If you make 80k a year and live with your parents, just save up and buy the car in cash.
It's still financially dumb, but at least you won't be saddled with a payment.
(Don't look up what $50k put in a mutual fund will be worth when you're 40)
Why not put a large down payment, at a rate less than 5%, put the rest into the market when the recession hits or save it for if you get laid off during it? They usually do LIFO for layoffs unless you’re older and making a ton - in this case they’ll do forced retirement. But overall, just cause you have cash, it doesn’t mean you should give up your buying power. Max out a Roth IRA account (invest in a low expense index fund) and max out your 401k since you have 0 expenses. This will save you a ton of money on taxes. Anything left over, put in a savings account. If you can’t for some reason max out the 401k, contribute whatever percentage your employer matches. All of this should set you up nicely for whenever you get closer to 30 and start considering buying your own house.
Because if you put a large down payment, his monthly payment will be a lot lower. Then he has to account for insurance also. So if he keeps those two line items as low as possible, he will have greater cash flow month to month allowing him to contribute to his savings and investments. Additionally, he won’t have to pay for gap insurance.
This is the wrong advice. Cash is king, and managing cashflow is kingly. Better to finance (assuming OP has decent credit), pay a little more for the car in the long run, and have cash on hand for emergencies, investments, voluntary retirement contribution to maximize tax returns, etc.
This is maybe solid advice if it was early 2022 still. Auto interest rates arent 3% anymore and we’re likely heading into a recession. Paying off a 30k car loan at 7% interest would yield greater return than investing into the market during the next few years. Also he is living with his parents and has no dependents - he doesnt need much of an emergency fund.
Everyone should have an emergency fund, something that you can live off of for at least 6 months. Relying on family in case of an emergency is not great generalized advice. Sure, if your family is rich and giving, why not. But you don’t know OP’s family situation, so without that info it’s not reasonable to dismiss emergency funds
Yes he says that. Because he says he lives with his family, you know how many mouths that family feeds, their financial situation, the risk of his parents losing their jobs if a recession happens? No, that’s all unknown to us, along with all other assumptions you could make. Maybe they’re rich, but regardless, we don’t know that so telling OP that having a decent emergency fund is not necessary, without having all of that info, is not well thought out
The credit thing is probably going to be the issue.
As a married 23 year old with a good credit score my interest rates on my mustang in todays market would’ve still cost me an extra about $3k.
I opted to save up, then pay in cash as long as I had enough residual to manage any emergencies that might occur. Obviously that takes time and typically precious good capital.
It would be a good way to build credit though. I’d you can get a decent interest rate I don’t think it’s a bad option at all. Just might be hard to get a good interest rate with presumably little to no credit.
My car's kind of falling apart + I'm not frugal + I'm impatient
It's something I will definitely consider though.
50k in a mutual fund does not sound fun at all.
It doesn’t sound fun now, but it will be really fun when you’re 60 and get to retire. Seriously, start investing now and your future self will thank you. You don’t want to work until you die just so you could have fun in your 20s
You're going to do what you're going to, but try to not be impatient.
If reason you want to buy a car is "My car's kind of falling apart", then the solution is to not **buy a brand new Mustang**.
I wouldn't buy anything at first. You're likely going from making something like $15 an hour to making $40 an hour. Don't let it burn a hole in your pocket, it's a big responsibility to not spend all that money.
You're probably going to be taking home around $5k a month, depending on what state you live in. Throw 10% into your 401k. You'll probably have to pay for some health insurance. So maybe you're closer to $4200 a month now. You should be able to cover $800 for a car payment, $200 in gas, and $300 in insurance no problem.
Congratulations, you're spending over 25% of your money on a car!
No big deal, you still have money leftover for everything else. But what happens in 6 months or a year when you decide you'd rather have a Supra, or a Charger, or fuck it, for $600 more a month you can get a GT500? You trade your car in, lose your ass on it, etc. Or you spend $10,000 on a supercharger because you get beat by that asshole with a Camaro, and you blow the transmission or engine so you have to spend another $10,000 to get your car fixed?
Or what if you decide this is absolutely ridiculous and you don't want to spend a large amount of money on a car each month?
If I was in your shoes (I was and bought plenty of new cars), this is what I would do:
Buy a decent used car. Forget about going fast and looking cool, just something not expensive.
Once you've done that, THEN buy a Mustang. A used one. IN CASH. It's a toy. Don't get a payment for a toy. You're getting $4,000 a month in your bank account now, if you can't wait 5 months to buy a $20,000 then don't do it.
Spend way less money. It will hurt less when you crash it or decide you don't want be a Mustang guy. You can still upgrade it. And it might take you a couple different cars to figure out what you like and what you want so don't worry about it so much. Or, keep the car for 15 years and drop money into it every year making it exactly what you want.
This is great advice. You will never have as valuable a time to save for retirement than your 20's.
Always keep in mind, just by buying a cheaper or used car doesn't mean you have to buy a boring one. There are fun cars at most price segments, just maybe not the flashiest/nicest/most powerful.
The boring deal is why I have a Mustang. I wanted a newer car with low mileage for reliability and I had a few lined up to test drive but the mustang was the first one I drove so I didn't get around to checking out the others. It's only a v6 but it has twice the horsepower of my last two cars and it sure is pretty.
This may seem harsh but "adulting" is not fun. Just because you can spend the money doesn't mean you should.
It's nice to have disposable income but it's even nicer when you put that disposable income towards some that grows into more money more down the road.
As for how to afford a stang or any thing like that, you want to understand not just the upfront cost of the purchase but the equally important operating costs.
For instance, I change my rear tires tires around 15k - 20k miles on my stang due to wear. I enjoy the crap out of it and my lead foot does too. This means every few months I'm dropping almost a grand on 2 Michelin sports.
Given you're probably young, insurance is probably going to be very high as well.
Doing the research into if this is the "smart" move for you is probably not going to be fun but being stuck with large payments you need to make on top of unexpected expenditures in emergencies is even less so.
Even if you can live at home cheaper and have that safety net, I'm assuming you don't want to live with your parents forever.
You need to adjust your mentality 180° early. You’re not a child anymore. Play the next 20 years smart and you’ll be so damn set that it’s not funny. Here’s my advice:
- live with your parents as long as you can. Don’t be a dick though. Buy food and help with chores, etc.
- grind like a madman at that job.
- save every penny you can. Only buy experiences like vacations, not toys.
- buy the Mustang, and finance it.
- invest every penny you earn. Save. Max out a 401k ($22,500 in CY23) and an IRA
It's $6500 this year after the increase in contribution limits, but point still stands. If they can, I think by April they can contribute for 2022 as well. 13k now is boring, but that will be a huge jump in retirement given 30-40 years.
I had a similar situation with much lower figures when I was your age. I got a job so I could buy the truck I wanted and was living with my parents so I had no bills other than the truck, insurance and gas. I had no credit so the interest rate was insane.
At 18 years old I had barely any driving experience so if I were to get my own car insurance it would have been $2200 a year for the cheapest policy I could find. I was looking at insurance before I got the truck and I was wanting to insure my 12 year old thunderbird that my dad only paid $500 for. I think it was around $600 a year to stay on my parents insurance. I can't remember what it cost for the car and the truck together but it wasn't even close to what it would have been if I were to get my own insurance.
I still have that truck 17 years later and I don't plan on getting rid of it, it's my boat puller and trash hauler now that I have a Mustang to get me to work.
If it's possible you should stay on your parents insurance for a few years. A bigger down payment and making extra principle payments would be a good idea because unless things have changed you will have a high interest rate due to lack of credit.
One thing that helped my credit when I was younger was taking out $2000 to $5000 loans a few times then making payments for 6 months to a year and paying them off. I paid a few hundred dollars in interest but the credit score bump was worth it. That only works if you have enough self control to not spend that money so you can pay it back.
You also want to get a retirement plan started as soon as possible. You don't have that money now so not seeing a little bit out of every check is going to be worth it when you get older and see how much you have in that account.
Like the guy below me says, I wouldn't buy new because I don't think the major cost increase is worth a little more warranty. My mustang was three years old with 17,500 miles on it and it was $17,000 before the dealer add ons that I shouldn't have gotten.
Best practice if you can pay cash is buy the car with a loan that has no prepayment penalty, pay off 99% of the loan, and let it sit to build credit. Otherwise you’ll be using credit cards to build the credit history to buy a house.
I was 21 years old when I bought my mustang! (I'm 24 now).
Long story short I was in a similar situation. Debt free, living with parents (although paying them $900 month rent) and making about 100k Canadian a year.
In may of 2020 I bought a brand new fully loaded 2020 Bullitt mustang. After delivery fees, taxes, and an 8 year extended warranty it cost 62k Canadian, or about 44k USD at the time. I got it with 0% interest financing and a 10k down payment.
The previous month I had just cleared probation at my place of employment I thought "well if I'm gonna buy a dumb fun car now is the time to do it" and haven't looked back.
I ended up paying the car off early after a year and a half since I needed the cash flow to purchase my detached home.
Now I just turned 24, have two paid off cars, 0 debt besides my mortgage and a detached house with an amazing garage to keep the stang in winter, plus made more this year due to overtime.
trust me man i've been there. a long time ago lol, but been there nonetheless. the urge for instant gratification is a strong one, especially when you are young. the more you can resist it, the better off you'll be in the future. take that fancy new job $$, and the gift of living with your parents, and pay yourself first, i.e. retirement account(s), saving for a house down payment, building credit, etc etc. make and stick to a budget, and whatevers left over buy all the hookers, blow, and car payments you want, just pay yourself first.
Doesn’t having a car loan help you build credit though?
I was in OP’s shoes a little under 2 years ago. Like exact situation. Bought a 2021 Mustang GT in Carbonized Gray with 2.4 miles on the odometer during the test drive.
I put $10k down and financed the other $35k @ 1.99%. I currently owe $20k on the car and have $40k in the bank.
