Is getting this Bronco a smart decision?

[HBTFD]

Spend your time and money on what makes you happy. Get the bronco.
Btw- your going to be waiting a while on it so you can keep saving until your golden ticket is pulled. If your BD is race red and I change your mind PM me, I’ll buy it.

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[FlyingBronco]

Get a Bronco, and learn to cook a few good/simple pasta dishes.

I would agree, no need to be eating out as much as he does at his age. That cost adds up very fast, especially with somebody who is trying to get ahead or afford other big things. Learn some basic meals to make and eat out maybe once a week.

 

[rdass623]

first thing you need to do is learn to cook. eating out is expensive and if you looked at how much you were spending in restaurants, buying a car would be simple.

a lease is never a good idea. at the end of a lease you will have paid for 3 - 4 years and established no equity in the vehicle, which you would have built if financed.

if you do not need a car right now, hold off, save your money, and buy one outright in a couple of years. buying one of these in a year after a whole lot of people get tired of getting in and out of high vehicles and are disappointed in the hype, will save you a bunch of money...

you sound like you are looking to have someone talk you into this vehicle... if you need to be talked into it, you really don't want it...

 

[JWBroncoATL]

My advice is: "Pay yourself first and then spend what remains on what you want".

Meaning, set up a financial plan and decide how much money you want to save/invest for the future.i.e. $X per month.

After you have decided that, THEN you can allocate what is left over as you see fit and that will answer the question if you can afford a Bronco.

 

[FlyingBronco]

Hi all,

I'm beyond excited to receive my bronco. I've just been contemplating whether it's a financially smart move.

About me: I'm a recent college grad taking home around $4k post-tax, rent, and insurance monthly. I have a variety of savings and investment accounts totalling around 90k. I have no debt and my previous car was a $3k rusty beater that I sold after the repairs started costing too much. I'm also in the very fortunate position that my parents do not need my help for anything. However, I do eat out a lot - all meals on weekends and usually also once a week.

Dilemma: I'm struggling to find the balance between spending $$ to live my life vs. saving money to be responsible. None of my friends my age are into cars and so most don't own one or have an econobox like a prius or civic. I've seen tons of financial videos that say to stick to the cheapest car possible and buy outright. If financing, they say to follow the 40/20/10 rule and never lease. However, I was planning on leasing my Bronco (Black Diamond base) and put just enough down to get it to under $400 a month for 3 years (I plan on changing cars often). I live in the city so I've been using public transit within the city and renting cars outside. IIn fact, I could also save around $300 a month by letting go of my apartment's parking spot (yeah, $$, tell me about it lol).

What are your thoughts? I'm content with my life as of now and feel guilty for getting this car. In a weird way, I feel like I don't deserve to have as nice of a car as this. It would also be my most expensive purchase by far. I don't mean to show off with this post but it seems like most people here have spun around the sun a bit more than me so I wanted to get your advice. My parents have always spent a lot of $$ on cars so they keep convincing me that I should get it lol.

$4k a month income after tax/expenses and just finished college. You are ahead of a good majority of recent college grads in that regard. You are obviously a thinker and pay attention to being successful. Keep that mindset because you will do just fine in life. Get the Bronco, enjoy it, budget it and you will be fine.

 

[stuckinohio]

I have never leased a vehicle. I just don't feel like it is the right thing for me, so I wouldn't recommend it.

I definitely think you should buy the Bronco! Someone earlier mentioned you are probably in better financial position that some of us who are twice as old..... And also, you are not likely going to get one quick so you can save the cash and just buy it or put a large chunk down on it when it's time.

 

[Big_Ed]

Is getting this Bronco a smart decision?

100% getting a Bronco is a bad financial decision. The only reasons to get a Bronco are despite it being a poor financial decision to buy one. If I needed a new vehicle and was concerned about making a smart financial decision I would buy a used Honda civic. Luckily, I'm in a spot where making a poor financial decision isn't that big of a deal, so I'm getting a Bronco despite it being a terrible financial decision.

 

[mpeugeot]

Hi all,

I'm beyond excited to receive my bronco. I've just been contemplating whether it's a financially smart move.

Nothing wrong with a new car in general, especially considering that having a vehicle covered under warranty does provide a certain level of comfort in that you are covered for repairs and such.

Now, the question I would have is did you order an FE or did you get something a little more restrained (like a Base SAS or a Badlands non-SAS mid package).

 

[campbebc]

Does driving a fun car bring happiness to your life? Will buying the Bronco prevent you from doing other things that bring you enjoyment? If you're able to pay all of your expenses and still save for the future/retirement then I'd go for it.

I made the same leap with my Focus RS a few years back and am so happy that I did

 

[notlimahttocs]

From my perspective, I am married and have three kids. We will likely barely be able to make our Bronco financially work. So, for us getting a Bronco is probably one of those bad life decisions. Nonetheless, I always say, sometimes its worth making a bad life decision.

