If you just got a promotion where you work at and now make $30K a year, would you trade in your tC for a 06' Pontiac GTO with higher monthly car payments and insurance or would you keep your tC and start a mortgage and insurance on a townhouse? Right now, my monthly car note on tC is $265 and car insurance is $66 a month.
I know the second choice is more sensible but, every time I see a GTO on the streets, my plans for a new condo or townhouse gets diverted.

 

I'd definitely get something with more go, but I think the GTOs insurance for an 18 year old can wait a few more years.

 

Yea Invest in tha house. Save money get a little older, then get something even better like a new vette or something.

 

go for the house.

 

Haven't got promoted yet but having something with 400HP over 160HP is tempting.
But right now is the best time to finance a house with the interest rates low here in IL.

 

18 + 400hp = bad xD no doubt Id want the car over a townhouse but in the long run you are probably better off investing/saving your money to put towards something later in life whether it be a car or house, saving is always a good thing

 

I'd go the house route. As stated, if you spend a few years and get some equity then you can get a NICER car yet.

Not to mention the other good points brought up.

Also, if you have extra money to play with you can mod up that TC and make it a nice sleeper.
IMO sleepers are much more fun.

Z

 

^ x2!

Honestly... keep the tC for a while, get the townhouse. You'll be much more established that way. Plus, when you get another raise or 2 you'll be able to afford both and have built a large chunk of equity in your house instead of throwing the money away on rent.

 

A car is a car. It will never have any long term appreciation or value. A House on the other hand immediately starts paying you back at least a little. Even if you only pay $2 in principal on a house loan it is still $2 better than paying rent Oh yeah and then there are th tax savings on mortgage interest. The GTO remember!! is only a midsized GM car. Yes it has sexy clothing...but it is still just a car. Alot of midsized GM cars in the last number of years have been unremakable in the long term...are you sure the GTO is any different?? It wont give you the MPG of your Scion, and the payments would be considerably higher as well as other non-gas operating expenses (I bet).

 

I would go with option number 2.. just cause now that i'm a little older i know having a place that you can call your own.. having you own castle is more important in life.. but that just me.. i would keep the tc.. mod it out some more.. then get my own house.. an in the future then i'm better off.. get a nicer car.

 

You can't drive a house, but you can live in your car!

In all seriousness, wait a while, no sense in paying a ton in insurance and a car payment when u'r only making $30k a year

 

I wouldn't do either at this point. Yes, right now is a good time to buy in the chicago area housewise, but have you talked to a mortgage broker yet? At 18, you might have a hard time getting a mortgage if your credit isn't developed yet. Is the car in your name or someone elses? Plus, I don't know the price range of homes you're looking at, but $30000 a year won't get you very far. Remember this is a 30 year commitment, plus utilities, plus repairs, plus you have to furnish the house. I'd hold off, find an apartment, save some money because you'll want to put 20% down on a house at least to avoid PMI and have fun while your young. You have the rest of your life to be broke and pay bills.

 

1. don't buy a domestic car
2. you'll later see that $30K is not that much... save up
3. if you can't pay off your car cash, it makes no sense to think about upgrading (to a car with higher payments)

 

Seriously dude, don't do either. Take your time and find yourself a job that pays more. 30k annually really isn't much.

A house is a good investment, it doesn't deperciate like cars do, but make sure you can afford the payments first.

 

listen... everyone would love a better car... not to knock the tc, i love mine, but 400 hp sounds great. when your older, youd wish you went for the house... i say go for the house, and when your older you'll figure the house was a great idea, now go for the car. not sure if i made sense... but all in all... go for the house... then the car.

 

Go for the house or just save your money ... besides in a couple of years, you'll probably find a used GTO for cheap what with how domestic cars are depreciating ...

 

I WENT the house route... fwiw you can stuff more fine babes in my house, than you can in the tC... also, you will MAKE money over the long run with a house, vs LOOSING money on a car.

plus I got a garage, so MY tc is freakin spotless ;) never sits in the rain, or cold, or all day sun fade, and right next to my bike so its never alone.. And, personally, what I am PLANNING on doing is keeping the tC and fixing it up-- and then in a few years adding a real badass car to the stable (low mile nsx, M3 or something, maybe by that time a vette.. ) and letting go of my older porsche... (when expensive cars get to be 24+ years old and when stuff breaks its BAD NEWS)..

 

Definitely go for the house. I bought my first house this past summer and I'm so glad I did. I also agree with TerribleTed... the GTO is beautiful and fast but its also made by GM and will pretty much be worth as much as a Cobalt in a few years.

 

neither...$30,000 isn't that much ...not trying to burst your bubble or anything. If there is one things true in life is the more money you make the more you will owe.....it is SO true!!!....just look how you want to go get into more debt ....don't do it, I know this is hard at your age but don't change your life style yet...75% of the increase from the promotion...put in the bank!!! I have a great bank (and a desent savings) I am automatically approved for a $50,000 car loan, a $175,000 home loan, and a $10,000 signature loan...that is just due to the fact that I save money and my bank rocks!

and start paying more on that car than is just required...paying around 15-20% more than is required you will pay it off quicker and in the end it will be like you really didn't have to pay hardly any interest.......just make sure the bank puts the extra payment amount towars the Principal of the loan amount...

18 is also to young be locked into a mortgage as well...save, save, save!!!

I've told all my young soldiers when we've deployed that this will be one of the few times they can get "ahead of the game" and put money away...if you know what your doing and don't have much debt and get deployed for a year, you can come back to a $20,000 - $30,000 bank account...that's not even counting what a re-enlistment bonus can do...I knew a guy that came home to close to $60,000 (he was smart and put it in a house) most don't listen though and blow it on a car instead of putting it into a better form of investment...guess that's what being young is about

in the end your going to do what you want to and 2,5 ,10 years from now you'll most likely look back and say "damn, wish I would of ____________ instead" that's just how it happens and you learn

seriously though meet with someone that can help you invest for your future (stocks, bonds, mutual funds)...starting at your young age and putting in a little every month now will be HUGE in about 20 years from now and really help you out.... starting now and investing you could be very well off and ready to retire very early in life

 

No offense, but 30k a year is petty cash. My first year teaching = $42K. After taxes, savings, etc, that comes out to $2K a month to live on. Rent = $1K. car = $235. Get my point? 30K is nothing....don't be foolish. If you have no expenses, then save. A GTO is more than you make in a whole year!!! This is not even a question!!! Man, 18 year olds have no sense of responsibility. w/e i've got nothing more to say.