At What Point Would You Be Comfortable with Dropping $60K into a Car ?

RobotWizard on 06/01/2021 - 02:33

Evening ladies and gents,

I am in mid 20's and have been a massive fan of performance cars since my teen years and have owned a few good cars in past, I would blindly spend money on cars or parts without thinking about consequences, I currently own a car which would have market value of between $20K-$25K if I sold it.

I recently became obsessed with CLA45 AMG and the ones I like are between $60K - $80K.

I do currently own a place and have some savings aside but think it's still a stupid decision to spend all this money on car and not on investment property but would love to hear your feedback ! at what point of life you would be comfortable with spending that sort of money on (High Yield Investment) Car ?

Financial Car

Comments

  • macrocephalic on 07/01/2021 - 17:48
    +3

    When I have more money than I need and I have nothing that I would rather do with it. 60k isn't a huge amount to spend on a car, but it's a lot more than I'd currently spend. Until I have a couple of million in investments then I won't be spending that sort of money.

    I'd much rather spend <$25k on a car, then buy a motorcycle or track car. You rarely get to have any fun in a car on public roads so why pay to drive around something expensive? A camry will probably do everything the same on the road.

    • cbastien on 07/01/2021 - 22:07
      +4

      For me that s the best comment if you really like driving. Buy a 20k track car and spend the rest to maintain it and do some track days every week. Or go full on gokart if you are a bit competitive.
      But for most people who like performance cars, the driving experience is not the most important part.

    • Hangryuman on 08/01/2021 - 12:45
      -1

      'You rarely get to have any fun in a car on public roads so why pay to drive around something expensive?'

      LOL - reminds me of walking across a local street one peak hours to see a green Lamborghini stopped by an unmarked police car with the guy standing there while the cop wrote him a ticket

      oh - the ego ! The guy obviously wanted people to look at him - driving his noisy 'souper' car - but standing like an idiot while hundreds of ordinary cars drove past gawping at him was probably not part of his nice dream - oh the embarrassment

      P.S. when I hear noisy 'souper' cars (or Harleys) it reminds me of how my cheap car sounded - when it needed a new muffler …

  • whitelie on 07/01/2021 - 18:22
    +1

    I spent about 50k on my GTS when I was in my 20s….15 years on, still got it, valued at around 80k now but I never purchased it to make money (it depreciated plenty in those 15 years before reversing). I got it because I wanted it and it made me happy. We picked up an A45 for the wife for 60k a couple of months ago, no real issues morally with the purchase, we've got enough in savings and a high enough combined income to be able to do it. Again, we got it because it makes her happy. I do have a bit of a harder time justifying 60k on a hatchback compared to say 60k on a brand new SUV/practical car but if you're paying cash or at least not borrowing more than half and can still live comfortably, I don't see an issue with it.

  • trapper on 07/01/2021 - 18:25
    +2

    You prob want to be earning close to $200k before you start looking at $60k cars

    • Binchicken22 on 07/01/2021 - 19:29
      +15

      Ozbargainers live in some extremely responsible 2nd universe I swear…

      Do they not see all the 3rd year apprentices driving around in their 65k SR5 hiluxes with 20k worth of mods.

      It's not at all un-common for someone earning 60k a year to spend 60k on a car. I'm not saying it's the most financially responsible thing in the world to do but saying you should be earning 200k (a figure 99% of people will never reach) before being able to afford to buy a Hilux just seems rediculous.

      • whitelie on 07/01/2021 - 20:32
        +2

        Agreed. I get this is a bargain site but there's definitely some obscure opinions on it about vehicle affordability.
        100-120k salary, should be able to afford a vehicle worth 60k easily. Not saying you should be paying 60k outright but if you have worked your way up over time, say increasing in ~20k increments every couple of years, it's relatively affordable.

      • firstpostbekind on 07/01/2021 - 20:54
        +7

        Thing is… these apprentices can write those hiluxes off on tax. Instant asset write offs
        Possibly the biggest tax scam ever

        • schmuppet on 07/01/2021 - 23:08

          It's still a lot of money even after the tax deduction.

          • firstpostbekind on 07/01/2021 - 23:30
            +1

            @schmuppet: I’m not an accountant - and because this doesn’t apply to me I haven’t 100% checked this is true (so I would ask an accountant before you try) but my understanding is

            …and let’s forget apprentices here but consider tradies 5 years into work… so have some money …

            Buy 60k hilux - no loan, straight cash. Instant asset write off of 60k off tax bill. If the car depreciates less than the marginal tax rate (ie depreciates 20% but saves you 37% tax) you could theoretically buy then sell said Hilux and lose no money and possibly gain money. Rinse and repeat

            Am I wrong?

