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Should I buy a practical new car or dream car?

Which car should I get?

  • Drive an accord like Melyssa Ford

    Votes: 18 60.0%
  • Keylolo's new lexus

    Votes: 12 40.0%

  • Total voters
    30

Slutbucket

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Ok so its time for a new car. I purchased my 2009 car new and its still in ok shape. Ive been holding off and promised myself that I'd buy a new one after I graduate. So graduation is almost here and im still so undecided on what car I should get.

My grandpa sold some land and gave me $10k. I also will have close to that saved by December. So im thinking the smart thing to do would continue to save and buy a new accord/camry for like $25k and be done with it.

Orrrrrr

Should I get my current dream car, a lexus rc350, put down 20k and finance the rest.

Im single with no kids and feel like I should treat myself, but then like its just a car thats gonna sit in the parking lot all day while I'm at work.

Halppppp
 

LaIndigo

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First of all, congrats on graduating (soon) and the gift!

Next, if you can afford the maintenance and general upkeep without breaking the bank then I do not see why not. As a new college grad it may not be the wisest choice and I personally would not do it in your shoes. But I do not know enough about your finances to say no.
 

Poettree

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I'm all for treating yourself if you can afford it. Do you have student loans that you'll have to pay off? I'd say wait until you get your first high paying dream job to get the matching dream car to go with it.
 

WonkEye

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IMO, A car is one of the worst investments. The world is also in a weird place right now and situations can change so fast for people. I would keep saving and investing, however if this is what you've really been wanting, and it will really make you happy then I would say go for it. You know what's best for you. Congrats on your graduation!
 

Applejack.

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It honestly completely depends on how you're doing financially in other areas and what you value.

The smart answer would be to only do it if you're debt free, have 6 months living expenses, adequate employment and you're maxing out your 401k.

However I do think that sometimes it's ok to have fun and not be so focused on setting yourself up for the future because as we all know, tomorrow isn't promised.

I personally wouldn't get the dream car right after college and would wait until I have certain boxes checked off but if you can reasonably afford it and it won't screw you over financially then hey - have fun!
 

Ebony_Majesty

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Do you have a job lined up after college? Do you have proper savings? This is a recession, I don't know about putting your money into a depreciating item such as a car.
 

neutralblack

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Hmm, do you have enough in your savings account? Make sure that you have plenty of extra for emergencies. Do you have other investments? Make sure that you have enough emergency savings in order to support your lifestyle for 6-12 months (in this economy).

Do you own a home? That's a great use for additional money in the future. Save for that down payment.

Always go with the frugal option if you have an average middle class lifestyle as well as any student loans or other debts.
I'm a bit of a frugalista--honestly and I will happily drive my current pre-owned 2012 Toyota until it falls apart, so take my advice as you will. I will ,however, retire very well off one day. It doesn't matter what other people think of your car. No one of note judges my vehicle! Go with what makes you happy, but always consider the future. If you ever have to pay unexpected medical costs, wouldn't you rather have an extra 10k? I wish that someone had told me this when I was in my 20's.

Financial security is so much more valuable than a Lexus. Do not take financial advice from people who spend recklessly or rich people(their advice is not helpful).
 

Diggin da Shamy

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Why don't you just keep the car you have that works and continue to save for your dream car and buy it a few years old (no more than 3-4). You are about to graduate and walk into a recession ... people are getting fired everyday and you want to buy a car. Don't. Stick with what you have and do you live a job lined up cos your competitions are new grads plus people that graduated last year.
 

HappyPlace

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If you don’t plan on buying a house in the next 2 years...DREAM CAR!

Congrats Luv! Enjoy yourself!
 

Brother Mouzone

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I would keep the car you have.

If you need transportation say pay $20k cash for a car. Don't buy a 2020. Buy a 2019 certified pre-owned with factory warrantee

The amount you were going to pay in car notes. Pay to yourself and invest.

That's what I have done,

We are in a pandemic and an economic recession

Preserve your cash and limit your debt.

In no time at all, you will be paying cash for your dream car.
 
Last edited:

GrandMarquis

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How about use that money for down payment on a house? Make sure it's in an area it can be rented out and get a car when that stops running. A mortgage can be cheaper than rent.
 

