...I am not a trust fund kid (I left the Mormon church when I was 17 and my upper middle class parents cut me off, so I paid for school too), but have been meticulously saving for a while. Not really for a nice car in particular, but just because it was fun for me to invest in things. Well turns out living cheap for 5 years on Peanut Butter and Jelly sandwiches and stir fry dinners really adds up. Not paying for gas for 5 years saves a lot too (as you all know). Anyways, after riding my bike around Seattle for several years, I really started to fantasize about owning a car....
At first my brain started to scream, "NOOOOOOOOOOOOO!!"
But, I have to admit, in my 20's I managed to get a modest house for 'take over payment' terms in a foul economy somewhat like we the one we had a couple years ago. It ended up being cheaper than rent. When I started working I thought I'd never be able to afford a house in my lifetime with interest rates over 18%, but I managed to find the right deal. Renting is a good value locally because of excess speculation houses, over-development in the region and our high property taxes. That situation may change again and the climate could make home purchasing a prudent move again.
A short time after buying my first house I ended up buying a car worth as much as my house after investing in Microsoft in the 80's. It was a few bucks of my money that I set aside in the dream car fund and I let it ride. If I hit, it would be great, if not, no big loss. I didn't put any money in that I couldn't afford to lose. I was frugal like you in many ways. I didn't have a big paying job either. I had a job that made me feel like I was making a contribution.
My spouse had a modest house and a nice car just like I did when we met. We became Mr. & Mrs. Porsche and Jaguar. We both sold our houses and got a nice house with a nice garage at the right time. We are still here and wonder where the time went, but still enjoy low house payments. We kept refinancing as the rates went down but never pulled any money out. Our payments are probably cheaper than your rent now.
I'm picky about what I spend my money on. As a matter of fact, when we are at our boat in the marina we look up at the restaurant and think, wow, I wish we could afford to eat there. Meanwhile the people in the restaurant are probably looking at the boats wishing that they could afford a boat. The boat was an odd turn. I love the water and everything about it. We got a loan to remodel our kitchen and realized that we could get a boat with a kitchen in it for even less than our kitchen remodel estimate. We like it so much that, if push came to shove, and we had to activate our "scorched earth plan" we would move on the boat and sell or rent the house. Four short years ago we were monitoring our "scorched earth plan" quite closely. We have ridden out a several bad turns in the economy and unanticipated circumstances because we had back up plans.
I hate paying for interest unless we are borrowing cheap money. Money is stupid cheap right now and this is likely very temporary. Elections and the economy could change this quickly. So you can't count on that. Don't forget that inflation happens. You may not have experienced that yet and how that changes things.
My only caveats would be these:
1. Since you ride your bike around Seattle need to be sure that you have exceptional medical insurance with very high percentage of coverage. Insurance companies are covering less and denying neccessary care frequently now. Costs are skyrocketing too. I don't consider 90% coverage adequate but you can't buy anything better than that at any price anymore. In my 20's my spouse was disabled for almost a year after being hit by a driver that fell asleep at the wheel and we had to cover many of the costs and deal with the loss of an income until the insurance company settled many, many years later.
2. Consider whether you would be willing to risk you dream of continuing your education down the road for getting the car now.
3. Be certain that your signifiant other is on board and as enthusiastic as you are... or close to it.
Many NW companies will pay for continuing your education as long as it it in your field. That could minimize problems with your medical insurance and educational costs.
Good luck. I'd love to be in your shoes and have such broad, promising horizons in front of me again. What a thrill! When you see a Red Signature driving around Seattle in a few weeks be sure and wave! BTW. Should I hit my horn so that you know I am there? I've never driven car as quiet as this before.
Sincerely, A recovering Catholic