            • factor on 08/01/2021 - 07:02
              +1

              @firstpostbekind: You are indeed mistaken - no loophole here.

              At sale of an asset there is a reckoning of capital gain or loss - which then goes into your tax bill.

              Assets have a "book value", being the portion not yet written off. The difference between book value and sale price is what you pay tax on when you sell.

              If you've already written the car's book value down to zero through this government scheme you pay full tax on the sale price.

              • trapper on 08/01/2021 - 12:35

                @factor: The loophole is that you get that brand new hilux tax free to essentially use as your own personal vehicle.

                Whereas us normal workers need to pay that $60k after tax if we want a new hilux.

            • Team Ozgiftcards on 08/01/2021 - 12:55

              @firstpostbekind: It's not write off against the tax bill. It's a 60k deduction against their taxable income.
              At their marginal rate of say 30%, they get back 60k x 30% = 18k refund.
              Net cost of car is still $42k under this scenario.

              If they manage to sell the car for more than $42k immediately then could potentially be a tax free gain as there's generally no cgt on cars. But then again, they could potentially be caught under other tax avoidance rules.

              This "write off" is also only beneficial assuming they have over 60k taxable income to deduct against, otherwise they're just spending money.

      • trapper on 08/01/2021 - 00:19
        +2

        It's not at all un-common for someone earning 60k a year to spend 60k on a car.

        Oh, I totally agree that it's not uncommon. But it is f8cking stupid to do so, isn't it.

        • netjock on 08/01/2021 - 11:43

          But it is f8cking stupid to do so, isn't it.

          That is why they are a tradie not a trader hitting a keys and make a few hundred k.

      • netjock on 08/01/2021 - 11:41

        Do they not see all the 3rd year apprentices driving around in their 65k SR5 hiluxes with 20k worth of mods.

        The same tradies who end up retired and broke within 5 years because they haven't been paying into their super but have been paying into the car dealer.

        If you look at the timeliness, tidiness and budgeting skills (projects almost always over budget) you know they just got lucky.

    • endolphin on 07/01/2021 - 20:40

      From personal experience, I would still suggest $60k is way too much on a car on that income.

  • Brick Tamland on 07/01/2021 - 18:32

    You don't need to make a decision straight away. Keep putting money aside for either the investment property or car and make the decision that you are comfortable with. You are still young so there is no rush… Personally I'd go the car but I've never been one to make sensible decisions

  • spade16 on 07/01/2021 - 18:38
    +11

    I spent $70k (cash) on a new S3 when I was 29. Saved up for my entire working career, didn’t do the big overseas trips or buying expensive clothes or gadgets. Still have the car today and I love it, the amount of joy I get driving it makes it worth it for me. Didn’t prevent me buying a house (or now buying a second house) as well as investing in the market. Do I regret my decision, absolutely not and I’m finding it hard to part with the car for a replacement since nothing really ticks all the boxes.

    Everyone has their passion, what’s the point of working if your not going to fulfil it? If you can budget for it and make the long term case for the purchase then go for it. You can’t save ALL your money for when your old

    • kylarstern on 07/01/2021 - 19:18
      +1

      'Nothing really ticks all the boxes'
      How about the new S3 that just came out?

    • Save Medicare on 08/01/2021 - 07:33

      How old are you now?

    • What is rrp on 08/01/2021 - 11:26

      You inspire me.

    • Insert2Coins on 08/01/2021 - 17:22

      My next car is going to be an S3. Did you get the 8V pre-facelift?

      • spade16 on 09/01/2021 - 10:04

        Yep, keep an eye out for the water leak issue. Plagues a lot of the older S3’s

  • Slopshua on 07/01/2021 - 18:50
    +5

    I bought a 60k car when I was 28 (3 years ago) when my wife and I had a combined salary of over 250k and had recently purchased our PPR. We justified it by having one nice car and one practical 'cheap' car.. zero regrets. If you like cars then go for it.. buy what you want and enjoy the hell out of it. You only live once and it's only money after all

    You'll find there are a lot of people out there who will give you a million and one reasons not to buy a nice car but more often than not they're also people who have no interest in cars other than a mode of transport.. which is fine - each to their own but don't let it stop you from doing something you clearly want to do.

  • steve289 on 07/01/2021 - 18:51

    I have just dropped $50 K, on a new SUV, but paid cash (Yes, an SUV is not everyones choice, and not my first choice, but Wagon-esque, there was not much else out there that ticked all my boxes)
    I am late 40''s, house is fully paid off, and no kids, earning a reasonable wage, but less than $100 K.

    Prior to this, I have had 2 new cars in the last 20 years ($30 K & $25 K), and kept each for 10 years.

