Type R Owners, How much do you make? Financial advisers chime in.

Tags:
  1. 2018ST

    2018ST Member

    Joined:
    Jul 23, 2018
    Posts:
    49
    Thanked:
    16
    Location:
    Spokane WA
    First Name:
    Chris
    Car(s):
    2017 Honda Civic Type-R, 2017 Toyota Tacoma
    The one thing you should keep in the back of your mind is your health. I work with a guy that just retired today because he has stage 4 lung cancer. He put off buying toys so he could retire. He admitted he missed a lot of fun putting away everything he could. Just remember life is short and there is no reason why you can't have fun while you are living it!!!!
     
    CrippleRipple, Sil98, Slyclone and 2 others thanked this.
  2. rraayy3

    rraayy3 Senior Member

    Joined:
    Dec 28, 2017
    Posts:
    306
    Thanked:
    179
    Location:
    USA
    Car(s):
    2018 Civic Hatchback Sport CVT
    1. Yes, I earn between 2-3% on my money.
    2. No investment is guaranteed to outperform that loan over the duration of the loan (equity volatility, which most people think they have the stomach for until things drops 10+% ... look no further than December 2018)
    3. If you're not talking about overextending yourself, than why take out the loan in the first place? Why not pay off the car, owe nothing, and invest monthly/quarterly/annually with the payments you aren't dishing out every month to a finance company [all while your more expensive depreciating asset depreciates]?
    4. According to J.D. Power, the Honda Civics depreciate about the same % across a 5 year period: https://www.jdpower.com/Cars/Compare-Cars#
    - the stupidity of people paying more than MSRP doesn't make it a wiser choice either. In fact, even dumber financial decision.

    Have a great day!
     
  3. rraayy3

    rraayy3 Senior Member

    Joined:
    Dec 28, 2017
    Posts:
    306
    Thanked:
    179
    Location:
    USA
    Car(s):
    2018 Civic Hatchback Sport CVT
    there is a fine line to saving/investing, hence why in my initial post I included the "not eating cereal and spaghetti 7x a week without leaving the house in order to pay for a car" comment.

    Life is to be lived, for sure. It's actually the little things daily/weekly that add up to be tremendous wastes of money that people don't think about. $5 here, $10 there ... it adds up quickly.
    - I never buy take out (breakfast, lunch, dinner) during the week, nor do I "go out" during the week much (Work hard, play hard on weekends is my general approach). I make my own coffee, bring my own lunch, and make dinner at home. it is exponentially cheaper, healthier, and allows me to save a ton of money that others nonchalantly piss away
    --Girl in my office: daily Starbucks/breakfast, orders lunch at office, is spending over $6,000 a year that I'm not ... this is how I'm able to save/invest/enjoy my weekends/be debt free/travel wherever I want.
    - There is a balance between "doomsday I never lived my life" and being wreckless financially. That balance is hard to find, but it does not include buying a sportscar and living in your parent's basement.

    Back to original OP, No you probably shouldn't be getting a Type R ... yet.
     
  4. boosted180sx

    boosted180sx Senior Member

    Joined:
    Mar 27, 2017
    Posts:
    2,855
    Thanked:
    2,301
    Location:
    torrance, ca
    Car(s):
    2017 CTR, 2019 370Z Nismo, '16 ILX
    i've lost a few friends and they were still like high 20s - low 30s so I totally agree. You just never know what's going to happen. I just enjoy life the way I want it and not worry about what others think is smart or dumb. In the end, it is your life and your money.

    Too late, it seems like he already did lol.

    Though I do think it's stupid, maybe enjoying the daily starbucks/breakfast/lunch is her way of enjoying life. How do you know that they are not enjoying their weekends?
    Everyone has different ideas of fun and is in different situations so i don't judge people by the way they spend their money. Smart or dumb, it's not affecting me one bit.

    If everyone had the same mindset as you, all we would see on the roads are civics and corollas. Instead of travelling, maybe they find fun in driving around in their bmws/audis :dunno:
     
  5. idragmazda

    idragmazda Senior Member

    Joined:
    Apr 21, 2018
    Posts:
    555
    Thanked:
    394
    Occupation:
    M&A
    Location:
    Philadelphia, PA
    First Name:
    Depo
    Car(s):
    Current: 2018 Type R, 1977 CB400F; Previously: 2018 Civic Si Sedan, 2006 Civic, 1992 Mazda B2600i
    A 2-3% loan is essentially free money today.

    Why would you tie up 20K in some iiliquid asset when you can put down 5 or 10 and then invest the remaining funds or have the funds for rainy day purposes?

    Debt is not a bad word. It can be used as a tool to maximize your lifestyle and life goals. You just have to be prudent about using it.
     
  6. VarmintCong

    VarmintCong Senior Member

    Joined:
    Sep 23, 2016
    Posts:
    883
    Thanked:
    393
    Location:
    Massachusetts
    Car(s):
    2017 6MT Sport hatch
    While I also paid off my Civic loan which was 1.9%, I agree that it's not financially the best thing especially when you factor opportunity cost (the $20k will compound if you invest it even at 1.9%, and earn you more than you'd save paying it off). Even my money market funds are paying like 2.4% now.

    So why pay it off? Discipline - if you think of having to pay cash for a car, it'll keep you from buying $40k cars. It's a personal thing, I'm not recommending it. And I kind of wish I had the $20k to put more into gold mining stocks, lol.
     
