Get rid of my lease?

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Appalachian
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Joined: Mon Apr 01, 2013 9:13 pm
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Get rid of my lease?

Postby Appalachian » Mon Apr 01, 2013 9:21 pm

I know what you're thinking... this guy has got some nerve asking a question he probably already knows the answer to, but I thought I'd come on and get your $0.02 (2 cents) any way.

I'm 29, married, have no debt other than what I am taking on currently in grad school and will owe around $40k when all is said and done.

My wife and I have 2+ years of emergency fund/future down payment, max out the match on our 401(k)'s and both have a Roth IRA we also max each year. We save on average 30% of our net income each month and live below our means, but the one thing I love is getting out for a drive. I enjoy driving my new Beemer along the country roads of Virginia and quite honestly am excited each time I enter the vehicle.

Last year, we tried to make the "smart move" and purchase a Camry which was fine for the first couple of months, but it became more A to B versus the enjoyment I had prior to the Camry (another Beemer) and now.

So do you think I should get rid of the BMW?

Part of me doesn't want to, but part of me does. We could save $1,000 per month if you add up fuel costs, car insurance, payment, & amortize the property tax over 12 months.

We live in DC and I could utilize the metro train to/from work, but it would add an additional 30 minutes to my commute and would involve walking 3/4 mile to the metro stop, yuck 8)

Thanks in advance for your thoughts/opinions!

- App

peachy
Posts: 1148
Joined: Mon Feb 04, 2008 7:35 am
Location: Maryland
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Re: Get rid of my lease?

Postby peachy » Tue Apr 02, 2013 5:00 am

What are you saving for?
If you like the car, and can afford it keep it. Why save all your money and live a miserable existence?

I don't really understand what an extra 1000/month is going to do. Help you IMAGINE driving the country roads of VA?

I'm all about enjoying life, so you have to decide what you would prefer-getting out there on the road, or counting your pennies in the bank. Your call..

Appalachian
Posts: 2
Joined: Mon Apr 01, 2013 9:13 pm
Contact:

Re: Get rid of my lease?

Postby Appalachian » Tue Apr 02, 2013 5:49 am

The one thing we are saving for "per se", is a down payment on a house. We'd like to put down at least 20%, but with rates and how lenient banks & CU's (Navy Federal has 100% financing, no PMI, 30 year fixed at a 3.5% rate with 0 points or origination) are right now, it may make sense to finance at a low rate and use our money elsewhere.

$1,000 extra per month won't really do much except earn .55% APY. I am all about enjoying life too and feel that if I am within my means in most other aspects except this one, then it's fine.

Thanks!

- App


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