    When is the time right -Your choice, but pay down your main debt first, buy a nice car later in life, or you will always be chasing 'that next car'

  • Bid Sniper on 07/01/2021 - 18:59
    +1

    Look at the A35 and BMW 128ti. 50k range (with haggling) minus your $20k, makes a 30k upgrade.

    Personally Id go Hyundai I20N, makes its a 10K upgrade for something fun.

    Whats your current car?

    • RobotWizard on 08/01/2021 - 11:54
      +1

      Currently Got FG MK2T Making 300RWKW, preferably looking at something with >5 0-100 with good pull.

      • Bid Sniper on 08/01/2021 - 13:18

        Might be disappointed going from a tuned barra motor to 2L, bottom end torque isn't there. Id look at Kia Stinger GT (3.3L TT).

        Back to your question, is it stupid? To that id say, imagine physically handing over that amount of physcial money, does handing over $100,000.00 for a single car make you want to vomit?

        To me 30k- 40K out of pocket gets you an amazing slightly used car. These days cars are so well equipped and living in nanny state power is kinda irrelevant past 150kw (crank) or so.

        $100k for a car is bananas.

        • RobotWizard on 14/01/2021 - 23:59

          It looks like even FG's are slightly going up in value so I might just wait another year or 2 and then trade it in for something else, It does seem like a bad idea throwing that kinda money away.

      • fillit on 08/01/2021 - 17:04
        +1

        Keep the FG it’s a different proposition going from a big sedan to a small hatchback I went from s2k to Audi A5 to 130i to a 5 series. As much fun as the smaller cars were, I drive 20K + a year for work alone the big comfy sedan is the way to go if it has enough punch. 300RWKW is definitely enough, you would need a c63 amg for a comparable experience (in terms of ‘luxury’ brands). Also have you considered the rwd vs 4wd? Personally I find rwc much more enjoyable to drive even with slightly less power than the 4wd

        • RobotWizard on 15/01/2021 - 00:03

          I've never owned AWD before but have been on a few, my neighbor recently picked up GLA63 AMG and that thing sticks to the road like nothing I've experienced, Only thing I hate about high powered RWD cars is not being able to put that power down. Even with 300KW I struggle to put that down properly if I am ever dragging someone off the lights, I've gone from stock 215 to 10.5 rim and running Invos 275 currently but still spins like a mf

      • Ultramup on 10/01/2021 - 01:19

        Btw would you recommend a manual or auto XR6T? I love manuals but acknowledge how great of a gearbox the zf auto box is.

        • RobotWizard on 15/01/2021 - 00:05
          +1

          Would highly suggest Auto, IMO they're far far better deal than manual. Idk what sort of cars you have owned in past but I have owned few 90's Jap cars and they're the only ones I'd pick manual on.

          It's a massive car which handles like a boat and on top of that you have to worry about shifting gears ? Oil pump also gives out quicker on manual due to getting revved high. Auto are quicker in Drag, can hold more power and after a good tune ZF farts sound amazing.

          • Ultramup on 15/01/2021 - 00:30

            @RobotWizard: Yea same boat as you ive only own manual jap cars. Never thought id find myself considering an Auto.

            Thanks for your thoughts on it though it echoes alot of what I found in my research. My goal is to chase better trap times but its gotta have less satisfaction than smashing through the gears. Surely.

            I guess not.

  • kylarstern on 07/01/2021 - 19:16

    LOOOL CLA45 AMG for $80K. Unless you're talking about the previous gen model and one thats used, you're dreaming. The current, newly released CLA45 costs closer to $100K so I think you need get your money right.

    Which makes this question is kind of pointless because if you're going to drop nearly $100K, I probably wouldn't unless you've got a house already, have a 6-figure salary and dont have any HECS debt. Or have 'borrow' some moolah from mommy and daddy (which a lot of privileged Ozbargainers like to omit).

    • whitelie on 07/01/2021 - 20:17
      +1

      They never said brand new. It's $60-80k, so that's obviously around a 2018-2019 model. OP also said they own a place….

  • anonymite999 on 07/01/2021 - 19:16

    The choice is easy.. do you prefer 60k cash in your hand or bank or a car? at what $ value would u prefer the vehicle. for me its 40k

  • Goldenace on 07/01/2021 - 19:19
    +3

    Most of the people on here obviously dont live around where i live, there is a massive abundance of 200 Series Landcruisers, new Prado's and VF LFA GTS's etc..

