daily driver including commuting to work and driving year-round in inclement weather, buy a dependable car like an Accord coming off a three year lease. Then save your money until you are not calculating how much you have leftover for food.

The company provides me with a daily driver, I also have an Integra that has been paid off for sometime now. Having previously been living off a college income, $600 is more than enough left over for food and entertainment per month, but then again I would have to give up other luxeries a new grad like me should be enjoying, like new HDTV's, home theature stuff, etc, You make some very valid points though. It would be nice to be out of debt for a change.

 

[Daria]

My answer is going to be a little more different than the previous post.

Get all your toys now before you get married with kids.

My father-in-law always told me that if I want to get in debt – do it at a younger age. It’s only at this younger age where you can hustle more (ie., work longer hours and pay less attention to a family you don’t have yet) to make your payments.

If an item costs $1 but you cant afford it now, you can always wait a few more years until you can afford it for a $1, or you can borrow money now and buy it now for $1.18 say. It’s your call.

Who knows, you could get hit by a bus while you’re waiting and never get a chance to by an NSX later!! Just my 2 cents worth. That was my mentality when I bought my NSX, convertible ‘69 280 SL, Jet Skis, dirt bikes etc when I was in my late 20's.

Having said all that, I don't recommend you getting in debt immediately right out of school. I worked 1 year after graduation just to find out I didn't like what I studied - and went back to school again! So take your time just a little bit ...

 

[Lazarus]

It's 2 in the morning here in Hong Kong, so I'm not going to bother crunching the numbers....but let's say you wait just a little longer before buying that car, for every month that the money intended for that loan payment is set aside to increase the amount available to you to use as downpayment, the savings in interest alone will surely make you see the virtue in being patient.

 

[DocL]

I think this has been discussed to ad-nauseum before. I don't think that anyone with an entry level job should be going out and pruchasing an exotic car. Let's assume that you can cover the basic costs of owning an NSX. What is going to happen when you need to buy tires, have the waterpump and belts changed, and replace the clutch. With your income level you're probably not going to be able to afford anything newer than a 1991 or 1992 used NSX. If you find a newer one, it will surely have high mileage. Even though the NSX is a very reliable car, the aforementioned costs will equate to at least $3000, half of your left over money for the year. It's not a very smart move to gamble with money that you don't necessarily have. Furthermore, what happens if you get into a crash, even at parking lot speeds. You can accumulate $5000 in damage by just sideswipping the door and rear fender. Can you see where this is heading. Also, what will happen if you get laid off from your entry level job?

I say wait a few years until you can afford the payments without putting yourself at risk. NSX's are going to be around for a very long time and you'll always be able to get one in the future.

Good luck.

 

[Lazarus]

What is going to happen when you need to buy tires...

Good point. New tires...ouch.

 

[MF-DIF]

In any event, going into debt to buy a used car is probably not the best way to kick off your working life. Wait a few more years, save up some capital, invest a little, buy a house, put some into a good life insurance plan, THEN think about getting an NSX or whatever big toy strikes your fancy at that time. Don't mean to rain on your parade, but us oldies have been through a lot and I would really have appreciated a few words of wisdom when I was your age. Good luck.

Thanks for the advice guys. Im kinda torn on which way to go so im trying to get as much advice as I can. In all reality it would take me 6-12 months to find the right car so I would have some money saved up. It's just so tempting to be in reach of something like this, eventhough I realize the responsible thing to do would be to wait. You "oldies" as you put it, gotta remember how your mind functioned when you where 23

 

[mickeylex]

DocL is right

DocL is right. NSX expenses can add up quickly for a few small things that will put serious pressure on the extra $600/mo you have to spare. You still have time to get your NSX. You are still young and just started the job. Over time your income should increase and the "uh-oh" I need to put aside $2K for an NSX repair won't hurt as much (it still hurts, but not as much). Don't wait too long, but make your goal something like "get the NSX before I turn 30" and I bet you will reach that goal with time to spare.

 

[MF-DIF]

Furthermore, what happens if you get into a crash, even at parking lot speeds. You can accumulate $5000 in damage by just sideswipping the door and rear fender. Can you see where this is heading. Also, what will happen if you get laid off from your entry level job?

One of the benefits I would get is that the employer covers my auto insurance costs. The company I work for is a subsidiary of one of the big 3 car manufactures in the world so I don’t see lay off's as an issue. But I do see where you are coming from. Being prepared for the unexpected is something that weights on my mind about the decision.

 

[hlweyl]

Do you own your own home or are you renting?

 

[Lazarus]

What's worse is once you've bought the car, you're going to have this uncontrollable urge (ESPECIALLY if you're going to spend a lot of time on Prime) to spend twice what you did on the car itself in order to modify it to your heart's content.

 

[MF-DIF]

Get all your toys now before you get married with kids.

My father-in-law always told me that if I want to get in debt – do it at a younger age. It’s only at this younger age where you can hustle more (ie., work longer hours and pay less attention to a family you don’t have yet) to make your payments.

If an item costs $1 but you cant afford it now, you can always wait a few more years until you can afford it for a $1, or you can borrow money now and buy it now for $1.18 say. It’s your call.

Who knows, you could get hit by a bus while you’re waiting and never get a chance to by an NSX later!! Just my 2 cents worth. That was my mentality when I bought my NSX, convertible ‘69 280 SL, Jet Skis, dirt bikes etc when I was in my late 20's.