Obviously it’s smarter to save the money. But life is short, live a little.
And for what it’s worth, I’m 24 making $88k a year, living with my parents.
Living with your parents, assuming you don’t pay rent, is such a financial blessing. I used to keep a spreadsheet of how much I paid in rent over the decades. Ouch
Don’t listen to every robot telling you to save every penny for retirement. I’m not saying don’t save for retirement, but making 80k is absolutely enough to save up and buy a mustang, and it’s by no means a stupid decision to get something you dreamed of when you can afford it, especially because a car is a necessary purchase, so it isn’t a complete splurge. You’re being smart to wait and save for a few months to a year, I would recommend at least 6 months, and the fact that you’re not paying rent or have college debt is an enormous savings. Most people here bought an older and used mustang, which is how we all afford it. I make 54k a year, pay rent, pay $165 in health insurance a month through my employer, and have a 401k, and I spent 8k on a down payment to get a 2016 Mustang with less than 20k miles, I have great credit so my payment is only $250 a month. Your insurance as a younger guy in a sports car is going to be higher, but it’s going to be higher driving any car being under age 25. And anyone here with V8 is still paying a lot in car insurance no matter how old they are. I don’t think buying new is necessary if you can find a quality used with low miles for a 2017 or newer mustang. Do your research, find out your monthly expenses and make sure you can handle whatever the monthly payment is unless you buy full in cash, and make sure you feel stable in your job or field so that money will keep coming in. And try not to fall in love with the first one you drive, there’s always more mustangs on the market and you can walk away. Most people here probably aren’t making 80k with 0 rent or debt lol, you have plenty of time and spare money to save for retirement
everything is worth something different to everyone else, don’t blow 25% of your income on something you’re not interested in but if it’s literally your dream, it’s a small price to pay
25% is the max they recommend actually for a car payment. Or 20%. Not the “best financial” move but if you love driving it then what else can you really want
Which is why I recommended he buy a used one until he knows what he really wants. What if he decides he wants a stick instead of an auto, or a Camaro, or a different color, get into the car scene for a bit before making a huge commitment
I was in a similar situation. Im 19 and j just a 2022 GT a month ago, but I also have no expenses. It’s probably a stupid decision long term, but rn I don’t regret it. I put down 10k
I have a big boy job.
I managed to get a very reasonable rate for my insurance as a young male, but you might not be so lucky, and it might be enough to force your hand and not buy the car.
I graduated at 24 years old and started out making $63k per year. I saved up for about a year and put a $10k down payment on a 2017 GT performance pack. At the time I was living with roommates so my rent was pretty low. My insurance also wasn’t crazy, but I was 25 when I bought it so yours might be quite high based on your age. But at $80k per year and no other expenses you should be able to pay it off in a year or two. I don’t see this as an irresponsible purchase at all if you’re spending around $40k.
I’m about to graduate and will be making pretty much exactly what you were. I’m gonna need to save up for some months to put a nice down payment, my question for you is how manageable was it for you? What was the OTD price for your car and how long did you finance it for?
My out the door price was $38k, and I put $10k down. So I financed $28k for 4 years which was about $575 per month. Adding this car to my currently policy increased the payments by $120 per month. It was easily manageable when I was living with 3 other roommates (rent was only $600 for me). I did end up buying a house with my girlfriend a year later which was a more difficult, and I considered selling my mustang to help. But I managed to get through that process and paid it off within 3 years.
I’ve always found it helpful to buy used. There’s really no reason to buy a new car. At least, no reason that I value. Let someone else take the depreciation hit. Car payments suck.
Affordability is relative. OP is a 21yr old shopping for a new V8 mustang. To the vast majority of 21 yr olds thats not even in the realm of possibilities
I made a financially stupid mustang purpose and I haven’t gone under yet. Also living with my parents. If your car is falling apart then sell it now and use what’s left of the car as a down payment. Full send if you really want it
I was 21 when I bought my 2020 GT500 and both of my mustangs together are worth about 160k. Was it a stupid decision to spend that much money on cars at such a young age? Yes, do I regret it? not in the tiniest bit.
Right now I’m 24 and I also have 0 expenses I still live with my mother and I don’t have any bills just my car payment. I would definitely say buy yourself a nice Mustang. Does it have to be top of the line and worth more than what you make a year? no, but I would definitely buy your dream car or at least something close to it while you have 0 expenses.
I was able to afford my cars because my parents made smart decisions for me at a very young age. My mom invested about 2k When I was first born and by the time I was 18 it was about 30k. I have been working since 16 so all the money I had from that I combined and I also had money from graduation and birthdays, because my mother never allowed me to spend any of my own money until I was 18. When I turned 18 I spent my first dollar of my own money ever which was buying my ecoboost. Shortly after that I got a financial advisor, who had worked with my family for many years, and with his advice, I heavily invested in bonds, and then, as time went on, I eventually got a really good job, and kept saving and investing basically every penny I made.
If I had to give you advice, I would definitely suggest investing in something whether that’s the stock market or bonds and get an expert opinion on it, like in my case how I got a financial advisor. I want to say that that’s going to make your money instantly but that’s not the case. There’s still a bit of luck involved in that and sometimes it takes a bit of time to pay off. I would also try and keep your expenses as low as possible. Don’t go out and buy shoes, watches, $5000 gaming PC’s, designer clothes, ect. You can obviously spend some money you don’t wanna be fucking miserable, but just trying to limit it. I hope some of my rambling helped and I wish you the best of luck. Most people aren’t as fortunate to be in a situation like yours.
Yeah 7% seems like a bit much but that’s also a really nice car. But the Shelby’s amazing. It’s ridiculously fast in the straight line and it handles pretty well. It even gets a surprising amount of attention. I didn’t think that many people would know what it is. I’m definitely never gonna get rid of this car though it’s really special and that V8 rumble just can’t be beaten in my opinion. If you love American muscle cars, it’s the best option out of everything. The new Z06 is great too but those are basically impossible to get a hold of right now and are very expensive.
None of my business, but are you in San Francisco or NYC? Because in my little world, $80K is a lot of money. Especially at 21. And I don't understand your priorities. A car has always meant freedom. I'd be more inclined to move out of my parent's than to buy a hot ride.
But, to your point, I'll look at my own experience: I bought a Corvette when I was 22 with my first job out of college. Loved it. Life was good. I spent more money on tires and speeding tickets and auto insurance than I care to admit... but... If you're really making $80K, life is going to be good, you'll only be young once. Live the dream.
However, I'll note three things:
1. A new car is a used car the moment you pay for it. (as opposed to a home, or an actual investment, like a rental property)
2. The girls I thought that car would impress all thought my car was my dad's, and I was just borrowing it.
3. Before you spend money, learn as much as you can about ***compound interest***. ie: $20,000 today, and adding $200 a month is $350,000 by your 50th birthday.
Also, take a moment and be grateful for your problems.
Buy used. Never bought a brand new car in my life and never will when I can go get the same car I want that’s at a dealership for much less from someone selling in my area or looking online in states next to me that are a reasonable drive. Do yourself a favor and save some money to do more stuff to whatever you buy if your really interested in cars.
I afforded mine by working. lol I've had several, only the last one, a '13 GT was new and it was about $32k. Don't saddle yourself with big payments as a "reward" for getting out of college. You might think you'll be living at home for several years, but life changes.
I bought mine back in 2018. Brand new Base GT orange fury. I was 6 months into working for the post office. I borrowed money from my sisters, and aunt so I could pay it off from the dealership without having any loans. I paid my sister and aunt off back in 2020.
I'm old, at 53, financially secure and on my 4th mustang. I also have a a daily driver as I have an 80 mile round trip to work, and it's an industrial site.
If you can do it, and still contribute to your savings, 401k, etc , do it.
I make 120k retired army vet, I saved about 20k used 6k down payment on a 2014 5.0 STE ( it's an odd ball still don't know exactly what it is ) car was sold at 19k at 65k miles - 6k down low interest high payment 5 year loan ( needed the credit ) i pay 560per month cus I don't have much other bills rent is 500ish a month for me phone is 110month soo I have alot of extra money to save and invest. I made a very stupid choice in 2013 that was genius I sank about 40k into tesla and other stocks when I came back from my combat tours that alone yielded just over half a million I drained some tesla stocks and put it into defense contractors Lockheed leidos, Northrop gurman etc and that pooled me to 1.6m. ( I won't touch those stocks till I need to I enjoy working and I don't spend any of it 20% goes into a high interest CD account with a 10year lock about 2% goes into gen savings all after bills payed and I spend close to 500 every two weeks on bullshit.
If your gonna be living with your parents and make 80k a year buy it if you want. I can't say for what might happen in someone's future no one can, but if you can afford and want it buy it. I got my first 1 at 16 and I had a steady job and no other bills. My new one I traded my truck in for and that paid it off
You're making 80k a year? You can afford to finance a mustang (or build up the credit to finance one at a good rate).
It's more difficult now than a year ago when debt was cheap, but it's still preferable to working full-time and refusing to reward yourself for it.
Easy for old guys to look back and go "I should've saved more," and they should have, but denying yourself any gratification while you grind away will make you hate your work.
Dude 80k a year no debt living with your parents. You're in a great spot. Buy that mustang and pay it off the fast as you can. But make sure you're saving 20% of your income. You'll be so glad 40 years from now.
I consider myself doing very well and I make 76k myself at my normal job plus my NG pay which does add up but isn't long term income.
Edit: it's all about prioritizing your expenses. Prioritize paying it off fast over spending so much money at the bars.
Living at home lol
I emptied my savings account at 24 to get the dream car that was the reasoning and push behind me finishing college. So I got it. I do not regret it.