    It all comes down to what you feel comfortable with spending, up until last year the most i had paid for a car was $17k on a brand new Mazda 2 in 2011, and last year i got the wife a (new to us) 2013/14 CX9 for $35k and i sold my BA XR6 and am now using the 2 as a work runabout. My wage/salary is $115k give or take, we could have gotten a newer/better car, but this one fit what we needed/wanted and we havent looked back.

    I have told the wife though, the next purchase will be "my car" as the last 2 were hers. 2014/2015 Audi S4. So that one is be a bit more, but it will be a few years off yet..

    On the other side of the spectrum i have a freind that since he was 18 (now in his mid 30's), he has been on $150k++/year and every 1-2 years he would buy a new car, put $10k+ in mods on it, then get bored and move onto the next one, until one day a couple of years ago he had couldnt work due to medical reasons, at that stage he was upside down on his loan. (paying a loan of about $50k on a car worth about $30k at most)

    Just use your best judgement

    • adn on 08/01/2021 - 09:50

      150K when he was 18. Nice! What job?

      • Goldenace on 19/01/2021 - 14:41

        Working Underground at a minesite here in the Goldfields

  • MintBerryCrunch on 07/01/2021 - 19:23
    +4

    It depends on how much work you would need to pay for said car.
    Step 1: Check your disposable income (after tax)
    2: Deduct your non negotiable living expenses (mortgage/rent/bills)
    3: Figure out your true disposable income (money you can throw away and not affect your lifestyle).
    4: divide (3) with hours of work. To get a dollars per hour worked figure.
    5: figure out the total cost of ownership over the target period. Eg. $15k per year for 5 years.
    6: figure out how many hours you will need to work to save enough to own the car,

    Ask yourself. Would I work that many hours to own this car?

    If yes, then buy it.

    YOU CANNOT SPEND MONEY IN THE GRAVE.
    Spending while you are young is different to spending while you are old.

    • RobotWizard on 08/01/2021 - 10:42

      I am getting all sort of mix vibes in here after reading all these comments :)

  • Frozensage on 07/01/2021 - 19:42
    +2

    Dropped 60k on a brand new suv when I had the 2nd kid. Sure, could have dropped it in my offset and kept driving my 10 years old sedan, but if u have that mindset u will never have reason to buy a new car. Life was comfortable and already had a couple of investment properties too. If I wasn’t looking at more investment opportunities, then would drop 100k on a Tesla yesterday.

    • endolphin on 07/01/2021 - 20:47

      I get it, but why new?? That is the part that constantly puzzles me. The obsession with new.

      Surely a two year old car (that was $100k when new) for $60k will provide more enjoyment than a $60k brand new car?

  • SoapyWooder on 07/01/2021 - 20:07
    -1

    When I have 5 mil in asset

  • lachhelix on 07/01/2021 - 20:27

    If it makes you happy, and you feel you can afford it, I'd say go for it.

  • lltravel on 07/01/2021 - 20:54

    lol @ asking people on ozbargin who drive cars that are worth 5k

  • vi9ilante on 07/01/2021 - 20:58
    +7

    If it's within your means and truly sparks you joy then go for it. And in joy I mean you're buying for your own self gratification not impress the random next to you at the lights.

    Some people go 'nah not worth it' but usually they have other vices - travel, investing, hobbies etc. You're not going to be around forever so you do you and don't look back.

    My wife and I dropped a lot of moolah on the x4 and no ragrets. We take a lot of road trips and the driving experience is brilliant, plus it's a visual representation of our hard work.

    • bakemon0 on 12/01/2021 - 01:33
      +1

      the "visual representation of our hard work" is a very beautiful way to put it, and I haven't seen anyone say that before

    • RobotWizard on 15/01/2021 - 00:06

      No regrets man, I live a fairly boring life and every-time I am feeling down I just go for a drive, That's what heals me every single time and puts a smile on my face.

  • brendanm on 07/01/2021 - 21:26
    +2

    Not sure how people buy cars "for joy" these days. I've had plenty of unique, fast or modified cars, but there is no point at all now. Just about get thrown in jail for doing 10kmh over the limit. Get your car taken off you for accelerating too fast.

    You can have fun on the track, but why take a road registered, nice car to the track? The joy has been sucked out of it, non-road registerable toys are more fun these days, as you can actually use them.

    • fillit on 09/01/2021 - 12:25

      Depends on how you use it, I’ve had plenty of nicer and faster cars over the years and did track days.

      Nowadays I spent maybe 3-4 hours a day in my car travelling to client meetings, so I definitely want to be in a nice environment. However I prioritise the comfort of the car more but still needs to have some minimum performance benchmarks ie. 0-60 in ~6secs (not very fast for a land yacht but quick enough to merge properly onto a freeway) and rwd (personal preference). If I was in the position to do so I’d get a M5 in a heartbeat, but the ongoing maintenance costs pulls me back.

