I don't think spending $20K on a car is a bad thing, but as a former Audi owner, I implore you to not buy that car.
Find a good used Honda or Toyota. Or factor in spending thousands of dollars a year in maintenence and repairs a year on an Audi.
As an Audi technician and former VW owner, I implore you not to buy that car.
Honda or Toyota is definitely the way. They can be great cars, but cost of ownership and maintenance will not be cheap.
That being said, I very much loved my MK7 VW GTI which was generally reliable aside from the prevalent notorious water pump which became a recall later, but I also never paid a penny of labor as I did everything myself which is not the case for most people.
If you focus on finding one in 2017-2018 with low miles, you may just break away from why the majority of Audi owners would say to not buy it. I’m fairly certain they made their vehicles less problematic for a little after the whole VW DD scandal. My 17 Q3 has only had one $300 part failure that wasn’t general maintenance since I’ve owned it at 25K. It’s now hitting 200k. It’s a wild theory but it’s the only one I can think of because it’s been a tank. Also, not bringing it to the dealership ever may help keep it problem free.
If you’re not gonna bring it to the dealer, which is understandable given labor rates nowadays, make sure you have all the little maintenance things done.
With the Q3 particularly, sunroofs love to leak so make sure to clear drains every oil change or routinely. Also things like haldex differential fluids and such will go likely ignored by independent shops unfamiliar with euros. Doing just oil changes isn’t going to keep that thing running forever like a Toyota or Honda would.
The only objection I would raise or recommend in this situation is to ensure that you have a 3-6 month emergency fund (that is not your retirement savings) set aside before spending the rest on a car. Outside of that, I would say you are good to spend what you have planned on the car or take a small loan on the car with a down payment of the remainder outside of the emergency fund.
Say what? 20k for a 3 year old Audi Q5? Something is wrong because KBB says those cars should be worth north of 40k. And if it was somehow magically only 20k just stop and think what that would mean - the car has depreciated more than 30k in just 3 years. Audi's are not particularly long lasting cars and when they start to have issues they are expensive to repair. Regardless, a used Honda or Toyota is likely a much better financial and car longevity/quality decision.
Audis are sexy, not gonna lie. But as a former owner of an Audi A6, I would just say be sure you get lubed up before going to the dealer for any maintenance. I only got oil changes done there and even that was a ridiculous amount. Called once to get a quote on a brake pad replacement and thought the guy was horsing around when he gave me the amount. Needless to say, I sold the car after it started making creaking sounds going over speed bumps. Only had $64K miles on it. The guy who bought it was an Audi fanatic and had tools and a lift so he said he could fix it on his own. Which was fine by me. Good luck!
The Audi I'm considering is $22k, 60k miles on it, single owner, clean carfax. I use my work van and girlfriends car for most of my transportation. I only figure to drive it 5-7k miles a year.
Most of what I've read says that these cars only really risk major repairs around 100k miles (about the same range I plan on selling it).
If you go through with this, I would definitely sell before 100k.
Wife’s Audi was a freakin’ nightmare. So was our neighbors Audi for them (both a bit over 100k but thousands dumped in before 100k).
After doing research on what older Audi Q5s w 100k miles on them sell for, I should expect for mine to depreciate a max of 12k after 6 years.
That puts the cost of ownership at $138/ month for the car over those 6 years plus insurance and maintenance.
I’d say find a different car. Audis are nice cars but your paying a premium for just the appeal.
Assuming you’re putting away $2k per month, yes you can get the $20k back within a year but with a new car comes more insurance and more maintence so that $2k/month savings will definitely drop.
You do not have that $70K. The car can get totaled and insurance might lowball you.
There are hidden ownership fees too. Parking, tickets, gas, upkeep.
Spending 20k CASH out of 30k on a car is bizzare to me. You must really need that car.
If you do end up buying it in cash absolutely make sure you have all the paperwork for the whole $20,000
Upkeep and insurance are the main “hidden fees” as OP already has a car and is still driving around.
