I don't expect anyone to tell me there income, nor am I asking for that, however I need a little help....

I am actually a financial advisor, so typically I would be giving advice on this topic, but luckily for me, the Internet allow us to stay anonymous.

Here is my issue, I easily think I can afford a 1200 payment on an R lease, however the most I have ever spent on a car was about 50k.

Not wanting to get into the lease-buy debate as that is another topic. (I go through cars about every 2yrs, so buying new is foolish to me). With that being said, I have always purchased used cars in the past...

Anyway back on point, maybe it is a mindset, but I just can't fathlom driving a 110k car around.

I make about 350k, and have no debt other than about 12yrs left on a mortgage that is 2300 a month. I am 35, my wife works part-time and will probably quit completely within the year...she makes about 15k a year.

No plans for any major financial purchases in the future.

(Please don't take this the wrong way, I am sure there are people that make a lot less, I am not trying to brag, that's why I love the anymonity of the Internet...I also know there are a lot of people that make A LOT more.)

I am just having trouble, in my mind, trying to justify a 110k car. Don't get me wrong, I love cars, I currently daily drive a H1, which is about my 25th car. Maybe it is all in my mind, but I picture everyone who buys 100+k car making at least 500k....(however in my job, I see many people, that most would think make ALOT of money, (doctors and lawyers) who drive very nice rides, but aren't as great off as one would think....I am not asking if I could make the payment, I know that is not an issue, I am wondering, "what is the norm?"

I realize it is not, per se, a good investment, but I also realize I need to "live life" as well....

Bottom line, do I make enough to get this???

(I understand people will say, "you are a FA and asking for our help, glad my money isn't with you"....I get it, I just want some honest input.)

 

Sounds like if it goes sideways for you somehow you would only have to endure it for 2yrs. Ftypes are not investments and clearly not practical. For me it was all about "live life"
Ps. You make plenty

My $.02 (worth every penny)

 

Believe me I pray for "contentness" with vehicles, but I have yet to accomplish It.

It would be a 3yr lease..not sure what I would do for that last year as I am sure my mind would have abandoned the f-type and grabbed on to some other new ride. (I was kind of hoping the wife would fall in love with it and want to drive it in the 3rd year

I definetly agree, I realize it isn't practical or an investment....but is just plain fun!

 

Wow I should be a financial advisor!

It's not how much you make, it's how much you keep!

 

Let's look at this from a different perspective. If you're 35 and you've been driving since 15, and you've bought 25 cars in that time period, you are averaging over one car per year. I suspect most of those cars are loaded toward the end of that 20 year time span and you may be averaging closer to 2 per year the last ten years. Anyhow, that seems more fiscally irresponsible than purchasing a single $100k car.

And an h1 is easily a $100k car. If you bought it for less then shop the used f type market. There are 2015 R's listed in the $70k range.

 

You Yanks have it sooo good compared with Oz prices!
The cheapest used R in Oz is $190,000 and they range up to $260,000.
The cheapest new R is $245,000, and that's with zero options, once you add some options they easily approach $300,000.
If I could get an R for $110,000 I would be all over it!

 

I think that you maybe in the wrong job

financially its a no brainer and you should give yourself the same advice that I hope that you give your clients

 

I understand the mental obstacle of the 110k car. You can afford it; do you really want it, or will the impulse pass? If you are leasing for 2-3 years, it's money spent, kinda like a nice vacation, but available daily. If you feel miserable after, punish yourself for next 3 years by driving a Nissan juke. The car does attract ALOT of attention and your clients may think you make too much money or you are very good at your job and they should hire you. I would think the latter for a financial advisor. When you get into your late 50's you definitely won't care what anyone else thinks, other than your wife.

A car just happens to be visible to everyone. One nice European vacation a year is about the cost of your lease payment. You could do that instead, but not likely anyone would notice.

 

> I make about 350k, and have no debt other than about 12yrs left on a mortgage that is 2300 a month. I am 35, my wife works part-time and will probably quit completely within the year...she makes about 15k a year.