      • brendanm on 09/01/2021 - 12:36

        0-60 in ~6secs

        This is not needed for merging. My fat pig diesel SUV does mid 7 sec apparently, and I've never needed anywhere near full throttle to merge.

        The acceleration is hand for overtaking on single lane roads, but that is also illegal.

        Also rwd makes no difference if you are driving on a public road, to the speed limit.

        I do agree with you about the comfort though, that's all we can enjoy these days, another reason why "high performance" cars with stiff suspension are a bit silly.

  • ozbargainsam on 07/01/2021 - 21:27
    +1

    I've gotten close to buying high-cost car, well within my means, but didn't pull the trigger because it would've been a weekender at most (I commute to work). And I'm annoyingly too rational to have a car depreciating in my garage for 5 days a week.

    If I had to drive to work, I'd have sprung for it.

    I have spreadsheets showing the TCO of the cars I hoped to buy. The number of disposable income-months it'll cost to buy it, etc. Quite incredible how much it costs to own a high-depreciating car. It's on the cards to eventually do it once.

  • camr00 on 07/01/2021 - 21:55
    +1

    Just do it while you can. I've spent more money on cars over the years than I care to add up (nor that I want to) and the result is a huge amount of fun, lots of life long friends, and now a life where I've moved in to still nice cars (just a bit more selective on the spend and how long I keep them) along with a wife (who enjoyed the cars, the driving and the friends just as much as I), two kids and a bunch of friends who can still properly spend money on cars (either through job or lifestyle choices). I've also met a lot of cool people through cars over the years, including the owner of the #62 Sauber C9 raced at Le Mans, and made friends with drivers who have won Bathurst.

    Some people spend money on holidays, going out, or whatever else they find enjoyment in - if you like cars and can afford to then go for it.

  • loropy9 on 07/01/2021 - 22:04
    +3

    OP, please buy a car. Not an investment property. Thank you.

  • kaleidoscope on 07/01/2021 - 23:05

    I am in mid 20's

    I do currently own a place and have some savings

    What exactly do you do for a living 🤔

    • SF3 on 07/01/2021 - 23:59
      +2

      Location
      Canberra

      Spent our taxes? 🤷

      • RobotWizard on 15/01/2021 - 00:08

        ^^ This guy know whats up

    • RobotWizard on 15/01/2021 - 00:07

      I drive a Taxi

      Fake Taxi….

  • D33bz on 07/01/2021 - 23:47
    -2

    If i was a millionaire, maybe.
    Otherwise nope..
    What are you trying to make up for?
    Is this car going to be a penis extension?

  • Commander Shepard on 07/01/2021 - 23:58
    +3

    Hi OP. I buy a lot of Sports Cars, Performance Cars and Hot Hatches as a hobby. I generally buy 2-5 cars a year. I have a bucket list of uncommon cars I have always wanted to own (majority being mid-late 2000s, analog, reliable, manual sports cars). I put instant notifications on carsales/gumtree to let me know as soon as one shows up. If one shows up and its in a price range where I can own it for 6-12months without losing a cent after stamp duty etc, I go for it.

    Last year I got a Audi TTS Manual for 19k, sold for 24k, a Volvo for 14k, sold for 22k, and most recently had a ND MX5 for 22k, drove it for 6 months. Then sold it for 26k yesterday.
    Now I have a perfect 2011 Manual Porsche Cayman on the way. Purchased for 56k and I should be able to drive it for a couple of years and not lose a cent.

    Even though I do well sometimes. You have to really understand the market and know the cars your going for and be willing to risk a lot of money at a moments notice if a great bargain appears.
    Sometimes things need fixing and unless you can do it yourself, its not worth it. Don't ever plan to make money, just try to break even as best as possible after your ownership.

    I would not call a CLA45 AMG an investment. I would expect heavy depreciation for that car over the next 10 years. I wouldn't be surprised if that 60-80k car became a 20-30k car in 5 years time. Edit: If you love the AMG, can afford it and plan to keep it for a long time, I say go for it. But if its going to be a short term ownership, find something older.

    • RobotWizard on 15/01/2021 - 00:13

      What's the best fun car you'd say you've owned ? I miss some cars from past EG: 300ZX twin turbo but at the same time it was a money pit and I got pulled over 9 out of 10 times I took that out. It was very embarrasing taking family for a drive on that.

      I am not a die hard AMG fan but want to try some quick German luxury car. I can do all the basic stuff myself EG: servicing, brakes, mods etc but I have noticed German cars are bit more harder to work on and parts are more expensive.

