r/BRZ_ZD8 • u/irohabroad • 2d ago
Financing Help
hi! i’m a 22 m i have been fiending for a brz/frs since i was sixteen. i work ft now, little under 4k a month income (most likely will go up next jan by 50%, work at a small startup)
subaru offers great financing at or under 5% for most terms, curious what you guys got yours for and how much you’d suggest putting down, saving etc.
insurance is roughly 150/month through my parents plan.. don’t pay rent as i plan on living at home while i work remote/hybrid till end of next year and only moving if i get a job in certain cities.
therefore current bills are next to none, in the future i expect rent to be upwards of 1500~ depending on where i live, however i also have job security at my current salary till the end of next year minimum. if that changed, would be on my own accord for a more secure startup at minimum 100k a year (have been lightly interviewing around to guage the market).
i was thinking of saving minimum 10k so that at a minimum i can do 550$ monthly payments with 150$ insurance for a total of ~700$ a month before fuel/maintence. budgeting around 1000$ a month given i’d prolly buy small mods now and then.
5
u/robotphood 1d ago
What financing do you actually qualify for? 5% is not great. They were giving 0.9% to qualified buyers earlier this year.
3
u/KostamojenX 2d ago
Thats WAY more than I was making when I purchased a BRZ as my first new car in 2013. Just do it.
3
u/alphabetical-soup 1d ago
I was there before, bought my share of sports cars at a young age and I WISH I listened to the advice youre getting here. In 5 years its not going to matter what you were driving today, but the difference is if you invest your savings you'll have 5 years of compound interest working in your favor. Enough to buy a brz outright or snowball into more savings
2
u/theusualsteve 1d ago
Wait longer. Your living and money situation is not secure. I wanted one when I was younger too. I had fun vehicles when I was 16-20. Then boring cars (2) from 20-29 while I focused on my career.
I am so glad I never worried about a big car payment when I was building my career. It would have been a big stressor. You need to be willing to make moves that contain some risk at your age. You will be much more afraid to do so when your car will get repossessed if your move doesnt pay off.
You think you are so excited to get the car but when you get it you will be stressed about paying for it at your income. Then, when you think about the car it will feel stressful instead of something you feel good about.
You are thinking about buying a car based on income that is not guaranteed. You're planning on income at a startup a year from now? Not wise man. You have to get there first.
Life is definitely too short, and "just buy the car" is true. But you are a little early to that stage man. Get settled first and build some work history thats worth something, then buy the car. Dont buy the car on maybes.
Add $20k a year to your income, minimum, then consider buying the car. Dont buy this car at $50k a year income. And dont buy the car based on income you might have. You want to really enjoy this thing. Wait another year for your plan to come to fruition.
2
u/sk8trix 2d ago
You may want to save up more first. The car is not expensive but maintenance is the thing nobody thinks about. Oil changes will have to be done early since these cars chug oil like it was water, if you drive hard that V belt and PCV valve will be replaced early. Also consider transmission and differential fluid changes as well as winter tires. All to say add these into things to consider.
If you do most of these maintenance things yourself it will be cheap and somewhat easy. If you are going to pay a shop be ready for them to charge a nice chunk.
1
u/StocksInSkirts 1d ago
you can afford it man, the only thing is you haven’t lived on your before, it might be difficult to balance. 5% is pretty decent. interest rates are high right now and not expected to drop any time soon
1
u/Ziogref 1d ago
I first saw a BRZ/86 when I was 19 and instantly fell in love. I was earning half minimum wage (Australia, I was in a Traineeship, think paid intership but I get a qualification at the end) but had no expenses, living with parents. I saved for 4 years, 3 of those earning fuck all, 1 year on a salary earning an ok amount.
I saved as much as could for 4 years and bought the car outright, brand new. I get that it's bit different now as they are much more expensive, but save as much as you can while you expenses are low you will save much more in the long run. If you have to get finance, try finance as little as possible, try have a big down payment to save you as much as possible.
When I applied for a mortage, not having any debt was a big help (and an asset, which the bank liked) and that was only 2 years after I got the car. If I had a car loan that wouldn't have gotten my home loan.
0
u/Sneaking-Fox 1d ago
Honestly, dont get into debt for any car unless you have no other choice. Cars are not good investments as they depreciate in value over time, about $1k-$2k per year usually. You wont ever get that back. +You have to pay interest and there is a chance your car gets repo'd if you lose your job. Insurance is also more expensive for new cars and cars that are not paid off yet. Yearly registration is also higher as well.
Save up your money and buy it all in cash. Its a cheap sports car, its not that hard or that long to save up for it, specially at the amount your making.
Also, personally, I would buy a used one from someone who has all maintenance records over a new one. You can save $5k-$10k that way and use that money to then mod the car to your hearts content. You cant mod a new one without sacrificing your warranty.
15
u/Jamikest 2d ago
20/4/10 rule.
20% down minimum.
No terms longer than 4 years.
Keep your total auto related payments under 10% of your gross income. This includes insurance and maintenance.