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Can I afford this sports car of my dreams? Posting all my finances inside..

how much car can i afford to lease

Can I afford this sports car of my dreams? Posting all my finances inside..

I'm 23 and have been at my current job for about a year. I'm in consulting and I travel every week, so I'm on the road Mon-Thurs. I only drive on Thursdays, Fridays, Sats, and Sundays. So please keep that in mind. Anyway, here are my finances:

Equity/Brokerage Account: $20K

Roth IRA: $1,600 (don't contribute to this anymore)

401(K): $4,200 (contribute 7% of each paycheck to this)

Cash: $14,000

HSA: $850



The car I want is a used sports car that costs $56,000 at the dealer. I'm assuming I'll be able to haggle it down to $54,000 and that I will trade my car in for around $12,000. So, the car would be $42,000.

Can I afford this? I'd probably try to put a downpayment of $12,000 and finance the other $30,000.

My insurance will probably double from $140 to $280 (wouldn't be surprised if it did, but I'm not sure how much it would go up exactly).

Gas consumption would probably double. I fill up about twice a month, so I'd probably be filling up four times a

month with the new car: additional $120 in gas per month.

I have excellent credit and zero debt, but I am financing my current car. It's about $350 a month but I pay $500 a month because I want to pay it off quicker. An online calculator shows that a $30,000 loan @ 5 years with a 2.9% interest rate (my current rate) would be around $850 a month.

So, in terms of monthly cash flows, I'm currently spending $780 a month on my car.

The new car would require $1,410 a month. That new monthly car price + my current monthly expenses (including EVERYTHING) would turn out to around $3,000. My monthly take-home is around $3,200. So I'd only be saving $200 a month. Of course, that number will fluctuate up and down.

So, can I do this? I'm leaning towards 'NO!' because I have a car in good shape already. I have a good job with a good income trajectory and I love cars. This car is pretty much my reasonably-attainable dream car and I'm debating whether to go with the 'hey, fuck it, you only live one' mentality, or the 'delay your urges now and splurge later on' mentality.

Category: Credit

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