Tell me I'm not crazy Oppo

Kinja'd!!! "BJohnson11" (brettjohnson01)
08/13/2013 at 23:33 • Filed to: None

Kinja'd!!!0 Kinja'd!!! 25

So my brother just got his first job out of college. Great job at a company he is going to enjoy working for and a company that builds really cool things. For those that want to know, the company is Achates Power in San Diego. They make opposed piston, two-stroke diesel engines for use in industrial applications. Pretty neat stuff.

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This image was lost some time after publication.

Anyways, my brother has always been bad with financial decisions. He blows way more money than he spends. He's the reason I'm working on the Mazda 350 project. He bought the car for LeMons, had crazy ideas for it, threw money at it without anyone else really signing on, then gave up on the project when actual work needed to get put in, leaving me to do the heavy lifting.

His job is going to pay him round about 70 grand before taxes. So figure a generous 55 grand after taxes (probably closer to 50). He's looking at a brand new 2014 Audi S4 a dealer near him is getting in. That's a 60 grand + car optioned out. I told him he's stupid and he should try saving for once. Yes, he'd finance it, and according to him, he's budgeted it out and he'd still "save $1000/month" but I'm not buying it. I think it'd be much more reasonable to either a) not get a car because he already has a truck my parents got him, and a motorcycle or b) wait a year or two and get the s4 or c) look into a used S4 if that's what he wants.

Tell me I'm not crazy, but it seems like a stupid decision, no?


DISCUSSION (25)


Kinja'd!!! Nighthawkwill7, Hoon Depot Manager > BJohnson11
08/13/2013 at 23:36

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Tell him to buy a beater ass car and drop one of those two stroke diesels in it for the lols.

/problemsolved


Kinja'd!!! CB > BJohnson11
08/13/2013 at 23:36

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Yeah, it's a stupid decision. I'm siding with you on this one.


Kinja'd!!! joemcm > BJohnson11
08/13/2013 at 23:41

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I'm with you as well. Something tells me he's buying the badge on the Audi.


Kinja'd!!! doodon2whls > BJohnson11
08/13/2013 at 23:44

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Worst decision ever... I don't understand ppl's obsession with being in debt - all for what ? To drive a flash car and maybe get laid ? FTS. I HATE paying for money (interest) and loans in general (owing a bank money). IMHO, they should owe ME money...

Achates OPD diesel engine design is pretty cool... I hope they succeed in marketing their technology to industry...


Kinja'd!!! delete-me-please123 > BJohnson11
08/13/2013 at 23:45

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Its a poor decision, so you are not crazy. Compromise: pickup a used S4 in 4-5 months.


Kinja'd!!! KillerRaccoon - Group J's Sébastien Loeb > delete-me-please123
08/13/2013 at 23:47

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Yes.


Kinja'd!!! KillerRaccoon - Group J's Sébastien Loeb > joemcm
08/13/2013 at 23:47

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Yes.


Kinja'd!!! KillerRaccoon - Group J's Sébastien Loeb > doodon2whls
08/13/2013 at 23:47

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Yes.


Kinja'd!!! KillerRaccoon - Group J's Sébastien Loeb > CB
08/13/2013 at 23:47

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Yes.


Kinja'd!!! KillerRaccoon - Group J's Sébastien Loeb > Nighthawkwill7, Hoon Depot Manager
08/13/2013 at 23:47

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YES.


Kinja'd!!! dsigned001 - O.R.C. hunter > BJohnson11
08/13/2013 at 23:48

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Well, that's like, your opinion, man....

Soul crushing debt is the American way! How will he experience the joy of a Dave Ramsey conference with his wife if he's financially responsible now?


Kinja'd!!! phenotyp > BJohnson11
08/13/2013 at 23:48

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Uh, yeah. That's a very, very poor decision. Living in California, I wouldn't buy a car I couldn't pay cash for if I made less than, say, 120 a year, or had free housing.


Kinja'd!!! Clown Shoe Pilot > BJohnson11
08/13/2013 at 23:48

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If he buys a brand new Audi, he's going to be car poor for the next 4 years. Unless he's living at home or he's already bought all the crap that a 22 year old kid buys to outfit his apartment, and he's got a line on free drinks, and he doesn't like going out to a nice restaurant every once in a while.

