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      10-29-2012, 04:14 PM   #26
Mr Tonka
Tonka.... Mr. Tonka
 
Drives: Exceptionally well :)
Join Date: Feb 2009
Location: Tampa, FL

Posts: 1,174
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Quote:
Originally Posted by smohr33 View Post
Put the numbers on paper and it will make more sense. Please don't take offense to any of this, I'm just a realist.

You have income of $3600 a year plus your internship. I have no idea what your internship nets you but say you bring home $10000 for both jobs after all is said and done.

If you're car payment is $450 a month, you're spending $5400 a year on just payments. Then you have to insure it ($1000+), and put fuel in it ($1000+). You're now spending 75%+ of your income for this car, and those are conservate figures as I'm sure you're insurace will be higher (assuming under 25, 300hp $30-40k car). You have $2500 left to eat, pay off student loans, spend on discretionary items, etc... Even if you're bringing home twice as much, you're still spending way too much of your income on the car.

It doesn't add up. This is basically a case study of why so many Americans are in debt. Go lease a Honda Civic for $100 a month to get you through college. You'll have a warranty, a safe reliable car, and money to live. You can always buy the BMW when you get out of school and get a good job.
This, live by the percentages. If it doesn't work, focus on what you need to do in order to make it work. Many times this will allow you to make several other things work as well.

50% of annual income spent on a car is a dicy situation. If things go bad you can damage your credit or whom ever is willing to sign on your behalf. The ownership of that car 1 or 2 years sooner is probably not worth that to you. It wouldn't be to me. (although it probably seems like it is now)

And as someone mentioned, 08-09 is and will be out of warranty very soon. Unless you're getting CPO which will give you an extended warranty. However, keep in mind that it's only a power train warranty, not the bumper to bumper, maintenance included warranty you'd like to enjoy.
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"Government is the great fiction, through which everybody endeavors to live at the expense of everybody else." — Frédéric Bastiat
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