All of a sudden in my little brain "Berky, look another person like you". I would strongly recommend getting a Mini, but a low mileage, mod-free, preowned. You will not lose so much money if you want or need to sell it for any reasons . You will learn to appreciate the value of things when they come from hard work

 

Wow...and without reading everyone elses post here, all I can say is, wow ...First off- I admire your desire for wanting to get a Mini. But come on..how old are you? and you say you are "so worried"...give me a break . You have your whole life ahead of you..you should be worried about quite a bit more than a car at this point in time. I might be wrong, but I sure don't feel sorry for you...No advice from me, except stay in school

 

IMO....That kind of logic that is so pervasive in our society is why so many people expect taxpayers to take care of them in thier old age..buying thier perscriptions.

The fact is that soooo many people "struggle" throught thier ENTIRE life because they put themselves behind the 8-ball early in life and never get out from behind it! The reality is you have just as much at stake and much less wisdom to make good choices unless you listen to people who have been there done that.

NOBODY has any buisness buying a new car until they understand the compound intrest. If this young person simply invested the money he would have spent on this car in a decent mutual fund, and never touches it again, never saves another penny thier whole life he would be a millionare at age 60...The cost of a purchase we make is not just the current dollars you are spending. Its good to buy things you want but everyone need to be aware how much that car REALY cost them....In the case of a 20yr old it costs about a million dollars ....Hope you like the car! Dont expect us to feel sorry for you on social security though...

 

I guess I'm in planeguy's camp. Here's some food for thought...

Take your $25,000-or-so budget. Spend $10,000 on a nice used car. Invest the other $15,000. If you put it in something like a stock market index fund, which historically has about 10% returns, you're looking at more than $1.6 million dollars when you're 65. If inflation is 3%, that'll buy you what $400,000 will now--think about what you can drive during retirement! (Put the money in a Roth IRA, and all that growth will never be taxed. You'll have to spread the deposits over a few years, but that would be like making car payments.)

And the $10,000 car you drive now won't be shabby. I'm 29 and have never owned a car worth $10,000. That ends tomorrow when I pick up my MCS! But anyway, best of luck with this decision and all the others you'll make.

 

Planeguy, that may or may not be good advice, if a 20 year old has $20k (or what ever) to spend and expect to make no money thereafter, then sure, save the money and have a million by 60. But if that same 20 yr old can save another $20k in say 4 years, then why not buy the MINI now, enjoy it, and put the $20k he/she will have at age 24 into the mutual fund. That way he will still have a million, only at 64 instead of 60. Of course one can make the argument for buying the MINI at 24 instead while putting the money away now, but four years from now, the 2010 MINI could be a POS.

 

Everyone is always talking about saving, mutual funds, CDs...But what if you were to die tommorow? Why deny the pleasure of driving around a MINI now. Besides, to become a fireman, won't you be out of college in like 2 years? Then I would assume it off to Academy..(1 year maybe) and then you're a fireman (My best friend is a firefighter/paramedic cool job..) If you can swing it, do it..(Although you may get harrased by the Big pickup SUV driving Macho firemen.)
Best of luck dude....

 

Even though I doubt it will help, I'll throw my 2 cents in to the pile. I would wait until after college to get the car. you never know what your going to need the money for until you are there.

Mom and dad on your case, want to move out, going to be more difficult with your money going into a car and insurance. Hot girlfriend? Girlfriends = expences. also not as much fun having her over when your living at home (expecially the moaners ). Then utilites, etc..

Im 25, I have a masters degree, a full time job and make just shy of 23$/hr and you know what? between the car and an aparment and a girlfriend, money is tight all the time.

I guess what im trying to say is all of the niceties of life cost $$. plan carefully or end up with headachs, sure its fun to be young and make mistakes, buy why learn from a mistake you dont have to make in the first place.

 

that is a really immature perspective

Because you dont make decisions based on one in a million chances Because the ability to delay gratification is probably the single most important character attribute that enables you to succede. Because the most rewarding experiances in life are not bought with dollars and often require lots of patience.....and Because I am tired of suporting people with this attitude with my tax dollars when thier short sighted approach to life leaves them eating alpo and working at wal-mart in thier 60's

 

Well said my friend.