  7. Slyclone

    Slyclone Gen X for Gen Xer

    Joined:
    Jun 2, 2017
    Posts:
    14
    Thanked:
    14
    Occupation:
    Shift Supervisor, Injection Moulding.
    Location:
    Canada
    First Name:
    Luc
    Car(s):
    2019 Honda Civic Si Coupe PWP(pick up Mar 20, 2019), 2016 Honda Fit EX-L 6M CBP(outgoing), 2012 Honda Civic Si Coupe TW(leased), 1993 Honda Civic CX Hatchback(sold)
    I remember 2 years ago I shopped around for a house, while driving a Honda Fit. Only to see the house prices double in value right before my eyes within 8 months. The Civic Si was no longer attainable if was to commit to the bubble.

    I'd rather live in a cardboard box and drive an Si, than take the bus from my artificial equity. My time is almost up at 44, after eating fast food everyday for 25 years.. I will spend every penny I make on keeping that lifestyle.

    It won"t bother me one bit what they do with the quarter million in life insurance they probably won't pay out when I croak.

    Better than saving for that sponge bath in a walker for 5k a month.

    Enjoy your CTR.

    Yolo.
     
    GoldClass thanked this.
  8. Driveitlikeuboughtit

    Driveitlikeuboughtit Senior Member

    Joined:
    Jun 28, 2018
    Posts:
    726
    Thanked:
    480
    Location:
    TN
    Car(s):
    2018 CW CTR

    1. Good for you, you have a low appetite for risk and reward, which changes the math for *you*.
    2. Good for you, you're talking about risk again. Nothing is certain but death and taxes.
    3. Sigh...you don't understand time value of money do you. My comment about having to make the investment first just flew over your head. Assuming return higher than interest, investing 20k now is better than re-building that 20k and investing it 3 years in the future, even if you're investing as you slowly rebuild it with monthly payments to yourself.
    4. How does JD power know what the Type R is going to do in 5 years? It doesn't, it's talking out it's ass like it always does. JD Power is a joke.

    In any case, I don't care what others do, I paid the old MSRP so I got a bargain. That other people are paying more than MSRP still is great for my resale value. If I "pay" the same as a 2018 Sport Hatch in depreciation over 5 years, that's a hell of a bargain and totally invalidates your third point. If I pay less, it's a damn steal.
     
  9. VarmintCong

    VarmintCong Senior Member

    Joined:
    Sep 23, 2016
    Posts:
    883
    Thanked:
    393
    Location:
    Massachusetts
    Car(s):
    2017 6MT Sport hatch
    There are a few cars where the crazy high resale throws off the math. Type R, STI, in the past a Golf R, but I think not anymore. Special BMWs like M3 Lightweight etc.

    I paid like $21k for my '97 GSR sedan. I think a Type R was $25k.

    Today the difference in value would be probably a lot more than $4k.
     
  10. rraayy3

    rraayy3 Senior Member

    Joined:
    Dec 28, 2017
    Posts:
    306
    Thanked:
    179
    Location:
    USA
    Car(s):
    2018 Civic Hatchback Sport CVT
    ... wow.
     
    Slyclone thanked this.
  11. Slyclone

    Slyclone Gen X for Gen Xer

    Joined:
    Jun 2, 2017
    Posts:
    14
    Thanked:
    14
    Occupation:
    Shift Supervisor, Injection Moulding.
    Location:
    Canada
    First Name:
    Luc
    Car(s):
    2019 Honda Civic Si Coupe PWP(pick up Mar 20, 2019), 2016 Honda Fit EX-L 6M CBP(outgoing), 2012 Honda Civic Si Coupe TW(leased), 1993 Honda Civic CX Hatchback(sold)
    I am doing well thanks. No worries whatsoever. A modest income, a nice car, a place to live, shower and sleep, a parking spot filled with my dream car. A loving gf, a bit on the side for when I want to eat a steak. Gas money, bills, gadgets, a great gaming rig, a full time job that I will still have when I die. Just like the good old days.

    It's okay if your choices are different than mine.

    We still have one thing in common.

    A Honda.
     
    boosted180sx, typemismatch and GarbageFk7 thanked this.
  12. rraayy3

    rraayy3 Senior Member

    Joined:
    Dec 28, 2017
    Posts:
    306
    Thanked:
    179
    Location:
    USA
    Car(s):
    2018 Civic Hatchback Sport CVT
    Glad to hear! Your previous post sounded less than rosey on the outlook
     
  13. rraayy3

    rraayy3 Senior Member

    Joined:
    Dec 28, 2017
    Posts:
    306
    Thanked:
    179
    Location:
    USA
    Car(s):
    2018 Civic Hatchback Sport CVT
    My go-to is pointing out to my coworkers how much they waste on breakfast/Starbucks/lunch every day ... it’s always fun to see there face when I present the “You’re spending AT LEAST $6,000 a year ...” closing line.

    “I don’t have time to make coffee at home” ... but they magically have time to drive out of the way and then wait on a line. I swear some treat the Starbucks cup like it’s an accessory
     
    CivicChina thanked this.
  14. alexrawdriguez

    alexrawdriguez Senior Member

    Joined:
    Jul 27, 2018
    Posts:
    119
    Thanked:
    60
    Location:
    Pembroke Pines, Florida
    Car(s):
    2018 civic si sedan
    Have my own place and a decent car > Live with my parents and drive a Type R or any car in that price range. If you can have your own place and have a Type R even better
     
  15. VarmintCong

    VarmintCong Senior Member

    Joined:
    Sep 23, 2016
    Posts:
    883
    Thanked:
    393
    Location:
    Massachusetts
    Car(s):
    2017 6MT Sport hatch
    These days you can buy a real fancy coffee machine for one tenth of that annual cost, it'll make the coffee for you. I think it's a lifestyle thing - you certainly don't go to Starbucks if you love coffee.
     
Loading...

Share This Page

Loading...