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Discussion Starter · #21 ·
Wait - without a doubt.

An R8 is a toy that you buy with disposable income. If you're doing things like analyzing monthly payments, looking at 7+ year loans, etc., it's an indicator that you'd be putting yourself in a bad spot. Regardless of the car payment on a predatory 7+ year loan, you'd need to be prepared for significant repair bills on an exotic that's now 12 - 13 years old.

Loving something and wanting it doesn't make it a good financial decision. You can screw up your entire life by making decisions that put you in a financial hole - whether like this or otherwise. People don't often realize (until it's too late in life) that your financial health equates to freedom, and putting yourself in difficult financial situations limits your choices in life.

At 19 years old, you should be in college and broke. I had NO car at 19 - not for the lack of interest but it made no sense. Instead of looking at the R8, I'd recommend the following:

- Work on your education first. Whether this is college, trade school, apprenticeship, or learning skills somewhere on the job in a career that has a future. At 19 years old, your #1 objective is to build skills that are marketable. Having debt over your head will limit you. DO NOT accumulate any debt. Debt is one of the fastest ways to ruin your life. Read and re-read that last sentence.

- As an aside on the above, you'll notice I mentioned alternatives to college. Again, this comes back to debt. There are plenty of worthless degrees out there with colleges that will gladly put you in debt for a $200k degree in basket weaving. You'll need to be smart about ensuring the investment pays off. But DO invest in your education and skills first - well before a car.

- Start tracking your net worth. This is simply your assets (what you have in the bank, investments, house, etc.) minus your liabilities (loan debt, credit card debt, mortgage debt, etc.). You want that number to rise - assets going up, debt going down. Track it monthly - make it a game. Set goals for yourself regarding where you want it to be 6 months, 12 months, 24 months from now.

- Start investing. One of the most important lessons you can learn NOW while you're young is that most people don't become wealthy by earning a paycheck. Yes, it helps (and it's very important!) to have a good paying job - this provides stability and seed for your investments. However, if you simply earned a nice living and spent it all, you'd never grow your wealth. Investing is required. You need to get your money to make money. There's no silver bullet or "get rich quick" here - anyone, any website, or any WHATEVER that tells you otherwise is lying - run from it. The simplest way to do this is by putting regular monthly deposits into a brokerage, 401k, IRA, or other such vehicle. Pick a simple fund that mirrors the market, and put money in every single month. Don't touch it, just let it grow. Compounding will do the rest. Pick up a good book for beginners and make it your gospel. Learning how to properly invest is a make-it or break-it skill - your long-term financial health and success depends upon it.

Simply put, the R8 (or whatever fancy toy you want) is the thing that comes AFTER you've set yourself up nicely in life. I would have loved a car like the R8 at 19 - but it would have been a disaster on so many levels.
thank you for your response I really appreciate it! I see where your coming from 7 year loan in any account is never a good thing spending 7 years paying a loan off for a car I can lose in one big swoop weather that is maintenance or what happens in life is not a smart move. I feel as if I’m looking for that one article that says go for it as a means to give me satisfaction to go and do it,I’m glad that people in this have shown that maybe it’s cool right now, but look at we’re im going to be, to which I turned a blind eye towards.

Currently I’m working on going into real estate testing the water for 5 years after that if it not going to pan out ima go into the electric union, I believe your right, right now invest in myself before investing in a car that isn’t going to help me long run, yes it’s cool but not what I need right now.
Thank you so much for your advice it really help me look at what I should do before doing something like a 7 year loan on a car that’s still going to cost me on top of what I’m already paying!!
 

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The benefit of waiting is that you will have bigger and better dreams. Who knows what the future will bring. Whenever I look back at what I was striving for 10 or 20 years ago, I amaze myself at how much beyond that goal I achieved. Years from now, you will laugh at the fact that you just wanted an R8. Because you will be able to do so much more.
 

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Discussion Starter · #24 ·
Bad idea. Wait until your financially stable. Many more important things to work
I’m at 19. Aquire a good job, max out 401k, invest , PAY DOWN DEBT, save for a home etc etc. the list goes on. You do not want to work forever....lol

Secondly, let’s say you can sell your car work and try and pay for the payment. There’s insurance and BASIC MAINTENANCE OF THE CAR WHICH IS NOT cheap. The price of the vehicle may have come down but the cost of repairs and maintenance do not. You probably can’t even get a fidelity warranty for the car which would probably cost you 8-10k at this point if they would even do it and they won’t in an over 10 year old car. So then yiu have AC COMPRESSOR failure and struts failure both very common in these cars and both you are looking at I would say 12k-15 k repair cost. Then with the early models frame crack. Brakes alone might cost you 3500-4500 give it take. It’s not a cheap car to maintain

If I were you I would wait ...... get everything else in order and loop back when you’re in a better position. Good luck.