 

I'm enjoying this thread, though a little like an embellished-slightly-off-topic.

Sometimes the satisfation of having something, whether it be monetary, physical things, or just a little respect comes from having earned it the hard way which includes a few mistakes along the way. If it were easy, everyone would have it and no one would give it a second thought to have value.

I believe its not really relevant to compare generations so far apart. Society in general is too different from every aspect. Consider education which Chows4us mentioned. Not having a degree (whether you had the opportunity or not) is much different today than it was in the early 1900s. Today a degree is basically a must for any good paying job with adequate benefits. On top of that most need some kind of license or registration to practice what they do from some governmental agency to boot.

And to keep it a hot topic: let's DO make a decision on a one in a million chance. Tell me planeguy, do you pay for life insurance? Why waste THAT money. Of course, that would depend on one's station in life, whether there's a family among other things.

And I think we all know that our taxes aren't sucked up mostly by those who can afford internet access to participate in an online thread on life's decisions. That's a whole segment of society that's likely not represented here. They are out there somewhere trying to figure out another way to beat the system and get a benefit they don't deserve.

The desire that our children have it better than we did was where I think we go wrong to some extent. This is one father that wishes he had an opportunity to back up in time and NOT let his children have it so good. I didn't have much beyond necessities as a child and having earned a few things wish I could get my kids to understand better why they need to earn something.

Good luck on your decision young man. Enjoy that it will BE your decision. I'm sure we'll still be talking about life here long after you get your first car.

 

There are some good points in the last few thread that the young just don't want to hear. Its been documented that

1. Everyone needs to learn from their own mistakes (I know I did "half of the time")
2. Current generation is the "instant gratification" generation. I want it NOW and I EXPECT it now

Jolly, your theory doesnt wash because:

1. Money today is worth more than money tomorrow. At 64 he would have far more than $1M because of the magic of compond interest. When you save and the money is only in the thousands, you dont see much. BUT, when its big numbers, the increases are REALLY big.
2. That means while in school saving $5K/year. Who can do that?
3. "You don't know what you don't know" **** happens. that can change everything.

I will give my one example of a BAD mistake I made while in college. Just like the originator of the thread, I REALLY wanted a new CAR bad. very bad. I went to school full-time AND worked full-time. I busted my butt working double shifts on weekends (Oh to be young again). When I had enough saved I bought the equivalent of what would be maybe a $30K+ car in today terms. No life at all ... just work, study and save. Still in college I bought that car over the objectives of EVERYONE who told me I was crazy. I had my find for about nine months and then ... it sunk in that I was WAY over my head. I had to sell "my baby" and bought a used car for 1/3 the cost of the new car and kept it until after grad school and married ... until it became too expensive to keep fixing.

It was a mistake, everyone told me, and the stubborn person in me just said "BS, its my money, I worked for it, etc. etc. etc.).
I was lucky in that I sold it for the new near cost (within a few hundred but thats another story). I have learned from my mistake ... but I guess everyone has to learn the hard way.

So the moral is ... go do whatever it is you want to do. Maybe you will luck out, maybe you won't, but its your mistake (or not) to make if your an adult.

 

This is how he will grow up, Chows...learning by doing. Being young, he can recover. As said before, he has a career path of becoming a fireman. He'll be able to afford his MINI. If it becomes a burden, he can sell it...but at least he will have achieved one of his dreams.

 

I'm reminded of the Visa commercial where they say this and that is so many dollars, then something else abstract is "priceless". Maybe this falls into that, the opportunity to learn from one's mistakes (if it turns out to be a mistake), is priceless.

 

ROFLMAO Been there, Done that!!!

 

Hello! I'm 16 right now, soon too be 17 (July) and I have been busting my ***** the past 2 years trying to save for a MINI! I should hopefully have an 06' by summer time of 07'. My parent's are paying for my college (cheap college, and I'm NOT rich). I think I have a good start, seeing as I have ~$12k in cash just floating around in the bank....waiting to be spent! I can't wait, to MOTOR!

