What's the best way to purchase a car?
Hi all -- I'm 22, graduating this year, and will be living in Austin TX. My total compensation will be ~160k first year, and I want to get my dream car (corvette). I've been looking at an 08-10 C6, all in around 25k, or a 14-15 c7 all in around 35k. I'll have the cash on hand, and I don't want to deal with a payment and the extra debt, but I also appreciate the possibility that it might make better financial sense to take a loan and park the principle elsewhere in a CD/bond account. Anyways, I'm curious if you all think cash would be the best idea, or if financing, what terms to expect, where to park my principle during the loan, etc. I've never taken a big loan before.
If you qualify for a low-interest loan due to your credit score I don't see the issue of getting a loan and using it to build credit and stay more liquid. I have a 2.99% 72 month with chase for my current C63 AMG and in the future when I sell the car I'll have positive equity and most likely have driven a C63 AMG for 200 a month. Look into Car Hacking. Might be better to get a Z06 or Grand Sport something that holds resale value, and sell it in a year or two.
What year is your c63? love those cars.
It's a 2017 C63S I snagged for 44.5k I think in a year or two with 10k more miles I can sell for 41-49k looking at how the market is trending. Next C63 is going to be a 4 cyl-hybrid and all purists love the N/A so I think I got a good enough deal to drive it for a year or 2 with minimal loss (minus insurance and gas of course haha)
How has reliability been? Did you buy certified?
Reliability is awesome haha these performance cars are usually really really clean. I looked for a Carfax that had no issues on it and had regular maintenance. No issues so far on 4.5k miles it's at 30k right now. I've purchased an R8 and 2017 McLaren GT as well. Got out of both of those at a profit. Just look for a market that has bottomed out (performance or exotic only usually) and grab a car with moderate mileage depending on the market around you, drive for a while and sell it in a year or two for break-even or +-5% usually. (could be more if it was an exotic. I made 15k driving my mclaren, but didn't want to deal with huge repair costs or maintenance so sold it after 9 months). I highly advise doing this over just buying a car outright with cash. I put a sizeable downpayment down, and took out a 72 month low APR (2.99-3.49, I'm only gonna use it for 1-2 years) and had low monthly payments that went right into my equity.
Example: C63S 45K loan, 700 a month. Drive it for a year, Loan is now 36,600. Car is nowhere near 36,6000. Probably still 40k depending on how well I took care of it and used it. Sell car for 40k+. I got paid 3.4k to drive a C63S. Look at maintenance and insurance 3.4k-insurance and maintenance costs/12 months is how much my cost to drive monthly payment was.
Are you in NYC? How often do you get to drive these cars? I am in the south and a 2017 c63s with 35k miles is going for around$55k.
Nice
Sounds awesome
Lease takeovers can be interesting depending on where you live.
Have been really interested in this. Do you have experience doing it? And do you have a go to site(s)?
Cash with that type of income. Not about could you do better investing and gain the arbitrage. Of course you could but it's about forming good financial habits. Don't buy htings (other than a home or investment RE) that you can't wrote a check for. Being debt free is liberating. Between your 401k, their match, and your nonqualified investments, you should be able to sock quite a bit away anyway (or payoff student loan quickly). Don't incur unnecessary debt. Build lifelong financial habits.
I'm going to give you the answer you need. Set up an LLC or a trust and purchase that vehicle within the llc or trust. When I say purchase the vehicle, I mean have someone that is not you pruchase it on behalf of the trust or LLC. It'll set you back a few grand but it's totally worth it. gotta b cash
Can you help us understand why this process is the way to go?
Probably so its usage is deductible as it's an expense for the "business."
^ also curious
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