Financing Thread.... - Page 2 - FFCars.com : Factory Five Racing Discussion Forum
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post #31 of 36 (permalink) Old 06-13-2019, 09:27 PM
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I agree with donkeykong on that statement. I think avalanche made a decent amount of income and lived well within the household means to save, have toys and retire a decade early. I would call that upper middle class to wealthy. Remember the average US income is 60k. Come on. What about 2008, no effect? I'm in my late 40s and savings were hammered during that time. Yes, it has all come back and then some, but geez, another decade has gone by and I'm back to where I was 7-8 years ago.

Anyway, I use cash sometimes for toys and other times I finance a toy. I bought a 2015 Polaris RZR 1000 for 21k cash years ago. Recently traded it for a turbo model and financed the balance for a 3 year 3.9% loan. I felt instead of laying out more cash, I would pay the minimal amount of interest over the three years and keep the cash in the bank.

My problem is fancy cars/suvs, I buy and sell too many of them. Wastes lots of money. In the last 6 years I've had 2013 CTS V coupe, 2015 C7 Z51, 2012 AMG C63, 2018 C7 Z06, 2018 AMG GLS63. That is what I have to get under control!


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post #32 of 36 (permalink) Old 06-14-2019, 02:46 AM
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Originally Posted by donkeykong View Post
I feel you're way out of touch with what middle-class is. before you state that you're middle class...I don't know any middle class families that have a beach house in Florida or that are retiring 10 years early.
I never stated that I am middle class. I stated that a middle class person could save up for an FFR, if they lived within their means and didn't also buy everything else that caught their eye.

I certainly used to be middle class and I know what it is like. (Deleted my walked to school in the snow uphill both ways story - but I have one)

Trevor,

I didn't get hit in 2008 for one simple reason. I never jumped into the lead-up mania and over-extended in the first place. I had co-workers that lost everything. But they were out buying new homes and cars like they were candy. I stayed put and dove a 7 year old car. I lived in Los Angeles at the time which was over-extension ground zero.

Everyone is going to do what they want anyway. I was just hoping that someone might realize what a bad financial move financing a toy is and show that being smart early pays multiple times over later. Every dollar that goes to interest never comes back for the rest of your life. Add all that interest up for 40 years of over-extending, depreciation on cars and toys, and what you would have made investing that money instead and see what the number is. I'll bet it is enough to retire on ;-)

Geeze, I sound like the next Suze Orman. She just retired to a private island in the Bahamas by the way.


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post #33 of 36 (permalink) Old 06-15-2019, 10:01 PM
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First you have to have $14,000 laying around that you have absolutely no use for. Most people aren't fortunate enough to be in that position. Most people balancing a family and their own dreams aren't.
I purchased my Cobra when I was 34. I made under $100k on a single income, my wife stayed at home with my two children 2 and 5 years old. We drove vehicles we could afford, lived in a modest home and stayed out of credit card debt. Once my student loans were paid off, I simply saved aggressively for my dream for the next 3 years. I consider myself very average and I was able to do that because I stayed out of debt.

That said, I agree there are many options (Loans, HELOC, 401K, Cash, Trade etc.) and some are more comfortable financing than others. I'm not, it makes me uncomfortable and that's why I enjoy it more paid off. I didn't mean to come across as preachy, but maybe I did. My route is not the only way, it is just the way I did it.

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post #34 of 36 (permalink) Old 06-17-2019, 08:27 PM
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I never stated that I am middle class. I stated that a middle class person could save up for an FFR, if they lived within their means and didn't also buy everything else that caught their eye.
I mean, anybody can save for anything given enough time I suppose. I just don't see the typical middle class man with a wife and 2 kids saving up $25,000 cash minimum to buy a FFR in any time frame that would be construed as "a couple years". Yes, the wife never wants clothes, a night out a nice dinner etc. The kids never need school clothes, supplies, toys, games, bikes, money to hang out with friends etc. Nobody wants to go to Disney or any other type of vacation. This is what would need to happen in this scenario.

I'm not arguing finances and what is or isn't a good idea, nor attacking, I'm just stating that a typical guy with a family isn't saving up $25,000 cash in a year or two or even 3 or 4 to complete one of these builds. Let's be really honest here, the typical family after paying bills and taking care of everybody's wants and needs plus putting money into savings each month...simply doesn't have an additional $400, $500, $600 to go towards their "Cobra fund".

On the other hand, if you're talking about a middle class guy in his 50's at home with his wife with the kids out of the house...YES, that guy can afford to save in a relatively quick manner and buy his Cobra cash. Perhaps that's the reason when I see another Cobra on the street or at a show...that's the age bracket of the owner, 50's or 60's.

Again, this isn't anything directed towards you personally...I'd much rather count you as a friend than not.
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post #35 of 36 (permalink) Old 06-17-2019, 08:37 PM
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Originally Posted by JKolbfleisch View Post
I purchased my Cobra when I was 34. I made under $100k on a single income, my wife stayed at home with my two children 2 and 5 years old. We drove vehicles we could afford, lived in a modest home and stayed out of credit card debt. Once my student loans were paid off, I simply saved aggressively for my dream for the next 3 years. I consider myself very average and I was able to do that because I stayed out of debt.

That said, I agree there are many options (Loans, HELOC, 401K, Cash, Trade etc.) and some are more comfortable financing than others. I'm not, it makes me uncomfortable and that's why I enjoy it more paid off. I didn't mean to come across as preachy, but maybe I did. My route is not the only way, it is just the way I did it.
Please don't misunderstand, you didn't come off preachy at all! I certainly didn't take it that way. I was just pointing out that most people aren't in a position to save $700 a month on top of everything else they're saving for their family in order to have $25,000 cash in 3 years.

I'll be quite honest, having a wife and 2 kids and me being the only person working...I have absolutely no idea whatsoever where you came up with $700 a month every month for 3 years that you're family had no use for with you making under $100,000. We don't drive new cars either and have a modest home. Fortunately this car hobby in my case paid for itself and I was able to make money along the way to pay for the Cobra.
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post #36 of 36 (permalink) Old 06-17-2019, 10:32 PM
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I think the household income has too many variables. Some people may be able to budget themselves much better than others. I bought my cobra 15 years ago, I was 32 years old, had a combined income of over 200k with two kids. I didn't really have to save the money for the kit per se, just had to allocate it for the kit. Thinking back 15 years and having one income under 100k, I would say it is impossible. But some guys are better at a household budget than others.

FFR3842, 363ci/600hp, AFR205's, Wilwood 6/4 piston Superlites, Koni DAs, Magnesium bellhousing and Tilton Triple disk clutch, GF5R dog ringed 5 speed, 3link, VPM sway bars, Hoosier A6s, CCW forged wheels, wings, undertray, diffuser
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