What would you do?

[monotony]

Viper - The way I figure it, the house was really just an investment. I don't plan on living there for more than another 2-3 years, and I bought it for the tax benefits & appreciation value (15% a year) so I'm building equity just by living there. No real need to pay it down, so I don't worry about it too much. Is this bad logic?

 

[Kadarin]

I already have a decent car, so I'd pay off existing debt and save/invest the remaining cash. I'm in the military (starting next week!), so I won't have any major expenses.

 

[fonzinator]

Since no one has asked yet, I'll be the one...How did $40k fall in your lap??

 

[everman]

If you plan on moving in a few years, then definitly do any house remodeling. You'll definitly get a nice return on that investment.

 

[monotony]

Fonz - I sold intellectual property to a rich person =)

everman - you said do house remodeling or dont? I wouldn't mind putting tile/wood floors in, replacing the counters, cabinets, etc... How much of a return would that garner? I'm clueless about this kind of stuff.

 

[guapo337]

buy the freaking car. you only live once. let's have some balls here people. you're in a pretty good financial situation as is, BUY THE FREAKING CAR ALREADY! NOW! GO DO IT! DONT STOP!

 

[Viper GTS]

Originally posted by: guapo337
buy the freaking car. you only live once. let's have some balls here people. you're in a pretty good financial situation as is, BUY THE FREAKING CAR ALREADY! NOW! GO DO IT! DONT STOP!

Whatever you do, DON'T follow this advice.

You only live once, let's screw over the one financial future you have! A car is a great reason to do it!

Viper GTS

 

[spyordie007]

I say evaluate your current automobile, if it's something that will last at least another several years you should really be looking for other things to do with the cash.

If I got a check for $40k next week I would go out looking for 2 pieces of real-estate to buy, but that's just me. Get good at that and you can use the money from investment properties to pay you car payments and after picking up a 4th and 5th property you could fund G35 payments with the cash flow off of those properties alone (and you'd still be building equity).

If you really need to buy new transportation there really isnt a need to spend more than 10-15k on a car (and 15 is pushing it).

This is just my 2 cents, but this is your $40k we're talking about here so you should really go sit down with a financial planner here and stop listening to those emotions that are just telling you to "buy now".

-Spy

 

[Hammer]

Originally posted by: Viper GTS

Originally posted by: guapo337
buy the freaking car. you only live once. let's have some balls here people. you're in a pretty good financial situation as is, BUY THE FREAKING CAR ALREADY! NOW! GO DO IT! DONT STOP!

Whatever you do, DON'T follow this advice.

You only live once, let's screw over the one financial future you have! A car is a great reason to do it!

Viper GTS

i fail to see how buying a car cash "screws over your financial future".

at worst it leaves it unchanged.

 

[spyordie007]

Originally posted by: Hammer

Originally posted by: Viper GTS

Originally posted by: guapo337
buy the freaking car. you only live once. let's have some balls here people. you're in a pretty good financial situation as is, BUY THE FREAKING CAR ALREADY! NOW! GO DO IT! DONT STOP!

Whatever you do, DON'T follow this advice.

You only live once, let's screw over the one financial future you have! A car is a great reason to do it!

Viper GTS

i fail to see how buying a car cash "screws over your financial future".

at worst it leaves it unchanged.

It would remain unchanged, another opportunity missed.

 

[Gunbuster]

At the very least put 10K down and make them give you 0% financing so you build credit and make intrest on the money still in the bank

 

[everman]

Originally posted by: monotony
Fonz - I sold intellectual property to a rich person =)

everman - you said do house remodeling or dont? I wouldn't mind putting tile/wood floors in, replacing the counters, cabinets, etc... How much of a return would that garner? I'm clueless about this kind of stuff.

If you did things like nice new flooring and kitchen remodel you can pretty much count on getting a nice return on that when you sell. There's always money to be made in investing in property. (see Donald Trump for more info )

 

[guapo337]

Originally posted by: Viper GTS

Originally posted by: guapo337
buy the freaking car. you only live once. let's have some balls here people. you're in a pretty good financial situation as is, BUY THE FREAKING CAR ALREADY! NOW! GO DO IT! DONT STOP!

