Advice Needed: $100k auto loan for someone with no loan history?

[will.c]

Originally Posted by Litos

does this freaking noob think he's pulling in $500/year or what !?!? he's a freaking Engineer, not a goddamn doctor with his own practice.

Dude, I don't think you know how much an average PE with his/her own PLLC makes.

[Litos]

Originally Posted by will.c

Dude, I don't think you know how much an average PE with his/her own PLLC makes.

this guy doesn't have his own PLLC.....and he's not an average PE - he is a new grad with about a year experience.

this kid just got out of school about a year ago - he's probably sitting at a desk right now printing out P&ID's or making coffee for the Project Engineers.

he won't jump into any actual engineering or any sort of responsibility role for another 4 or 5 years.

trust me - I've been around engineers for almost a decade in the oil/gas EPC business....

I've been doing project procurement for 9 years - I deal with engineers on a daily basis...

a year after college, he's not making enough money to get a GT3 and a $350K house......even if you combine his wife's salary.....

[khanhdom]

Originally Posted by Litos

this guy doesn't have his own PLLC.....and he's not an average PE - he is a new grad with about a year experience.

this kid just got out of school about a year ago - he's probably sitting at a desk right now printing out P&ID's or making coffee for the Project Engineers.

he won't jump into any actual engineering or any sort of responsibility role for another 4 or 5 years.

trust me - I've been around engineers for almost a decade in the oil/gas EPC business....

I've been doing project procurement for 9 years - I deal with engineers on a daily basis...

a year after college, he's not making enough money to get a GT3 and a $350K house......even if you combine his wife's salary.....

why you gotta have the pacers sig bro?

[pukicabuki]

Originally Posted by Caballero

I love these kind of threads.

+1

According to the ballers on this forum you need to be a billionaire to properly afford a bus pass.

[gatorfast]

Originally Posted by pukicabuki

+1

According to the ballers on this forum you need to be a billionaire to properly afford a bus pass.

Or a first year college grad to afford a gt3

[mbintx]

Post up a pay stub and his bank balances and we experts can give better advice....

[P1]

I say just have Mommy and Daddy pay for it. Easier.

[pukicabuki]

Originally Posted by gatorfast

Or a first year college grad to afford a gt3

You keep focusing on the recent grad thing. He has $7500/month after taxes/expenses/ect. He's maxing out his 401k and has other investments. His fiance also makes a comfortable living. Its not a matter of whether he can afford it or not because he obviously can (regardless of what a financial genius like you thinks). What exactly is he doing wrong? Should he never enjoy his life because people like you think everyone should squirrel away 90% of their income? Some of you are so uptight you must $hit diamonds.

The question was how to get a loan for it rather than paying for it in cash (which is an option for him). Either answer the question or keep you self righteous know it all crap to youselves. Every thread that has something to do about money gets invaded by the "even Bill Gates can't afford it" police that wants to $hit all over everyone with their superiority.

Almost forgot.....

[NemesisX]

I was on my iphone on vacation for my previous posts but to elaborate on what I said - my friend was pretty much in exactly the same situation. At the age of 25 he wanted to purchase a brand new V10 R8 but he had no loan history prior.

However, he was somewhat of an unusual case. During his second year of college he dropped out to join facebook (relatively early on) after somewhat infamously discovering some kind of exploit and "hacking" the facebook profiles of thousands of users to make them look like myspace. Don't ask me for details because frankly speaking I'm not a computer science guy.

Anyways, long story short he was one of "those guys" who made millions when facebook went public. Obviously not to the extent of the co-founders, but his net worth was somewhere between $10M and $15M at the tender age of 20 something, and it's grown since then because he spends far less than he earns (usually) in passive income in any given year.

He simply explained the situation to the bank and showed them assets in excess of $10M and he had no problem getting the loan. It's important to note that assets =/= net worth because strictly speaking he could've had $20M in debt or something crazy, but the bank gave him the benefit of the doubt and he was able to finance his R8 with a great interest rate.

I suppose he could've paid cash for it but the reason he didn't was because he was technically "retired" (or, well, unemployed intentionally) at the time so his sole source of income was investment income, and so he felt that in his position it was important to be somewhat judicious when it comes to paying off large purchases early.

So again if the OP's friend can show sufficient income and assets to justify the loan he should have no problem. I don't know what combination of income and net worth is necessary, though. Obviously I suspect $0 salary/wage income and $12M or $13M in stocks and bonds is not the minimum requirement to procure a $100k auto loan with no loan history. The point of the story is to show that it is, indeed, possible to procure loans of this type without any loan history.

[Spinny02]

Originally Posted by pukicabuki

You keep focusing on the recent grad thing. He has $7500/month after taxes/expenses/ect. He's maxing out his 401k and has other investments. His fiance also makes a comfortable living. Its not a matter of whether he can afford it or not because he obviously can (regardless of what a financial genius like you thinks). What exactly is he doing wrong? Should he never enjoy his life because people like you think everyone should squirrel away 90% of their income? Some of you are so uptight you must $hit diamonds.