It's a dumb move.

Now, he's right out of college. So, he knows everything. This may be a move that he has to make himself to know how dumb a move it is. I know that when _I_ was 22 and knew everything, the one thing I wanted was a flashy new car. I bought one that cost my yearly wages. It was a terrible idea. I was car poor for 4 years.


Kinja'd!!! Mr. Ontop, No Strokes, No Smokes...Goes Fast. > BJohnson11
08/14/2013 at 00:05

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I believe the saying is "Always Lease, but never buy an Audi."


Kinja'd!!! scoob > BJohnson11
08/14/2013 at 00:10

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Just take all his money away from him. Problem solved.


Kinja'd!!! twinturbobmw > BJohnson11
08/14/2013 at 00:12

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I would say get a CPO instead. No way I would buy an expensive car new without it depreciating first.


Kinja'd!!! Makoyouidiot > Nighthawkwill7, Hoon Depot Manager
08/14/2013 at 00:28

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DOUBLE YES


Kinja'd!!! rb1971 ARGQF+CayenneTurbo+E9+328GTS+R90S > BJohnson11
08/14/2013 at 00:35

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Yes, it's stupid to buy a $60k car when you are making $70k pre-tax. Is this even a question?

He's pretty lucky to have such a good job at what I assume is a young age, and has the option to buy a new cheaper but still likely nicer than his peers car (e.g., Focus ST) or a slightly used high performance car (e.g., this 07 S4, which is also a convertible - nice in SD:

http://cgi.ebay.com/ebaymotors/200…

).


Kinja'd!!! Grindintosecond > BJohnson11
08/14/2013 at 00:41

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Yes he is crazy. The 401k at 6% annually from age 21 to 31 is worth sbout $700k in age 65 retirement...that is $800 a month of takehome money gone but 3/4 a million in the end extra?..worth it. If he waits till thirty to start the retirement he throws away that money just to have a rapidly depreciating newmobile. He will still have spendy cash as long as he doesnt spend on hookers and blow (depreciation on a luxury car is huge)...


Kinja'd!!! ASheep > BJohnson11
08/14/2013 at 02:50

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A couple of things that get me here:

1) People see "$70,000" and think "oh yay I have 70k to spend on fun stuff!". It takes some time for many people to realise that paycheck does not equal disposable income!

2) I personally would never lease a car, but it seems to work for some people, so that could be an option. The big thing that gets me is going into debt to purchase a depreciating asset... The moment you roll off the lot in your spanking new Audi, you can wipe a few grand off the value. Drive it for a little while, and you might even be able to see the $20 notes coming out the back... "Finance" is a nice way to say that you want to pay even more for your new car, and from the "save 1k/month" statement, it sounds like he really hasn't thought things through.

Congrats to your brother for getting a really cool sounding job, I'm looking for a job in a similar sector. It seems that he needs to get over the excitement of having a good income stream by buying something (hey retail therapy is fun), but spending most of his first years' income on a car is irresponsible.


Kinja'd!!! Leadbull > ASheep
08/14/2013 at 03:34

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Financing can be good, but there's now way he's getting a low APR. I mean, a fresh-outta-college 22 year old with a history of bad spending can't have a great credit score.


Kinja'd!!! ASheep > Leadbull
08/14/2013 at 04:24

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Haha I know that feeling, I'm 22, and starting to look to buy a house within the next couple of years. My girlfriend and I are trying to do everything to build a credit rating, which is hard because I usually try to save and buy everything with cash!


Kinja'd!!! highmodulus > Mr. Ontop, No Strokes, No Smokes...Goes Fast.
08/14/2013 at 09:14

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I would also accept "No Warranty, No Audi".


Kinja'd!!! highmodulus > BJohnson11
08/14/2013 at 09:16

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He obviously should buy a used TDI VW (I like the Golf version myself).


Kinja'd!!! Leadbull > ASheep
08/14/2013 at 11:15

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Apparently you're supposed to use a credit card to pay for gas, or something similar, at first so you can easily pay everything back and build your rating. But I wouldn't know because I don't have a credit card, either (poor college student here with no use for one). I should probably change that soon...