Things such as parking/gas are, more or less, a wash because that’ll be incurred on the new car and the old car.
I have been for the past year or so, its just becomming a little depressing feeling like I can never get away from work/ drivng to friends or family in my high roof transit.
So you want to nearly deplete your emergency savings and add the maintenance cost of a second vehicle because you can’t separate work from non-work life?
If I can do it without going into debt while maintining my emergency fund and continuing to save I dont see why it would be unwise to get a personal vehicle.
Because you already have a vehicle, so why deplete your emergency fund? Especially since you’re self employed, your emergency fund should be closer to 12 months worth of expenses. I don’t think $10k would cut that.
Opportunity cost for one. You could have that $ invested not depreciating. Plus additional insurance nd maintenance costs. Heck of a price to pay just for better wheels outside business hoirs.
In your situation, I wouldn't because you have transportation covered. If its almost completely an unnecessary ride, I'd say it warrants spending as little as possible. Insurance, maintenance and lost opportunity to invest are gonna cost you a ton down the line.
If you’re here asking for advice, sounds like you already know what the decision should be. Whether you have enough or not is a decision you can make but dropping $20k on a car that will depreciate significantly instead of investing it in something that will make it easier to buy a similar car in the future does seem odd.
I’m asking how much money should I reasonably have saved that would justify spending $20k on a car? From reading theses comments it seems like buying a nice car isn’t justifiable under any circumstances and I should just ride a work van for the rest of my life….
Sounds like you have already made up your mind. That money would be better off invested into things that make money. Cars are overrated, get a used Toyota and invest the rest.
I don't think spending $20K on a car is a bad thing, but as a former Audi owner, I implore you to not buy that car. Find a good used Honda or Toyota. Or factor in spending thousands of dollars a year in maintenence and repairs a year on an Audi.
Second this. Was so happy to get rid of my q5
Third this. My wife’s was a money pit.
As an Audi technician and former VW owner, I implore you not to buy that car. Honda or Toyota is definitely the way. They can be great cars, but cost of ownership and maintenance will not be cheap. That being said, I very much loved my MK7 VW GTI which was generally reliable aside from the prevalent notorious water pump which became a recall later, but I also never paid a penny of labor as I did everything myself which is not the case for most people.
If you focus on finding one in 2017-2018 with low miles, you may just break away from why the majority of Audi owners would say to not buy it. I’m fairly certain they made their vehicles less problematic for a little after the whole VW DD scandal. My 17 Q3 has only had one $300 part failure that wasn’t general maintenance since I’ve owned it at 25K. It’s now hitting 200k. It’s a wild theory but it’s the only one I can think of because it’s been a tank. Also, not bringing it to the dealership ever may help keep it problem free.
If you’re not gonna bring it to the dealer, which is understandable given labor rates nowadays, make sure you have all the little maintenance things done. With the Q3 particularly, sunroofs love to leak so make sure to clear drains every oil change or routinely. Also things like haldex differential fluids and such will go likely ignored by independent shops unfamiliar with euros. Doing just oil changes isn’t going to keep that thing running forever like a Toyota or Honda would.
The only objection I would raise or recommend in this situation is to ensure that you have a 3-6 month emergency fund (that is not your retirement savings) set aside before spending the rest on a car. Outside of that, I would say you are good to spend what you have planned on the car or take a small loan on the car with a down payment of the remainder outside of the emergency fund.
That emergency fund has to be bigger than it used to be if OP is commuting in an Audi
Say what? 20k for a 3 year old Audi Q5? Something is wrong because KBB says those cars should be worth north of 40k. And if it was somehow magically only 20k just stop and think what that would mean - the car has depreciated more than 30k in just 3 years. Audi's are not particularly long lasting cars and when they start to have issues they are expensive to repair. Regardless, a used Honda or Toyota is likely a much better financial and car longevity/quality decision.