      I have recently sold my daily E46 325i and that got me hooked for German cars. It was not quick or anything by any means but it was like a perfect little package, smooth engine/gearbox good economy and had a very nice power curve for 2.5 straight 6.

      • Commander Shepard on 15/01/2021 - 01:13

        Yeah. I test drove a 300ZX one time. It was a bit too rough for me so luckily I didn't buy it. I love the shape though. JDM wise I did own a Red R34 GTT Coupe Manual which sounded great, but it was terrible ride on Aussie roads. I also owned a BRZ (Trash car, worst/most disappointing car I have ever owned), 370z and a G35. I have never actually been pulled over by the cops yet

        While I love Mercedes and BMWs. (I would love a Z4M or an old E30). I have never had the balls to buy one from the mid 2000s and I still don't think I would. I personally know people that have lost $40000+ repairing BMWs N54 engines multiple times. However the F30 and newer BMWS have significant improved reliability.

        My favourite cars are small, analog, manual transmission, lightweight with softer suspensions and have engines that can be fully utilized on the twisty public roads.
        These kind of cars are very hot right now and have pretty much stopped depreciating.

        The best fun car is a MX5. Regardless of generation, all of them are excellent. And anyone can afford one. So its perfect if your financial situation changes and you need something cheap, but still want to have fun. I am on my 4th MX5, I will never have a garage without one in there. (I use the old Historical Rego'd NA as a runabout in-between other cars).

        The Cayman/Boxster is essentially the next step up from an MX5. Like the MX5 it has good ride comfort, fairly light, not too powerful. But for a good 09+ Cayman, you can get 3 ND MX5s. However the Porsche wins against the MX5 in badge appeal, sound and looks. The only downside is the cost and insurance.

        I have been driving for almost 10 years now, out of the 24 cars I have owned. The MX5 comes up on top. If price wasn't a factor, I would go the Porsche.
        I have had a couple of Dual Clutch Hot Hatchbacks. I think they are perfect compromise cars.
        But in my eyes any sports car with an automatic gearbox will not increase in value for a long time, especially if it also came out with a manual.

  • alz on 08/01/2021 - 07:33
    +3

    Brother - C63 AMG or nothing

    • mini2 on 08/01/2021 - 09:55

      I'm with this guy - find another 20-25k and get a C63s.

  • [Deactivated] on 08/01/2021 - 08:24
    +4

    Not that it was anywhere near $60k, but I bought a sports car in my 20s. You have a limited window in your life to own a fun impractical car, and your next one you'll be looking at how well the pram fits in the boot. Your choice is at least quite practical.

    If you're on good money and can afford it, then do it. There's something special about leaving work and hopping in a car you really love.

    I would gladly spend $60k on my next car, and probably will spend in around that price range. Although my next car will probably be something far more sensible, and turn my current one into a track toy.

  • mightyfes on 08/01/2021 - 09:12
    +1

    If you have to ask here then don't do it. Buy it when you're 30, it's not that far away.

  • Superjesus on 08/01/2021 - 09:43
    +1

    Have done it and regretted it. Life changes and 2 years later I wished i still had that money for shit I needed. Also should have gotten an SUV.

  • dny on 08/01/2021 - 09:49
    +1

    If you think you might regret it, you probably will.
    I've done it without regrets and it still puts a smile on my face every single time I take it out.

    For some people its a hobby and passion, and the amount of enjoyment you'll get out of it is priceless. For other's looking to find status or bragging rights, you'll discover pretty quickly what everyone has warned you about.

  • cashless on 08/01/2021 - 09:49

    Where would I have to drop it? Into the boot or one of the foot wells?

  • Autonomic on 08/01/2021 - 09:49

    80k-25k=55k. 55k invested over 20 years is ~212k (7% returns). That's a good 3-4 years of living expenses. Is the car worth 3-4 years of your working life, potentially?

  • adn on 08/01/2021 - 09:52
    +1

    Mid 20 and you own a place. You are doing well. Live a little.

  • johnno07 on 08/01/2021 - 09:57

    This is a very personal situation. I personally value financial security over having a nice car (although I am a BIG fan of nice cars). 60K goes really quite a long way to setting yourself up for financial security at this age.

  • FocusRider on 08/01/2021 - 10:09
    +1

    Lol at the comments here.. Each to their own. I'm sure everyone here has a hobby that they spend a truckload of money on!

    2 years ago I spent 59k on a Golf R wagon have no regrets whatsoever. As long as you can afford it go for your life.

