Yeah, just think about what your situation will be like in 4 years. Are you still going to want to be paying 5, 600 dollars a month on a 4 year old, out of warranty (ha) Evo ? Just think in today's terms, some people are still paying 5,600 on an 03 EVO. Would you ?

One of the main reasons I leased my X for 2 years. Hell if they would have given me a 12 month lease I would have jumped at it! I'm 26 and have been driving 10 years and I've never kept a car longer than 2 years.

 

People have to make their own mistakes I say. No matter how much good advice people throw around in this thread, if he really wants the car he will buy it. It sounds like he isn't that far away from being able to afford it. I just bought one and according to the DTI ratio you give I can't afford mine. I paid 17k up front though and did the 4 year lease at 2.9 percent apr. I make more than enough to afford it, meaning its less than a weeks worth paycheck by a few hundred bucks, but by your logic I shouldn't have bought one. I just graduated college and got a new job and I wanted to reward myself with a fun *** car. So I did it, life is short, I might get hit by a bus tomorrow, mind as well enjoy life while I can.

 

My previous car was a lancer that I bought cash at 17 years of age. I had it for 5 years and sold it 2 months ago.

The new 0% 60 Months basically sealed the deal because I was looking at 750 a month with 0 down at 2.9% for 48 months, but now I am looking at payments of 500 to 550. In addition, I've been debating about getting the EVO since February, the only thing that was keeping me back was where and when I'ld go to med school.

Also, I am pretty much due for a raise, work 2 very stable jobs that aren't affected by the economy (health care/medical research) and both pay well. I just choose to only make the 3200 after taxes.

Honestly, my monthly expenses are only 1200 without the car per month. I am pocketing 2000 extra a month. I know what you guys mean by studying books and not getting distracted by the wrench. But, hey I am a guy, I get distracted by hot girls studying at the library.

I've put a lot of thought into it. I also make some extra side cash by being a property manager for several people and tutor bio/chem/physics/o-chem on the side. This money is an extra 500 a month un-taxed. To add to this, I also have more than 10 grand saved up since I turned 18, because of the extra tutoring I've been doing all throughout university. Its my emergency funds/investing/savings account.

Plus... I need a car... and it was either pay a ****load more for a 135i or a EVO X GSR with SSS. The price difference was huge, options were less on the 135i, and I personally think I'ld have more fun with the EVOX.

I appreciate people's concerns... but I truly put a lot of thought into this.

 

What he said.

Life is short, I need a toy to pass the time and get me through 4 years of more books.

 

That's cool. Go out and get it then. I can guarantee you that in 5 years you won't be saving as much as you are now.. and the cost-of-living will be higher and you will not have as much time to fiddle around with jobs as you are doing now.

Good Luck though!

-M

P.S. Life is dynamic. It changes along with the human mind and spirit. We don't always like the same things we liked years ago, don't always carry the same amount of money (more or less) we had before, and we don't always think the same as we did in past times either..

 

Well I just got a big raise today... so I hope I am approved for a good rate.

Went from 430 a week to 600 before taxes. Then I have tips that I have to report and I'm around 3500 a month before taxes now.

Anyway, with $9000 down for hopefully $35k OTD I can finance the car for around 570 a month. I have a scholarship at my university, I get good grades, and I work very hard at my job. My current 07 EX Civic's monthly note is $444 because my mom put 0 down when she bought it and surprised me with it. I reasoned that if I can easily afford this $444 payment with so much to spare for myself because I live at home and am pretty frugal when it comes to spending, $150 a month won't hurt. After I part out my Civic I should reach equity with the trade in.

I've thought about this for a long time. It's within my financial boundaries. If the payment was going to be $750 I would not even consider buying this car since that would mean I cannot take off any time from work in the future. But my large down payment allots me some financial freedom in my future budget.

I'm 19 right now. Sophmore in college. I'm going to be living @ home for another 2.5 years. After that if I decide to go to the Culinary Institute of America then my parents will support my car and I'll pay them back.

