S500 Man

Guys i was speaking with somebody and they gave me some advice, they told me its a buyers market, Gas Prices Are high....He told me 1100(insurance Included) a month for a 21 yr old is crazy, that i should get a car thats nice but that doesnt cost me as much as my s500....i want to buy a house this new year, and i think the g35 coupe will do it for me, cause its still luxury, and its sport, im always the only one in the car...drive to work and back....he told me its better to have a house and a Decent Car....than to just have a NICE Car and live with your parents....what do you guys think?makes sense what im doing right?i bought my s500 when i was 19 yrs old almost turning 20.im 21 years old now.

jfendis430

If I am reading your post correctly you pay 1100 a month for your car holy smokes at what interest rate 20% ?? how much did you finance?

blazinginder

+1

jdpfresh

exactly what i was thinking. $1100 is ridiculous, especially for an 02! i dont even what to go into what your credit was like, interest, and down payment.

ANYWAYS, i would say sell the benz and go with your plan of the house and g35. don't get carried away though, make sure you can afford what you are buying. I see so many houses going for closure, mortgage payments are no joke.

trumpet1

$1100 / month would be financing approx. $53K at 9.0% for 60 months. I don't know when you bought your car. If you bought it maybe 3 years ago and you are close to fulfilling your loan commitment, I would think that the bank would be more favorable towards you if you went ahead and made all the payments and use it as an asset toward loan collateral. If you just recently bought it, you'll take a hit even though the car is used because that price is way too high. On the other hand, if the length of the loan is only 2 or 3 years, then the payment may be in line. I would weigh in how much you're going to lose before buying the house.
I hate banks. I hate their policies. Back in 1998 I bought the house I live in now. To qualify, I had to sell my beloved 1996 S420 because the bank wanted me to show a lower car payment. I ended up taking a beating and bought two Acura RLs costing more in monthly payments than the one Benz payment. Guess what? It made the bank happy because one of the Acuras was being paid by my business and the other car was being paid by my personal account

Overall I was in MORE DEBT to get the loan!!!!

I wouldn't listen to every opinion that comes your way. (Mine included). Everyone has different desires and circumstances. My motto is : the least expensive car you can have is the car you have now. You're young. Keep the car, live in your parent's house a little longer and use the car as collateral. I lost a bucket load of money listening to what people said about my cars and how expensive they were when if I had just ignored them, kept my cars, not traded so much, I'd be way ahead of the game by now. That's why I plan on staying put.

Benzojae

To me whats the big deal to buy a house why be in a rush you got to pay rent to somebody

S500 Man

correction i pay $668.05 a month lol, i have 35 months left on it, and i owe 20k?insurance cost 380 i hAD included insurance cost.....

my06clk

You are going to be 45 and still living with your mom with that mentality.

A mortgage is not rent!! it is a monthly step towards actually owning something that might get you through retirement, or help get one of your kids to college or perhaps a grandchild somewhere to come and play one day.

At least S500man is attempting to think logically and make decisions that will help him greatly later on.

Don't hate,, Participate!!!

Skylaw

Real estate appreciates over time - especially when we're in a market "correction" as we are now. That builds money (equity). Even the finest car depreciates, which costs you money. If you want to improve your financial situation, buying your home is the choice to make.

If you buy wisely, you will make money on your house. You will have a lot of flexibility with the equity that you will eventually have. However, just as with cars, you want to avoid a "money pit." Buying a house in bad shape to fix it up and "flip" it for profit is not the wisest thing to do at the moment. Buying one in good condition that you won't have to immediately sink a ton of money into, and living in it, is a good move.

Even if you have to give up the expensive car. I love nice cars, but it took years before I could afford both a nice house and a great car. The house came first. Both of my children have graduated from college and are well established on their own.

If you don't know the ins and outs of real estate, you can go to a good real estate company and hire a buyer's agent. Understand that the agent you will normally see searching for a home represents the seller - he or she is not your friend, no matter how nice they may be to you. A buyer's agent represents your interests, not those of the seller.

The other thing you want to do at the outset, after contacting a buyer's agent, is to "pre-qualify." That will give you a good idea of what price range you should be looking at. No sense wasting time making offers on homes well above the amount you can get a loan for. It just results in disappointment. Be sure to ask your agent what kind of cash you will need at closing, too - and investigate whether there are any "closing assistance" programs for first-time buyers in your locale.