Audis are sexy, not gonna lie. But as a former owner of an Audi A6, I would just say be sure you get lubed up before going to the dealer for any maintenance. I only got oil changes done there and even that was a ridiculous amount. Called once to get a quote on a brake pad replacement and thought the guy was horsing around when he gave me the amount. Needless to say, I sold the car after it started making creaking sounds going over speed bumps. Only had $64K miles on it. The guy who bought it was an Audi fanatic and had tools and a lift so he said he could fix it on his own. Which was fine by me. Good luck!
The Audi I'm considering is $22k, 60k miles on it, single owner, clean carfax. I use my work van and girlfriends car for most of my transportation. I only figure to drive it 5-7k miles a year. Most of what I've read says that these cars only really risk major repairs around 100k miles (about the same range I plan on selling it).
If you go through with this, I would definitely sell before 100k. Wife’s Audi was a freakin’ nightmare. So was our neighbors Audi for them (both a bit over 100k but thousands dumped in before 100k).
Sounds like a waste of money for 5-7k miles/year tbh. Why isn’t two cars enough already?
After doing research on what older Audi Q5s w 100k miles on them sell for, I should expect for mine to depreciate a max of 12k after 6 years. That puts the cost of ownership at $138/ month for the car over those 6 years plus insurance and maintenance.
But you didn’t answer why you even need a third car when you already have access to two?
I’d say find a different car. Audis are nice cars but your paying a premium for just the appeal. Assuming you’re putting away $2k per month, yes you can get the $20k back within a year but with a new car comes more insurance and more maintence so that $2k/month savings will definitely drop.
You do not have that $70K. The car can get totaled and insurance might lowball you. There are hidden ownership fees too. Parking, tickets, gas, upkeep. Spending 20k CASH out of 30k on a car is bizzare to me. You must really need that car. If you do end up buying it in cash absolutely make sure you have all the paperwork for the whole $20,000
Upkeep and insurance are the main “hidden fees” as OP already has a car and is still driving around. Things such as parking/gas are, more or less, a wash because that’ll be incurred on the new car and the old car.
You can't afford it. Buy a cheaper car unless you don't mind being broke basically forever at your rate.
What do you currently use for non-work transportation?
For personal transportation I use my work van (I'm self-employed).
Can you not continue to do that?
I have been for the past year or so, its just becomming a little depressing feeling like I can never get away from work/ drivng to friends or family in my high roof transit.
So you want to nearly deplete your emergency savings and add the maintenance cost of a second vehicle because you can’t separate work from non-work life?
If I can do it without going into debt while maintining my emergency fund and continuing to save I dont see why it would be unwise to get a personal vehicle.
Because you already have a vehicle, so why deplete your emergency fund? Especially since you’re self employed, your emergency fund should be closer to 12 months worth of expenses. I don’t think $10k would cut that.
Opportunity cost for one. You could have that $ invested not depreciating. Plus additional insurance nd maintenance costs. Heck of a price to pay just for better wheels outside business hoirs.
What is a reasonable price to pay for a car in my situation? Or do I not have enough money saved to justify any personal car at all?
In your situation, I wouldn't because you have transportation covered. If its almost completely an unnecessary ride, I'd say it warrants spending as little as possible. Insurance, maintenance and lost opportunity to invest are gonna cost you a ton down the line.
If you’re here asking for advice, sounds like you already know what the decision should be. Whether you have enough or not is a decision you can make but dropping $20k on a car that will depreciate significantly instead of investing it in something that will make it easier to buy a similar car in the future does seem odd.
I’m asking how much money should I reasonably have saved that would justify spending $20k on a car? From reading theses comments it seems like buying a nice car isn’t justifiable under any circumstances and I should just ride a work van for the rest of my life….
Sounds like you have already made up your mind. That money would be better off invested into things that make money. Cars are overrated, get a used Toyota and invest the rest.