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Thank you! It does seem the better option unfortunately. I would say your right it’s going to be the best option to get everything done to set me off on the right foot in life instead of blowing it before I even started to experience it. I’m very lucky I don’t have debt so it’s probably wise I don’t start now. With an extra 12-15k I may have to pay, I know it won’t work out the best as looking at my situation now I’m hoping for a lot to go my way and Murphy’s law never agrees 100% with anyone so after I get it I’d probably be paying for a car I need to wait to drive. I’m am surely gonna have to wait if something not working right, and that time I’m waiting can best be used by saving up. Once again I really appreciate your feed back thank you!!!!
 

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thank you for your response I really appreciate it! I see where your coming from 7 year loan in any account is never a good thing spending 7 years paying a loan off for a car I can lose in one big swoop weather that is maintenance or what happens in life is not a smart move. I feel as if I’m looking for that one article that says go for it as a means to give me satisfaction to go and do it,I’m glad that people in this have shown that maybe it’s cool right now, but look at we’re im going to be, to which I turned a blind eye towards.

Currently I’m working on going into real estate testing the water for 5 years after that if it not going to pan out ima go into the electric union, I believe your right, right now invest in myself before investing in a car that isn’t going to help me long run, yes it’s cool but not what I need right now.
Thank you so much for your advice it really help me look at what I should do before doing something like a 7 year loan on a car that’s still going to cost me on top of what I’m already paying!!
Smart man!

Getting yourself established in life with a career, a good emergency fund, investments starting to roll... I promise, it's going to feel SO MUCH BETTER than owning an R8. While you're young and single, don't let anything tie you down. Drive the car you own until the wheels are going to fall off. Debt = bad, debt = bad, debt = bad! Take the money you would have been paying towards an R8, and start to invest it - whether in real estate, the stock market, or a business - put your money into something that MAKES money.

You're doing the right thing trying out an industry like real estate. If it's not for you, becoming an electrician is great, too. There's good money to be made in both, and for someone who's entrepreneurial, there's good money to be made in almost any industry if you're willing to dedicate the time and energy to it.

But do some reading - whether free stuff on the web or picking up some books at the local bookstore. As I said earlier, and very seriously, get a few good books on index fund investing, read them carefully, and LIVE by them. Investing isn't something you do once - it's a life-long habit that makes you rich. Let me do some quick math for you as inspiration...

At 19 years old, let's say you start putting $500/mo. into an S&P 500 index fund. The S&P, including dividend reinvestment (meaning, you're re-investing the dividends being paid quarterly by the fund), will grow at around 10% annually over any relatively long stretch of time (20 - 30 years) - in the shorter term it could be significantly higher or lower. But, let's just use 10% for argument's sake here. Let's say you start with $0 in the account at 19, and you put $500/month into the account - after 10 years, at 29 years old there would be $100,729. After 15 years, age 34, there's $200,810. And after 21 years, age 40, you've got $404,513. This is from nothing other than dropping $500 into an account each month and sticking with it.

At the ripe "old age" of 50, that account is at $1,149,931. And, ready for it... if you continued to do this through your "normal retirement age" of 65 years old, you're at $5,004,356. Let that sink in. You've built wealth of $5 MILLION by simply consistently depositing $500 per month into an index fund.

Now, want to get really crazy about it? What if you ACCELERATED the amount of money you put into that account as you got older and made more money? Sure, you could continue to put $500/month into the account... but maybe at some point, let's say at 30, you increased it to $1,000/mo. Well, that $5M figure grows to $6.7M. I absolutely loves cars, and I love my R8 to death... but it's nowhere near as thrilling as $6.7M in the bank.

There are only TWO levers that you can truly adjust when investing:

  • Time in the market (how early you start)
  • Money you're investing

For most people, they start way too late. They live fast while they're young, getting into a ton of debt, and missing out on those early years. Before they know it, they've racked up a bunch of BOAT ANCHORS in the form of obligations and debt... leaving not only less TIME in the market but less MONEY to invest (see the above two levers!). It's an ugly, vicious cycle that becomes hard to break. Schools are really failing kids these days because they're not teaching them the basics of economics and how to build a successful financial future. Worse yet, they're pushing kids into incredible debt via colleges that are increasingly churning out low-paying and worthless degrees - clearly not the case for ALL colleges and degrees, but the return on investment is clearly out of whack for a large portion nowadays. But now I'm off on a tangent!

Simply put - (a) invest in yourself, your career, and your skills, (b) stay out of debt, and (c) invest like there's no tomorrow! It's a super simple formula. At 19 years old, you're in an incredible spot to take advantage of it.

Again, pick up a few good books on index fund investing. Realize - the WHOLE WORLD around you has been designed to tempt you into exchanging your TIME and FREEDOM for money... and in turn, exchanging that money for STUFF... and worse yet, using CREDIT and DEBT to accelerate the adoption of STUFF. It's incredibly ugly and destructive to your future. Take the path less worn... avoid the material consumption, and let your money make money, hence breaking the cycle and living a far better life.

