RedC7AZ

You bought almost a 1 year old car, even though you purchased it in the same model year it was made (2005) and it had only 430 miles on it. That is why the discount or depreciation was $9000 at the time of purchase.

By July 2005 the C6 had already been out for 12 months. You may have gotten a $9k discount, but someone else who bought the exact same car as you a month later, as a 2006 may have only received a $5000 discount, but as of right now, all things being equal, and if they followed the same depretiation path, his car is worth a few thousand more than yours since his is a 2006 and yours is a 2005. The difference in the value of the cars right now negates a good portion of the additional dicount you received when you purchased the 2005 car at the very end of the model year run.

mnfmkf

What if you and the girlfriend break up ?

Get a vehicle that you own... That means pay cash for .. Not a lease or a payment or a car payment that will haunt you later.

Save some cash

Invest in something that dosent depreciate.

There are homes that may not appreciate...but a renter will add to your funds..

Think long term... Life is long and getting harder financially by the minute.

Is you employment stable?

Will your salary continue to increase significantly In the future ?

All this is only my opinion ... I am not $$$$ but i do not have debt.

Its alot easier to live that way.... Less stress Corvette or no corvette.

DrunkPenguin

Whatever I'd like to save enough cash to buy a home in Russian Hill San Francisco. Let me start saving now. By the time I retire maybe I can live there.

This save till you can pay cash is such ********. A nice down payment and a good job with a career on the rise is sufficient.

88BlackZ-51

not a chance!!

DrunkPenguin

go for it. I think but can't remember but my salary during 2001 was similar. I was 34 I think and job secure. I put maybe 10 percent down on a loaded C5 thru credit union.

Worked out fine. I didn't go broke. Will never forget my first Vette. Brand new. Later bought a home blah blah..

Fast forward still with same company as my first C5 wow 20 years this Dec. Salary much higher now. Umm still won't pay cash for a C7. I have other hobbies and a life.

No shame in financing..

Rick

NICK YOSKIN

I agree...screw using ur own money when you can borrow it at 2.9%! That what I can get it for.

Never-Enough

No, only a dope buys a car that cost what they make in a year IMO

NFexec

I am definitely not a "half-empty" kind of guy. BUT... you are getting married soon. No kids now - but when? Do you have a retirement fund? How is your combined savings? If you have ANY thoughts on having children, you will be shocked to find out what it costs to provide a quality life for them, let alone start thinking about saving for college. Yeah - I know, you're not even married yet. And the argument can be made about living it up while you're young and it's just the two of you. But think carefully about the costs of maintaining a household and marriage over the long term. If you can put money in a retirement plan, and begin some sensible investments (even at a small, entry level) and you find your Vette payment won't fit into that plan, I'd say don't do it. EVERYTHING you pay for now will be MORE EXPENSIVE as time moves on. Someone mentioned Obamacare. Well... who knows what health insurance rates and co-payments will be in the next couple of years. No one expects them to go down!

I totally agree with the plan to buy a well cared-for previously owned C6. Drive it for a few years and see how things go for you financially.

Here's another thing - does your fiance' know you want to do this? It's the mature and respectful thing to make sure she knows about it. How do you know she isn't planning some major purchase in a couple of years? Be sure to discuss financial matters openly and honestly.

Failure to think this through carefully WITH her will lead to a

Doug

bladex10

Yes you can easily afford it.

VtVette

I'm in a very similar situation as yourself but at 37 years old. We own several rental properties and our primary residence. One small mortgage at 3.25% which will be paid off in a few years. Cash in the bank at 6 figures, retirement funds stocked and absolutely no other debt whatsoever. No kids and never will have any. I own a very clean '93 C4 I bought 5 years ago for $8,000 to cover my Corvette habit and a '01 Mustang GT 'vert with 155,000 miles on it I picked up for $4500 a great daily driver. I could sell either for damn close to what I paid for them tomorrow. I also have a 2004 Avalanche with 105,000 miles for property maintenance etc. I do all my own maintenance so owning cars that are a bit older can be a real plus. My favorite thing about the mustang is the cost of parts - they are so unbelievably cheap it just puts a smile on my face! That's the first thing I brag about when people ask me how I like the car!