This is definately a concern of mine. Missing out on my chance because I waited to long and having a family to look out for. Relationships are can be difficult to control, and things can proceed faster than you want them to and I could end up getting tied down

 

[NeSX]

When I first graduated... $600 wouldn't even cover my apartment rent! I am not sure how you think imagine living on $150/week is going to be comfortable... gas, lunch at work, gorceries, activities, dry cleaning, dates (if you are single and marketable).

You simply can;t afford the car. What do you do if either that or the Integra breaks and requires parts or repairs?

 

[MF-DIF]

Do you own your own home or are you renting?

Renting. My father thinks the first big inverstment I should make is on some real estate. But im not so sure as making a commitment to something like that so early in my life.

 

[MF-DIF]

When I first graduated... $600 wouldn't even cover my apartment rent! I am not sure how you think imagine living on $150/week is going to be comfortable... gas, lunch at work, gorceries, activities, dry cleaning, dates (if you are single and marketable).

You simply can;t afford the car. What do you do if either that or the Integra breaks and requires parts or repairs?

Ive already included my expenses. $600 would be only for groceries and fun. Been living off much less than $150 a week in college quite comfortably.

 

[kenjiMR]

One of the benefits I would get is that the employer covers my auto insurance costs. The company I work for is a subsidiary of one of the big 3 car manufactures in the world so I don’t see lay off's as an issue. But I do see where you are coming from. Being prepared for the unexpected is something that weights on my mind about the decision.

I bought mine when I was 23 during the height of the dot-com boom. It was VERY risky, but my salary at the time was decent. Looking back, I think it was totally worth biting the bullet and taking that risk to own an NSX at such a young age. At the same time, I was willing to give the car up if my financial situation would not have held up. The NSX is a desireable car, so as long as you don't destroy it, you will be able to recover most of your money.

 

[Lazarus]

Renting. My father thinks the first big inverstment I should make is on some real estate. But im not so sure as making a commitment to something like that so early in my life.

Don't know the property market in Tallahassee, but an owner-occupied house is often a pretty good long-term investment, unless you live in God-forsaken Hong Kong.

 

[PHOEN$X]

Get all your toys now before you get married with kids.

My father-in-law always told me that if I want to get in debt – do it at a younger age. It’s only at this younger age where you can hustle more (ie., work longer hours and pay less attention to a family you don’t have yet) to make your payments.

I respectfully disagree. I don't think it's a good idea to spend all your disposable income at this point. You are young right now, and best positioned to harness the amazing power of compounding.

Have you maxed out your 401k and IRA contributions? Are you paying high interest rates on student loans? Do you have sufficient short-term savings to get you by in case something happens with your employment? Young workers, particularly those without families, are more mobile and more likely switch jobs/careers. It is not a good idea to saddle yourself with a lot of debt right now, IMO.

Who knows, you could get hit by a bus while you’re waiting and never get a chance to by an NSX later!! Just my 2 cents worth. That was my mentality when I bought my NSX, convertible ‘69 280 SL, Jet Skis, dirt bikes etc when I was in my late 20's.

This argument doesn't hold water. What is a more likely scenario: that nothing is going to happen to you and you'll live to a ripe old age, or you'll get taken out in some freak accident? I would rather prepare for the more likely scenario, and save for the future. Get rid of your debts and put as much away as you can now (particularly taking maximum advantage of tax-deferred investments). You'll thank yourself later.

 

[DocL]

I think it's complete BS that being in a relationship will hinder your ability to buy and enjoy what you want. For example, my fiancee knew well in advance that my owning and driving a sports car will always be a priority of mine. For my birthday she bought me a 2002-2003 lower rear valance for my '94 NSX. She knows what makes me happy and does everything within her ability to do so. The same goes for me. If it makes her happy I do it for her. No questions asked.

If someone ever tries to deny you the opportunity to be happy by owning a nice car, boat, motorcycle, etc, then they are not worth having around. I know because I've had that problem before.

 

[MF-DIF]

Don't know the property market in Tallahassee, but an owner-occupied house is often a pretty good long-term investment, unless you live in God-forsaken Hong Kong.

Another reason I dont want to commit to a home is that advancement in this company is fast. Generally speaking 1-2 years, and if I have to move to advance, selling the house could be a pain.

 

[Lazarus]

In fact, having a good woman by your side often makes you more successful in whatever endeavour you decide to take up. Good career = more money. I'm sure you can figure out the rest.

 

[MF-DIF]

So the general consensus around here is no. I appriciate all of your opinions. In the end I make my own decisions, but I think what Ive come away with so far from the people I have talked to is to wait. I dont think I can wait as long as people want me too, but alas, I just may have too. I don't know what is is about you guys on this forum (eh, its probably the fact that you guys got your grubby mits on a set of NSX keys ), but I respect your opinions a little more than I do at other forums.

 

[hlweyl]

Another reason I dont want to commit to a home is that advancement in this company is fast. Generally speaking 1-2 years, and if I have to move to advance, selling the house could be a pain.

I know this is difficult to hear, but you should buy a house before buying the NSX. Preferably one with a garage also.

You cannot go through life not buying a house because you "might" get that promotion which would force you to move. People move all the time and that should not be a concern when buying a house. Make a wise decision when you buy your house too. Do your research!

Most all of us were in your shoes at one time or another. One thing to consider is to buy a used sportbike, you can pick a good one up for a few grand. They are very dangerous, but they do satisfy that adrenaline urge, even more so than an NSX! Just a suggestion.