-Cody

 

Chows -- when you say that the young are the "instant gratification" generation and that we want it now and "expect" it now, that spanks of the assumption (though I don't suspect you meant it this way) that we expect others to somehow give it to us. It doesn't seem like HF (who has probably by now gone into therapy) expects to get it by any means other than his own hard work. His parents are willing to help out a little, which is quite nice of them.

As for delaying gratification being the greatest asset for success: BAH HUMBUG! It isn't immature to consider that we could each be hit by a bus tomorrow after lunch; it's quite pragmatic. If we can't live life to the fullest, whatever that means to us, then there isn't really any point in living it, now is there? If all I can say at the end of the day is; "everything is basically dull and not how I'd like it, but boy my mutual funds are rockin'!" then I will consider myself a complete, total and abject failure. Albeit, a potentially wealthy one. Oh the sense of adventure my Roth IRA will bring me.

Finally -- not everyone working at Wal-Mart when they're 60 and "eating Alpo" is doing so because they went out and bought MINIs before graduating college, setting up an investment portfolio and becoming CEO of a Fortune 500 company. As someone else pointed out; the people on this forum are not likely representative of the "underpriveledged" to whom reference is made.

Finally finally (and I really mean it this time), I think the majority of people who are so averse to this potential purchase are really just a bit frightened to consider that they could have been a bit more footloose and fancy-free. :impatient

 

Sounds right to me Om!

 

My roth IRA is doing very well, thank you very much. I am enjoying life to its fullest, difference is, responsibly and not getting up to my eye ***** in debt.

At 34, I have owned at least 12 new cars, have travelled twice to Europe (and elsewhere), own my Condo and have 1 MINI fully paid off and the other one will be so in about a year or so.

But when I was 18 I made the mistake of buying a brand new car and I wasn't worth it IMO.

 

^^ And look how well you're doing in spite of it!

 

Absolutely not. WWII generation barely expected to live. Baby Boomers, many hippies, became DINKs or driving a Bimmer, sought the money but worked hard. Gen X understands money. Kids of Baby Boomers see what their parents have and just "expect" to have the same or more ... That does not imply handed to them. I didn't make this up. Look up analysis of generations or trends in generations. Just look at recent commercials. 10 year says he had to go to the video store as a kid to see a movie. 5 year olds is dumbfounded ... .What? No video on demand?

I dont think I hever said to delay gratification. That implies you have the money and just dont spend it. I would never do that. I believe strongly in "Life is too short"

Absolutely not. I told my story of buying an "expensive" car in college. Really bad idea, I admit it, HAD to sell it, didn't really recover until 5 years later and married ... only then bought a "new" car .... nothing wrong with used cars.

 

Yes there is! Used MINI's are a good example. Most are as expensive as brand new ones, and the 02's that are $19k, they have no or little warenty left. And after that warrenty is up...THEN talk about debt. That is the reason I'm saving up $6k more and just getting brand new. Much better decision now, and in the long run. Plus, the 02's had lots of troubles and the 06's are much better.

Food for thought.
-Cody

 

Uh, no, used MINI's are an aberrent example. They have unusually high resale values, which changes the picture considerably.

 

That is a very narrow view of the used car spectrum, an anomoly.

There is nothing wrong with buying two year old car so the guy who bought NEW, gets too enjoy the thrill of massive depreciation. Go ask anyone who bought say an 05 Elise what they are thinking about their resale value about now.

 

Used mini's are going for really cheap now compared to a few month ago when i was looking.

I suggest a first gen miata. But be careful
I wouldn't say i got in over my head, or messed anything up... I sold my mini to get out of a potential problem that would occur down the road. If you're planning on moving out an time soon like i am, i suggest not buying the mini til afterwards. It's good parents help with colege, i didn't have that luxury, but my miata was a great first dependable car, that was uber fun and easy to work on. Lots of parts available and a convertible. oh, and RWD That's why i'll be back in one. If i were you (in fact at this point i kind of am) Hold off on the mini. It's nice to have what you want now, but if you get it and realize it's not working out, it'll break your heart to give it up, or something else in order to keep it.

 

Cheers! I am in quite the same situation, but I will be able to finance after I have $10k.