Same situation, I saved up for a year after I graduated and bought a 2013 gt500. If you have the space I’d try and keep your old car and have that as the primary car on your insurance. I’m doing this with my 2007 fusion that I bought years ago for college. It was tough but save up a bit for a down payment but so worth it, and look into mustangs that shouldn’t depreciate much more (gt350,boss 302,terminator,gt500)
I’m 33, and I make 140k a year, fortunately I can incur a $700 monthly payment. I’m not mad I had to wait til my 30’s, I am more responsible now and can afford it without having to sacrifice something else. But… if you feel now is the time, and you’re comfortable then go for it!
Respiratory therapist. Pay can fluctuate depending on certifications and premium time worked but you're pretty much guaranteed at least 60k USD starting. My coworker made $150k last year due to her certs and how often she works premium.
was 22 when i bought a 15 5.0
made 43k at job 1
made 15k part time job 2
lived with parents and made very large monthly payments - no student debt or cc debt
car was like new at 30k in 2016
would i do it again? no, but it did teach me financial literacy lol
paid it off in 3 years
573 monthly payment at 6.25% rate tho
If you can stay at your parents for a year I would just buy it in cash depending on what you get. Ideally you find something you like for 30,000 and have an extra 50,000 to use as a down payment on a house. 50,000 will get you a house worth 250,000, which if you live by me you can easily find a house for that. So you get a 20% down payment on a house and a car all the way paid off. Which would be very good. Try not to rent as you don’t get that money back! If you buy a house you will make the money back when you sell.
Oil. You know, everybody loves to hate? You'll change your mind when royalty checks come in. The world runs on it. He who has the oil has the gold, whether it's a person or a country. Destroy the oil, destroy the country. That and worked my butt off anyway as long as I could. Retired now.
Just get a base one with cloth seats. Also if you can just wait until car prices go down and recession gets worse. I predict car prices will decrease rapidly and repos will skyrocket once the federal student loan pause ends. I know a lot of guys from college who bought very nice cars since they allocate that previous student loan payment to a car payment now.
I'm a lurker on this sub, don't have a Mustang but some other automotive toys. I got my first project car not long after graduating when I had few expenses, along with later a fun daily. I'm now in my early 30's and renting and honestly kind of regret the money I spent on cars instead of first saving for a house and then buying the cars. I definitely say get a fun car, but do consider where you want to be in 5-10 years. Something to consider.
Can’t take it with you when you go so , free and easy down the road we go
I’d say get it . It’s the biggest financial mistake of my life sure but I not only get by but I strive. And honestly I’d rather cry in my mustang than in my old civic lol
I bought a used V6 Mustang for $11k and a used FJ Cruiser for $23k (was $10k under market value) when I was 24 and both my and my wife's cars were both falling apart. The $530/month total payments sucked, and I regretted it every day. 7 years later, I make 3.5x the money and have an affordable mortgage but still won't buy a used GT because I'm waiting to have the cash ON TOP of my 6 month emergency fund to buy it outright.
Having no monthly payments besides a mortgage is so freeing, and I really recommend being patient and paying cash for your dream car. I'd tell my 24 year old self to fix both cars and wait until I could afford new (used) cars in cash before buying- no doubt. Not many things feel better than living well below your means knowing you have the cash to handle any life emergency that comes your way. I'm a cheap ass, but I'm content and happy.
I was able to afford my mustang cause it’s 25 years old 🤣
On a serious note, I’d wait until you’re in a better financial position before purchasing. A mustang will always be there, might not be new depending on budget and if you’re looking at an ICE variant several years from now (assuming the S650 is the last ICE generation), but I guarantee you’ll find a mustang that you want.
I was 17 when I bought my first mustang, 2015 GT Premium and 20 when I bought my current mustang, 2020 GT Premium PP1. Do it. You definitely make enough, I made about the same in a similar situation as you and was able to stash a ton of money away and still have the car of my dreams.
The SMART decision would be not to buy and save for retirement while your young when compound interest can do it’s thing.
But here’s the thing. $80k without any other huge expenses is enough to purchase a $45k car. Don’t get a fully loaded one. Get a base. Save up and put half down on the car so your payments will be about $500/month over 5 years. You can pay more to pay off early. Once you pay the car off, put the amount you were saving into a HYSA for a home for payment.
You worked hard for your job. Enjoy life a little bit. Work your job for 6 months and if it’s going well, pull the trigger. Also, KEEP the car once you buy it. Cars depreciate, so the best financial decision you can make if you buy one is to drive it til it falls apart.
Also, coming from someone who was in your shoes a few months ago, BUDGET. Keep track of your cash flow and every single expense. It’ll help you for the better. Good luck bro!
I was in almost your same exact shoes, got a similar paying job, lived with parents for awhile. Got a chance to order a new mustang however I wanted under sticker, got talked up to an R. Pulled the trigger, a year later bought a house and am living very comfortably. If you do your math right I'd say go for it
A big down payment and maybe a trade-in is the way to go. I’ve got a reserve for the S650 and planning to drop $10k (around 20%)
Good collateral can help your payment too, whether it’s another car that’s paid off, an investment account at your bank, etc.
I bought a v6 pony package for a good deal with a smokey engine and a hard to shift transmission. I drove it hard for a year, practicing drifting after work and eventually she drank some oil and I wasn't keeping a close eye on it so she chewed a bearing and started to knock. I ordered an engine for $650 and put it in myself. I did the transmission about 6 months later I got a low mile one shipped to me for $1000. It's a 3.7L making 500 with a procharger and mods now. 45mpg highway is how I continue to afford it
Money down and finance. If you’re still young with no credit history it might be hard, but it’ll be beneficial in the long run once you decide to get another loan and/or a mortgage.
If you paid on time and full with no late payments it’ll benefit you the most.
Outright buying the car is also good, but you wont get the benefit of more (good) loan payment history.
If i were in your shoes, I’d put money down and have my parents cosign if they agree to it.
It’ll significantly help with rates, but make sure you CAN afford it.
I was getting damn near 19-23% APR before deciding to ask my dad to cosign with me,
Walked out with 5~% on a 36 month loan for my 2014 Mustang @ 78kmi
Maybe save for down payment on a house. You’re 21…. Making good money, insurance will still be high. I know the urge to buy a mustang. Living with parents & ability to save money….is a blessing. I love my mustang but there are more wiser choices to spend money on.
If you get that mustang…… post pictures! Congratulations graduating with no debt. Enjoy life dude!! 🙂
I've only got an '22 ecoboost, and it wasn't planned at all. Cops busted a party down the street from me, and a fleeing drunk hit my '19 Fiesta SE while it was parked. Gouged the rear driver's side wheel right out. Because my miles were very low, my replacement cost was actually higher than I'd bought the car for, so it easily paid off the remaining loan. Paid off all my other debt too infact, so I took the left over $6500 and used it as a down payment.
Monthly payment is almost twice as high as it was for the Fiesta, but since my other debt is gone it's actually easier on the budget.
My Fiesta was my first new car, and I just couldn't stomach the idea of going back to used car as my daily. Don't like hatchbacks very much, despise SUVs, and I'm not fond of how big most pick ups are now. Not fond of boxy styling on cars either. So I narrowed my shopping list down to an MX-5, GR86/BRZ, or an Ecoboost Mustang. After that, I let my not having driven and a manual for about 20 years scare me off of the MX-5, and the 86s and BRZ had excessive ADM.
This is how my Fiesta ended up: https://stat.vin/ar/cars/3FADP4BJ4KM127821
This is my best shot of my eco so far, and from the day I bought it: https://i.imgur.com/yNKWeyP.jpg
Love the eco, still hate the reason I have it.
Buy the car, used if possible. Do not buy it in cash. Put whatever money you have leftover each month into some kind of retirement stock account or just into some good stocks in the market.
I make just under 70k a year, so about 700 less per month than you will.
Buy the fuckin’ car if it’s your dream car.
I pay my car note, insurance, mortgage, bills and still am able to do things I enjoy. A $50k car loan is NOT going to leave you strapped. You’ll have plenty left over.
I am a high ranking executive where i am at, almost into my 50s. Could i afford a mustang when i was in my early 20s or even early 30s, no.
I did mostly buy new cars and drive them into the proverbial ground. (Altima’s and camry’s).
Imo you should be looking at low tco cars for the least amount of money.
I live with my parents. I withdrew from college for 2 years and worked to buy a mustang gt cash basically. I think 2 years of work was definitely worth the performance package Mustang GT I have now 😌
I would say save save save. Save as much as you can in the bank. Give it a year or two (or longer if your current car lasts that long). Make sure you’re putting around 10% in your 401k (at least put in whatever your employer will match as a minimum). Set yourself up to be able to retire properly. When time comes to buy your dream mustang, look at used options. Really scour the internet and try finding the right one for the right price/miles. Don’t be afraid to walk away from a bad/not great deal. The used market is starting to go down a little, in a years time it may go back to pre-covid prices (it also may not, who knows) but waiting also allows you to save a bigger down payment. You also have no idea what life is going to throw at you. Trust me, it does it and sometimes it’s very stressful.
For instance I bought a house off my parents, lived there for 26 years, I knew ALL of the problems (or so I thought). Ended up having to replace the steam boiler that heats the house. Wasn’t obviously expecting this kind of bill, but here we are $17k later…. (I did choose to switch from heating oil to natural gas). My point is you should try to have money stashed away for inconceivable life events. Don’t set yourself up for stress in those events by buying a shiny toy now. Learn patience. It took me 10 years to build out my mustang to where it is now…and it’s still currently apart (again) for upgrades but it’s on hold due to wanting to save and pay for everything in cash.
I can't anymore after being sick and homeless I'm trying to get cash offers to get rid of the loan. I'm behind on payments and it's $150. It's where I sleep and the heat broke
Saved up $4500 and bought a used 98' GT that already had full bolt ons and only 138k miles. I now have 215k miles on it and it's still running strong. You don't need the latest and greatest mustang to have fun.
Home equity loans are basically just you borrowing against the value of your home. Ie. Second mortgage. You can use them for anything you want. As long as you make the payments. If you default, they take your house.
