New Car

[David]

Buy a 2001 325i for about $12K and leave the $5K in the bank.

[berettafan]

don't know your financial situation but unless your parents will be setting you up after college i'd say dropping $15k on a car right now is proof that somebody is wasting money on your tuition.

[berettafan]

Do this, go find a $4k civic and put the rest towards a carefully chosen rental property whose rent pays the mortgage. Get mommy and daddy to sign on with you for the mortgage ahead of time and get started on the fast track.

[Porsche-O-Phile]

Originally Posted by berettafan

Do this, go find a $4k civic and put the rest towards a carefully chosen rental property whose rent pays the mortgage. Get mommy and daddy to sign on with you for the mortgage ahead of time and get started on the fast track.

Now that I'd agree with.

If you can actually find a place with rental revenues that will cover carrying costs right now, you'll have demonstrated an "educational ability" far greater than anything you'll be taught in school.

It's very hard to find properties like this right now (I've looked) but if you can do it, you'll be smarter than a lot of the college GRADUATES out there!

[deathpunk dan]

Buy a used Impreza 2.5RS. Stick the rest of the money into low risk stuff and be well set-up upon graduation...

[Shaun @ Tru6]

Originally Posted by berettafan

Do this, go find a $4k civic and put the rest towards a carefully chosen rental property whose rent pays the mortgage. Get mommy and daddy to sign on with you for the mortgage ahead of time and get started on the fast track.

Man that's great advice!

[berettafan]

Originally Posted by deathpunk dan

Buy a used Impreza 2.5RS. Stick the rest of the money into low risk stuff and be well set-up upon graduation...

well set up for what? to take a big hit on depreciation when you sell the car and move on to something else?


don't mean to put too much emphasis on it but this young man is at a crossroads in his life and his decision today will go a long way towards determining if he will be 'the man' one day or 'work for the man' the rest of his life.

not saying i've made the right decisions every time though

[deathpunk dan]

berettafan,

I'm advocating buying a low-depreciating used, dependable, and fun vehicle that is inexpensive to insure and own...and putting his money into other things.

OHHHHHH --- Did not see your advice and nor do I disagree with it.

[Rick Lee]

Originally Posted by berettafan

don't mean to put too much emphasis on it but this young man is at a crossroads in his life and his decision today will go a long way towards determining if he will be 'the man' one day or 'work for the man' the rest of his life.

not saying i've made the right decisions every time though

I wish I had thought of this when I was his age.

[berettafan]

sorry dan, didn't mean to be nasty about that. i'm closing in on 2,000 posts and i heard you get an imitation rolex or something when that happens so i'm posting at a furious pace!

[berettafan]

when i was in college my mom kept telling me i should buy a lot in the community we lived (rented) in. they were about $10k at the time. if i had made the effort i MIGHT have managed to get a bank to finance me on such a thing and come up with $2k or so to put down on it. I was more worried about Alpine head units, polk separates and crossovers for my ratty ass, 100k mile celica.

those lots, even in these tough r/e times, are now worth $140k minimum.

my mom didn't have the money or credit (bad separation/divorce) to buy any r/e but she saw i might be able to and tried her damndest to give me a leg up. the pain she must have felt watching me throw so much potential away is only now starting to sink in for me now that i have a son and want so much for him.

[Palum6o]

Get a high mileage Tacoma pick up. Since you'll be a young landlord, you'll need it to haul all your landlord stuff. You'll also be called on to haul the kegs to the parties.

[tcar]

The most logical choice: fix the '93 525.
What's wrong with it?
What's not fixable?

It's paid for, I assume. Spending a couple thou on it is the cheapest thing you can do.

[nostatic]

listening to adults when you're a sophmore in college is ridiculous. Yes, we all say, "gee, I wish I'd done..." when we're older. But screw that. Youth is for the youthful. Spend the money, party, and get lots of chicks.

You guys are a bunch of old farts...

[JeremyD]

His parents are paying half the cost - Garrett ride that money train as long and as hard as you can. Who knows how long it lasts (it was cut off pretty abrubtly when I was riding it back in the day.)

I agree with Todd - you guys are acting like some old farts - I'm suprised no one has recommended we puts some money into mutual funds.

[911Rob]

Originally Posted by nostatic

listening to adults when you're a sophmore in college is ridiculous. Yes, we all say, "gee, I wish I'd done..." when we're older. But screw that. Youth is for the youthful. Spend the money, party, and get lots of chicks.

You guys are a bunch of old farts...

Agree! Buy the nicest car you can afford, you only live once! Live.
You won't regret it.

Always had a nice car in the stable, wouldn't have it any other way!
Making money is easy, living life......... now that's something special.

[reesestewww]

87 Octane will ALWAYS be cheaper than 93.....

[Tobra]

Originally Posted by SLO-BOB

Your sig indicates a XTerra. Where is that? Your in college. Save your money for somehing worthwhile like a house. Trust me, in 30 years you'll thank me for this advice.

Buy a nice $5k Honda. Probably outlast all the cars you've mentioned.

Before you scoff, I'm a BMWCCA member for years. I want a new 3. But, I own my house and have all of my neccessities accounted for. I can afford the depreciation and repairs of a BMW.

What he said. Save your money and buy a house. My honda has about 150000 miles and has not cost me squat. Japanese cars will almost invariably be cheaper to maintain. Don't buy a rotary engine car, Honda or Toyota.

Sorry Todd, but sooner or later people need to act like grownups, even if they are not. One of the biggest reasons the economy is in the crapper is people living beyond their means. A little, tiny bit of deferred gratification can and generally will pay off huge down the road. There is a reason that most drivers of high end cars are "old farts" (there is the odd rap mogul in a Bentley, but I digress)

I ate ramen noodles and drove a ragged ford tempo for years, saved my money and bought a house, with a payment surprisingly similar to the rent on my apartment.

[JavaBrewer]

Originally Posted by Porsche-O-Phile

Now that I'd agree with.

If you can actually find a place with rental revenues that will cover carrying costs right now, you'll have demonstrated an "educational ability" far greater than anything you'll be taught in school.

It's very hard to find properties like this right now (I've looked) but if you can do it, you'll be smarter than a lot of the college GRADUATES out there!

The best deal is to buy a place, keep one room for yourself, and rent the remaining rooms out. I don't know about your area but around here (92078) the going rent easily covers carry cost (assuming a traditional 20% down payment).

[Porsche-O-Phile]

Not even close.

Prices are still way too far out-of-whack with rental costs.

Of course, that doesn't preclude one from renting at a loss initially in hopes of recouping once that gap closes, but that's a much higher-risk game and I wouldn't recommend it for most people (who don't have high risk tolerances).

Case-in-point, I have a 2BR on the beach with two garage spaces. I pay +/- $1,300/mo. My neighbor two doors down with a similar unit, 2BR with ONE garage space (building is about the same age, etc.) pays well north of $2,500/mo on his interest-only mortgage. Granted he bought about two years ago, but that's illustrative of how goofy things are.

And yes, I've checked other markets/buildings too. It's virtually impossible to get the rents to cover the carrying costs right now. I'd wait a couple of years.