My Expenses May Change and I May Need to Accept Defeat

"cazzyodo" (cazzyodo) 02/28/2014 at 12:43 • Filed to: Helplopnik

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Well, Oppo, I chronicled !!!error: Indecipherable SUB-paragraph formatting!!! last year. My !!!error: Indecipherable SUB-paragraph formatting!!! that eventually ended with !!!error: Indecipherable SUB-paragraph formatting!!! I gave you !!!error: Indecipherable SUB-paragraph formatting!!! I asked for !!!error: Indecipherable SUB-paragraph formatting!!! and then went out and !!!error: Indecipherable SUB-paragraph formatting!!! bought some.

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But, as fun as it was, something was !!!error: Indecipherable SUB-paragraph formatting!!! ...and that was before I started to look at my budget again.

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I love my car. It is so much fun. I love how easy it is to pass people on the highway, get around people at stop lights and corner on my favorite driving road. The navigation and sound system have been massively appreciated and the Recaros are glorious (though for a prolonged trip, not always choice). With snow tires, I feel unstoppable. The traction and power are a blast.

But that could change. I am 95% certain I will have to bid the ST a very early farewell. My plan was to own this baby for a minimum of 5 years. I could see it being useful beyond that but nothing is outside the realm of possibility. Most of my close friends got new cars (typically with help from family through trades or whatever) but I did this on my own and was proud of it. This pride is killing me...I may need to accept defeat. I did all my research during my car search. I projected my budget but did not account for my change in hobbies (from nothing to actually something), increased living expenses (I lucked out last year) and, more importantly, how much taxes actually gets taken out of my paycheck (long story short, car came before first paycheck...it was just how timing worked with the new job).

I'm anticipating some major expense changes in a few months (primarily rent differences but I'm a bit more active now than I used to be, too) and while I could support everything at once and hold onto the ST my projections don't save nearly as much as 1) I am now and 2) I would like to.

So I turn to you, Oppo, in another effort to crowd source opinions. I spoke with a couple people I know but I feel that a (somewhat) objective group such as yourselves would be able to lend me (again, somewhat) valuable insight.

Do I:

- stick with the ST and make it work by adjusting spending elsewhere?

- look to sell/trade and work back to a used car ($8-13k) while saving for my future wants?

I would look to fulfill my love of trucks with something somewhat off-road capable. I do not know of trails and such I could go nearby but my plans for the year include outdoor climbing, hiking and camping (hopefully).

Some of the things that have caught my attention, !!!error: Indecipherable SUB-paragraph formatting!!! , I have no idea about regarding reliability and actual performance.

And yes, the Commander is an automatic. I don't want to abandon manuals but I have my motorcycle (that I decided not to sell) to fill the void.

Any thoughts or words of advice would be greatly appreciated. The more the merrier.

Thanks guys.

(as a note, I complain a lot. I don't know what will happen or what I will do but more information and input is better than less, that is why I am posting)

N51fanatic > cazzyodo 02/28/2014 at 12:46

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ultimately, you'd have to do the math on your trade in hit. For example, you get hosed 5k on a trade in, how many months would it take you to recoup that 5k through the new car savings. Then you'd have to decide if that time is worth it or not.

Jonny Edge (@thejonnyedge) > cazzyodo 02/28/2014 at 12:48

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What I'll say to you is something that a wise man once told me;

'If you can, it's always better to be in a new car.'

Good luck with it mate, I hope it all works out for you with whatever path you go down.

For Sweden > cazzyodo 02/28/2014 at 12:49

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My entirely unprofessional analysis:

Focus ST sales right now are very slow; the early adopters already have their and the new ones are selling below MSRP. If you sell the Focus, the depreciation hit will be large, and you will lose the warranty. I would keep the Focus if at all possible.

However, Automatch Tom and others may call me an idiot.

The Dummy Gummy > cazzyodo 02/28/2014 at 12:49

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I would first look into if you are paying too much towards taxes. You could be putting too much in and will end up with a huge tax return; which you don't want (because you are giving the gov interest free money).

Is there nothing you can cut out? You are going to take a substantial hit if you trade this car in, from depreciation/what you put out for new tires.

Are you on the road a lot? What kind of mileage are you getting? Any savings you could be getting by switching to a less expensive car could be void because the Commander is going to suck down the sweet sweet fuel.

cazzyodo > N51fanatic 02/28/2014 at 12:50

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Quick trade-in estimate (NADA) could potentially recoup my current loan. I'd eat the taxes paid against it though...but at a fraction.

I forgot to say that I did some math regarding that, just not recently and against my budget. You raised a critical point, though. And that trade in could likely be crap given low volume.

N51fanatic > cazzyodo 02/28/2014 at 12:53

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you'd lose the taxes, fees plus money down. Did you put money down?? Ultimatly, what may be worth it to me, may not be worth it to you. Are you saving $100, 200, 300+ a month??? All that info is critical.

jariten1781 > cazzyodo 02/28/2014 at 12:54

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Are you actually going to come out 8-13k ahead? The first year in a car you take a serious hit.

I tend to recommend getting rid of payments all together rather than trying to cobble together a 50-100 dollar cut in payments. Remember that anything in that price bracket will be out of warranty as well and you'll want to have a maintenance fund set aside if you're rolling paycheck to paycheck otherwise.