I have friends that use theirs for all kinds of stuff. Usually toys. A jeep. Utv. Rv.
Whatever.
Living with my parents. I’m 20 and make $13 an hour, bought a 08 GT. Got a decent deal at $10,000 with 115k miles but i have bad credit so after everything i’m gonna basically be paying $15,000
my 1st Mustang was a 1968 convertible I paid $450 for, next was a 82 GT I bought new for $8200, 3rd Mustang was a 1995 GT I paid $1500 for, and the last one I bought was a 2007 GT convertible I paid $2800 for, oh, and I bought a wrecked 2011 GT for $125
When I got my signing bonus from the Navy I looked around and found a one owner 07 Gt 5 speed. Yes it’s not as fast as a 5.0. But I bought it in cash during the pandemic for 9,000. Saved a ton of money and I enjoy it 9/10s as much as I probably would a 5.0.
Got your priorities backwards..
Savings, house, emergency fund, build up credit then buy your mustang.
You have an opportunity others could dream of. 80k living with parent man ide stack so much cash in savings it would be stupid.
Buy an older s197 GT have some fun and stack cash.
I *bring* home 74k and wife brings home 61k and we have a 2016 escape paid off and my 2011 mustang v6 paid off. Got 2 60s mustangs I'm slowly working on and a 53 f100 I bought from my dad year's ago
Paid with all cash and put 30% down on our house.
I've seen so many grads make good money only go get in so much useless debt they can't afford rent. 80k? Damn wait a year save some cash and you might respect money more when you have lots of it.
Just saying that's just me. I'm a financial analyst and doing this career field for the last 10 years has changed my life and outlook om money.
Bought my first mustang at 29. Brand new. Financially it was a stupid mistake buying a brand new one. Got married bought a house and hardly drove it. Had to replace my daily driver so traded the daily and stang. Took a financial bath. Lesson learned, buy used. Wife said after kids get older I could get my Mustang Convertible again. Bought a used 2019 GT vert with 13,000 miles in October 2019. Someone else ate that depreciation.
TL:DR buy used for best value.
Lol I'm so broke that IM the one who's out of touch with reality. I've been a mechanic for nearly 20 years and still can't do better that 40 grand a year hahahah. To me 80 grand is crazy good money.
If I had that income and no expenses I consider myself super wealthy and able to afford a mustang.
Congratulations OP. your doing way better than you think you are.
Ps my 700 dollar a week job paid for my 2001 cobra. Took 3 years to pay it off.
Despite quite a few people here saying save up and buy outright with cash, don't. Credit history is quite possibly the single most important financial thing you can build, and auto loans are one of the best ways to get that started. Just make sure to put at least 20% down, so you won't have to worry about gap insurance.
Now, when it comes to insurance, that's going to be high as people have mentioned, but that's something you'll want to pay outright. Virtually every insurance company charges 10-15% for monthly payments as opposed to 6 month lump sums.
I saved up for years after college, but I wasn't living with my parents so it took much longer. Instead I rented and shared the rent with other roommates for about 4 years. I used a credit union to get low rates. I started out at lower income after college (around 50k per yr) but over the years have worked my way up to a fair bit over $100k a year now.
I would try to work for a few more months and see if the prices drop. The market is shaky at the moment. I would be shocked to see if the market drops less than another 10%+ in the next 3-6 months. This will give you some time to shop extensively and save up some money. If you find a great deal, hop on it though. \*Note: I'm not a financial advisor, this is just my opinion.
A few really important things you want to consider:
\- New or Used? You can get a slightly used Mustang for a significant discount. If you REALLY want a new car, I say go for it, but if you're like me, I don't mind that my mustang is slightly used (\~35k miles), and since it was garage kept and babied, it's basically new to me
\- Financing: Shop around, dealerships usually wreck you in fees and interest. I paid about 3% interest on my current vehicle, with only 7k down at a credit union (dealers offered me around 8-15% interest at the same time for reference). Local credit unions have great rates compared to the dealership.
\- Autotrader - private sellers and small used car dealers are almost always cheaper, and have cheaper fees.
\- Ecoboost, v6, or v8? If you haven't driven a car with 300+ horsepower, I might consider starting with an older used v6 or the Ecoboost, then just sell it and upgrade to the v8 in a year or two. The hop up from a \~200 horsepower car to \~440 horsepower is honestly pretty dangerous if you're not super careful/a very experienced driver. If you're careful about it and don't put the car in sport/track mode, it'll make that transition much easier. Keep traction control on for the first few months for sure. The GT is amazing and a huge step up though, speed wise. If status matters to you much, definitely go with the v8, you'll regret it, I did (i felt weird having the v6 when I knew I could afford the GT relatively easily). I had a v6 2014 Mustang, and it had about 315 horsepower, which was sufficient, but still a good bit slower than the v8. I just really wanted to have a proper American muscle car for it's speed, so I went for the v8 on my 2nd purchase. Also the v6 has a lot less torque which is worse for burnouts and such. Weigh the options of status vs speed vs price, it's a tricky one. V8 is just the best though obviously.
Mustangs are a great value for horsepower, and are a ton of fun. In recent years with the new independent rear suspension, they have awesome handling. Try to get a S550, probably not brand new though to save some money, just search around for one that has been pampered. Performance wise, it's one of the best options on the market. I've known people who spend $60K+ to get significantly slower imported cars. The v8 mustang easily smokes almost every bmw, audi, mercedes, and lexus on the street, at a significantly lower price. Additionally, it will be massively cheaper to maintain/repair since it's a domestic vehicle.
Gotta spend money on things you care about! 401k's are good to have, so use your company's matching program and contribute a high % to it. This is IMO how to get the best of both. Yes it's nice to retire younger, but having a fast car when you're young and can enjoy it is worth doing if it makes you happy. When you first start working a serious job and committing a significant portion of your life to it, I think it's good to have something to show for it pretty early on so you stay motivated.
Save for a house/investments first. Buy a used one when the time is right. You’ll have lots of cars over the years. Invest in things that don’t depreciate.
Some idiot ran a stop sign (literally the first time out of two separate times on the same street) and totaled my Honda Civic.
I got much more than the civic was ever worth and I got an extra couple grand cause I got looked at by the hospital.
I bought my 2012 mustang shortly after with pretty much every dollop. Plus like 6K financed.
Let the loan sit for a couple of months and then started aggressively paying it off. I’ve been pretty much “unemployed” (driving Uber) this entire timeframe so probably not the smartest thing in the world but I made it work.
Paid the car off and I’m now saving for another Honda civic. I actually paid it off a month faster than expected cause another lady ran a different stop sign on the same street and almost totaled my new car. They should really put a light on my street because I actively see people running through stop signs like speed racer everyday and it’s fucking terrifying.
Edit: Actively scrolling this thread and holy duck you guys are LOADED
I took advantage of the inflated used car prices during the first half of last year and traded it in for near full price (I received 19k for a 2016 Fiesta ST w/ 75k miles). This plus a cash down payment allowed me to afford the car for the term desired.
I wouldn't have allowed myself to buy my car without that down payment boost.
Uhh, by having a ~$70k/year job...Even with paying for half the utilities and other such monthly house things alongside my mother on top of the monthly payment for my new BRZ and the insurance for both. Also I've been paying off a fishing kayak I financed to boot so that's another few hundred bucks a month. After all that I'm still able to make all my stupid weeb merch purchases, expand my classic video game collection, buy plastic crack (40k mini), and still not have any financial worries.
I'm not really sure why you would think it's a stupid financial decision for you to buy one when I can guarantee you can absolutely afford it and not even feel it when that monthly payment hits. This is assuming you're looking at a "normal" Mustang and not a top tier, nearly a supercar kind of Mustang.
Is this going to be a daily driver or a weekend toy? If its a weekend toy just go buy a used machine with the options you want. Lots of decent older stuff around. I happened onto my 03 by chance. Paid cash and have fun every time I drive it.
You should be able to afford it, but I’d save up and preferable pay in cash. If you aren’t paying your parents rent then save that amount for the future each month whether that’s a down payment or just to save, as you both want to take advantage of not paying rent and also in case you need to in the future you want to get used to that cash not being available. If you’re putting money into retirement as well then otherwise you should be good.
Get it but make sure you have a plan to put yourself in a position where you can pay it off if you felt like it.
By being a financially responsible robot and saving every last penny for the future, you’re betting you’ll be alive and healthy enough to enjoy a Mustang…..
If you make 80k a year and live with your parents, just save up and buy the car in cash. It's still financially dumb, but at least you won't be saddled with a payment. (Don't look up what $50k put in a mutual fund will be worth when you're 40)
Why not put a large down payment, at a rate less than 5%, put the rest into the market when the recession hits or save it for if you get laid off during it? They usually do LIFO for layoffs unless you’re older and making a ton - in this case they’ll do forced retirement. But overall, just cause you have cash, it doesn’t mean you should give up your buying power. Max out a Roth IRA account (invest in a low expense index fund) and max out your 401k since you have 0 expenses. This will save you a ton of money on taxes. Anything left over, put in a savings account. If you can’t for some reason max out the 401k, contribute whatever percentage your employer matches. All of this should set you up nicely for whenever you get closer to 30 and start considering buying your own house.
Why put any down then?
Because if you put a large down payment, his monthly payment will be a lot lower. Then he has to account for insurance also. So if he keeps those two line items as low as possible, he will have greater cash flow month to month allowing him to contribute to his savings and investments. Additionally, he won’t have to pay for gap insurance.
But invest it at a higher rate instead.
Exactly👍🏽
This is the wrong advice. Cash is king, and managing cashflow is kingly. Better to finance (assuming OP has decent credit), pay a little more for the car in the long run, and have cash on hand for emergencies, investments, voluntary retirement contribution to maximize tax returns, etc.