Now, lastly... some of our forum members are right to point out that "tomorrow is not promised." None us know what will happen tomorrow. But YOLO isn't a strategy. Rather, you need to find a BALANCE between (a) living for today, and (b) planning for tomorrow. The thing is, every dollar you spend today is MANY DOLLARS you're giving up tomorrow - that's simply the way compounding works. For example, in the above - you built wealth of $5M by contributing $500/mo. over 46 years... or said another way, you put in $276,000 and got $5,000,000 in return. Quite incredible. But that's COMPOUNDING... you saw a return of more than 18 TIMES your money. So just think about that - you spend $1 today, it's the equivalent of $18 out of your pocket down the road. You spend $1,000 today, it's the equivalent of $18,000 out of your pocket later. And $55,000 on an old R8? Well, that's nearly a MILLION dollars ($990k) out of your pocket later.

Because of the way compounding works, that impact becomes lesser as you age. Decide to drop $55k on a toy at age 35 or 40, after you've been already investing for 15 - 20 years? It's still going to cost you, but the impact will be far less. And hence, the "balance" I mentioned above. Your early years are so incredibly important - this is when time is on your side. NEVER AGAIN in your life will you have the ability to invest money and let it grow for as long as you can today.

Anyway - sorry for the long rant here - best of luck!
 

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If you do one thing.. listen to EZ

You have found someone with a wealth of knowledge! His advice is sound, consistent and easily digestible. Everything you will read from him is excellent advice. Educate yourself by following him and reading everything he posts and take notes and you will be on your way! Trust me haha

Btw I use to think that being 19,20 heck 24-5 that I needed to live life but luckily and I mean luckily I stayed true to having some savings while putting myself through school working my butt off paying all my debt off and then realizing your better years are when your older! Late 30’s into 40’s! I’m still young at 45 but I’m in a position that most of my friends are not... I’m not wealthy by any means just to be clear but I don’t have really any debt! I work because I want to and to save for my kids school when they get older I follow a sound financial plan and work with “fiduciary” ( very important in my eyes) financial planners ( fee only) that set up a plan for my wife and I and we follow to the dot and we have been doing great. We invest, max 401k’s Roth IRA etcetc. Have emergency funds. Etc

Once you have that you are set. You can make your own plan And answer to no one. You can’t buy that!!! And with all
Of this advice you could really take advantage of this info which I didn’t have growing up be in a great great spot in only a short time. It seems like a long time away but man does it go fast! Be prepared! Good luck! Oh btw I was suppose to buy an r8 this week but now I’m thinking about just investing that extra money. It was disposable which is why I was considering the car but BC of saving for so long EZ is right I actually get excited to see our net worth grow and our accounts make more and more money. Now I’m thinking doing something else with it .... never ends ha


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This is a great thread OP. Look what you started. Here we are on an exotic car site and you are getting great advice on life for free. I think it's also important to realize that a lot of the guys who frequent this site are pretty successful in life so far. Which means that their advice is well worth considering.

BTW Real Estate is a very interesting career. It can be a bit of a feast or famine endeavor, and there are a lot of fascinating aspects to it. On the other hand, a licensed electrician will always be in demand. Everybody needs electricity and there are a ton of paths one can take with this career. Both are businesses where you can start working for someone else to learn the ropes and then you can build your own business should you want to go that route.

Either way, you are at a great age and are asking the right questions. Best of luck to you.
 

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Coldstoc, the way you’ve responded to the feedback shows me you will be **** successful as you’ve got a good head on your shoulders. You’ll have your r8 soon enough with that kind of attitude and willingness to take advice. As people have said, money really just takes time - staying in the game and watching that money grow itself. But it can’t grow if you’ve spent it all on the r8 right now.

Plus, you don’t even need an r8. You have your youth and your looks! Us old fogeys need it because we’re old, fat, and wrinkly. How else are we gonna get the ladies to notice us?
 

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Hi, right now I’m currently looking at owning my very own Audi R8. I’m looking at an older model 2008-2009 for as of right now that be the only car I can truly afford, I plan on selling my car for 10k and using that as a down payment and a 7+ year loan along with a little bit of my own money so I can pay 20%- 30% down, this car has been my dream car since I’ve started looking at cars so the payment seem worth it to me. I’d be paying about 680-850 with the calculator tool so I plan to spend 1k a month on just owning the car for being 19 I’m super reliable so I’ve been approved for a cheap insurance rate! But at my age is this something I should hold off on, and wait till I’m older which will allow me to buy a more newer model or should I pull the plug and try and get one? Thank you for any suggestions and feed back
Live your dream. You only live once. When I first starting working in the financial district all the really old guys (40’s) where driving 911. A friend and I bet we’d both own 911’s by the time we turned 25. We both made it, but ate a lot of top ramen for dinner.
 
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