I would love a C7 but would not buy one for years to come. Just can't justify tying up that kind of money in a car. The opportunity costs are so great. $500/month contributed every month and compounded at a conservative long term average of say 6% interest (after inflation) is a healthy amount in 10 years and a fortune in 20 years.

I never really liked the C5's but early C6's are falling in price to a point where I *may* just splurge on one in a year or so. That is definitely as new as I will ever go on a Corvette though - maybe 7 or 8 years old at the MOST. It's not the money it's the principal and the way I view money. Just can't bring myself to loose that much on what amounts to a fairly purchase.

Can you pay for it? Probably.

Can you afford it - well......

Of course, it's no one's place to tell you what to do with his money. You earn it, you spend it how you see fit.

zland

You are right, something is special about buying new, especially a first year car and that is you will lose 50% of your investment in 3-5 years.

The best way for a guy that makes 60K a year to make sure he never gets ahead in life is to buy a new 60k car, a massively depreciating asset that is equal to a full years salary.

Let's assume a buyer gets a C7, pays 60k for it and three years later it drops 25k on value. 25k divided by 36 monthly payment equals a loss of $694 a month. When a person makes 60k a year before taxes are taken out and makes owning a car that loses him $694 a month in depreciation, it is not a wise choice. Consider the fact he is buying it because he must have the newest toy, it means he will likely think he must have some other new car when it comes out. This is an endless situation that puts him in a poor financial position to own little else but a car at that income level the rest of his life.

Just because a person that makes 60k a year can buy a 60k, it doesn't mean it is a smart thing to do. Be careful for what you want, you might just get it!

The wise choice at this income level is to buy used, a depreciated C6 with low miles. Then, in 3 to 5 years, buy a C7 used and so on. If the buyer earned 150k or more, taking this type of loss makes it within his budget.

Of course it's a free country, he can do whatever he wants. All I know is I am retiring this month at the age of 55 and I am able to do so because I didn't make choices like buying a new car equal to a year of my salary to later lose 50% of it's value a few years later. Trust me, the appeal for me at my age of owning a car with a new taillight or 25 more HP is less appealing to me than the fact I have the option of choosing if I want to work or not the final chapter of my life. Financial planning is about life choices. Is owning a new C7 really worth so much to a person that they forego so many other things in their life a few years later?

Raitzi

Yes. It is no about how much you make, it is what you have. You can actually buy stuff without a credit card

jkcam6017

ryoder

It depends on where you live, how much you borrow, the interest rate and many other things.
However, I think the answer is no. Many of us make double that amount and won't be buying a C7 until the numbers are right.

JerriVette

I would suggest you are not making enough money to buy a c7. My suggestion is to buy a beautiful low mileage c6 coupe and enjoy that car.

The traditional new car purchase is 26 weeks of income...so if your making 60 grand...your car expense should be around 30 grand...

either buy a low mileage c6 grand sport, coupe, convertible or a c6 z06 and enjoy that...

Nothing worse than tying your self up tight with car payment bulls it...

The c7 is going to be insanely awesome but for a guy making 60 grand a year...? with very little savings? OP who still is just contemplating paying off his credit card just before buying a new car...

I say hold off buying a 60 grand car....pay off the credit card bill completely every month......and buy a nice sports car you can afford...whether it be the very nice camaro you already own...or a c6....

JMO and good luck

FastestBusaAround

2nd dumbest thread ever posted here on the forums...

Big Dan 427

WOW post 137! Is all this expert advice free or will a bill be going in the mail?

Ensoniq

I faced the same dilemma many years ago when I bought my first corvette. What I did was set aside the car payment every month for 6 months as IGI had actually bought it. I satisfied myself I could live with the payment level before committing and had an extra down payment.

Since the c7 isn't available yet, you could do this in the interim and validate your discipline and pain level.

Zee0hSix

Purchased a 4 year old 06/Z06 with 5k miles and a 3year warranty 2 years ago for $42K and from what I see for sale out there, my Z06 has held its value. Hint, buy a used Corvette in the dead of winter.

sxs191

Are you a Mormon by any chance? If so, get a second girlfriend to make the car payments.