I'd stick with what you've got unless it's undoable or you're willing to accept what you can get into free and clear.

Party-vi > cazzyodo 02/28/2014 at 12:55

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Unless you need a large looming SUV that even Sergio Marchionne couldn't justify producing, don't get the Commander.

cazzyodo > The Dummy Gummy 02/28/2014 at 12:57

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I'll definitely have to do some more work on figures and stuff but I never considered some of these things, to be honest. This is why I put it to you guys.

As for my driving, I don't put many miles...I have a short commute. Having my own vehicle (two year lease and this past year with the ST) has averaged under 10k miles. I know mileage will be a point of concern...quick estimates (10k miles, $3.50 gas, 25mpg vs 15mpg) say about $78 per month increase in gas.

And the Commander isn't the necessary target, it just caught my eye because it hearkens back to when I drove the family 5.4L F-150 in high school and it would be useful for my planned weekend excursions.

KillerRaccoon - Group J's Sébastien Loeb > cazzyodo 02/28/2014 at 12:57

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Like others are saying, depreciation may be big here. Skimping a little bit on savings right now could be a better investment in the long run. Not only that, you'll have a car that you know has had good maintenance, which is a big deal.

cazzyodo > N51fanatic 02/28/2014 at 12:58

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I'll be looking at everything again. I had a worksheet with everything detailed...right now I'm looking for perspective. You're certainly providing me with some!

I appreciate it.

cazzyodo > Party-vi 02/28/2014 at 13:00

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Haha...it caught my eye quickly is all.

But if I were to change vehicles it would be for a truck/suv that could be used successfully outdoors...I would eventually like to take some (simple) trails at some point in the near future.

The Dummy Gummy > cazzyodo 02/28/2014 at 13:02

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I see. Well than the new gas burden won't be too bad. I was just trying to point out that if you get something that sucks the fuel down you will have to take that into account. The positive though is that you'd be going from I believe premium (I think that's what the focus st takes) to regular.

Good luck!

The Dummy Gummy > N51fanatic 02/28/2014 at 13:07

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I think it depends on the state if he would lose taxes. In NJ if your trade in value is more than the car being purchased than there isn't any taxes. If it is less, it is the remaining residual between the two. That's also something to consider.

I think from the depreciation alone it wouldn't be worth it unless he is really struggling for cash. At that point take the loss and move on.

Tom McParland > For Sweden 02/28/2014 at 13:12

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Nope not an idiot...I say keep the car.

Tom McParland > cazzyodo 02/28/2014 at 13:13

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What is your loan term/rate? You can refinance an auto loan which might drop your payment.

Tom McParland > cazzyodo 02/28/2014 at 13:14

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NADA/KBB over inflate prices what is the year, miles and trim? I will run a more accurate eval.

cazzyodo > Tom McParland 02/28/2014 at 13:18

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2013 Focus ST with the second package (partial leather, not full) plus navigation.

I'm pretty sure it's not gonna work out for but I want to make sure I look at all my options.

And I'll look into your refinance suggestion as well.

Tom McParland > cazzyodo 02/28/2014 at 13:21

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Oh how many miles?

cazzyodo > Tom McParland 02/28/2014 at 13:29

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Somewhere between 5600 and 6000. Can't remember off the top of my head.

It's low...traveled quite a bit after I got it.

Tom McParland > cazzyodo 02/28/2014 at 13:32

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You are looking at about 18k on the trade...what is your payoff?

cazzyodo > Tom McParland 02/28/2014 at 13:33

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Not that...(I don't like talking real numbers with people for some reason)

Figured as much. Oh well.

Tom McParland > cazzyodo 02/28/2014 at 13:36

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If you ever want some advice...feel free to drop me a line. I'm always happy to help out Oppo bros.

AutomatchConsulting@gmail.com

cazzyodo > Tom McParland 02/28/2014 at 13:38

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You're a good man. Thanks.

Jayhawk Jake > Tom McParland 02/28/2014 at 13:43

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This was going to be my suggestion. I refinanced my Kia a year after I bought it, and ended up saving a solid $50 a month. It's not much, but it made a difference.

SteyrTMP > cazzyodo 02/28/2014 at 13:45

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Going from experience, keep it. My previous car, a Mini Cooper S ('04) was the only car I know of, shy of a high-end rarity, that could keep it's value off the lot, in it's time. Times have changed even for them.

Don't try to sell it now. Your loss will be immense. I'd do my best to adjust around it first. Buying a new car is a load of crap; I'm done with that. Until I can make large amounts of money (hah), I have no intentions on buying a new car again. Just driving it off the lot drops the value enough for it to be unsellable until at least 5 years, at which point sometimes SOMETIMES the depreciation value plateaus out.

I guess you'd have to be a little more detailed (I understand the vagueness) information for a realistic opinion.

cazzyodo > SteyrTMP 02/28/2014 at 13:52

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This will likely be the last new car I see for a lonnnnnng time.

bob and john > cazzyodo 03/02/2014 at 12:14

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keep the car. you will never forgive yourself if you do

samssun > cazzyodo 03/08/2014 at 04:12

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Spend less, work on making more.

Regarding taxes, if you're just realizing they're high with your entry level job, imagine how you'll feel if you spend years working 75 hour weeks, land a few promotions, and are rewarded with probably at least double the tax rate you face now. Elections have consequences.