Wise or Unwise

[SKINNIE]

Fuck the house. Buy the Type R

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[FDM2023]

Focus on the house buddy. Everything will fall in place after that.

 

[chopsuey34]

You know, this thread has me thinking. I've been considering buying a Type R over an Si recently because the expected depreciation on the Type R over 5 years will most likely be less than the Si's depreciation. So my scenarios are Type R @ $46k + $1k mods (mostly stock except RMM, accessories, tune(?)) or Si @ $31k + $6k in mods (fully clapped out in mods). Haven't run the numbers or research yet, but the thesis is avoiding depreciation with the Type R and avoiding the 0% ROI on mods.

Cars aren't investments, but I'm now considering increasing my outlay by about 25% into less of a depreciating asset and having fun with it stock (Type R) compared to modding an Si. Of course, the opportunity cost of increasing that outlay is big because the net ROI is negative vs. investing in an index fund, but why not? Cars are an emotional decision, too.

 

[Clark_Kent]

You know, this thread has me thinking. I've been considering buying a Type R over an Si recently because the expected depreciation on the Type R over 5 years will most likely be less than the Si's depreciation. So my scenarios are Type R @ $46k + $1k mods (mostly stock except RMM, accessories, tune(?)) or Si @ $31k + $6k in mods (fully clapped out in mods). Haven't run the numbers or research yet, but the thesis is avoiding depreciation with the Type R and avoiding the 0% ROI on mods.

Cars aren't investments, but I'm now considering increasing my outlay by about 25% into less of a depreciating asset and having fun with it stock (Type R) compared to modding an Si. Of course, the opportunity cost of increasing that outlay is big because the net ROI is negative vs. investing in an index fund, but why not? Cars are an emotional decision, too.

You're overthinking this. Ignore the depreciation curve and just buy what you want (and ideally, what you believe you can afford). The mental gymnastics of trying to justify the purchase of a brand new automobile will almost always run counter to prudent personal financial management.

 

[optronix]

You know, this thread has me thinking. I've been considering buying a Type R over an Si recently because the expected depreciation on the Type R over 5 years will most likely be less than the Si's depreciation. So my scenarios are Type R @ $46k + $1k mods (mostly stock except RMM, accessories, tune(?)) or Si @ $31k + $6k in mods (fully clapped out in mods). Haven't run the numbers or research yet, but the thesis is avoiding depreciation with the Type R and avoiding the 0% ROI on mods.

Cars aren't investments, but I'm now considering increasing my outlay by about 25% into less of a depreciating asset and having fun with it stock (Type R) compared to modding an Si. Of course, the opportunity cost of increasing that outlay is big because the net ROI is negative vs. investing in an index fund, but why not? Cars are an emotional decision, too.

$6k is "clapped out" in mods? I think you're dramatically underestimating what you'd end up spending on mods. Unless you went cheap, AND did all the work yourself, $6k is not a lot to spend on mods.

As someone said already, if you can afford it, buy what you want. If you can't afford it comfortably, don't buy it. It really can be that simple, and deviating from this path will most likely lead to pain and regret.

 

[Icehawk]

Your Si ain't Championship White.

 

[egxflash]

You're overthinking this. Ignore the depreciation curve and just buy what you want (and ideally, what you believe you can afford). The mental gymnastics of trying to justify the purchase of a brand new automobile will almost always run counter to prudent personal financial management.

Absolutely true. And the value proposition takes a nosedive too when you're talking about a brand new Type R or Type S vs say, a Civic Hybrid. Let's be real here, these cars are overpriced for what they are in the first place.

Color me pessimistic though, but I don't really know if OP is going to follow the sound advice in here or he's just fishing for validation in several sources until he can find someone that tells him to buy the car anyway.

 

[menikmati]

You know, this thread has me thinking. I've been considering buying a Type R over an Si recently because the expected depreciation on the Type R over 5 years will most likely be less than the Si's depreciation. So my scenarios are Type R @ $46k + $1k mods (mostly stock except RMM, accessories, tune(?)) or Si @ $31k + $6k in mods (fully clapped out in mods). Haven't run the numbers or research yet, but the thesis is avoiding depreciation with the Type R and avoiding the 0% ROI on mods.

Cars aren't investments, but I'm now considering increasing my outlay by about 25% into less of a depreciating asset and having fun with it stock (Type R) compared to modding an Si. Of course, the opportunity cost of increasing that outlay is big because the net ROI is negative vs. investing in an index fund, but why not? Cars are an emotional decision, too.

To echo what @Clark_Kent said

 

[WOPSiWOT]

You can sleep in a car, but you can't race in a house.

(But seriously, if that is the decision, there is no decision, the non-depreciating asset).

 

[BoostBlueFL5Rawr]

Typically 3x your salary is quick maths for if you can afford a house, not sure about your area but $168,000 for a house note doesn't seem feasible in our ridiculous market today. Keep the Si. work up to being completely debt free and stack up paper until you can afford a down payment if you haven't already. Hope the market and % rates gets better.

 

[egxflash]

Typically 3x your salary is quick maths for if you can afford a house, not sure about your area but $168,000 for a house note doesn't seem feasible in our ridiculous market today. Keep the Si. work up to being completely debt free and stack up paper until you can afford a down payment if you haven't already. Hope the market and % rates gets better.

Seeing someone who has $56k income contemplate buying a house just doesn't compute for someone like me who lives near the coast in Southern California

 

[cryptolime]

might want to wait for the housing bubble to pop....if it ever does. usually i'd tell people to buy a home, but prices are so high right now.

 

[cryptolime]

$56k income and buying a house just doesn't compute for someone like me who lives near the coast in Southern California

you can buy a nice tent on skid row

 

[egxflash]

might want to wait for the housing bubble to pop....

Every year everybody says that but somehow, someway here we are still.

I'm just glad we got our first property back in 2009 when things were still at the bottom following the subprime lending crisis in 2008. Refi'd our second home before COVID too so we're sitting at 2.5%

 

[SKINNIE]

Every year everybody says that but somehow, someway here we are still.

I'm just glad we got our first property back in 2009 when things were still at the bottom following the subprime lending crisis in 2008. Refi'd our second home before COVID too so we're sitting at 2.5%

I bought my first house around that time. Was in my mid 20s in 2008. I was making around $45k/yr and had a brand new S2000 in the garage. I don't know how the hell I even made that happen.

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