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Discussion Starter · #1 · (Edited)
hey

im new here :)

about a year ago decided that i want to get myself an r8 right after uni. i love the car so im prepared to spend a lot on it.

how do you pay for yours? i assume some bought them outright, but i wont have that sort of cash

the best option i can find is so to contract hire one for £1200p/m. this way i get a brand new one every three years!

is there any cheaper ways to get hold of one?

how much do you all pay per month?

steve
 

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p/m must mean per month. I paid cash for my car.

An 8% interest rate loan paid over 60 months would cost ~$3102 per month on my car without a down payment (including sales tax and license). That would yield a cost with interest of ~$186,200USD. Another way to look at the payment is you would need to earn ~$4772 before taxes to make this payment with a 35% tax rate. (I sure hope my old HP19B Business calculator gave me the correct answers. If not I apologize. It has been many moons since I used it last)
 

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i decided that an r8 is what im going to spend a massive bulk of my money on when i come out of uni about a year ago.
I don't know how much cash you will make upon graduation, but if I was you I would strongly reconsider doing this. It is hard enough getting ahead financially when you are starting out, without tying up a large portion of your earning power in a car - a rapidly depreciating asset. I don't think that extravagances like high end sports cars and associated interest costs should be allowed to dominant someones finances or net worth. Clearly this is just an personal opinion, but lots of people put a major hurt on themselves by living beyond their means.
 

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I don't know how much cash you will make upon graduation, but if I was you I would strongly reconsider doing this. It is hard enough getting ahead financially when you are starting out, without tying up a large portion of your earning power in a car - a rapidly depreciating asset. I don't think that extravagances like high end sports cars and associated interest costs should be allowed to dominant someones finances or net worth. Clearly this is just an personal opinion, but lots of people put a major hurt on themselves by living beyond their means.
I'm going to throw in my $0.02CAD and agree with kthacher. If you want to drop a roll of money on anything or get in debt, real estate is the best place to start right out of school. Not only is a roof over your head a decent long term investment (compared to a car), but its an expense you will always have; why pay rent when you can pay towards your own equity?

The other thing to keep in mind, depending on what field you work in, owning an R8 at a fairly young age can send the wrong impression to clients. In the finance sector that I work in, rightly or wrongly, clients will sometimes decide to choose an adviser for their funds based on their 'spidey-sense'. Young guy in a 3 series BMW=good (he must be successful to have a nice car), anything super-fancy=bad (who's portfolio did he Madoff to afford that car?)
 

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I don't know how much cash you will make upon graduation, but if I was you I would strongly reconsider doing this. It is hard enough getting ahead financially when you are starting out, without tying up a large portion of your earning power in a car - a rapidly depreciating asset. I don't think that extravagances like high end sports cars and associated interest costs should be allowed to dominant someones finances or net worth. Clearly this is just an personal opinion, but lots of people put a major hurt on themselves by living beyond their means.
I agree with ktacher. Do not forget that getting the R8 is only the first step. Maintenance, unlike BMW, is not free. Gas (you live in the UK is double what we pay here in the USA/Canada). Tires, oil changes and minor maintenance are not to be ignored and what about insurance?

Unless you make 5 times what you would pay monthly for the R8. I'd say frankly: forget it. Do not mean to be harsh, just real.

You can get great satisfaction from a car that is worth 1/3 to 1/4 what you would pay for an R8. I am 27 and you seem even younger. Don't rush into it now. Get a 3 series coupe, free maintenance, nothing to pay. You want an Audi? S4, RS4 (R8's engine!!)

ps: no matter what we tell you, you are young and you will carry on with your thoughts, just think twice :D
 

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I agree with the others comments. I had a company car for 30 years. No car expense at all. I received a new car every 3-4 years. No worries or costs. I purchased my first house at 20 years of age. The only time I rented was when a house was being built. Think about it.
 