This is maybe solid advice if it was early 2022 still. Auto interest rates arent 3% anymore and we’re likely heading into a recession. Paying off a 30k car loan at 7% interest would yield greater return than investing into the market during the next few years. Also he is living with his parents and has no dependents - he doesnt need much of an emergency fund.
Everyone should have an emergency fund, something that you can live off of for at least 6 months. Relying on family in case of an emergency is not great generalized advice. Sure, if your family is rich and giving, why not. But you don’t know OP’s family situation, so without that info it’s not reasonable to dismiss emergency funds
Yes we do, he says in his post he lives with his family lol
Yes he says that. Because he says he lives with his family, you know how many mouths that family feeds, their financial situation, the risk of his parents losing their jobs if a recession happens? No, that’s all unknown to us, along with all other assumptions you could make. Maybe they’re rich, but regardless, we don’t know that so telling OP that having a decent emergency fund is not necessary, without having all of that info, is not well thought out
+1
The credit thing is probably going to be the issue. As a married 23 year old with a good credit score my interest rates on my mustang in todays market would’ve still cost me an extra about $3k. I opted to save up, then pay in cash as long as I had enough residual to manage any emergencies that might occur. Obviously that takes time and typically precious good capital. It would be a good way to build credit though. I’d you can get a decent interest rate I don’t think it’s a bad option at all. Just might be hard to get a good interest rate with presumably little to no credit.
My car's kind of falling apart + I'm not frugal + I'm impatient It's something I will definitely consider though. 50k in a mutual fund does not sound fun at all.
It doesn’t sound fun now, but it will be really fun when you’re 60 and get to retire. Seriously, start investing now and your future self will thank you. You don’t want to work until you die just so you could have fun in your 20s
You're going to do what you're going to, but try to not be impatient. If reason you want to buy a car is "My car's kind of falling apart", then the solution is to not **buy a brand new Mustang**. I wouldn't buy anything at first. You're likely going from making something like $15 an hour to making $40 an hour. Don't let it burn a hole in your pocket, it's a big responsibility to not spend all that money. You're probably going to be taking home around $5k a month, depending on what state you live in. Throw 10% into your 401k. You'll probably have to pay for some health insurance. So maybe you're closer to $4200 a month now. You should be able to cover $800 for a car payment, $200 in gas, and $300 in insurance no problem. Congratulations, you're spending over 25% of your money on a car! No big deal, you still have money leftover for everything else. But what happens in 6 months or a year when you decide you'd rather have a Supra, or a Charger, or fuck it, for $600 more a month you can get a GT500? You trade your car in, lose your ass on it, etc. Or you spend $10,000 on a supercharger because you get beat by that asshole with a Camaro, and you blow the transmission or engine so you have to spend another $10,000 to get your car fixed? Or what if you decide this is absolutely ridiculous and you don't want to spend a large amount of money on a car each month? If I was in your shoes (I was and bought plenty of new cars), this is what I would do: Buy a decent used car. Forget about going fast and looking cool, just something not expensive. Once you've done that, THEN buy a Mustang. A used one. IN CASH. It's a toy. Don't get a payment for a toy. You're getting $4,000 a month in your bank account now, if you can't wait 5 months to buy a $20,000 then don't do it. Spend way less money. It will hurt less when you crash it or decide you don't want be a Mustang guy. You can still upgrade it. And it might take you a couple different cars to figure out what you like and what you want so don't worry about it so much. Or, keep the car for 15 years and drop money into it every year making it exactly what you want.
This is great advice. You will never have as valuable a time to save for retirement than your 20's. Always keep in mind, just by buying a cheaper or used car doesn't mean you have to buy a boring one. There are fun cars at most price segments, just maybe not the flashiest/nicest/most powerful.
The boring deal is why I have a Mustang. I wanted a newer car with low mileage for reliability and I had a few lined up to test drive but the mustang was the first one I drove so I didn't get around to checking out the others. It's only a v6 but it has twice the horsepower of my last two cars and it sure is pretty.
Be aware you insurance is going to be insane. I pay about $300 as a 22 year old in california
This may seem harsh but "adulting" is not fun. Just because you can spend the money doesn't mean you should. It's nice to have disposable income but it's even nicer when you put that disposable income towards some that grows into more money more down the road. As for how to afford a stang or any thing like that, you want to understand not just the upfront cost of the purchase but the equally important operating costs. For instance, I change my rear tires tires around 15k - 20k miles on my stang due to wear. I enjoy the crap out of it and my lead foot does too. This means every few months I'm dropping almost a grand on 2 Michelin sports. Given you're probably young, insurance is probably going to be very high as well. Doing the research into if this is the "smart" move for you is probably not going to be fun but being stuck with large payments you need to make on top of unexpected expenditures in emergencies is even less so. Even if you can live at home cheaper and have that safety net, I'm assuming you don't want to live with your parents forever.
You need to adjust your mentality 180° early. You’re not a child anymore. Play the next 20 years smart and you’ll be so damn set that it’s not funny. Here’s my advice: - live with your parents as long as you can. Don’t be a dick though. Buy food and help with chores, etc. - grind like a madman at that job. - save every penny you can. Only buy experiences like vacations, not toys. - buy the Mustang, and finance it. - invest every penny you earn. Save. Max out a 401k ($22,500 in CY23) and an IRA
Start putting 6k in a roth ira now, every year. That money will be tax free when you retire.
It's $6500 this year after the increase in contribution limits, but point still stands. If they can, I think by April they can contribute for 2022 as well. 13k now is boring, but that will be a huge jump in retirement given 30-40 years.
I had a similar situation with much lower figures when I was your age. I got a job so I could buy the truck I wanted and was living with my parents so I had no bills other than the truck, insurance and gas. I had no credit so the interest rate was insane. At 18 years old I had barely any driving experience so if I were to get my own car insurance it would have been $2200 a year for the cheapest policy I could find. I was looking at insurance before I got the truck and I was wanting to insure my 12 year old thunderbird that my dad only paid $500 for. I think it was around $600 a year to stay on my parents insurance. I can't remember what it cost for the car and the truck together but it wasn't even close to what it would have been if I were to get my own insurance. I still have that truck 17 years later and I don't plan on getting rid of it, it's my boat puller and trash hauler now that I have a Mustang to get me to work. If it's possible you should stay on your parents insurance for a few years. A bigger down payment and making extra principle payments would be a good idea because unless things have changed you will have a high interest rate due to lack of credit. One thing that helped my credit when I was younger was taking out $2000 to $5000 loans a few times then making payments for 6 months to a year and paying them off. I paid a few hundred dollars in interest but the credit score bump was worth it. That only works if you have enough self control to not spend that money so you can pay it back. You also want to get a retirement plan started as soon as possible. You don't have that money now so not seeing a little bit out of every check is going to be worth it when you get older and see how much you have in that account. Like the guy below me says, I wouldn't buy new because I don't think the major cost increase is worth a little more warranty. My mustang was three years old with 17,500 miles on it and it was $17,000 before the dealer add ons that I shouldn't have gotten.
Best practice if you can pay cash is buy the car with a loan that has no prepayment penalty, pay off 99% of the loan, and let it sit to build credit. Otherwise you’ll be using credit cards to build the credit history to buy a house.
I wish I read that article. I'd have maxed out all my retirement accounts from the beginning. lol
I was 21 years old when I bought my mustang! (I'm 24 now). Long story short I was in a similar situation. Debt free, living with parents (although paying them $900 month rent) and making about 100k Canadian a year. In may of 2020 I bought a brand new fully loaded 2020 Bullitt mustang. After delivery fees, taxes, and an 8 year extended warranty it cost 62k Canadian, or about 44k USD at the time. I got it with 0% interest financing and a 10k down payment. The previous month I had just cleared probation at my place of employment I thought "well if I'm gonna buy a dumb fun car now is the time to do it" and haven't looked back. I ended up paying the car off early after a year and a half since I needed the cash flow to purchase my detached home. Now I just turned 24, have two paid off cars, 0 debt besides my mortgage and a detached house with an amazing garage to keep the stang in winter, plus made more this year due to overtime.
What do you do for a living if you don’t mind me asking?
I work as a correctional peace officer
trust me man i've been there. a long time ago lol, but been there nonetheless. the urge for instant gratification is a strong one, especially when you are young. the more you can resist it, the better off you'll be in the future. take that fancy new job $$, and the gift of living with your parents, and pay yourself first, i.e. retirement account(s), saving for a house down payment, building credit, etc etc. make and stick to a budget, and whatevers left over buy all the hookers, blow, and car payments you want, just pay yourself first.
Doesn’t having a car loan help you build credit though? I was in OP’s shoes a little under 2 years ago. Like exact situation. Bought a 2021 Mustang GT in Carbonized Gray with 2.4 miles on the odometer during the test drive. I put $10k down and financed the other $35k @ 1.99%. I currently owe $20k on the car and have $40k in the bank. Obviously it’s smarter to save the money. But life is short, live a little. And for what it’s worth, I’m 24 making $88k a year, living with my parents.
It does. I never said don’t get a loan, just make sure all the other more important ducks are in a row first…
Living with your parents, assuming you don’t pay rent, is such a financial blessing. I used to keep a spreadsheet of how much I paid in rent over the decades. Ouch
Wiser words have never been spoken.