Slutbucket

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Thanks so much for the great advice.

I purchased a home a few years ago and my student loans arent an issue. Im about to start applying to jobs in my degree field. I guess I'll let my new salary be my deciding factor as well. Im open to moving and I don't wanna take my car with me if I do. It will be 12 yrs old so im worried about the dependability as well.

A car that I can buy in cash sounds the most logical. But still..idk lol
 

TDiva

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Hang on to your money, wait until early next year when people are more desperate.

You should be able to buy a used certified RC 350 and only maybe finance 7K.

Your dream car is Asian? And a Lexus? Really?

I only buy coupes and you can always get good deals on them because people have babies, get old and sell theirs for the low. Most Americans are fat and have kids so they want SUVs and Trucks. The coupe market is pretty small and there are lots of deals to be had if you have cash on hand. Keep your money and check cars for sale every morning, you will find a deal. As long as your car is running and you aren't desperate you are in the power position.

Also @Brother Mouzone is right. Never buy a new car. That is for suckers. Unless you are pre-ordering something that will be limited edition it is pointless.

If you have kept the maintenance up on your car, it could easily last you another 5 years. Cars last a long time if they are taken care of.
 

LaIndigo

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Thanks so much for the great advice.

I purchased a home a few years ago and my student loans arent an issue. Im about to start applying to jobs in my degree field. I guess I'll let my new salary be my deciding factor as well. Im open to moving and I don't wanna take my car with me if I do. It will be 12 yrs old so im worried about the dependability as well.

A car that I can buy in cash sounds the most logical. But still..idk lol

Congrats on being a homeowner too! You are so ahead of the game.

If you are deadset on this car, I would at least hold off on buying it until you have secured a job and worked for a little bit. Wait until you get the job, work for a bit, and then buy it. That way you can get exactly what you want.

The recession has created a lot of uncertainty. You want to make sure you have all your ducks in a row first. The car will always be there.
 

Slutbucket

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Hang on to your money, wait until early next year when people are more desperate.

You should be able to buy a used certified RC 350 and only maybe finance 7K.

Your dream car is Asian? And a Lexus? Really?

I only buy coupes and you can always get good deals on them because people have babies, get old and sell theirs for the low. Most Americans are fat and have kids so they want SUVs and Trucks. The coupe market is pretty small and there are lots of deals to be had if you have cash on hand. Keep your money and check cars for sale every morning, you will find a deal. As long as your car is running and you aren't desperate you are in the power position.

Lol well my dream car under 50k that I can realistically afford. And im definitely gonna wait til next year! Thanks :)
 

DemiLovato

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a lexus rc350, put down 20k

Life IS short, so get the dream car! But NOT if you haveto/want to/ need to put down $20,000 US dollars!

Hell no! Never sink money into a liability!!! LOL

That $20K would better serve you if you put that as a downpayment on a piece of real estate, that produced income every month (from tenants) and then you used the profits after you paid off all your expenses (mortgage, maintenance, etc.) to cover the car note for the Lexus.
House hack... Get you a 2-4 unit... Let tenants and room mates pay your mortgage... live for free....use what would have been your money for rent/mortgage to pay your car note.

Please do not ever put $20K down for any car. Leverage your money. Most people dont have discipline to save $20K... At least TRY to make it work for you!!!

If you feel you don't have the capacity to do what I said with real estate I would then rather just see you buy a car CASH with the $20k and not have a monthly car note on top of giving them 20 bands upfront!
 

beachwaves

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Practical car. A Toyota will get you to the same places as a Lexus. No debt. Down the road the repairs for the Lexus will cost more. Idk about you but I'd feel better getting in a brand new paid off Toyota than a Lexus with a note.
 

sofxposh

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Hang on to your money, wait until early next year when people are more desperate.

You should be able to buy a used certified RC 350 and only maybe finance 7K.

Your dream car is Asian? And a Lexus? Really?

I only buy coupes and you can always get good deals on them because people have babies, get old and sell theirs for the low. Most Americans are fat and have kids so they want SUVs and Trucks. The coupe market is pretty small and there are lots of deals to be had if you have cash on hand. Keep your money and check cars for sale every morning, you will find a deal. As long as your car is running and you aren't desperate you are in the power position.