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I was going to reply with some reasoned but gentle points but realised that there is no reasoned or gentle way to tell someone still at Uni that unless they have a very rich and kindly father then a dream to immediately buy an R8 is just that - a dream.
If you really did arrange to somehow finance one then the dream would soon turn into a nightmare :(
 

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The other thing to keep in mind, depending on what field you work in, owning an R8 at a fairly young age can send the wrong impression to clients. In the finance sector that I work in, rightly or wrongly, clients will sometimes decide to choose an adviser for their funds based on their 'spidey-sense'. Young guy in a 3 series BMW=good (he must be successful to have a nice car), anything super-fancy=bad (who's portfolio did he Madoff to afford that car?)
Those comments are not to be taken lightly. In the US, people are judged by their cars. Right or wrong, its how it works. I'm an Insurance Broker for 18 years and have achieved a fair amount of success. I choose not to drive the R8 to work on most days where I have to visit clients because the message the R8 sends is not always a good one. Its been said on this forum that people can be envious, jealous and even outright mean to the R8 set. People who have never achieved a substantial amount of success in their lives may look at the "fresh out of school" owner of an R8 as being born in the "lucky sperm" club and not having earned the "right" to drive such an ostentatious car. That's not a very good image to put out there for someone starting their professional lives in the world of the working. It may actually be a detriment and depending on the work you do, may make success even more difficult to achieve.
 

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Maybe you are concerned about appearances and fast visual impressions. For a young ambitious professional, I suggest investing more into a healthclub membership that you will actually use regularly, a better wardrobe, a good city-capable bicycle, and maybe a nice motorcycle. Being fit, well dressed, and looking environmentally aware, are essential basic tools that will help sell you as an up and coming, hard working, intelligent, achiever. This is the path to opening more doors for yourself. Of course, once inside the door, its up to you to deliver the goods. Personally, I would never want anything to do with a young professional who caters to a very serious love of luxuries.
 

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hey

i decided that an r8 is what im going to spend a massive bulk of my money on when i come out of uni about a year ago.
I'm not sure whether you are coming or going as present and past tenses are mixed in the same sentence, but I have to agree with others.

Make sure you have enough cash to pay for the car to cover the depreciation in its value and other emergencies, in case you need to sell the car. If you don't have that kind of cash, then wait til you do. I can assure you it is worth it on all fronts. There is no point in driving the car with your backside squirming about whether you can meet the next monthly payment.
 

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These are all very good advise. It is good to have goal and dream. You have plenty of time to drive and enjoy what ever car you want down the road. If you are making a pile of money now and have no problem afford one, go for it. Take my situation as example, I did not predict my business is heading south this fast, now I wish I do not have this car payment.
 

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These are all very good advise. It is good to have goal and dream. You have plenty of time to drive and enjoy what ever car you want down the road. If you are making a pile of money now and have no problem afford one, go for it. Take my situation as example, I did not predict my business is heading south this fast, now I wish I do not have this car payment.
sorry to hear that
 

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sorry to hear that
Thanks, it was a bad decision. I did consider dumping it, but to loose all that money, I decided to drive it for a year and try to enjoy it. If the economy turn a little in a year, and if there is no multiple R8 in the showroom, I might be able to sell it rather than “giving” it away.
 

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Discussion Starter · #16 · (Edited)
thanks for the replies

when i finish uni i am guaranteed a job of roughly £36k a year with the family business, although this is arguably no where near enough to support a £1.2k monthly payment for the car, there are a number of things that change the situation.

the contract hire i mentioned means that i will not have to worry about the depreciation, or upkeep. oil changes, new tyres and things like that are included in the cost, this is a maintained hire. also, when my 3 year contract ends, they take the car back, this means i dont have to worry about re-selling it for a good price as i know what it was going to cost me when i enter. there is no hidden suprises.

the way i see it, the worst case scenario would be that i really wish id have put the money towards a house or another investment. the family business i mentioned is fairly recession proof so the job is safe too. i would only set myself back a few years, but in the mean time look what i DO have. i have the car of my dreams, and when the 3 years is up, if i dont wish to take out another 3 year contract, i dont have to.

having said this, your comments have made me think about it a lot more. the fact that that huge amount of money over 3 years could easily have bought me a number of more useful assets.

let me know if the situation changes your minds, ill think about what youve all said too =)
 

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I want to guess “the contract hire” = lease? I am not familiar with what is outside of the US, if you lease the car here, you still need to pay to maintain the car, and keep it in the best possible shape for the term of the lease. I personally think it is best to purchase this car. I calculated the least payment for 3 years, it was just way too much money down the toilet(even with tax benefits).

If I understand your number correctly, you have a gig that pay $36K/yr. And you want to get into a car that cost about $14K/yr to least? I really advise you to rethink this. My 2 cents.
 