The question was how to get a loan for it rather than paying for it in cash (which is an option for him). Either answer the question or keep you self righteous know it all crap to youselves. Every thread that has something to do about money gets invaded by the "even Bill Gates can't afford it" police that wants to $hit all over everyone with their superiority.

Almost forgot.....

So no need to be rude to the guys offering sound advice. We all make choices. I make a very decent living, I also purchased 150k cars when I was in my20's. Do I regret it ... No. Should I have done it ? NO. That same 150k would prob be worth 1+ mill if I had invested it only 10 years ago. That would have had a healthy impact on my current net worth. I have had 4 such cars since. So I understand the want to get this type of car and enjoy life. The rest of the guys on the forum are offering sound advise. In 10 years your friends could buy and sell 10 of these cars if he saved more. Maxing out 401k is a great plan but it by no means will suffice for income for a ret. high net worth spender. The more you save at a younger age the more he can buy whatever he wants when he is 35-40 and still have lots to spare.

Don't follow my example. I have been very lucky( and worked my ass off) that my career keeps progressing and I can make up for that spent money when I was younger . I would advice your friend to follow the sound advice of the other guys. Get a used car in a lesser price range and enjoy it.

Save save save or spend spend spend. He need to ask himself where he wants to be in 15-20 years, that's a hard question to understand at 2x.

[kevinbahnz]

Originally Posted by P1et

I say just have Mommy and Daddy pay for it. Easier.

I second this , or have them co-sign for him..

[will.c]

Originally Posted by Litos

this guy doesn't have his own PLLC.....and he's not an average PE - he is a new grad with about a year experience.

this kid just got out of school about a year ago - he's probably sitting at a desk right now printing out P&ID's or making coffee for the Project Engineers.

he won't jump into any actual engineering or any sort of responsibility role for another 4 or 5 years.

trust me - I've been around engineers for almost a decade in the oil/gas EPC business....

I've been doing project procurement for 9 years - I deal with engineers on a daily basis...

a year after college, he's not making enough money to get a GT3 and a $350K house......even if you combine his wife's salary.....

lol now I know why you hate them so much. no further questions

[US///M3]

Originally Posted by gatorfast

Or a first year college grad to afford a gt3

[Litos]

Originally Posted by will.c

lol now I know why you hate them so much. no further questions

yeah, they don't possess a very good "common sense" attribute.

if it's not in a book that they can read, they are clueless about it.....

[dtwyim]

Originally Posted by Spinny02

So no need to be rude to the guys offering sound advice. We all make choices. I make a very decent living, I also purchased 150k cars when I was in my20's. Do I regret it ... No. Should I have done it ? NO. That same 150k would prob be worth 1+ mill if I had invested it only 10 years ago. That would have had a healthy impact on my current net worth. I have had 4 such cars since. So I understand the want to get this type of car and enjoy life. The rest of the guys on the forum are offering sound advise. In 10 years your friends could buy and sell 10 of these cars if he saved more. Maxing out 401k is a great plan but it by no means will suffice for income for a ret. high net worth spender. The more you save at a younger age the more he can buy whatever he wants when he is 35-40 and still have lots to spare.

Don't follow my example. I have been very lucky( and worked my ass off) that my career keeps progressing and I can make up for that spent money when I was younger . I would advice your friend to follow the sound advice of the other guys. Get a used car in a lesser price range and enjoy it.

Save save save or spend spend spend. He need to ask himself where he wants to be in 15-20 years, that's a hard question to understand at 2x.

^listen to a man who has been there.

[1fastdoc]

I came from living frugally on $8k/year to now having a very substantial income. However, I didn't start making good money until my late 30's. One thing that wasn't mentioned is what kind of security blanket he has and what he will do if he becomes unexpectedly unemployed.

If I were a credit institution and he wanted to borrow $100k from me, the first thing I would want to see besides his net worth is his life and disability insurance.

If he's covered his ass well financially such that getting laid up after sliding that GT3 sideways into a tree won't preclude him from paying off his loan, then I see no problem with it.

I do agree with the others though, at 23 he has a long way to go. Buying the GT3 before the house demonstrates his lack of maturity. But hey, he may get the car and the house and have a great life and wonderful memories that most would seriously envy. It's a risk. Hope it works out well for him.

[Uber V8]

ITT: you must make $100k month to comfortably afford a $100k car

P.S. Live a little, tomorrow isn't promised to anyone.

[upstatedoc]

Originally Posted by 1fastdoc

I do agree with the others though, at 23 he has a long way to go. Buying the GT3 before the house demonstrates his lack of maturity.

[Templar]

Originally Posted by pukicabuki

You keep focusing on the recent grad thing. He has $7500/month after taxes/expenses/ect. He's maxing out his 401k and has other investments. His fiance also makes a comfortable living. Its not a matter of whether he can afford it or not because he obviously can (regardless of what a financial genius like you thinks). What exactly is he doing wrong? Should he never enjoy his life because people like you think everyone should squirrel away 90% of their income? Some of you are so uptight you must $hit diamonds.