Also @Brother Mouzone is right. Never buy a new car. That is for suckers. Unless you are pre-ordering something that will be limited edition it is pointless.

If you have kept the maintenance up on your car, it could easily last you another 5 years. Cars last a long time if they are taken care of.
What you said about coupes...when I was looking at potential cars I wondered why they were priced a bit lower than others, thanks for the clarification!
 

croix

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Hang on to your money, wait until early next year when people are more desperate.

You should be able to buy a used certified RC 350 and only maybe finance 7K.

Your dream car is Asian? And a Lexus? Really?

I only buy coupes and you can always get good deals on them because people have babies, get old and sell theirs for the low. Most Americans are fat and have kids so they want SUVs and Trucks. The coupe market is pretty small and there are lots of deals to be had if you have cash on hand. Keep your money and check cars for sale every morning, you will find a deal. As long as your car is running and you aren't desperate you are in the power position.

Also @Brother Mouzone is right. Never buy a new car. That is for suckers. Unless you are pre-ordering something that will be limited edition it is pointless.

If you have kept the maintenance up on your car, it could easily last you another 5 years. Cars last a long time if they are taken care of.

Why are you judging her dream car? It's her dream car
 

croix

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To answer the question OP, I'd probably get the dream car. Life's short, if you can afford it, why not
 

RoyaltyBaby!

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Ok so its time for a new car. I purchased my 2009 car new and its still in ok shape. Ive been holding off and promised myself that I'd buy a new one after I graduate. So graduation is almost here and im still so undecided on what car I should get.

My grandpa sold some land and gave me $10k. I also will have close to that saved by December. So im thinking the smart thing to do would continue to save and buy a new accord/camry for like $25k and be done with it.

Orrrrrr

Should I get my current dream car, a lexus rc350, put down 20k and finance the rest.

Im single with no kids and feel like I should treat myself, but then like its just a car thats gonna sit in the parking lot all day while I'm at work.

Halppppp

I'm more seasoned in age than you so let me preface that before I get started. This may not be the answer you want to hear because it's not as sexy per se as getting your dream car now.

Since you are a new college grad, I recommend that you take the $20k and invest it into your future (not a "dream car") especially since you are not at least a few years into your career of choice. Take a percentage of the $20k to place it in your savings as emergency funds (at minimum 3 - 6 months of living expenses). Then, use the remainder to invest in a Roth IRA account.

With this being said, I would need more info about your current financial standing to include student loan debt (if any), other debts such as credit cards, personal loans, etc. (if any), and your current living expenses/arrangements.

For example:
  • Do you have any student loan debt or other debts?
  • How much money do you currently have in your savings and/or checking account?
  • Have you received a job offer in your career or choice? If so, what is your starting salary (or range/ or over/under x-amount annual salary) and location?
  • Do you or are you planning to start your own business now that you have graduated college?
  • Will you be living on your own, roommate, or remaining at home with parent(s)/relatives? If so, will you be living rent-free or living in a family home for which you only have to pay for utilities and maybe taxes?
  • Do you anticipate being in the market to purchase your first home within the next 5 - 10 years?
 

tt00

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If that dream car will leave you cash strap or tight on money then you need to get a practical car.

Also if you plan to purchase any other big ticket items then if you already have a current car I would hold off especially if it is real estate
 

kour

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First of all CONGRATULATIONS!

As others have so well stated before, I understand wanting to get that dream car BUT I would invest at least half that money in mutual funds or ETFs or set up a Roth IRA if you haven't yet. Do you have any savings? Exponential growth is a wonder once you reach a certain point with your investments and that could be the time for large luxury expenditures.

Granted we would need to know the amount of debt you have too.

Also there are some really goods options for used cars with low mileage and affordable prices from places like Enterprise. Luxury cars may be nice at first but they will experience wear and tear and parts for repairs can be expensive.
 
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As long as your dream car doesn't end up in buyer's remorse 1-2 years down the road, I say go for it! Also, think about finding ways the car will make money for you if it's in the high price range.

Turo.com is one option.
 

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