Cars & Motorbikes 50k too much for a car?

Hey guys,

I looked into a few cars and I really liked Kia Stinger 330S or GT. Second hand one can be found for around 50-55k (around 80,000km). I've been living very modestly over the last 9 years and investing so spending this much money on a car feels just strange. I don't want to regret it.

I'm 41, relatively high income. My partner is on less than average income. Net worth between me and my partner is around 1.35M (1M in shares and 350k equity in investment property), plus 200k in super. No kids, and we won't have kids. Plan is to move overseas, to my home country, in 5-10 yrs where we can retire early very comfortably even without investing more from this point one (based on growth of current assets). However we may decide to stay in Australia, you never know.

Are you thinking "don't be a tight a** and treat yourself" or are you thinking "it's too much, don't buy it"? This car would be around 4% of my net worth excluding super or 3.5% including super.

Thanks guys

P.S. I really liked Merc C class and Audi A5, but these cars would be 2nd hand and possibly money pits. Then I saw how Kia Stinger stinger compares to Audi S5 (very favourably) and started considering it.

 

For me, yes.
But there are people that spend a lot more than that on cars.

With decisions like this, to me it always comes back to what is my goal and how much is an expenditure like that going to set me back?

 

What is the car going to be used for?

P.S You can buy a brand new WRX for 50k...

 

I'm FIFO, so just travelling around the city 3 days a week. Like going to the coast, caffees etc.

 

That's what I'm trying to figure out

 

I don't see how your net worth has much to do with it.
How are you paying for the car?
How is your cashflow state?
Do you intend to invest this year too and if so does the purchase affect your investing plans adversly?

 

Life is too short. If you're financially sound, I say go for it. Life is not totally about how much you'll lose in depreciation etc. If you can afford it, enjoy it.

If you're struggling to make ends meet to provide for a kid, I'd be saying very different.

* full disclosure I'm a tad bias towards 'enjoy' as I'm going car shopping tomorrow.

 

I have the option to pay in cash or finance.
Cash flow is good, I've got enough disposable income to live comfortably, travel and invest around 40-50k a year.
I invest in VGS whenever I have money, so I'll continue doing this, with whatever resources I have available.

Thoughts?

 

Niceee which car do you have in mind?

What's your thoughts on Kia Stinger? My other options were audi a5 or camry hybrid.

I guess i can afford it, but then keep thinking "in 10 yrs 50k would be worth 100k if invested in shares and the car would be 20k" haha

 

I want to become financially independent early. So i guess that's where the net worth comes into play

 

That's what I'm trying to figure out. Do material things really make people happy? I've never had a nice car so i don't know haha

 

If you like a KS then go for it. It's really subjective and a personal choice imho.

Re 10 years 50 would be 100k.....

tomorrow is promised to no one but a fool.


If you can afford it. And you believe you deserve it. Go for it. Enjoying the journey.

Re what car I'm looking at, maybe merc or Audi too.

 

Go for it.

Just make sure you smoke the tyres every now and then.

 

I have mainly owned sub $10k cars for the last decade... a few times $15k or something, while I have built my investment base. Soon I'll be spending 6 figures on one. Makes me wonder also whether it is worth it, but depends what also you buy.. I also kind of buy cars for an investment - one has returned 400% in 10 years. Could sell and buy for a brand new car, but I kind of love it still.

Personally, I would not buy a Stinger.. but mainly due to my investment eye. Stretch it another $10 or $20k. Look at a BMW M2, M3 or M4, AMG C63 (if you can afford the fuel bill!). Maybe a 400z, Yaris or Corolla GR, recent Audi RS3 - one of the last few great petrol driver cars, before they all go extinct.

In 10 years will sell it for break even, or maybe even 400% again.. who knows! I think though something that is not in the "highly desirable basket" now, will not be so in future.

 

When I was younger I lusted after a BMW, now, older and wiser, I dont care - a car is just something to get me from one place to another ...

 

.....a car....is so much more.....

 

I love M3 but they just seem underpowered for the price?

 

Feels like you can afford it so i personally would go for it.

Who knows what might happen in 10 years. Your investments might not end up as good as you might think and also just like the others mentioned, you have to enjoy yourself while at it. Otherwise why invest and take risks.

I personally like Motorcycles so don't have much advice to offer car wise, although if i had money, i would buy and older classic as a weekend like an e46 M3 (my favorite shape) or a muscle car but that would require a lot more than 50k!