To buy or not to buy

[EK4 hatchback]

Hi everybody i am new here!

I have been thinking of getting a used NSX for sometime. If i get one it would be a dream come true. But the problem is does the NSX fit me? I am 27 year old male, working in a testing lab as a assistant engineer, making decent money. If i get the used NSX i will be using about 35% of my salary as car payment for 4 years. I currently have a little Honda Civic SiR that i enjoy very much and i love the DOHC Vtec sound. What do you think guys? Thanks!

 

[Jimbo]

When you say "fit me" I assume you're talking financially.

Devoting 35% of your salary for 4 years to an automobile is unwise in my opinion.

A general rule of thumb (here in the USA) is that your proposed monthly housing expense and your total monthly debt service combined cannot exceed about 36 percent of your gross monthly income.

If you're contemplating that much just for a car, well, as I said, I think it's unwise.

I say hold on to your Civic SiR (it's a great car), save your money, invest it wisely and put a certain amount away for your NSX.

FWIW.

-Jim

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1992 NSX Red/Blk 5 spd #0330
1991 NSX Blk/Blk Auto #3070 (Sold)
1974 Vette 454 4 spd Wht/Blk
1976 Honda Accord 5 spd, 3 door Blue/Blue
1977 Honda Accord - Custom - Under Construction
2003 MINI Cooper S - On Order - All Black
1986 Chevy Suburban
http://homepage.mac.com/jimanders/PhotoAlbum1.html

 

[nsxtasy]

Originally posted by Jimbo:
Devoting 35% of your salary for 4 years to an automobile is unwise in my opinion.

I agree with Jimbo.

 

[brahtw8]

From what you have said it sounds like you take home about $1800 a month (assuming a $600/month payment is about 1/3 of your take-home pay). If you try to finance a $25k NSX, which is the bare minimum that you want to spend on an NSX IMHO, you will likely be over-extending yourself.

I do think a maximum debt-to-income ratio of 36% is a little conservative. In my experience 40% is the traditional cut-off for a potential lender, as well as the practical reality.

You should also crunch the numbers for a 60 month note. This will reduce the monthly payments by about $80/month for a $25k NSX

That said, do what makes you happy. If you are in a situation where you have minimal debt and monthly expenses, such as living with several roommates, you may be able to make it work.

If it was me, I would keep the Civic if that made me happy. If you want more performance and style on a modest budget, take a look at the E36 3-series BMWs. There are very good deals on 1995 M3s and 1996-97 328s these days.

You could pick up a very nice 328 for $14k, which would put your monthly payments in the $350 range over four years.

I love my E36, and plan to keep it once the NSX arrives.

 

[Imola]

Originally posted by EK4 hatchback:
If i get the used NSX i will be using about 35% of my salary as car payment for 4 years.

Absolutely do not do it! This would be very unsound financial management. No car is worth that. After a month or so when the "newness" wears off, you will be kicking yourself for getting so deep in debt for a car.

 

[huckster]

many people, right or wrong, are at 65% plus with cars, credit, house. Part of this comes down to disposable income, or how much you make. At 20k monthly income, 20% left over after expenses(disposable income) is quite a bit. At 5k montly income, 20% disposable income is not much padding.

Personally, I'd never spend 35% of my income on a new car, let alone a used one. Like the advice already given, no car is worth that--to me anyway. Invest now and buy later.

 

[huckster]

if a personal example is helpful, all three of my cars(including used nsx) represent about 10% of my income. There are many days where I question the wisdom of spending that much on vehicles, esp with the additional costs of todays insurance premiums. That said I really enjoy my vehicles, they just arent good business sense. but to each their own. maybe some other members would share their info, opinion.

 

[EK4 hatchback]

Thanks for everyone reply.

Actually it was not an money issue. It is more to do with my age and job. Because some of my friends are telling me if you get a NSX you would be more like driving your dad car.

I am a Honda car lover, i take care it like it is my wife. I spend alot of time and money on my Civic and i talked to myself i should get a car that i like and own it forever. Also i am a weekend driver therefore i wouldn't have to worry about where i go and park. By the way i live way over the other side of world where car is not a necessary. Any comment would be welcome.

 

[Jimbo]

Actually it was not an money issue. It is more to do with my age and job.

It's not a money issue? What does age and job have to do with it? I guess I'm not following.

You could be a fast food technician, painter, trash man or an engineer, it shouldn't matter. Money, unfortunately, does play a role and when you spend more than a third of your income for a car, you're spending unwisely.

The very fact that you unsure of your actions and even give 1% credence to what your "friends" are telling you, indicates to me that you're really not ready for such a purchase.

Every so often people come here looking for approval, thinking that since we're all NSX fans that we're all going to simply say "GO FOR IT!". I'm not trying to put you down or be critical - but you did ask for an opinion. I have a feeling that your mind's already made up, however.

All the best.

-Jim

------------------
1992 NSX Red/Blk 5 spd #0330
1991 NSX Blk/Blk Auto #3070 (Sold)
1974 Vette 454 4 spd Wht/Blk
1976 Honda Accord 5 spd, 3 door Blue/Blue
1977 Honda Accord - Custom - Under Construction
2003 MINI Cooper S - On Order - All Black
1986 Chevy Suburban
http://homepage.mac.com/jimanders/PhotoAlbum1.html

[This message has been edited by Jimbo (edited 26 March 2003).]

 

[nsxtasy]

Originally posted by EK4 hatchback:
some of my friends are telling me if you get a NSX you would be more like driving your dad car.

Maybe they're telling you that you ought to have more financial stability and maturity before you spend that much money on a car. Which would be good advice.

However, if you're old enough to earn your own living, you're old enough to make your own decisions, instead of doing what your friends tell you to do. So figure out for yourself what makes sense.

 

[NSXER119]

I think the NSX fits all kind of ages, it doesn't matter how old you are, or what kind of job you do. The age range of NSXers here might be from 18 to 60+, from student to CEO.
If money is not an issue, then go get one. I am pretty sure you won't be regret.

 

[ak]

Originally posted by EK4 hatchback:
Thanks for everyone reply.

Because some of my friends are telling me if you get a NSX you would be more like driving your dad car.
.

What does this mean?

 

[PHOEN$X]

Originally posted by EK4 hatchback:
Actually it was not an money issue. It is more to do with my age and job. Because some of my friends are telling me if you get a NSX you would be more like driving your dad car.

Do you mean:

1) People would assume you're driving your dad's car because you look like you're too young to afford a car like the NSX, or

2) your friends think the NSX is a car that appeals only to older people?

If #1, who cares what other people think? If you're buying the car to please other people, you're making a mistake (especially if it's going to cost that much of your income to do it). As for #2, that is just plain wrong. If anything, hardly any older guys/gals look at my car. It's mostly school age kids that gawk at my NSX.

 

[EK4 hatchback]

appreciated all the comments!

After all your comments, i am better off to save up more before buying a NSX. Thanks.

 

[stevefromatl]

I will quickly post my experience since my nsx occupies close to 50% of my income. When I first bought it, it was about the same as yours would be 35%, but then I lost my job. Thinking I would get another job quickly and a couple of other reasons I kept my nsx. Mine was only financed for 3 years, which is partly why it's so expensive. Add in maintenance and insurance and it's about 50%. Luckily I don't have many bills so I'm not hurting and I have less than a year left on it. If I was to do it all over again, I probably should have been more patient. So basically it depends on what you need that other 65% of your income for and how badly you love the nsx.

 

[Joel]

GO FOR IT!

I couldn't resist.