I say buy it. I bought the cars I could afford and always wanted when I was younger, namely MG's. No NSX but great for the city and cool if you ask me. I've went through this conversation recently with a friend of mine. I bought a house in law school, and then a rental house that was finally rented out after I worked on it for almost 6 months. My friend lives in an apartment. He had a '98 Mustang GT. He loves Mustangs, and ordered an '05 GT convertible. Its a great car, not for me but perfect for him.

So, here I am with equity out the yazoo and a couple of beat up old cars. Here's him with no equity and a major loan and a major payment and a convertible with no garage to keep it in. I told him the same thing...why don't you buy a house and then start buying cars if you really want one. Or, wait until '06, and buy the '05 for a lot less. He wouldn't have it. The bottom line is neither of us is happier than the other. If you have the opportunity to get something that will really make you happy then go for it. The thing is, what really makes you happy has a way of changing over time. I'm still looking for a 944 turbo-my dream car for less than 10K. Thats my personal limit for a car-any car.

Future value = P(1 + r)^n

P = principle (the amount you start with)
r = interest rate (decimal value ie 5% = 0.05)
n = number of years

So let's start with $20K and you will retire at age 65 (43 years hence) and you don't invest any more money ino that account (keeping it easy) and it returns a modest 7%.

FV = 20,000 * (1 + 0.07)^43
FV = about $370,000

So, would you like a third of a million bucks when you retire or a cute car now?

Oh, I know that one (raising hand), pick me, pick me....CUTE CAR NOW.

Come on....you want someone to pick between instant affordable gratification or a theoretical amount of money in 43 years? Easy.

Good explanation Botnst! As to a million bucks when you retire or a cute car now, IMO go with the car and a million bucks. A million bucks isn't going to do you any good if you become a wrinkled, worn out, angry, bitter, avaricious old dude who has forgotten to have fun because he has spent too much energy trying to save rather than increasing his income and enriching and enjoying life. There is a balance of course but you know what type of person you are and which path is better for you. The reason that most people are always cautioning youth to save/invest is because they never even thought about it when they were that young and regret not having saved now. I would say that if you are aware of the decision that you are making and you consciously decide to do something to have fun, realizing that you are depriving yourself of future wealth, then you will probably be happy with your decision and lead a better life for it. I used to save and scrimp etc. and put all my money in the stock market and although playing the market is fun saving is not necessarily healthy. I actually have done pretty well and at the return that I have been making since I started about two years ago I would have that 1.5M in about 8-10 years not 63. I made the decision to enjoy life and focus on earning not saving. So far it has paid off. I am a lot more laid back when needed (still pretty intense at others), happier, and have a lot more income/opportunities. I think that you have pretty defined goals in terms of a car and pretty logical/practical taste (which leaves you just as happy but with more money/less problems than someone with simply extravagant taste) i.e. the best/fastest car for the least money as opposed to the most expensive/newest car. The only other thing is make sure that you spend some time in the car. If you get in the car, drive it around the block, and when you get out you can't stop grinning then it is the right car for you.

Well, I'm a wrinked (except where the fat pushes it out flat) old dude that would love to have had that money I blew on sex, drugs and rock-n-roll invested over that period. I'd now be visiting Tahiti for the third time or buying myself a bimbo to squander money on.

I guess it depends on what kind of retirement you want. If you want the minimum (some sort of state-support) then blow it young and blow it fast. But if you want to live well for 20 or 30 years after retiring, you better stash some cash, brother.

Hey Ted, need a friend? I can help with that awful burden of wealth.

Well hopefully he listens to someone older and comes to understand how forgetting that car now will equate to a much more comfortible retirement later...Small price to pay....few people had that lump of money at that age.

Well I think there is a difference in treating yourself to something when you have the cash or maybe having a short period of your life when you spend recklessly and spending everything you have for extended periods of time or one's whole life. When you are in college there is no way that you will be able to afford stuff so it is a perfect time to act somewhat financially irresponsible for 4-8 years. Once you get out and get a job there is plenty of time to earn and invest money for retirement. I have rather a lot of personal experience with the work/save hard philosophy. Assuming that money gets passed on to me I will have more than I will ever need which is nice for me but I would much rather my parents had worked/saved less and enjoyed their lives more and left less of an inheritance.

Good point on the insurance. Some outfits might not even insure a driver that young in something that 'exotic'. Good luck and send pics of whatever it is you do (house,car,boat,plane,mo-ped,etc.)

Ha true that. My insurance company sent me a letter stating that due to the weight and power of my vehicle it is considered a "high performance auto." The letter also said that they would not normally insure it but since I had been with the company 3 years yada yada.

Take your money down to www.hitechmotorsport.com or www.lingenfelter.com and tell them to give you as much speed as the money you have will buy.

Honda NSX's are really cool and under valued cars. If they had a different badge on the hood they would be far more valuable. They seem pretty reliable their are a few running around town, they seem to be used as daily drivers. It is a Honda V6 so if you don't mention NSX you can probably get parts at regualar Honda prices. Unless it is an NSX specific part then you pay.

However in my area nice ones still are like $30k+, and a nice S600 can be had for mid to high teens. Personaly I would prefer a V12 Merc, you could even get a cool older 911 or 308.

At your age, (I will be their soon 19 now) I would buy a house though. Invest and work now so in a few years you can just buy a new Ferrari every few years and make money on it. I look forward to the day when I will be able to buy and dump a new S class every couple of years.

My sis just sold her NSX. She loved it but it was getting old to her and they were becoming a little more common. Now she has a 911, go figure.

Thanks
David

By Narwhal...

Oh boy...., here we go. Ditto.

Interesting thread....


I have had exactly your problem (but went with a different car).... What it comes down to is what you really want to do.

I looked at a bunch of cars and opted to go with a vette at the time, which I promptly "upgraded" to about 440 or so HP.

If I had to do it again with what I know now, I wouldn't, and by now I could go buy a car with 450hp from the factory :) Life and priorities change quickly, and now with a morgage and my wife staying home with the little one, sport cars were out.

Overall I can't complain, I just upgraded from my 300SD (not in the best of shape) to a 94 E420 :sun_smile

With all that said, I do not regret my past choices.....