ronaldtheologo

The car I am looking at is $68,720 total. It is an SLK 55.
And at 7.95%, I am have a payment of about $1,500 a month.

I make $60,000 a year and a bonus from $1,000 a month usually, the last 3 years was more bonus.

I only owe money in the house, no other bills. Wife and 3 kids.
I really want this car, and I do not think it is too much bu tmy wife say it is too much.

I just want to ask if I am reasonable in this purchase. What do you think?

I know it is hard to get such info, but I just want to get a reality feedback from other Benz owners. Am I not making enough to own this nice car?

I'm 39.

Ron T

Ynot

$72,000 roughly w/ bonus, a mortgage, wife, and 3 kids, that's pushing it a bit, depends on how much your mortgate is, and how badly you want it. I wouldn't do it if I were you, you are better off getting a used 2006 SLK55 fully loaded with low miles for $55-60K, that's a better bet, your payment's will be lower and if you do need to dump it for any reason, the lost is minimium. If you buy a brand new one and found out it's hard to keep up with all the bills and need to get rid of the SLK, you are going to lose alot of money. I say your wife is right, go with a brand new SLK350 or slightly used SLK55.

AsianML

Ditto.

Wait another year or so for depreciation to hit even further, than you can get an SLK55 for even cheaper than it is now.

Otherwise go for an SLK280 or 350. They're all great.

flush

60 gross or net? It looks like your mortgage payment is going to be cheaper than your car payment? Doesn't make good $$$ sense.

I wouldn't get a car that costs more than annual income. Especially with a wife and 3 kids. Like the previous poster, a nice used CPO AMG with 4 doors will cost far less and you can actually fit your entire family.

amdeutsch

Don't even have to crunch numbers on this. The interest rate alone tells the story: non perfect credit, too high of a debt load, etc. I agree that the wife has the brains in this family.

HLG600

Sir, I feel you must reconsider getting involved with such a costly automobile, and focus more on paying off other debts. You have every right to enjoy yourself. However, I fear this would be a move you will later come to regret. Either purchase a CPO SLK55, or a CPO SLK350 - both great automobiles. But, if you still have that AMG itch, then what about an SLK32, an AMG for the cost of a 350?

C43AMG

+1 - good advice HLG600 - may I suggest a used E55 for your AMG itch.

HLG600

Thank you. An E55 will definetely be an experience. Room for the family, more powerful than an SLK55, and nearly $20K less expensive.

http://cgi.ebay.com/ebaymotors/2003-...QQcmdZViewItem

slk55lvr

After taxes,fica and such you probably take home about $4600 a month. Spending close to 1/3rd of that on a car, not including insurance, gas, etc is way too much Imo. Wait a few more years or buy used.

ronaldtheologo

Thank you for the honest replies.

I guess I am being "greedy" or just want to hold onto my money longer.

I had rental house and sold it Aug 06, with capital gains taxes, and paying off the credit card debts, I still have net of $260k: 200k in mutual funds, 50k in 6 month CD, and 10k to checking.

California withheld 3% of the sell price, and I am expecting some returns from it. I will just have to wait for the CPA to finalize my 2006 returns.

I mean, I could pay cash for the car, but that means it is a huge hit off the savings. I have not shopped around for financing and the near 8% apr the dealer is offering is high.

My credit score was above 700 when I last checked in Aug when I refi my current house. My mortgage however is one of those low payment in the first 3 years, then jumps up. Currently it is 1700 / mo, and will jump to 3700 in Sep 2009--but I plan to refi again that time.

I guess this is one of those decisions that is bothering me.
Do I get a car that I would enjoy today?
Or do I just keep on saving and buy a car in 15+ years when the last kid is off to college.

I do have a healthy 401k, and college savings plan on top of the current liquid assets.

For now, I am giving myself an Oct 2007 deadline to buy a car. Maybe the 2008 models will be out, but I want a 2007 model... any fun and good looking car. It could even be a BMW but I like the SLK hard top.

LETO

Keep in mind AMG's are very thirtsty for premium gas. If you use this as a every day car and have a decdent commute you will be at the pump often

p.s> for a 60 month loan (my assumption) the interest rate you show is very high

ronaldtheologo

Oh, I did not take that into consideration.

My one way commute to work is 28 miles, so that's over 50 miles per day.
And AMG means it only wants premium gas?

Ok, one more question. Sorry being a newbie.
I like the front bumber of the SLK 55, the extra (holes?) vents on the front side of the bumber--that's only in SLK55?

Can I have an AMG kit for a SLK 280 or SLK 350? I like the body look of the SLK55 -- can the SLK 280 or 350 look like that? Except the exhaust from my photo comparisons.

I do not think I would mind a hit in less power since I'm still driving an 86 Nissan Sentra--yeah 20 year old but engine has been replaced / rehauled already.

rpayer

He asked for advice, not insult.

LETO

realistically this car will give you 15-20mpg. All benzes require premium gas.

