Advice Needed: 2020 Taycan 4S

[TaycanIncoming]

So, I’ve been drinking tonight, so I’m gonna chime in again and give you some real advice. You’re not gonna like it. I wouldn’t have wanted it at 27, but…

Don’t buy a six figure car. Not just because investing it makes way more sense at your age, but because it’s just not worth it. IMO, expensive cars just aren’t worth the money in terms of enjoyment, and only make sense when it’s couch cushion money.

Love my Taycan 4S. Was it worth $150,000?! No fucking way. But I’m at a point in my life where I have more money than time, so the money isn’t much of an issue. If I were 30 and had less than a couple mil saved, no way would I think buying a high end car was worth the money.

I don't really do much, just work. Kind of tired of collecting a paycheck and not spending ANY money. What's the point of life if I just invest 100% of my take-home paycheck? Only thing I'd ever spend money on is a car or a house.

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[TaycanIncoming]

Figure out the value of that $110k if invested 20 years from now would be. At 8%, that's more than $500k. At 10%, it's $750k. Would a 47 year old TaycanIncoming be happy with 27 year old self for not having that cash? IMO, your net worth should be at least 5-10x the purchase of unnecessary luxury goods before I would consider it (total investments minus total debts). Looking at current year income isnt enough.

If you ask me, you should be heavily investing - maxing out your 401k and all other investment options and paying down debts (do you have college loans). You're future is way too unknown to make that type of commitment. Wife, kids, career issues, home, vacation plans, family issues, lifestyle changes, etc.

I understand where your cominng from, but does that mean I just invest all my money and not spend any of it?

 

[Ranman]

I understand where your cominng from, but does that mean I just invest all my money and not spend any of it?

Spend as little as possible. Part of it is for investing and the other part is to develop discipline over your decision and budgeting that is otherwise hard to reign in. If you are buying a $110k at 27, you're going to have a hard time at 29 not wanting to do an upgrade. Or fly first class. Or ...

 

[TaycanIncoming]

Spend as little as possible. Part of it is for investing and the other part is to develop discipline over your decision and budgeting that is otherwise hard to reign in. If you are buying a $110k at 27, you're going to have a hard time at 29 not wanting to do an upgrade. Or fly first class. Or ...

I understand but if I'm saving/investing 65% of my income and spending the other 35% (on this car), is that not reasonable?

 

[Redhot2474]

I have 0 debt, so I'm unsure how you are calculating debt to income, but I see your point.

The car is a debt/liability.

I have 0 debt, so I'm unsure how you are calculating debt to income, but I see your point.

You calculated it, I didn’t . You said it was 35% of your net. The car is a debt/liability. Which means your DTI is 35% not including any other “fixed” expenses. Just an FYI, if you ever want to buy a house AND own a Taycan, It wouldn’t happen as most mortgage companies want to see a DTI ratio no more than 40%, and the Taycan is not big enough to live In . Lastly, make sure this purchase is somehow not a distraction for some VOID in your life, I’m only speaking from experience

 

[Archimedes]

I don't really do much, just work. Kind of tired of collecting a paycheck and not spending ANY money. What's the point of life if I just invest 100% of my take-home paycheck? Only thing I'd ever spend money on is a car or a house.

I feel ya, but my advice would be to take a long view. Hopefully you will live a long life. When you’re 45, decisions you made now will have a much bigger impact than you might think at this moment. If I could go back in time, I would have spent way less on cars than I did.

Again, I would not have wanted to hear this when I was 27. I get it. I’m just trying to give you a little old man wisdom. Take it for what you will.

 

[TaycanIncoming]

The car is a debt/liability.
You calculated it, I didn’t . You said it was 35% of your net. The car is a debt/liability. Which means your DTI is 35% not including any other “fixed” expenses. Just an FYI, if you ever want to buy a house AND own a Taycan. It wouldn’t happen as most mortgage companies want to see a DTI ratio no more than 40%.

Ahh yeah, if I buy the car, yes. Currently DTI is at 0. My plan was to buy the car, use it for 2-3 years then sell it. I'd lose about 40-50k (cost of ownership: insurance, interest, payments, depreciation) in 2-3 years.

 

[TaycanIncoming]

I feel ya, but my advice would be to take a long view. Hopefully you will live a long life. When you’re 45, decisions you made now will have a much bigger impact than you might think at this moment. If I could go back in time, I would have spent way less on cars than I did.

Again, I would not have wanted to hear this when I was 27. I get it. I’m just trying to give you a little old man wisdom. Take it for what you will.

Thanks I appreciate your advice.

 

[Dragonfly]

I don't really do much, just work. Kind of tired of collecting a paycheck and not spending ANY money. What's the point of life if I just invest 100% of my take-home paycheck? Only thing I'd ever spend money on is a car or a house.

I think there are two separate questions/issues.

“can you comfortably afford this car based on your income?” - sounds like yes

“is buying this car a good long term investment and/or use of your money?” -probably not

but as you stated this is not an investment for you but a way to spend your disposable income. Some people buy clothes, some go on Trips, etc. To each their own!

 

[JS4S]

Save your money and invest. Plenty of time for toys.

 

[TaycanIncoming]

I think there are two separate questions/issues.

“can you comfortably afford this car based on your income?” - sounds like yes

“is buying this car a good long term investment and/or use of your money?” -probably not

but as you stated this is not an investment for you but a way to spend your disposable income. Some people buy clothes, some go on Trips, etc. To each their own!

Thanks for the input. I agree.

 

[TaycanIncoming]

Save your money and invest. Plenty of time for toys.

Isn't life too short?

 

[xyeahtony]

Bruh, its your money, enjoy it. Life is short. While planning for the future is key, if you are maxing your 401k then you are ahead of most people. I for one do not subscribe to the belief that only old people with grey hair are allowed to enjoy life.

While the smartest decision is to invest whatever disposable income you have when you are young, you have plenty of years ahead of you (hopefully) and if material items can bring you some joy, then go for it. And yes i said that, because the fact is nobody needs a Porsche. We can all get by driving Chevy Bolts or Toyota Priuses to get around and that would be a far more responsible use of money.

You have no kids, so you are responsible to nobody except yourself. If you feel like you want a car like this, and you're not hurting anyone by getting it, then go for it.

 

[4thPcar]

I bought my first Porsche when I was in my 20's.

It was a beat up 914 that had a habit of overheating often.

From there I graduated to a demo version of 944 with 5000 miles, and from there graduated to a CPO 911S Cabriolet that just came off a lease and had 20,000 miles.

My point is there is no need to jump straight to a six-figure Porsche. For me the journey to my own Taycan was as rewarding as ordering the Taycan and I have all those great memories of each vehicle that preceded it. If you want to experience a Porsche and understand and appreciate its history, I'd start with a late-model ICE model, ideally a 911. By the time you are ready for an EV version, they will be even more refined. Who knows, maybe the Spotify integration will work by then.

 

[tomtom901]

If I were 30 and had less than a couple mil saved

This seems a bit disconnected from reality to be honest..

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