 

[MacMarauder]

This sounds like the Suzy Orman "Can I Afford It" segment lol. Personally I'm not a fan of leasing to be each his own.

 

[indio22]

Hi all,

I'm beyond excited to receive my bronco. I've just been contemplating whether it's a financially smart move.

About me: I'm a recent college grad taking home around $4k post-tax, rent, and insurance monthly. I have a variety of savings and investment accounts totalling around 90k. I have no debt and my previous car was a $3k rusty beater that I sold after the repairs started costing too much. I'm also in the very fortunate position that my parents do not need my help for anything. However, I do eat out a lot - all meals on weekends and usually also once a week.

Dilemma: I'm struggling to find the balance between spending $$ to live my life vs. saving money to be responsible. None of my friends my age are into cars and so most don't own one or have an econobox like a prius or civic. I've seen tons of financial videos that say to stick to the cheapest car possible and buy outright. If financing, they say to follow the 40/20/10 rule and never lease. However, I was planning on leasing my Bronco (Black Diamond base) and put just enough down to get it to under $400 a month for 3 years (I plan on changing cars often). I live in the city so I've been using public transit within the city and renting cars outside. IIn fact, I could also save around $300 a month by letting go of my apartment's parking spot (yeah, $$, tell me about it lol).

What are your thoughts? I'm content with my life as of now and feel guilty for getting this car. In a weird way, I feel like I don't deserve to have as nice of a car as this. It would also be my most expensive purchase by far. I don't mean to show off with this post but it seems like most people here have spun around the sun a bit more than me so I wanted to get your advice. My parents have always spent a lot of $$ on cars so they keep convincing me that I should get it lol.

Firstly you seem like you have good financial acumen, and are in so much of a better place than I was probably at your age. So stick with saving and investing early.

When I was young, getting a car was the big thing. Now it's maybe getting a slick phone. Kidding aside, these days it seems especially easy, not to have a car, if living and recreating mostly in urban areas. What with the ride sharing companies and all.

Until last year, I was renting a car for vacations, and driving my older vehicles local. It was actually fun renting the car and putting mega miles on it, without having to worry about buying or breaking down far from home in my older vehicles.

I would say buy a Bronco if you will for real use and enjoy the key functionalities that make Bronco different from most other vehicles. The off-road ability and top down/doors off capability. The purchase will be worthwhile, if you get real use from those functionalities.

And consider the entry level 30k 2-door manual Bronco. You can take the top down, the doors off, and explore off-road with it. Base has those essential ingredients. (Consider adding 32" or 33" tires on it though aftermarket.)

The other stuff that gets the vehicle to 60k is mainly gravy. You get the key functionalities that separate Bronco from every other vehicle besides Wrangler, in the Bronco base. And at 30k when someone in the city dings the Bronco, you won't care quite so much as someone dinging a 60k vehicle!

 

[broadicustomworks]

I must say you are in a better position than most young people. and that goes for financially, mentally, etc.
My opinion is this:
Paying cash vs. financing for transportation is always a good move if the value is there. I've driven $300 cars that ran fine (not exactly cool or pretty) for years as a young man, sold them for what I had in them or more.
I've financed vehicles. New and used. 0% and insane %. Once the "newness" wears off, you still have that monthly payment due every month until it is done. And THAT carries its own amount of stress/burden you would not have otherwise.
However, the burden you won't have (or shouldn't) is knowing it will crank every time, get you where you are going safely, comfortably, and reasonably.

Now considering your circumstance, consider this:
The 4K per month you clear AFTER taxes, rent, insurance sounds like good money, and is in most areas of the country. That should be able to net you good savings monthly.
Now you have groceries, power, eating out, fuel, annual vehicle inspections/taxes, which on a monthly basis as a single person should be minute.
Realistically you can look to save about 3K per month, and that's still doing some frivolous stuff in there.
IF you saved 3K a month, every month, and didn't even invest it, you would have 36K in a year from now. In a year and a half you have cash to pay for a "top Tier" Bronco. Once and done.

Not sure what your future plans are, but I 1000% support saving all you can, regardless of what it is for.
Medical stuff comes up
Family gets into a tight spot and might need help
Car repairs/replacement
Appliances.
Purchasing a home vs. renting
Families.
Retirement.

As a young person, always look to the long-game plan, long-term goals.
If those goals are to marry one day, own a home, start a business, send your kids to college on your dime, or retire at an earlier age than 65-75...plan on that and structure everything else around that.

I help set up many of my guys' 401k's and try and steer them in the right direction. If young, be aggressive, make good choices and move money when it is time to.
Good thing is you should have many years to make mistakes and have successes.
Do what YOU feel is important for YOU and YOUR future plans/long term goals.