    For 60k I wouldn't consider a CLA, I'd probably look at the first gen RS3

    • RobotWizard on 15/01/2021 - 00:17

      I was thinking of getting the R before, they're really amazing little cars and love the gearbox on those and how quickly it shift, RS3's are amazing but I would prefer something with low K's, There was a 2016 AMG listed with only 9k km's for $65K

  • duluxe2000 on 08/01/2021 - 12:21
    +1

    If you buy an IP, sell it in a few years later with a 150% profit and use that money to buy a car then… why not buy it now lol :D

  • conza on 08/01/2021 - 12:25

    Ok did a Ctrl + F and found 1 mention of the A45 AMG, it's the smarter person's CLA45 AMG.

    Cheapest CLA45 AMG is in NSW for $40,800 with 124k kms on it, 2014 model. Kerb weight 1585kgs and 355bhp (265kw)

    Cheapest A45 AMG is in QLD for $32,000 with 150k kms on it, 2013 model. Kerb weight 1555 kgs and 355bhp (265kw).

    That's just 1 example, but pretty much, the CLA45 vs the A45 seems to be between $9k-$25k more, for what amounts to a heavier less practical car, that is therefore going to be slower.

    More money, not as good, objectively it just is not, as good.

    I think a car should not exceed 50% of your pre tax income, it's just something I've made up, probably a touch of give or take depending on other financial obligations (debts, assets, cash flow, etc).

  • Hangryuman on 08/01/2021 - 12:28

    'I recently became obsessed with CLA45 AMG and the ones I like are between $60K - $80K'

    I was obsessed with the idea of getting a Mercedes - so I responded to a used car ad for one that looked good

    took it for a test drive - hated it - dropped that idea right there

    so to test your obsession - why not do the same - find some used car ads for the model you like - a few years old that would be more affordable, and see if you like to drive it

    another turn-off was Scotty the car mechanic saying don't buy a Merc as the disc brake pads wear inside the outer edge so when they need replacing, so do the discs at a cost of - oh - like $4000 each !

    some of Scotty - https://www.youtube.com/watch?v=RGOxhN3Mapw

    https://www.youtube.com/watch?v=TZk6P5PR7b0

    • RobotWizard on 15/01/2021 - 00:24

      Just out of curiosity what did you not like about them ? and that's not a bad idea I prob should test drive one and see how it compares to my FG, Just been looking at so many videos and liking it more with every video I watch haha

  • unfinishedsentenc on 08/01/2021 - 12:33

    If you can afford it, sure. I've owned a Volvo XC90 since age 21 which I've gotten a lot of flack for, but it wasn't a lot of money looking back at it. And from your post it seems like owning a car would provide you with a lot of intangible benefit too, so why not if you can afford one. You'll make the money back later, don't worry.

  • Todes Angst on 08/01/2021 - 12:57
    +2

    As people have been saying it's all relative to your actual circumstances. If you can afford it and you want to do it then do it. You're only going to be on this planet once.

    I would personally go ask for a test drive the AMG. They might lend it to you for a week (My boss has done this several times when changing high end cars). This will either make you realise you really do want to own it….or satisfy your urge and you can move on.

    I personally have bought 2 cars in my (nearly 50 years), I went for a $45K hot hatch for my first car and do not regret it for a second. I have had so much fun and so many adventures in that car over the 18 years I've had it that it has been so worth it. So much so that when I bought my current car (SUV) to replace it I couldn't bear to let it go. So now I have 2 cars LOL.

    You will find out as you get older that you must do what makes you happy. Life is a journey and you can't really put a value on experiences, enjoyment and memories. You can spend your whole life scrimping and saving for the future and never get to that future.

  • Drakesy on 08/01/2021 - 12:58

    In this day and age the only car i'd spend 60k on is a Tesla, although not sure how depreciation would go.
    Out of interest though, how does one own a house in their 20's?

    • bradenpd on 08/01/2021 - 13:04

      Got lucky and got a job paying $150k a year.

    • unfinishedsentenc on 08/01/2021 - 13:08

      Learn a well-paying trade OR get educated and land a well-paying job OR have rich parents.

    • Commander Shepard on 09/01/2021 - 00:51
      +1

      Live in Adelaide, get a decent job that pays around 100k and work hard. I am in my mid 20s and have two houses and a fully paid off $63000 sports car. Hell, the car costed me more then my house deposits. I did this without big first home owners grants, was raised in a low income family, went to a well below average public school and didn't go to uni as I had to work to pay rent straight out of school to keep a roof over my head.

      I do believe anyone can get there and not all of it is luck.
      Just work hard, be smart with your money, don't get into substance abuse and try to not have a baby until your ready.
      If you do all of those things, you can have a good life here in this country.

  • AirbusA389 on 08/01/2021 - 12:58

    how about a Genesis G80 2017-18?
    let's say 2018 model RRP: >$80k.
    the current price is about $45-50k.

    the biggest worry i have is servicing locations (i believe the only Genesis dealer is in Syd), future servicing costs (free 5-yr servicing), and future depreciation for such an unknown brand.