Whatever you do, DON'T follow this advice.

You only live once, let's screw over the one financial future you have! A car is a great reason to do it!

Viper GTS

i think you are WAY TOO UPTIGHT. life only happens once, chief. honestly. if he put 10k down like someone else said, and financed the rest, he'd be in very good shape. even if he bought it outright with cash, his financial future isnt changed. at all. not a bit. because he's dealing with money that isnt being used in anything else. yes, it COULD be used in other places, but it doesnt need to be. he's living comfortably.

now go buy the damn car.

 

[CPA]

Paid your dues? At 26? bwahahahahahaha...

Hell, according to this article you just passed into adulthood. It's only now that you need to start paying your dues.

edit: btw, go with the cheaper car and invest the rest. If you use the dues excuse you'll never get ahead.

 

[dirtboy]

Steel Grey BMW 330Ci fully loaded - finance the difference. Why not, you only live once.

 

[H34D0N]

Originally posted by: 40oz
I would buy the $25,000 car and then use the rest for savings/play etc. money

 

[Kaieye]

I have to agree with CPA but to go with a much cheaper car and invest the rest for the future. An example for myself is I would invest most of that cash for down payment for some income property or my kids college fund. I have rarely seen people say that a new $25-30K car was a great deal or a pleasure to own after keeping it for five years or so.

But what the hell - its your money!

 

[Eli]

Definately buy a 10 - 15k car and invest/save the rest.

 

[Chaotic42]

I'd buy an $11,000 Toyota Tacoma truck and bank the rest. I don't know if it's a windfall or what, but unless I had a steady income of at least $8000 a month after taxes, I wouldn't buy a $40,000 car.

 

[Marshallj]

Originally posted by: monotony
Ok, let me start off by saying that I am not looking for the "wise advice" here. I know what I SHOULD do, but I am more interested in what YOU would do.

I will be receiving a check this week for @ 40K or so. I plan on buying a car with part of it. What I really, really want to buy is a Infiniti G35 Coupe 6MT which will pretty much deplete the entire amount. The other car I'm looking at is an Acura CL-S, which will leave me about 15K left over for whatever (house upgrades, home electronics, savings?, etc..). In anycase, my head is telling my to buy the Acura but my heart says get the G35. I'm 26 and have never owned a car less than 10-15 years old. I feel like I've paid my dues and now it's time to play! If you were in the same position, what would you do...?

Swap the cars to fit your style, but you get what I mean...

You are acting "ghetto rich". You're blowing your money as soon as you get it.

 

[her209]

I would go to town in Las Vegas.

 

[Zebo]

You are acting "ghetto rich". You're blowing your money as soon as you get it.

Haha someone had the balls to say it. And the worst part is, unlike the ghetto rich HE KNOWS THE DIFFERENCE but wants to do it anyway.

 

[nan0bug]

Take my word for it: Invest that money.

Right now the market is down. Down = good for young people looking to invest You're young, you can afford to lose some money if it gets worse, but when its down... man.. thats when you have the highest potential for it to turn back up. You should invest as much of that money as possible. Talk to a financial adviser and play the market. I'd put at least half of it in 'safe' investments, and invest the rest agressively.

I know it's hard to think about your future when all you see is 'NEW CAR!' but think about how much of a head start 40k will give you on your peers. When everyone else you work with is worrying about their retirement, you can sleep soundly knowing you tucked that money away when you were young. Hell, if you get lucky on some of your agressive investments, you could end up buying a G35 just on the returns, USED, like a sensible person would.

If you gotta spend some, don't spend more than 10k. You'll regret it later.

 

[m2kewl]

unless you got a steady income, save the money.

 

[jeremy806]

Depends on your entire savings scene. If you have no savings, you had better hang onto that cash. $40k buys lots of things, hold the money for a few months... that would make a nice downpayment on a house or a great emergency cash fund if your life ever gets crappy.

You have not paid your dues in life, I hate when folks say that.

If you really need a car, try to keep it under $25k so that you have a good amount of dough leftover.

jeremy806