The question was how to get a loan for it rather than paying for it in cash (which is an option for him). Either answer the question or keep you self righteous know it all crap to youselves. Every thread that has something to do about money gets invaded by the "even Bill Gates can't afford it" police that wants to $hit all over everyone with their superiority.

Almost forgot.....

Oh please... No one cares. This is OT and you're almost guaranteed to get slammed for posting shit like this.

You must be new here.

[RandomHero]

Originally Posted by pukicabuki

You keep focusing on the recent grad thing. He has $7500/month after taxes/expenses/ect. He's maxing out his 401k and has other investments. His fiance also makes a comfortable living. Its not a matter of whether he can afford it or not because he obviously can (regardless of what a financial genius like you thinks). What exactly is he doing wrong? Should he never enjoy his life because people like you think everyone should squirrel away 90% of their income? Some of you are so uptight you must $hit diamonds.

The question was how to get a loan for it rather than paying for it in cash (which is an option for him). Either answer the question or keep you self righteous know it all crap to youselves. Every thread that has something to do about money gets invaded by the "even Bill Gates can't afford it" police that wants to $hit all over everyone with their superiority.

Almost forgot.....

Thank you for reading my posts in their entirety. You are correct, he has $7500/month of disposable income, which is much different than $7500 of take-home pay.
As someone who does this for a living, I’m a very firm believer in satisfying your short, intermediate, and long-term financial goals. I believe in living below your means, but I also believe in enjoying yourself (with moderation).

As an update to this thread, he ended up getting the loan for the full value of the vehicle with a 3.5% apr for 72 months.

In order to counter the cost of the loan, we plan to invest in several Texas Muni Bonds (AA quality or better) with a YTM of 1.75% or greater and a maturity date of less than 8 years. That will essentially pay for the cost of financing the loan with very low risk (individual bonds are much different than bond funds).

Originally Posted by FwdFtl

ITT: you must make $100k month to comfortably afford a $100k car

P.S. Live a little, tomorrow isn't promised to anyone.

We share the same thought process.

Let’s compare a potential situation many people on this forum are probably in:
1.) $60,000 BMW 335i leased at $650/month
2.) Going to the bar twice a week…..$250/month or more
3.) Going out to eat twice a week….$250/month or more
4.) Buying nice clothes….$300/month or more

Total: $1450+/month and 6 years later you have nothing to show for it….that lifestyle is essentially costing you $17,400 a year.

His situation:
1.) $110,000 Porsche GT3 financed at 3.5% over 72 months…$1696/month
2.) Going out to eat one a week….$200/month

Total: $1896/month and after 6 years the car is still worth around $45,000…his lifestyle is costing him $13,233 a year. Factor in $25,000 of maintenance for the Porsche, and the lifestyles are the same.

Conclusion: Anyone who leases a BMW 335i that also drinks, wears nice clothes, and goes out to restaurants must make at least $500k/year.

[NemesisX]

Originally Posted by RandomHero

Thank you for reading my posts in their entirety. You are correct, he has $7500/month of disposable income, which is much different than $7500 of take-home pay.
As someone who does this for a living, I’m a very firm believer in satisfying your short, intermediate, and long-term financial goals. I believe in living below your means, but I also believe in enjoying yourself (with moderation).

As an update to this thread, he ended up getting the loan for the full value of the vehicle with a 3.5% apr for 72 months.

In order to counter the cost of the loan, we plan to invest in several Texas Muni Bonds (AA quality or better) with a YTM of 1.75% or greater and a maturity date of less than 8 years. That will essentially pay for the cost of financing the loan with very low risk (individual bonds are much different than bond funds).



We share the same thought process.

Let’s compare a potential situation many people on this forum are probably in:
1.) $60,000 BMW 335i leased at $650/month
2.) Going to the bar twice a week…..$250/month or more
3.) Going out to eat twice a week….$250/month or more
4.) Buying nice clothes….$300/month or more

Total: $1450+/month and 6 years later you have nothing to show for it….that lifestyle is essentially costing you $17,400 a year.

His situation:
1.) $110,000 Porsche GT3 financed at 3.5% over 72 months…$1696/month
2.) Going out to eat one a week….$200/month

Total: $1896/month and after 6 years the car is still worth around $45,000…his lifestyle is costing him $13,233 a year. Factor in $25,000 of maintenance for the Porsche, and the lifestyles are the same.

Conclusion: Anyone who leases a BMW 335i that also drinks, wears nice clothes, and goes out to restaurants must make at least $500k/year.

Did the bank (or whatever institution loaned him the money) give any explanation as to why they were comfortable with loaning money to someone with no auto loan history? Did his impeccable credit history suffice or did he have to jump through some of the other hoops I mentioned (like showing sufficient assets and/or income)?

[NemesisX]

Also you mentioned he graduated from one of the top engineering schools in the nation. It wasn't Cockrell by any chance was it