If any bank DOES give you a car loan for 40% of your income (hopefully not, not gross right) it's not because they share your vision of owning your dream car at age 23 with little income and want to help. They're lending you the money because they believe they will get to repo your car in a year or so, swallow your down payment and payments to date, and sell the car off.

Ever go to one of those small car lots that has a lot of fancy BMWs and Mercedes with under 10K miles? This is where they come from.

On the other hand, if you DO continue to make the payments, you're going to be paying a huge interest rate. Your 25K loan over 4 or 5 years will actually have you paying $35K by the time you're done. Now the car doesn't cost 40K, the car costs you 50K.


Just to clarify, you're perfectly okay with living in your parents' basement until you're 27, right?

 

I lived with my parents till I was 24. When I finally moved out, I took the clothes on my back and outfitted my new place with top of the line everything cash. Living with one's parents and saving up money isn't always a bad thing.

Living with one's parents and throwing away money on a car.. OTOH.. bad idea.

 

The car payment is not a big a part in evo ownership as you would think. Insurance and operating costs (Gas-Tires-Oil...lol, old joke) nearly equal my payment. I bought a beater just to stop the 1000 or more (hard) miles a month I was putting on it.

I can barely afford this car... the evo is a great car if you can pay cash...then 3 bills a month in tires and gas, etc doesn't hit you so hard.

 

You can't afford the car. Buy one used or learn to live within your means.

 

I would first see what you could be paying but if you are skeptical about it then maybe you should save a little more. If you buy used make sure you check the car out really good. The warranty sucks for the X. 3 years-36K (I think) the VIII & IX have 6 years-60K. I know guys that have those and still under warranty. Im just waiting for my 3 years to be up so I can start modding mine.

Good luck on your decision and post pictures if you decide to get it.

 

He has his mind set on the X. He's a big boy let him buy anything he wants-it's his life. Everyone has given great advice here. Let him make his own decisions. He'll face the consequences of his actions. When I was his age an evo was not for sale here in the US, or a fact of the matter-a car! I was graduating from college and was focused on my career. Look at your priorities before wanting a car IMO.

 

The Evo comes before everything
= LIFE

 

If you cannot afford a $5000+ repair out of pocket for when you inevitably **** something on your Evo up, and neither insurance nor warranty can cover it, then you cannot afford a new Evo.

I'm 21 and my car payment is just under 13% of my net income... and my insurance is about 2/5 that, with 0 claims in the past and a relatively clean record. ... And I still think this car is a HUGE expense, but ultimately worth it. In your situation, you simply cannot afford a new Evo, get something else.

 

It's all good guys, great advice from everyone, most of what you guys said was something I already knew. I was really focused and excited for the car but I guess it really was a tunnel vision.

I have received confirmation from the dealership that I'm approved for the loan no problem, but since I've only started my career at the bank 5 months ago, they would need a co-signer. So I've decided to put it off for a year or so, get a used regular car in the meanwhile with almost no depreciation left, and save some more to get my payments down to 15-20%. Also, I'm confident that after a year at my job, I will start making a little more money as well.

Thanks for the input guys and I'll see you in a year.

 

Insurance will be the kicker...then once you start modding. You'll realize how fast your pocketbook will be empty.

 

Best of luck with everything. Don't worry, when the time comes you'll enjoy your car far more if you can comfortably afford it

 

Wise move. Good luck!