I have to agree. One of the biggest mistakes new grads make is buying an expensive car. Someone once pointed out a very nice way to compare stuff like this for me. You have two cars sitting next to each other. One a (choose your luxury car for 45k), the other a Hyundai (nice, reliable, 20k). Which do you choose? Oh, we forgot to mention that the 20k car comes with $40,000 in cash in the driver seat. Now which do you prefer?
If you look at the big picture, the amount you lose in depreciation, interest (at 7%) and loss of earnings on your money from not investing are enormous. This is the only time of your life that you're used to living like a college student and can thus put away a large amount of money into savings...take advantage. Live cheaply the first year or two and invest. You'll be sitting pretty in a few years.
If you look at the big picture, the amount you lose in depreciation, interest (at 7%) and loss of earnings on your money from not investing are enormous. This is the only time of your life that you're used to living like a college student and can thus put away a large amount of money into savings...take advantage. Live cheaply the first year or two and invest. You'll be sitting pretty in a few years.
calyxman said:Don't take it personally, but to come fresh out of college and purchase a luxury automobile, even if you could afford the monthly payment, would not seem the prudent thing to do. But hey, it's your money so all the power to you.