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the way i see it, the worst case scenario would be that i really wish id have put the money towards a house or another investment. the family business i mentioned is fairly recession proof so the job is safe too. i would only set myself back a few years, but in the mean time look what i DO have. i have the car of my dreams, and when the 3 years is up, if i dont wish to take out another 3 year contract, i dont have to.
Listen, I know you're young and pretty stuck on doing this, but keep in mind that the situation you presented above is pretty much why we're in this "recession" to begin with.

Doing this will mean you are living just at or past your means... all it would take is one little incident to throw off the precarious balance you've got worked out there and you're screwed. For what? To show that you had an R8?
 

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Hmmmm. Roughly speaking you're talking about investing around half of what you will take home after income tax in a car on contract hire (ie an asset you will not own and that you are in any case guaranteed to make no return on). I assume you don't already own your own home or have any other significant investments? Are you planning on living at home or do you have to buy/ rent? Have you had an insurance quote? Don't forget the car tax (assuming that isn't included).

When I left university I also wanted my dream car (trust me, I had all the same thoughts you're having) but I convinced myself to do the sensible thing and invest in buying a flat instead. It was a struggle to start with, but over the 20 years since I've managed to own most of the cars I've dreamed of (generally the limitation had been practicality - see points above on what car is acceptable to turn up at a client driving!) and I now own a new R8 as a second car (I would still never take it to a client and I'm careful who knows what I drive). I also own a boat, a fully equipped recording studio and most other 'toys' I've wanted.

The company I work for hires graduates on a little more than your starting salary. Some of them are petrolheads but if I look in the car park I see them driving second hand M3s or 911s, Z4s, TTs, Elises, etc at best. Most are still struggling to get on the property ladder as a first priority and the majority are driving much less expensive cars (insurance is a major barrier).

My advice is to think carefully before you invest such a significant proportion of your income in a car. £36k may seem like a lot of £s but you will find that cash rapidly disappears once you leave uni. I probably sound very boring ;-) but you really don't want to end up tied into a 3 year contract hire scheme that prevents you from investing in your future and actually enjoying life (it sounds cliched, but having a great car will not make you happy unless you're already happy!).
 

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Discussion Starter · #20 ·
Hmmmm. Roughly speaking you're talking about investing around half of what you will take home after income tax in a car on contract hire (ie an asset you will not own and that you are in any case guaranteed to make no return on). I assume you don't already own your own home or have any other significant investments? Are you planning on living at home or do you have to buy/ rent? Have you had an insurance quote? Don't forget the car tax (assuming that isn't included).

When I left university I also wanted my dream car (trust me, I had all the same thoughts you're having) but I convinced myself to do the sensible thing and invest in buying a flat instead. It was a struggle to start with, but over the 20 years since I've managed to own most of the cars I've dreamed of (generally the limitation had been practicality - see points above on what car is acceptable to turn up at a client driving!) and I now own a new R8 as a second car (I would still never take it to a client and I'm careful who knows what I drive). I also own a boat, a fully equipped recording studio and most other 'toys' I've wanted.

The company I work for hires graduates on a little more than your starting salary. Some of them are petrolheads but if I look in the car park I see them driving second hand M3s or 911s, Z4s, TTs, Elises, etc at best. Most are still struggling to get on the property ladder as a first priority and the majority are driving much less expensive cars (insurance is a major barrier).

My advice is to think carefully before you invest such a significant proportion of your income in a car. £36k may seem like a lot of £s but you will find that cash rapidly disappears once you leave uni. I probably sound very boring ;-) but you really don't want to end up tied into a 3 year contract hire scheme that prevents you from investing in your future and actually enjoying life (it sounds cliched, but having a great car will not make you happy unless you're already happy!).
Thanks for the amazing response Beautiful Freak! It sounds like you really understand how it feels to want the car but not be in the right position to get it!

I am thinking about it all very carefully; i'm not running to the Audi dealer and putting my name on the list straight away. Otherwise I wouldnt have posted here.

I just asked if anyone knew a cheaper way to get one? Paying it off over a longer period of time maybe?

I think I will get a mortgage under my belt first and then get the car, as painful as that sounds right now!

Thanks for ALL responses so far though, it just seems very easy to tell someone to wait for the car when you all have one sitting in your garage.
 
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