New car

[bludger]

Hey everyone,

First time poster long time reader here - thought I'd make my first post with something completely un-property related - how ironic

I'm a lover of cars and have been all my life. I have been holding out buying a nice car for 5 years and instead bought 8 ip's since. Total portfolio is worth in the region of $2.7 mil owing around $1.8 mil...whole portfolio is neutral cashflow (positive if you include depreciation)

I am in my late 20's in a secure PAYG job around $80k salary with around $100k in the bank...(half of it equity)

Though I've been tempted before, I am seriously thinking of dropping $45k on a new car...everything in my heart is saying do it but everything in my brain is saying don't!...I feel I'm at a stage where I need to wet my whistle with a reward to motivate me to continue with my goals

Thought I'd post this on a seemingly anti-depreciation-asset forum for some different perspectives...do people think $45k on a car is ridiculous in my financial situation?

Bear in mind if I wasn't going to buy a new car, I would buy 2 properties but with a new car I will only buy one until I refinance on something else....

Help Please! (if you must know, its an Audi S3 )

Funny how I can make a decision to buy an interstate property sight unseen after 15 mins of research but am getting analysis paralysis over weeks with a car!

 

[Richard Feynman]

A $45k car seems out of proportion to your income, but not to your net worth ($1mil, it seems).

I've never been a car bloke, so that's about all I can say.

 

[perthguy]

Funny how I can make a decision to buy an interstate property sight unseen after 15 mins of research but am getting analysis paralysis over weeks with a car!

That's because the property was a good investment but the car isn't. I know the Audi S3 is an awesome car, but do you really need one? I mean really?

 

[Rickardo]

If you feel it's worth it, just buy it. You're in a great position for your age. Great choice btw

 

[cimbom]

Does it have to be new? You could save a bit by getting one that's 2-3 years old instead.

I'm probably not the best person to ask though. I'd spend it on an experience more than a "thing", if that makes sense.

 

[DoAndroidsDream]

Im in two minds.

Advice given in another thread (similar to yours) which I thought was great was... why not rent the car you're wanting to buy for a few weeks and if after that you're still keen, buy it!

All the best!

PS. Im amazed at your portfolio. Im 30, earn around what you do and just starting out. Have you done it all by yourself, without a partner?

 

[Nikolina]

Three years ago i dropped 45k on mine. Do i have any regrets? Nope! I do sometimes think crap i could have an extra 45k right now in the bank but thats quickly forgotten because i love my car and the power of it etc. I could never go back to driving a standard 2L - 25K car.

 

[WilliamB]

Nice work mate. I'm a big fan of Audis, and have owned a couple of S3's before, one 8L (2002), and one 8P (2008).

I'm assuming for this price you're looking at a later model (facelift) 8P.

If that is the case, I'd urge you to consider a pre face lift one (2007-2008 instead of 2009-2010. For 30-35k you would get essentially the same car (assuming you are happy with a 3 door rather than sportsback) with a slightly different nose and possibly similar ks.

To be honest, I think 45k is an overspend on any 8P S3, facelift or not.

Cheers,

 

[Ideo]

Nice work mate. I'm a big fan of Audis, and have owned a couple of S3's before, one 8L (2002), and one 8P (2008).

I'm assuming for this price you're looking at a later model (facelift) 8P.

If that is the case, I'd urge you to consider a pre face lift one (2007-2008 instead of 2009-2010. For 30-35k you would get essentially the same car (assuming you are happy with a 3 door rather than sportsback) with a slightly different nose and possibly similar ks.

To be honest, I think 45k is an overspend on any 8P S3, facelift or not.

Cheers,

I owned an 8L S3 and a Golf R.

If you are looking at 30-35k I'd suggest a 2010/11 Golf R over an 07/08 S3. Same engine, chassis etc but with more features.

 

[bludger]

PS. Im amazed at your portfolio. Im 30, earn around what you do and just starting out. Have you done it all by yourself, without a partner?

Yes all achieved through hard work (saving deposits), a sound strategy and surrounding yourself with the right people/team...Once you get the snowball rolling, it becomes almost second nature

I'm assuming for this price you're looking at a later model (facelift) 8P.

I'm actually looking at an 8V....my other half is chipping in around $20k (as shes keeping my current car)...the 'logical' decision is to go with the Golf R 7 but when I test drove the 2, I couldn't go past that S3 interior...and since it's something I've been holding out for a long time, the $7k difference is negligible....

That's because the property was a good investment but the car isn't. I know the Audi S3 is an awesome car, but do you really need one? I mean really?

Ahh yes, the age old 'need' argument. I hear what you're saying, but on that basis, I guess we don't actually need a lot of things...

good feedback so far guys...i'm leaning towards purchasing the car (if you can't tell already ) due to some pretty sweet EOFY deals at the moment, but a part of me really wants to get to 10 properties before I reward myself....

 

[DEC]

6 figure income and a 4 figure 6cyl car.
My uncle who is retired just detailed it while I was on holidays and it feels and presents like new again.
Would happily drive it around Australia.

 

[Spades]

Hi bludger,

Why not buy a vehicle that appreciates rather than negates?

I know where i'd be throwing my money

Cheers Spades.

 

[Ausprop]

Hi bludger,

Why not buy a vehicle that appreciates rather than negates?

I know where i'd be throwing my money

Cheers Spades.

a VB commodore?

 

[WilliamB]

I'm actually looking at an 8V....my other half is chipping in around $20k (as shes keeping my current car)...the 'logical' decision is to go with the Golf R 7 but when I test drove the 2, I couldn't go past that S3 interior...and since it's something I've been holding out for a long time, the $7k difference is negligible....

Awesome mate! Yup when I drove the first "R" one of the things that struck me was the seemingly lower quality of interior finish than that of the 8P S3.

If I were you, going with the 8V I would make sure you get the S Performance Package at least, which would not only massively add to the enjoyment of the vehicle, but I expect will assist with your resale value, which may or may not be of importance to you.

 

[havinago]

I've been in around cars, bought, sold, fixed hundreds of them all my life.
Never paid more than $23,000 for a car(it was used, and only cause my ex wanted a BMW-lmao)
I see cars as a mode of transport.
I can quite easily drive and be seen in a $5,000 car as I would a $50,000 car.
But on the other hand I LOOOOOVE riding really fast motorbikes and even then I didn't spend more than $14100 on a brand new bike.
Key word- LOOOOVE.
Not long after you buy that $45,000 car it will just be your mode of transport.
Go buy a house, or another house if you already have one, that's rewarding yourself with your hard earned dollars.

 

[havinago]

haha, just read the rest of your OP.
Go buy a $20k car which will do the same as the $45k car.
And bang the rest into your propertie/s

 

[vbplease]

I was at a similar crossroad last year.. I ended up purchasing a Toyota 86 and getting rid of my 97 Corolla.. mainly due to peer pressure.

It's nice to drive.. but really regret forking out $32k in hard earned cash

 

[allsuccess]

We were in need of a second car. Didn't have one for 10+ years but kids doing different sports and it was becoming an issue. Ended up getting a second hand Holden Commodore Omega couple of weeks back. 14K . It's a nice drive compared to our people mover.