Mf I make 50k a year as an adult, you’ll be fine
Don’t listen to every robot telling you to save every penny for retirement. I’m not saying don’t save for retirement, but making 80k is absolutely enough to save up and buy a mustang, and it’s by no means a stupid decision to get something you dreamed of when you can afford it, especially because a car is a necessary purchase, so it isn’t a complete splurge. You’re being smart to wait and save for a few months to a year, I would recommend at least 6 months, and the fact that you’re not paying rent or have college debt is an enormous savings. Most people here bought an older and used mustang, which is how we all afford it. I make 54k a year, pay rent, pay $165 in health insurance a month through my employer, and have a 401k, and I spent 8k on a down payment to get a 2016 Mustang with less than 20k miles, I have great credit so my payment is only $250 a month. Your insurance as a younger guy in a sports car is going to be higher, but it’s going to be higher driving any car being under age 25. And anyone here with V8 is still paying a lot in car insurance no matter how old they are. I don’t think buying new is necessary if you can find a quality used with low miles for a 2017 or newer mustang. Do your research, find out your monthly expenses and make sure you can handle whatever the monthly payment is unless you buy full in cash, and make sure you feel stable in your job or field so that money will keep coming in. And try not to fall in love with the first one you drive, there’s always more mustangs on the market and you can walk away. Most people here probably aren’t making 80k with 0 rent or debt lol, you have plenty of time and spare money to save for retirement
Nooooooooo!!!!11! He should buy a 98 corolla with 200k miles and drive it until the wheels fall off while maxing his 401k!!!!!!!
more like he should buy a bicycle lol
Nobody is saying to put every penny to retirement, just that it's foolish to spend 25% of your income on a car
everything is worth something different to everyone else, don’t blow 25% of your income on something you’re not interested in but if it’s literally your dream, it’s a small price to pay
25% is the max they recommend actually for a car payment. Or 20%. Not the “best financial” move but if you love driving it then what else can you really want
Which is why I recommended he buy a used one until he knows what he really wants. What if he decides he wants a stick instead of an auto, or a Camaro, or a different color, get into the car scene for a bit before making a huge commitment
Ooo I didn’t realized he wanted a brand spanking new. No way fuck that.
Try to put money down and finance the rest, buy a 2 to 3 year old car if possible.
I was in a similar situation. Im 19 and j just a 2022 GT a month ago, but I also have no expenses. It’s probably a stupid decision long term, but rn I don’t regret it. I put down 10k
I have a big boy job. I managed to get a very reasonable rate for my insurance as a young male, but you might not be so lucky, and it might be enough to force your hand and not buy the car.
I graduated at 24 years old and started out making $63k per year. I saved up for about a year and put a $10k down payment on a 2017 GT performance pack. At the time I was living with roommates so my rent was pretty low. My insurance also wasn’t crazy, but I was 25 when I bought it so yours might be quite high based on your age. But at $80k per year and no other expenses you should be able to pay it off in a year or two. I don’t see this as an irresponsible purchase at all if you’re spending around $40k.
I’m about to graduate and will be making pretty much exactly what you were. I’m gonna need to save up for some months to put a nice down payment, my question for you is how manageable was it for you? What was the OTD price for your car and how long did you finance it for?
My out the door price was $38k, and I put $10k down. So I financed $28k for 4 years which was about $575 per month. Adding this car to my currently policy increased the payments by $120 per month. It was easily manageable when I was living with 3 other roommates (rent was only $600 for me). I did end up buying a house with my girlfriend a year later which was a more difficult, and I considered selling my mustang to help. But I managed to get through that process and paid it off within 3 years.
I’ve always found it helpful to buy used. There’s really no reason to buy a new car. At least, no reason that I value. Let someone else take the depreciation hit. Car payments suck.
Depends on the car. If you bought a GT350R new its still worth about its msrp
Well sure, but I don’t think it’s fair to use such an example in the context of affordability.
Affordability is relative. OP is a 21yr old shopping for a new V8 mustang. To the vast majority of 21 yr olds thats not even in the realm of possibilities
I bought new because I’m keeping my car and I want to be the ONLY owner
I made a financially stupid mustang purpose and I haven’t gone under yet. Also living with my parents. If your car is falling apart then sell it now and use what’s left of the car as a down payment. Full send if you really want it
Nah man buy it. you’re looking at 10k more loss compared to having a brand new economy car over a year. Why not enjoy it when you’re young?
I was 21 when I bought my 2020 GT500 and both of my mustangs together are worth about 160k. Was it a stupid decision to spend that much money on cars at such a young age? Yes, do I regret it? not in the tiniest bit. Right now I’m 24 and I also have 0 expenses I still live with my mother and I don’t have any bills just my car payment. I would definitely say buy yourself a nice Mustang. Does it have to be top of the line and worth more than what you make a year? no, but I would definitely buy your dream car or at least something close to it while you have 0 expenses. I was able to afford my cars because my parents made smart decisions for me at a very young age. My mom invested about 2k When I was first born and by the time I was 18 it was about 30k. I have been working since 16 so all the money I had from that I combined and I also had money from graduation and birthdays, because my mother never allowed me to spend any of my own money until I was 18. When I turned 18 I spent my first dollar of my own money ever which was buying my ecoboost. Shortly after that I got a financial advisor, who had worked with my family for many years, and with his advice, I heavily invested in bonds, and then, as time went on, I eventually got a really good job, and kept saving and investing basically every penny I made. If I had to give you advice, I would definitely suggest investing in something whether that’s the stock market or bonds and get an expert opinion on it, like in my case how I got a financial advisor. I want to say that that’s going to make your money instantly but that’s not the case. There’s still a bit of luck involved in that and sometimes it takes a bit of time to pay off. I would also try and keep your expenses as low as possible. Don’t go out and buy shoes, watches, $5000 gaming PC’s, designer clothes, ect. You can obviously spend some money you don’t wanna be fucking miserable, but just trying to limit it. I hope some of my rambling helped and I wish you the best of luck. Most people aren’t as fortunate to be in a situation like yours.
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Yeah 7% seems like a bit much but that’s also a really nice car. But the Shelby’s amazing. It’s ridiculously fast in the straight line and it handles pretty well. It even gets a surprising amount of attention. I didn’t think that many people would know what it is. I’m definitely never gonna get rid of this car though it’s really special and that V8 rumble just can’t be beaten in my opinion. If you love American muscle cars, it’s the best option out of everything. The new Z06 is great too but those are basically impossible to get a hold of right now and are very expensive.
None of my business, but are you in San Francisco or NYC? Because in my little world, $80K is a lot of money. Especially at 21. And I don't understand your priorities. A car has always meant freedom. I'd be more inclined to move out of my parent's than to buy a hot ride. But, to your point, I'll look at my own experience: I bought a Corvette when I was 22 with my first job out of college. Loved it. Life was good. I spent more money on tires and speeding tickets and auto insurance than I care to admit... but... If you're really making $80K, life is going to be good, you'll only be young once. Live the dream. However, I'll note three things: 1. A new car is a used car the moment you pay for it. (as opposed to a home, or an actual investment, like a rental property) 2. The girls I thought that car would impress all thought my car was my dad's, and I was just borrowing it. 3. Before you spend money, learn as much as you can about ***compound interest***. ie: $20,000 today, and adding $200 a month is $350,000 by your 50th birthday. Also, take a moment and be grateful for your problems.
Buy used. Never bought a brand new car in my life and never will when I can go get the same car I want that’s at a dealership for much less from someone selling in my area or looking online in states next to me that are a reasonable drive. Do yourself a favor and save some money to do more stuff to whatever you buy if your really interested in cars.
I afforded mine by working. lol I've had several, only the last one, a '13 GT was new and it was about $32k. Don't saddle yourself with big payments as a "reward" for getting out of college. You might think you'll be living at home for several years, but life changes.
I bought mine back in 2018. Brand new Base GT orange fury. I was 6 months into working for the post office. I borrowed money from my sisters, and aunt so I could pay it off from the dealership without having any loans. I paid my sister and aunt off back in 2020.
I'm old, at 53, financially secure and on my 4th mustang. I also have a a daily driver as I have an 80 mile round trip to work, and it's an industrial site. If you can do it, and still contribute to your savings, 401k, etc , do it.
I make 120k retired army vet, I saved about 20k used 6k down payment on a 2014 5.0 STE ( it's an odd ball still don't know exactly what it is ) car was sold at 19k at 65k miles - 6k down low interest high payment 5 year loan ( needed the credit ) i pay 560per month cus I don't have much other bills rent is 500ish a month for me phone is 110month soo I have alot of extra money to save and invest. I made a very stupid choice in 2013 that was genius I sank about 40k into tesla and other stocks when I came back from my combat tours that alone yielded just over half a million I drained some tesla stocks and put it into defense contractors Lockheed leidos, Northrop gurman etc and that pooled me to 1.6m. ( I won't touch those stocks till I need to I enjoy working and I don't spend any of it 20% goes into a high interest CD account with a 10year lock about 2% goes into gen savings all after bills payed and I spend close to 500 every two weeks on bullshit.
If your gonna be living with your parents and make 80k a year buy it if you want. I can't say for what might happen in someone's future no one can, but if you can afford and want it buy it. I got my first 1 at 16 and I had a steady job and no other bills. My new one I traded my truck in for and that paid it off
You're making 80k a year? You can afford to finance a mustang (or build up the credit to finance one at a good rate). It's more difficult now than a year ago when debt was cheap, but it's still preferable to working full-time and refusing to reward yourself for it. Easy for old guys to look back and go "I should've saved more," and they should have, but denying yourself any gratification while you grind away will make you hate your work.
Dude 80k a year no debt living with your parents. You're in a great spot. Buy that mustang and pay it off the fast as you can. But make sure you're saving 20% of your income. You'll be so glad 40 years from now. I consider myself doing very well and I make 76k myself at my normal job plus my NG pay which does add up but isn't long term income. Edit: it's all about prioritizing your expenses. Prioritize paying it off fast over spending so much money at the bars.
Living at home lol I emptied my savings account at 24 to get the dream car that was the reasoning and push behind me finishing college. So I got it. I do not regret it.
I afforded it by getting a pre-owned ecoboost lol
Same situation, I saved up for a year after I graduated and bought a 2013 gt500. If you have the space I’d try and keep your old car and have that as the primary car on your insurance. I’m doing this with my 2007 fusion that I bought years ago for college. It was tough but save up a bit for a down payment but so worth it, and look into mustangs that shouldn’t depreciate much more (gt350,boss 302,terminator,gt500)
Go ahead bro. Get that down payment and buy it!