You can get at AMG kit on a 350. You dont get 18" wheels with it, quad exhausts, black grill blades or the side cutout vents in the bumper. The rest will make it look like a 55. I think it is a $4500 option. IMHO it really beefs up the 350 and makes it look very agressive....check out Ynot's car above.

Ynot

Yes, all benzes are premium, the SLK350 gives about 22-26mpg in the city, that's pretty good IMO, I didn't buy it for that purpose, it's an added bonus I guess.

Yes, those vents are are only for the SLK55, click on my sig pics below for bigger pics of what the AMG kit looks like on the SLK350. It's rounder w/o the vents. It'll cost you an extra $4040. SLK55 looks a little different than the SLK350 with the AMG kit. SLK55 has two front fins in black, vents on the side of the front spoiler, rearlip spoiler, aerowings, quad tip exhaust, with 18" mulit-spoke wheels, and a lower stance. The AMG front spoiler can be brought for $1200 aftermarket I believe.

bltserv

Beware of that loan.
What ifs to consider.

Interest rates go up a couple more points.
The value of your house in Carson goes down.
Yes it could go down 10 maybe 20% in the next 2-3 years.
No matter what. Your Benz will depreciate like a falling stone.
Go get a used SLK. Save your money. Get a fixed rate 30 Year loan
and make real house payments.
That loan you have could be a neg-am. You are going
backwards on your loan balance every month.
Those teaser loans should be outlawed.
They let people buy homes they cant afford.

I waited till the the kids were gone. The wife was gone.
No Debt what so ever. Then paid cash for the car.

chitownc32

never buy new always buy used trust me i work for the biggest luxury car dealership in the nation luxurymotors.com

CY

lease it or buy used.....also consider a 2003 E55....excellent buy and a big MSRP when new.

dsb

Sounds like his mortgage is an ARM and probably not an Option ARM.
For many people, 2,3 or 5 year ARM make great sense. Option ARMs work for just a few people and should not be used to simply qualify people for homes they cant afford.

Anyways, back to the car question. Used slk55 or new 350 like others mentioned.

Beleriand

Here's a helpful suggestion:

Ynot

Yes, the savings are signifiicant but some ppl prefer new and the feeling of being the first person to own it is sometimes worth more then the savings.

Here's a decently option one with a little over 5000 miles with a buy it now price if $55K, http://cgi.ebay.com/ebaymotors/Merce...spagenameZWDVW
Autotrader also yields alot of results. Good luck, I doubt you will regret a brand new 350 or a slightly used SLK55.

9moon

i agree with what everyone had said.. wait a while and get a use benz.. i dont think the SLK is worth $1500 a month.. u may as well enjoy that monthly payment w/ ur family..

big SLK

since you like the hardtop convertible, you may want to look at the
2008 BMW 3-series conv hardtop. It seats 5 ppl i think ---enough for your
whole family.
Perhaps ur wife will like this car more...since it's a lil more practical
for the family.---yet still sporty.

Moviela

You deserve the car of your choice, man an 80's Nissan means you have paid your dues. Your problem, however, is your current housing situation. Lenders want to see about 26% of gross going to housing, and 18% to transportation. If you buy the SLK your housing and car just about cover your paycheck. Not a good situation for you.

More problematic is your thinking that you will be able to refi your home, and that the payment will be lower. Chances are neither is going to happen. LA real estate is going to tumble a bit, 15 to 20% in response to rising interest rates, and lack of buyers with the income to qualify. That means that you might owe more than your current loan, and even Santa Claus and the Easter Bunny won't lend on that basis. You will be stuck with a $ 3,700/mo payment attempting to bring equity to parity, while paying interest larger than today. If you manage to be the luckiest homeowner in LA, and have enough equity to refi, your payment will be higher because the interest rates will be higher. You have another consideration about a future refi if you have a $ 1500. car payment at 8%. That will reduce the amount you qualify for from any housing lender by about $ 165,000.

May I suggest you take some of your liquid cash and pay off a portion of your home to the point where you can qualify for a 30 yr fixed conventional loan (meaning at least 20% of value) AND your new payment is 26 percent of your current gross. This assumes you pay your own taxes, without an impound.

If you can get that housing squared, you now have about $ 1,000 a month to pay for a car. Now, when shopping, never tell the sales people how much you can afford, or let them check your credit. They will simply taylor a deal to maximize their take, while giving you as little car as possible. For Mercedes cars you need to know that the dealer pays about 5% less than the invoice, and there is often cash paid to the dealer as an incentive. You can see the invoice and incentives at Edmunds.com. When ready to purchase, get your financing in order, and go to the dealer. Don't speak to any salesman, but put your deal directly to the sales manager. If he says no, let him know there are 299 other dealers that want to move a unit. Leave your number, he might see he needs an extra sale to get a bonus and call you. I do it this way, and often have messages on my machine before getting home.

SeaCoupe

Agreed. AM, you went overboard.

As for the affordability, in my opine, you are a long way from being able to afford the car. Especially if the interest rates jump in 09 when you plan to refi.


E