 

Amen to that haha. As I said in my initial post, I've been OBSESSING over this car for the past five months. I almost opted out and bought a used 350Z with what I had saved in August, but my sister told me that if I'm going to be stupid and buy a new car I might as well just get the one I really want so I don't end up dissatisfied with it in a year or so. The mod bug bit me with my Civic and I just find modding half the fun of owning a car.

 

700+ FICO doesnt mean much w/o knowing what is on the report (credit cards, def. stud loans, ect-mean nothing). Do you have any prev installment loans (auto, personal, mort)?
I can tell you that things have tightened on the lender side from last year, but if you meet the min, they'll shoot you the approval. FYI-Mitsu uses a co out of St. Louis, MO as their lender (CenterOne Financial)-so its not "technically" Mitsu approving, ect (they sell the loan month 1). I can tell you from personal and professional experiance, dont buy a car just to buy it/fit in-be sure you can truley afford it (dont trust the bank figures either-we can cram someone into the loan wether they can or not). If its too much, save, or get a strong co that you trust.

 

Take it from someone who's already gone through professional school...........with the workload, studying, exams, labs, round, rotations, etc......... you WON"T even have time to drive let alone enjoy that car! You're obviously "book smart" because you gained admittance to Medical Schoo. Hopefully, you also have some "common-sense smarts" and forget about a car you can't afford now and will never drive (other than to and from school & the library)!

 

This is a good example but not fully ture. I make $3,300 a month and i got approved for my x with 560 car payments. I can affored it easly cuz my wife works but the car is fully under my name. She is no where on the load.

Now a low 700 is a good credit score, the only other factor i have for you is that you sound young. In school living with your parents and all. So you can have a good credit score but not enought credit. You have to have about 3 years of credit to start getting good deals.

 

There is nothing untrue about it. They run the numbers and that's what they go by. If they approve you, it's a risky loan. Period. They would probably end up selling the security to some other bank and forget about it (which is what we are seeing on Wallstreet).

I'm going by the DTI from now on. If it looks like I can't afford something with NET values using the DTI formula, then I don't buy.

Credit score is irrelevant.

-M

 

And banks are starting to take it more seriously. I financed both my '06 Si and the '08 X through the same credit union. They practically threw me money for the Si, but I got the third degree for the X. My DTI was in their top tier, so they didn't give me any problems, but I answered a lot of questions the second time that they didn't ask the first time.

An Evo on $40k a year, even with housing paid, will be a significant strain on the finances. My wife is a second year resident after recently finishing med school. The chance that you'll have time to drive it any more often than to the hospital and back is pretty slim. Maybe you're entering a specialty where the practice you join pays your loans off for you, but otherwise using the personal school loans to get a car is pretty foolish, financially. Just look at the interest rates on those things!

I'm hardly the person to talk anyone out of buying one of these, and you're obviously going to do whatever you want anyway, but if it were me I'd seriously rethink it.

 

Per our PM conversation...DO IT!!!

 

Hellz yah I am pulling the trigger this Sunday. I am hoping to get a price similar to yours for a GSR with SSS. Now only to debate if I want the aero kit or not.

 

Just trying to follow along with the DTI talk:

The following assums 60 months @ 0% with no money down on a 35k GSR.

35,000 / 60 = $583.33 / month

Now using the DTI method previously mentioned, you must meet the following criteria inorder to be considered a 'safe' loan candidate.

Gross
[monthly pay] x 0.08 = 583.33

Net
[monthly pay] x 0.08 x [1 - taxrate] = 583.33

Using gross income:
Yearly salary = $87,499.56
Monthly pay = $7,291.63

Using net income (assuming 30% for taxes):
Yearly salary = $124,999.37
Montly pay = $10,416.61

Just wondering if my calculations are sound?

EDIT:
Just did same calculations as above assuming a $10,000 downpayment.

Using gross income:
Yearly salary = $62,500.00
Monthly pay = $5,208.33

Using net income (assuming 30% for taxes):
Yearly salary = $89,285.71
Montly pay = $7,440.48