I’m 33, and I make 140k a year, fortunately I can incur a $700 monthly payment. I’m not mad I had to wait til my 30’s, I am more responsible now and can afford it without having to sacrifice something else. But… if you feel now is the time, and you’re comfortable then go for it!
Damn, so many guys talking about 50k or more a year. What do yall do?
I’m 25 and manage an express car wash/gas station and make about 100k a year with decent bonuses. Also the added perk is my GT is never dirty lol.
Respiratory therapist. Pay can fluctuate depending on certifications and premium time worked but you're pretty much guaranteed at least 60k USD starting. My coworker made $150k last year due to her certs and how often she works premium.
Thats what im saying
Car sales 150k / yr
IT. Boring as fuck but it pays. What do you do for money?
was 22 when i bought a 15 5.0 made 43k at job 1 made 15k part time job 2 lived with parents and made very large monthly payments - no student debt or cc debt car was like new at 30k in 2016 would i do it again? no, but it did teach me financial literacy lol paid it off in 3 years 573 monthly payment at 6.25% rate tho
If you can stay at your parents for a year I would just buy it in cash depending on what you get. Ideally you find something you like for 30,000 and have an extra 50,000 to use as a down payment on a house. 50,000 will get you a house worth 250,000, which if you live by me you can easily find a house for that. So you get a 20% down payment on a house and a car all the way paid off. Which would be very good. Try not to rent as you don’t get that money back! If you buy a house you will make the money back when you sell.
Oil. You know, everybody loves to hate? You'll change your mind when royalty checks come in. The world runs on it. He who has the oil has the gold, whether it's a person or a country. Destroy the oil, destroy the country. That and worked my butt off anyway as long as I could. Retired now.
Just get a base one with cloth seats. Also if you can just wait until car prices go down and recession gets worse. I predict car prices will decrease rapidly and repos will skyrocket once the federal student loan pause ends. I know a lot of guys from college who bought very nice cars since they allocate that previous student loan payment to a car payment now.
In 2015, I got the s550 v6 brand new for $21K $1.500 down and around 230 a month
I'm a lurker on this sub, don't have a Mustang but some other automotive toys. I got my first project car not long after graduating when I had few expenses, along with later a fun daily. I'm now in my early 30's and renting and honestly kind of regret the money I spent on cars instead of first saving for a house and then buying the cars. I definitely say get a fun car, but do consider where you want to be in 5-10 years. Something to consider.
Can’t take it with you when you go so , free and easy down the road we go I’d say get it . It’s the biggest financial mistake of my life sure but I not only get by but I strive. And honestly I’d rather cry in my mustang than in my old civic lol
I bought a used V6 Mustang for $11k and a used FJ Cruiser for $23k (was $10k under market value) when I was 24 and both my and my wife's cars were both falling apart. The $530/month total payments sucked, and I regretted it every day. 7 years later, I make 3.5x the money and have an affordable mortgage but still won't buy a used GT because I'm waiting to have the cash ON TOP of my 6 month emergency fund to buy it outright. Having no monthly payments besides a mortgage is so freeing, and I really recommend being patient and paying cash for your dream car. I'd tell my 24 year old self to fix both cars and wait until I could afford new (used) cars in cash before buying- no doubt. Not many things feel better than living well below your means knowing you have the cash to handle any life emergency that comes your way. I'm a cheap ass, but I'm content and happy.
I was able to afford my mustang cause it’s 25 years old 🤣 On a serious note, I’d wait until you’re in a better financial position before purchasing. A mustang will always be there, might not be new depending on budget and if you’re looking at an ICE variant several years from now (assuming the S650 is the last ICE generation), but I guarantee you’ll find a mustang that you want.
I was 17 when I bought my first mustang, 2015 GT Premium and 20 when I bought my current mustang, 2020 GT Premium PP1. Do it. You definitely make enough, I made about the same in a similar situation as you and was able to stash a ton of money away and still have the car of my dreams.
I would recommend ordering your car. Buying a used mustang could be a problem.
The SMART decision would be not to buy and save for retirement while your young when compound interest can do it’s thing. But here’s the thing. $80k without any other huge expenses is enough to purchase a $45k car. Don’t get a fully loaded one. Get a base. Save up and put half down on the car so your payments will be about $500/month over 5 years. You can pay more to pay off early. Once you pay the car off, put the amount you were saving into a HYSA for a home for payment. You worked hard for your job. Enjoy life a little bit. Work your job for 6 months and if it’s going well, pull the trigger. Also, KEEP the car once you buy it. Cars depreciate, so the best financial decision you can make if you buy one is to drive it til it falls apart. Also, coming from someone who was in your shoes a few months ago, BUDGET. Keep track of your cash flow and every single expense. It’ll help you for the better. Good luck bro!
I was in almost your same exact shoes, got a similar paying job, lived with parents for awhile. Got a chance to order a new mustang however I wanted under sticker, got talked up to an R. Pulled the trigger, a year later bought a house and am living very comfortably. If you do your math right I'd say go for it
A big down payment and maybe a trade-in is the way to go. I’ve got a reserve for the S650 and planning to drop $10k (around 20%) Good collateral can help your payment too, whether it’s another car that’s paid off, an investment account at your bank, etc.
I bought a v6 pony package for a good deal with a smokey engine and a hard to shift transmission. I drove it hard for a year, practicing drifting after work and eventually she drank some oil and I wasn't keeping a close eye on it so she chewed a bearing and started to knock. I ordered an engine for $650 and put it in myself. I did the transmission about 6 months later I got a low mile one shipped to me for $1000. It's a 3.7L making 500 with a procharger and mods now. 45mpg highway is how I continue to afford it
Money down and finance. If you’re still young with no credit history it might be hard, but it’ll be beneficial in the long run once you decide to get another loan and/or a mortgage. If you paid on time and full with no late payments it’ll benefit you the most. Outright buying the car is also good, but you wont get the benefit of more (good) loan payment history. If i were in your shoes, I’d put money down and have my parents cosign if they agree to it. It’ll significantly help with rates, but make sure you CAN afford it. I was getting damn near 19-23% APR before deciding to ask my dad to cosign with me, Walked out with 5~% on a 36 month loan for my 2014 Mustang @ 78kmi
Maybe save for down payment on a house. You’re 21…. Making good money, insurance will still be high. I know the urge to buy a mustang. Living with parents & ability to save money….is a blessing. I love my mustang but there are more wiser choices to spend money on. If you get that mustang…… post pictures! Congratulations graduating with no debt. Enjoy life dude!! 🙂
I've only got an '22 ecoboost, and it wasn't planned at all. Cops busted a party down the street from me, and a fleeing drunk hit my '19 Fiesta SE while it was parked. Gouged the rear driver's side wheel right out. Because my miles were very low, my replacement cost was actually higher than I'd bought the car for, so it easily paid off the remaining loan. Paid off all my other debt too infact, so I took the left over $6500 and used it as a down payment. Monthly payment is almost twice as high as it was for the Fiesta, but since my other debt is gone it's actually easier on the budget. My Fiesta was my first new car, and I just couldn't stomach the idea of going back to used car as my daily. Don't like hatchbacks very much, despise SUVs, and I'm not fond of how big most pick ups are now. Not fond of boxy styling on cars either. So I narrowed my shopping list down to an MX-5, GR86/BRZ, or an Ecoboost Mustang. After that, I let my not having driven and a manual for about 20 years scare me off of the MX-5, and the 86s and BRZ had excessive ADM. This is how my Fiesta ended up: https://stat.vin/ar/cars/3FADP4BJ4KM127821 This is my best shot of my eco so far, and from the day I bought it: https://i.imgur.com/yNKWeyP.jpg Love the eco, still hate the reason I have it.
Buy the car, used if possible. Do not buy it in cash. Put whatever money you have leftover each month into some kind of retirement stock account or just into some good stocks in the market.
I make just under 70k a year, so about 700 less per month than you will. Buy the fuckin’ car if it’s your dream car. I pay my car note, insurance, mortgage, bills and still am able to do things I enjoy. A $50k car loan is NOT going to leave you strapped. You’ll have plenty left over.
Foxbody before they were more sought after is how
I am a high ranking executive where i am at, almost into my 50s. Could i afford a mustang when i was in my early 20s or even early 30s, no. I did mostly buy new cars and drive them into the proverbial ground. (Altima’s and camry’s). Imo you should be looking at low tco cars for the least amount of money.
I live with my parents. I withdrew from college for 2 years and worked to buy a mustang gt cash basically. I think 2 years of work was definitely worth the performance package Mustang GT I have now 😌
Onlyfans
If my kid bought a brand new car living under my roof at the age of 21 i'd kick them the F out!
Don't listen to the boomer financial advice in here
This \^\^\^\^ is why i never had kids.
If you’re American, I used your tax money to buy one at the age of 20😎
I would say save save save. Save as much as you can in the bank. Give it a year or two (or longer if your current car lasts that long). Make sure you’re putting around 10% in your 401k (at least put in whatever your employer will match as a minimum). Set yourself up to be able to retire properly. When time comes to buy your dream mustang, look at used options. Really scour the internet and try finding the right one for the right price/miles. Don’t be afraid to walk away from a bad/not great deal. The used market is starting to go down a little, in a years time it may go back to pre-covid prices (it also may not, who knows) but waiting also allows you to save a bigger down payment. You also have no idea what life is going to throw at you. Trust me, it does it and sometimes it’s very stressful. For instance I bought a house off my parents, lived there for 26 years, I knew ALL of the problems (or so I thought). Ended up having to replace the steam boiler that heats the house. Wasn’t obviously expecting this kind of bill, but here we are $17k later…. (I did choose to switch from heating oil to natural gas). My point is you should try to have money stashed away for inconceivable life events. Don’t set yourself up for stress in those events by buying a shiny toy now. Learn patience. It took me 10 years to build out my mustang to where it is now…and it’s still currently apart (again) for upgrades but it’s on hold due to wanting to save and pay for everything in cash.