However, take the time to enjoy life and experience things while you can, when you can. I did not. Worked mostly 7 days/week on a FT job plus side business/part-time work to get to a financial place that allowed for that time.

The important advice here also is that everything is quantifiable and relatively recoverable except for time. It is the one thing that once it is behind you, it's behind you.

If this vehicle is an avenue and means to gain you peace, enjoyment, life experiences, then it can be considered an investment in those areas. And unless it lands you where you aren't making your bills and struggling, it is typically a good investment.

Long story, but in the end it sounds like you are in a good financial spot, have a mature perspective, and humble enough to ask others' opinions. You'll do fine either way.

If it were me and I didn't NEED a vehicle right now, made that kind of cash as a single person at that age, and know what I know now....I'd save enough to pay cash for it in a year-year and a half and let this whole debacle work itself out a bit more. Let the kinks work out and the dust settle.

Ride away free, clear, paid-for, and top-down into the sunset.

 

[Vantcrst]

Ok, well as someone with a background in finance let me first say that asking the folks here about buying a Bronco reminds me of the phrase "preaching to the choir". On its face this question has an easy answer. No, buying a Bronco is not a good financial decision. But I am not sure that is the only question you should be asking yourself. I lived in San Francisco for years before moving to the mountains to play and live a better quality of life. I don't know exactly where you live but I think the first question should be are you going to be able to enjoy the Bronco if you buy it? Parking, traffic and the inevitable scratches and door dings from city living can put a significant dampener on spending that kind of money on a new car. But having said that it sounds like you have a good head on your shoulders. The fact that you are asking for or even care about advice from some of the older folks on here bodes well for your financial future. I have always been very financially conservative and spent 10 years saving/convincing myself to buy the van you see in my profile picture. It was a lifetimes worth of extravagance all put in to one purchase. You may also consider that you have some time to make this decision. If you have not already put in your reservation/order you are looking at over a year at minimum. Maybe take that time to decide if you will really get the enjoyment you are hoping out of the Bronco given your currently living situation.

 

[Vantcrst]

I must say you are in a better position than most young people. and that goes for financially, mentally, etc.
My opinion is this:
Paying cash vs. financing for transportation is always a good move if the value is there. I've driven $300 cars that ran fine (not exactly cool or pretty) for years as a young man, sold them for what I had in them or more.
I've financed vehicles. New and used. 0% and insane %. Once the "newness" wears off, you still have that monthly payment due every month until it is done. And THAT carries its own amount of stress/burden you would not have otherwise.
However, the burden you won't have (or shouldn't) is knowing it will crank every time, get you where you are going safely, comfortably, and reasonably.

Now considering your circumstance, consider this:
The 4K per month you clear AFTER taxes, rent, insurance sounds like good money, and is in most areas of the country. That should be able to net you good savings monthly.
Now you have groceries, power, eating out, fuel, annual vehicle inspections/taxes, which on a monthly basis as a single person should be minute.
Realistically you can look to save about 3K per month, and that's still doing some frivolous stuff in there.
IF you saved 3K a month, every month, and didn't even invest it, you would have 36K in a year from now. In a year and a half you have cash to pay for a "top Tier" Bronco. Once and done.

Not sure what your future plans are, but I 1000% support saving all you can, regardless of what it is for.
Medical stuff comes up
Family gets into a tight spot and might need help
Car repairs/replacement
Appliances.
Purchasing a home vs. renting
Families.
Retirement.

As a young person, always look to the long-game plan, long-term goals.
If those goals are to marry one day, own a home, start a business, send your kids to college on your dime, or retire at an earlier age than 65-75...plan on that and structure everything else around that.

I help set up many of my guys' 401k's and try and steer them in the right direction. If young, be aggressive, make good choices and move money when it is time to.
Good thing is you should have many years to make mistakes and have successes.
Do what YOU feel is important for YOU and YOUR future plans/long term goals.

However, take the time to enjoy life and experience things while you can, when you can. I did not. Worked mostly 7 days/week on a FT job plus side business/part-time work to get to a financial place that allowed for that time.

The important advice here also is that everything is quantifiable and relatively recoverable except for time. It is the one thing that once it is behind you, it's behind you.

If this vehicle is an avenue and means to gain you peace, enjoyment, life experiences, then it can be considered an investment in those areas. And unless it lands you where you aren't making your bills and struggling, it is typically a good investment.

Long story, but in the end it sounds like you are in a good financial spot, have a mature perspective, and humble enough to ask others' opinions. You'll do fine either way.

If it were me and I didn't NEED a vehicle right now, made that kind of cash as a single person at that age, and know what I know now....I'd save enough to pay cash for it in a year-year and a half and let this whole debacle work itself out a bit more. Let the kinks work out and the dust settle.

Ride away free, clear, paid-for, and top-down into the sunset.

100% agree

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