350K a year? Why not just but an R outright?!

 

If you seem uncertain, consider a 2 year old Ftype. Can save $30-40k. Mine looks and feels brand new.

 

Because I don't believe they have drpreciated to their "sweet spot." After about 5-6yrs is normally when I buy. However since I keep cars for so short of time the initial depreciation would kill me.

 

Bacause I will be ready for a differant car in 2yrs and the loss on a purchase could be even greater than the loss on the lease.

 

Typically the cars I buy and sell are already decently depreciated. On the last 4 sales (bmw 335i, BMW 650i, BMW X5, and an older Land Cruiser) I made money on 3 out of the four. (Was in a time crunch and had to trade in the 335i, so I got less money than I wanted too.

I also dont expect to lose money on the sale of the H1....

So on the surface, the amount of cars I have had seems that I must just be getting crushed and constantly losing money....however it is not the case.

(Also, not saying I make tons of money off of them, only about 7k total from the sale of the above list are cars)

 

With making $350k you shouldn't feel guilty about buying one. If you do feel guilty then like mikelanzetta said buy a two year older one and maybe even try to pay cash for it.

 

Based on the fact that you're a financial adviser and are also questioning if you can justify spending such an amount on a car, then I'd guess you're quite sensible with money in general. It sounds like you'd easily be able to afford the car. So once you've figured out the cheapest cost over 2 years (either lease or buy and sell). It's just a case of cost vs. desire. As you say, you only live once, and if it's not likely to harm your long term financial position, why not go for it? As a good mate of mine says ... "Who wants to be the richest man in the graveyard".

 

Congratulations, well done. Yes, you can afford R-type.

I suggest lease transition into ownership for the following reasons: a) Jaguar has spotty reliability history, while all reports of F-type reliability are good it is still too early to tell. At lease with lease you have an exit strategy. b) You can't be certain you would like the car until you spend couple months with it.

I strongly suggest getting into 2016, or waiting until December 2016 to pick up 2017. The best US deal I heard about on a new R-type was getting $20K off MSRP, but the best deals seem to be reserved for leases due to how Jag structures incentives.

Also consider following cars: 911, Nissan GTR, Corvette Stingray, Acura NSX.

You won't get certain caliber of clients if you are not seen driving the right kind of car, having the right kind of watch, and dressing in a specific way. This should make it easier for you to justify F-type, mentally categorize it as a business expense.

Plus, what are you going to do with all that money you make? Get buried with it?

 

Very true. You only lives once....

 

I know dentists and doctor colleagues of mine who make a lot less and drive S-class, 7 series and even Ferrari's. I also know other colleagues who make multi-millions of dollars every year who drive entry-level Chevys and Nissans. Bottom line is, it's all about what YOU want. If you make your purchasing decision based on what others might think, well guess what.......people really don't give a ****. It's what makes YOU happy, not them. If you feel guilty driving a $100K+ plus car, then don't buy it. Instead, buy a much cheaper car and use the rest of the money towards another hobby or donate it to charity.

 

I would suggest you do not get one. Your heart is not ready for it. Buying or leasing an F-Type is not a head decision.

Just get a 6-7 year old BMW or Mercedes and then sell it after 2 years.

 

You know you can afford the lease, but that does not seem to be the obstacle. We cannot get into your mind. Speaking only for myself, when I bought my Corvette, it was the most expensive car I had owned, but I loved it. When I got my Cayman, I could not believe I was paying that much for a car. When I starting looking around and test driving again I set an arbitrary $100k as the upper limit so I only test drove the F-Type S.
I thought it was great, but I started running lease numbers and realized I could afford more if I wanted to. The deals were excellent, even better on the R and why not go top of the line? So my bar is no longer $100k. No regrets, it is a wonderful car. If you are at all into cars, you simply need to be smiling about your purchase/lease/ownership. If price stops you from smiling then know that before you leap.
Larry