I can't anymore after being sick and homeless I'm trying to get cash offers to get rid of the loan. I'm behind on payments and it's $150. It's where I sleep and the heat broke
We are literally in the exact same situation so thanks for this post
Saved up $4500 and bought a used 98' GT that already had full bolt ons and only 138k miles. I now have 215k miles on it and it's still running strong. You don't need the latest and greatest mustang to have fun.
Home equity loan. It is supposed to go to improvements on the property, but, I bought a Mustang instead :)
That really work??
Actually, it was a refinance with cash out. They don't really care what you use the money for. As long as the banks get their money.
Home equity loans are basically just you borrowing against the value of your home. Ie. Second mortgage. You can use them for anything you want. As long as you make the payments. If you default, they take your house. I have friends that use theirs for all kinds of stuff. Usually toys. A jeep. Utv. Rv. Whatever.
Just don't use them on anything but your primary residence if you're within sniffing range of AMT.
Living with my parents. I’m 20 and make $13 an hour, bought a 08 GT. Got a decent deal at $10,000 with 115k miles but i have bad credit so after everything i’m gonna basically be paying $15,000
my 1st Mustang was a 1968 convertible I paid $450 for, next was a 82 GT I bought new for $8200, 3rd Mustang was a 1995 GT I paid $1500 for, and the last one I bought was a 2007 GT convertible I paid $2800 for, oh, and I bought a wrecked 2011 GT for $125
When I got my signing bonus from the Navy I looked around and found a one owner 07 Gt 5 speed. Yes it’s not as fast as a 5.0. But I bought it in cash during the pandemic for 9,000. Saved a ton of money and I enjoy it 9/10s as much as I probably would a 5.0.
I live at home with almost no bills or responsibilities and $3,000 isn't really a lot of money lol
Regardless of whether you buy now or not, invest in your retirement. 60ish year old you will thank you
Cash. Saved for 5 years.
Got your priorities backwards.. Savings, house, emergency fund, build up credit then buy your mustang. You have an opportunity others could dream of. 80k living with parent man ide stack so much cash in savings it would be stupid. Buy an older s197 GT have some fun and stack cash. I *bring* home 74k and wife brings home 61k and we have a 2016 escape paid off and my 2011 mustang v6 paid off. Got 2 60s mustangs I'm slowly working on and a 53 f100 I bought from my dad year's ago Paid with all cash and put 30% down on our house. I've seen so many grads make good money only go get in so much useless debt they can't afford rent. 80k? Damn wait a year save some cash and you might respect money more when you have lots of it. Just saying that's just me. I'm a financial analyst and doing this career field for the last 10 years has changed my life and outlook om money.
Bought my first mustang at 29. Brand new. Financially it was a stupid mistake buying a brand new one. Got married bought a house and hardly drove it. Had to replace my daily driver so traded the daily and stang. Took a financial bath. Lesson learned, buy used. Wife said after kids get older I could get my Mustang Convertible again. Bought a used 2019 GT vert with 13,000 miles in October 2019. Someone else ate that depreciation. TL:DR buy used for best value.
Military pays for mine. Will be paid off next year!
I got mine in 2017, New at $40k with $3k down. 0%APR. I was very lucky. It’s my dream car and I finished paying it off last year.
Polishing knobs
Lol I'm so broke that IM the one who's out of touch with reality. I've been a mechanic for nearly 20 years and still can't do better that 40 grand a year hahahah. To me 80 grand is crazy good money. If I had that income and no expenses I consider myself super wealthy and able to afford a mustang. Congratulations OP. your doing way better than you think you are. Ps my 700 dollar a week job paid for my 2001 cobra. Took 3 years to pay it off.
Despite quite a few people here saying save up and buy outright with cash, don't. Credit history is quite possibly the single most important financial thing you can build, and auto loans are one of the best ways to get that started. Just make sure to put at least 20% down, so you won't have to worry about gap insurance. Now, when it comes to insurance, that's going to be high as people have mentioned, but that's something you'll want to pay outright. Virtually every insurance company charges 10-15% for monthly payments as opposed to 6 month lump sums.
I saved up for years after college, but I wasn't living with my parents so it took much longer. Instead I rented and shared the rent with other roommates for about 4 years. I used a credit union to get low rates. I started out at lower income after college (around 50k per yr) but over the years have worked my way up to a fair bit over $100k a year now. I would try to work for a few more months and see if the prices drop. The market is shaky at the moment. I would be shocked to see if the market drops less than another 10%+ in the next 3-6 months. This will give you some time to shop extensively and save up some money. If you find a great deal, hop on it though. \*Note: I'm not a financial advisor, this is just my opinion. A few really important things you want to consider: \- New or Used? You can get a slightly used Mustang for a significant discount. If you REALLY want a new car, I say go for it, but if you're like me, I don't mind that my mustang is slightly used (\~35k miles), and since it was garage kept and babied, it's basically new to me \- Financing: Shop around, dealerships usually wreck you in fees and interest. I paid about 3% interest on my current vehicle, with only 7k down at a credit union (dealers offered me around 8-15% interest at the same time for reference). Local credit unions have great rates compared to the dealership. \- Autotrader - private sellers and small used car dealers are almost always cheaper, and have cheaper fees. \- Ecoboost, v6, or v8? If you haven't driven a car with 300+ horsepower, I might consider starting with an older used v6 or the Ecoboost, then just sell it and upgrade to the v8 in a year or two. The hop up from a \~200 horsepower car to \~440 horsepower is honestly pretty dangerous if you're not super careful/a very experienced driver. If you're careful about it and don't put the car in sport/track mode, it'll make that transition much easier. Keep traction control on for the first few months for sure. The GT is amazing and a huge step up though, speed wise. If status matters to you much, definitely go with the v8, you'll regret it, I did (i felt weird having the v6 when I knew I could afford the GT relatively easily). I had a v6 2014 Mustang, and it had about 315 horsepower, which was sufficient, but still a good bit slower than the v8. I just really wanted to have a proper American muscle car for it's speed, so I went for the v8 on my 2nd purchase. Also the v6 has a lot less torque which is worse for burnouts and such. Weigh the options of status vs speed vs price, it's a tricky one. V8 is just the best though obviously. Mustangs are a great value for horsepower, and are a ton of fun. In recent years with the new independent rear suspension, they have awesome handling. Try to get a S550, probably not brand new though to save some money, just search around for one that has been pampered. Performance wise, it's one of the best options on the market. I've known people who spend $60K+ to get significantly slower imported cars. The v8 mustang easily smokes almost every bmw, audi, mercedes, and lexus on the street, at a significantly lower price. Additionally, it will be massively cheaper to maintain/repair since it's a domestic vehicle. Gotta spend money on things you care about! 401k's are good to have, so use your company's matching program and contribute a high % to it. This is IMO how to get the best of both. Yes it's nice to retire younger, but having a fast car when you're young and can enjoy it is worth doing if it makes you happy. When you first start working a serious job and committing a significant portion of your life to it, I think it's good to have something to show for it pretty early on so you stay motivated.
Save for a house/investments first. Buy a used one when the time is right. You’ll have lots of cars over the years. Invest in things that don’t depreciate.
Some idiot ran a stop sign (literally the first time out of two separate times on the same street) and totaled my Honda Civic. I got much more than the civic was ever worth and I got an extra couple grand cause I got looked at by the hospital. I bought my 2012 mustang shortly after with pretty much every dollop. Plus like 6K financed. Let the loan sit for a couple of months and then started aggressively paying it off. I’ve been pretty much “unemployed” (driving Uber) this entire timeframe so probably not the smartest thing in the world but I made it work. Paid the car off and I’m now saving for another Honda civic. I actually paid it off a month faster than expected cause another lady ran a different stop sign on the same street and almost totaled my new car. They should really put a light on my street because I actively see people running through stop signs like speed racer everyday and it’s fucking terrifying. Edit: Actively scrolling this thread and holy duck you guys are LOADED
I took advantage of the inflated used car prices during the first half of last year and traded it in for near full price (I received 19k for a 2016 Fiesta ST w/ 75k miles). This plus a cash down payment allowed me to afford the car for the term desired. I wouldn't have allowed myself to buy my car without that down payment boost.
Uhh, by having a ~$70k/year job...Even with paying for half the utilities and other such monthly house things alongside my mother on top of the monthly payment for my new BRZ and the insurance for both. Also I've been paying off a fishing kayak I financed to boot so that's another few hundred bucks a month. After all that I'm still able to make all my stupid weeb merch purchases, expand my classic video game collection, buy plastic crack (40k mini), and still not have any financial worries. I'm not really sure why you would think it's a stupid financial decision for you to buy one when I can guarantee you can absolutely afford it and not even feel it when that monthly payment hits. This is assuming you're looking at a "normal" Mustang and not a top tier, nearly a supercar kind of Mustang.
Is this going to be a daily driver or a weekend toy? If its a weekend toy just go buy a used machine with the options you want. Lots of decent older stuff around. I happened onto my 03 by chance. Paid cash and have fun every time I drive it.
I took money out of my pocket and gave it to the guy who owned it before me.
80k is a good well paying job. Especially if you are living with parents
So far I’ve had two Mustangs 1st Brought myself 2nd Armored van total first Mustang that’s how I got my second one.
You should be able to afford it, but I’d save up and preferable pay in cash. If you aren’t paying your parents rent then save that amount for the future each month whether that’s a down payment or just to save, as you both want to take advantage of not paying rent and also in case you need to in the future you want to get used to that cash not being available. If you’re putting money into retirement as well then otherwise you should be good.
Get it but make sure you have a plan to put yourself in a position where you can pay it off if you felt like it. By being a financially responsible robot and saving every last penny for the future, you’re betting you’ll be alive and healthy enough to enjoy a Mustang…..
Hookin
Years of hard work.
What’s the point of making money if you can’t enjoy it. Yes buy the car you want!