    • fillit on 09/01/2021 - 12:28

      It’s a Hyundai/Kia underneath so you should be able to get it serviced at either dealerships which are plentiful.

    • RobotWizard on 15/01/2021 - 00:26

      I thought of that but would be much better off buying used BMW 7 series fir that sort of price, KIA and Hyundai are okay cars but their resell value is still pretty bad.

      • AirbusA389 on 15/01/2021 - 16:49

        i haven't considered BMWs due to the rates of depreciation, and the costs of replacement parts. Genesis is still an unknown beast to most of us i reckon?

  • [Deactivated] on 08/01/2021 - 14:01
    +2

    It is all about lessons learnt, personal choices, short term long term goals, etc.

    We earn enough to buy a few $60k cars a year cash, but at 42 year old, we have not done so yet. In fact, $49k was the most expensive car we have bought so far.

    Our cars new values are under 3% of our total assets.

    I know some people their car's value can be 50% or 80% of their total assets. I was like this in my early 20's. Earning <$30k a year with $40k car loan. The car was least 90% of my assets.

    Regret, no.

    Jealous at times when seeing other driving around in a $60k to $300k cars they bought with their body parts or finance, yes.

    But we never have to stress about our financial situation and credit cards are all paid in full on time for at least 15 years.

    When our friends stressed during last year's lock down and considered taking money out of super, we put our usual max concessional in.

  • O15 on 08/01/2021 - 14:35

    Probably mid morning, after breakfast?

  • Oppressa on 08/01/2021 - 14:37
    +2

    Are you me? I was in exactly the same position about a year ago:
    -paying off mortgage
    -was obsesssed with the pre-2018 AMG A45
    -had the $ saved up

    I actually went as far as to put a deposit down on one through a private sale but my stomach was churning over the following 24 hours as I realised I was making a big mistake. ie why spend $70k when I could probably spend half that amount and be just as happy with the vehicle (and when there are 'smarter' things to do with it).

    I ended up losing that deposit (the guy in another state wasn't willing to send it back and I know it's my fault but still pretty harsh I thought) but am now grateful that I decided to buy another car for less than half the amount which I love the styling and performance of (turboed Toyota 86). It also meant I could continue on my goal of saving up the deposit for a second property. I'm also glad I have the maintenance costs of a Toyota and not a Mercedes Benz

    • RobotWizard on 15/01/2021 - 00:29
      +1

      I think they really appeal to mid 20's guys/girls haha. Sorry to hear about you loosing a deposit, 86's are great cars I am just not a massive fan of subie boxers. In saying that I love how 86's have so many aftermarket parts available. I've seen some really good done up 86's here.

  • greatlamp on 08/01/2021 - 14:45
    +1

    As others have said, if you really want to get something special get a C63.

    Keep it well maintained, and if you ever need to sell it, another enthusiast will take it off your hands.

    A midrange model, of any brand, will never be a collectible.

  • Ctn on 08/01/2021 - 14:56
    +1

    After the mortgage is paid off at a minimum.

  • CheeryCheapskate on 08/01/2021 - 15:06

    That's what a mid-life crisis is for. But agree with most here. If you have money to burn then sure, go for it but cars depreciate to pretty much nothing whereas investment (and primary) property can be resold for more (and how long do you want to rent or live with friends/family?).

    It's one of those things where I'd say "I wouldn't that that if I were you" but in the end, if you love a nice car than that's your choice.

  • 91rs on 08/01/2021 - 15:11
    +2

    You're only young once.
    If it doesn't put you in to any sort of financial difficulty and you can manage the insurance, maintenance costs (remember its pay-to-play when you get nicer cars) and the actual car itself why not? And I don't just mean quickly look at costs and go yeah she'll be right, I mean work out costs for stuff longer term if you're forced to keep it for an extended time.
    Non-car people will not understand so there is little point trying to explain it.

    I've done the same in the past with several fun cars and then the ongoing mods with them (good car audio wasn't cheap!), some not as practical as others would want their cars to be, but if you enjoy it then go for it.
    Rather that than getting to an age where you won't make much use out of it or the world has changed so much that having any sort of interest in these things is frowned upon more than it already is.

    The other thing is do you trust yourself with it and have the ability to handle it? not taking shots, just I knew so many guys who'd buy skylines and wrx's years back and would put them in to poles or in ditches due to being overly enthusiastic, careless and not having the skills and doing stuff on the road that should be on the track.
    That's a disappointing way for a car you really love to end up + you don't want to hurt yourself or anyone else.

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