This kind of choice can make a difference in other opportunities in your life as well. A woman who is attracted only to the "flash" of a fancy car (overlooking the fact that its owner cannot support himself and lives at home with Mom) is not a good decision maker, and not a good risk for long-term stability. A rational woman who is attracted to a man supporting himself, living in his own home, and making the clear choice for future financial security, (even thought his car may not have as much "flash") is a much better bet. That can affect your life for many, many years to come.

You are wise to undertake these considerations at your age. Too many people don't.

trumpet1

What is the anticipated monthly payment on the house? Would you be comfortably able to make the payment on the house and the car (and all of the baggage that goes along with home ownership)???
Or is it a matter of owning one or the other but not both? $668 a month is not that bad afterall. Most decent cars are going to run with payments close to that. Unless you want to drive a POS.

Gondon

how much did you buy your S class for?
also isnt a G35 couple like a lil below an S class in prices?

KA8

sell your benz buy a nicely kept 'almost new used' G35. Live with parents for couple of more yrs then buy a house. Now is not a good time or even couple of yrs down the line. that's my advice

atlrus

I think you are looking at it from the wrong angle, it's not a question of if you can afford the Benz, but if you can afford the house. Ask your parents to break down all the bills associated with the home ownership and see if you can afford it.

Many people (including myself when I bought my house) don't take into consideration the long list of costs associated with the house - besides the mortgage payments, you will have to pay home-owner insurance, property taxes, every-day bills (only the garbage removal runs me $500/year) and not to mention the expensive repairs if something breaks. Break down all the expenses and if you cannot afford it - lowering your monthly payment by $200-$300 will not help you at all.

But if you CAN afford the house - buy it. You can then sit on the front porch with a shotgun and a beer and shoot at people if they don't "get the hell out of my property"

DRTYLNDY

Remember the old saying buy low sell high! Houses are dropping fast now and great deals are coming out of the wood works. I am currently in the same dilema myself now. Should I sell my Benz and take that monthly payment and buy another house. My wife and I are now looking for a 3rd house and then a 4th. The plan is to buy low now/soon and sell them in a few years except the 1st one which we have decided to keep as our 3 month old college education fund. Don't get me wrong I LOVE cars. In the long run real estate always pays off. Do what YOU think is right not what others tell you to do. If everyone was so smart about finances then we would all be millionares right.

trumpet1

You are so right!!!! It is definitely a buyer's market. I know of contractors that are on the brink of bankruptcy because new houses are just not moving. If I had the ability, I'd be buying up houses left and right right now.

Vader55

1st things 1st. " Buy house before car" I followed that advice and bought a Benz with the 300k + that I made. As far as buying now, yes there are good prices now but I sold my last house in mid 05/top of the market. I am on the sidelines and currently up 40% in emerging markets ...I will be a buyer after May of 08 or maybe early 09.. These prices have more downside ahead. I am in socal so other states may be better now then others.

trumpet1

Funny you should say this. I just read this before reading your post. You're right according to this article: http://finance.yahoo.com/real-estate...in-2008-YesBut

ebolick

you are so right, after the first/second quarter of 08 you will see another drop, then i say buy.

everyone has made some great comments, do a cost analisit of what eveything will cost you. and to be honest if i were you i go one step lower and lease a Civic for 200 a month this will allow you to have extra money. I have the S but i drive my Civic to and from work everyday to save on gas and wear and tear.

good luck and great thinking

Gondon

what % are your tints?

AsianML

My aunt made $400,000+ gross profit when she sold her house. She bought a fixer upper when the housing market was down and lived in it and slowly fixed it. She sold it two years ago for almost twice the amount she bought it for. She took off with her family to Iowa where real estate was dirt cheap and I believe there some tax incentives that Iowa was giving out to new houses. She built a brand new 5,000+ sq. ft house there and completely paid off the house and her two cars. She has NO debt now and whatever income she has goes straight to her pocket (banks).

ebolick

im not sure what percent it is but they told me it was limo tint. its pretty dark, my girl hates driving it because of how dark it is but for me every car i have had has been limo tint.