What is your opinion....

[EconDiva]

Update:

This friend came into town to visit a few weeks ago. We had a few general convo's about finances during his time here (he's looking to start investing soon and wants to start an investment club)...


Anywho, he did mention (I didn't ask him, he just brought it up) that he's now "very close to 6 figures". And he mentioned that he felt better about buying this particular car because it wasn't a luxury vehicle like a "Benz or Mercedes".

Interesting convos because it was as if he wanted me to give my opinion on the choice he had made in regards to buying his new car, but I didn't, I just listened. He also mentioned that he saves around 30% of his net income soooo....that's way more than me and I don't even own a car at all LOL.

[Christian321]

my opinion is that his actions exemplify typical american consumerism/spending. It's why so many people are broke.

Your logic is sound, please don't let his actions influence you to do something similar.

[Christian321]

I'm glad to know I wasn't the only one that had to Google G37 S lol....I was thinking it was a Nissan

It is a Nissan. Infinity is owned by Nissan...just as Lexus is owned by Toyota

[UnknownXV]

He will pay that interest on his car, guaranteed. However, the odds of getting above 3% on any interest are far from guaranteed. In any option that allows that, there's risk, so he could end up losing even more.

Maybe I just like to play it safe, but I say take care of debt first, that's a 3% investment right there.

[I-78 Commute]

I'm not knocking the car because I have one. A 2009 G37x coupe which I paid $36,000 for (MSRP was $45,600.) I bought it in October of 2009. It currently KBB's private party at $30,000 so they don't depreciate a lot if you don't drive them to death (I average 7,500 miles on it a year and it only leaves the garage on sunny days.) We (my wife and I) paid cash for it. Prior to that I had a 1999 G20 sedan (they don't make em anymore) which I paid $10,000 cash for in 2002 and then sold it for $2,000 to an Infiniti mechanic in a non-running state in 2011 (after my teenage son had it for 2 years.)

He bought the least practical version (the S is rear wheel drive and has a 6 speed manual transmission) and he probably has to have a lower deductible on his car insurance if his lender requires it so he may be paying more in premiums than he has to. If he has enough in other places beating 2.9 percent that he could get to if he had to (and liquidate without it costing him more than the interest he's paying) or enough in savings beyond the 3-6 months of expenses to clear the note then he's probably ok carrying it. Otherwise his risk IMO is just too high.

I'll never do car debt period but with rates so low I know a lot of people are jumping in.

[adpiterp]

Update:

This friend came into town to visit a few weeks ago. We had a few general convo's about finances during his time here (he's looking to start investing soon and wants to start an investment club)...


Anywho, he did mention (I didn't ask him, he just brought it up) that he's now "very close to 6 figures". And he mentioned that he felt better about buying this particular car because it wasn't a luxury vehicle like a "Benz or Mercedes".

Interesting convos because it was as if he wanted me to give my opinion on the choice he had made in regards to buying his new car, but I didn't, I just listened. He also mentioned that he saves around 30% of his net income soooo....that's way more than me and I don't even own a car at all LOL.

I had the same reaction as you when I saw your first post, but I changed my mind/perception after your update.

Everyone has different priorities with their spending - it could be that he doesn't buy expensive clothes, hobbies, dinners, etc and spends it on his car. I don't see a problem with that, if you are saving in other places and it seems like he is because he is saving 30% of his net income.

Now if you were saying he has this expensive car AND overextending himself everywhere else, that's a different story and I would have a different opinion.

[KiwiJo09]

I agree with DisneySteve. If you need reliable transportation, you go for something more like a Toyota or a Honda. You don't reach for a super expensive car when you just started a new job a month ago. I mean, I'm 23 and even I see that.

[4sureloans]

Looking points are great, having good sound..!!