Entry level engineer out of college - Should I get an NSX?

[haveblue]

Here's the situation. I'm 23 and got offered a government aerospace engineering job at the local air force base that starts at $55k and goes up to $75k after 3 years. I've driven an NSX before and have wanted one ever since I started driving. The guy who daily drove a black NSX at the company I interned at last summer further reinforces my desire for this car.

I'm currently living in a 10yr old 1900sqft house that my parents own with two roommates, and we all pay 400/mo rent. The plan is to sell the house to me for less than the market price, and they'll agree to let me repay the difference over the next few years. I'll pay the mortgage and as along as I collect rent from my two roommates, whom I don't think are going anywhere anytime soon, I'll continue to pay around $400/mo plus my share of the utilities. As a bonus I'll save a lot on my taxes by owning a home.

I'd like to spend roughly $35k on an NSX roughly 6 months after I start the job, maybe 1/3 in cash with the remaining 2/3 on a 3-year loan. I figure given my age and financial situation that I'll make payments of roughly $800/month. There's a shop that specializes in European and exotic cars across town that can easily maintain the car so I'm not worried about that. It'll be my daily driver although I'll use my current E36 325i for rainy and snowy days, the latter of which are extremely rare in Oklahoma. Of course, the car will be garaged.

It may not be the smartest financial decision to make, but it shouldn't kill me. So, if you were in my shoes, would you do it?

 

[Jetpilot3]

If you think you can afford it then go for it.

That being said do some searches here on Prime as to indicative costs for NSX ownership, parts, etc. Create a budget and then see if the car is still for you.

Being your only car may pose unwanted stress as you'd be daily driving it and risking the potential of abuse (door dings) and increased mileage.

My motto is life's short so enjoy it while you can but be reasonable doing so.

 

[Aero]

Hello from fellow aerospace engineer. I would say it sounds like you can do it. I wouldn't 'count on' your roommates paying their part of the mortgage so set aside their share towards a savings account. They'll probably pay their share but you won't have a budget based on it. You have a government civil servant job sounds like so you have very good job security.
You can do a lot of the maintenance yourself being an engineer and pick out a good NSX and you shouldn't have any major problems. I was in your shoes at one point and did something similar to what you're debating. Most new grads will go out and blow their money on a brand new car and be losing a ton on it. At least a NSX won't depreciate as much and will look better than their new car.

Is your screenname 'haveblue' based on the what they called the F-117 in development?

 

[clr1024]

I am a mechanical engineer, so had similar thoughts after coming out of college. However I wanted my car garaged so buing a house was my priority.


You have that taken care of. My next question to you though, is can you afford the car and house if you don't have roommates? Also consider the cost of ownership, insurance and maintenance. If you can still handle that then I don't see why you shouldn't pursue your dream.

I took care of the house and got the car a few years later once I knew I had the above taken care of. Been happily in an NSX for over 6 years no regrets.

 

[E-Nough Logic]

Here's the situation. I'm 23 and got offered a government aerospace engineering job at the local air force base that starts at $55k and goes up to $75k after 3 years. I've driven an NSX before and have wanted one ever since I started driving. The guy who daily drove a black NSX at the company I interned at last summer further reinforces my desire for this car.

I'm currently living in a 10yr old 1900sqft house that my parents own with two roommates, and we all pay 400/mo rent. The plan is to sell the house to me for less than the market price, and they'll agree to let me repay the difference over the next few years. I'll pay the mortgage and as along as I collect rent from my two roommates, whom I don't think are going anywhere anytime soon, I'll continue to pay around $400/mo plus my share of the utilities. As a bonus I'll save a lot on my taxes by owning a home.

I'd like to spend roughly $35k on an NSX roughly 6 months after I start the job, maybe 1/3 in cash with the remaining 2/3 on a 3-year loan. I figure given my age and financial situation that I'll make payments of roughly $800/month. There's a shop that specializes in European and exotic cars across town that can easily maintain the car so I'm not worried about that. It'll be my daily driver although I'll use my current E36 325i for rainy and snowy days, the latter of which are extremely rare in Oklahoma. Of course, the car will be garaged.

It may not be the smartest financial decision to make, but it shouldn't kill me. So, if you were in my shoes, would you do it?

sounds good on paper but definitely plan on a worst case scenario though. IE if your roomates move out or cant pay you, can you still pay your bills this is a MUST. also when you finance the mortgage on the house you will be liable for the entire mortgage for debt to income, make sure that your income will allow you to have the mortgage and an $800 dollar a month car payment. with what looks like a $1200 a month mortgage payment + $800 a month car payment making $55k that would be cutting it close for debt to income.

 

[mickeylex]

It may not be the smartest financial decision to make, but it shouldn't kill me. So, if you were in my shoes, would you do it?

Hell yes, do it. I should have bought one at 23 as well. If I knew then what I know now...

Life is too short to miss out on opportunities when you have the chance.

 

[lightguy]

One of the many great things about the NSX is that they have bottomed out (pre94's) depreciation wise.
As an engineer you will appreciate the NSX especially considering the vintage.
IMO this car will cost you less in the long run than a new Mustang/Camaro etc let alone a depreciation rocketship like a BMW/Audi/Merc that seems to be the lust objects.

You can get it maintained if you wish at the Acura dealer.

 

[VegasSpeed]

Like the others have said don't count on the room renters to stick around 100%. It just doesn't work like you count on it. I have two rental properties so I know about that.

Second, Getting the loan right now may be harder than you think. If you just got your job that may count against you. They are seriously tough on getting loans now. You need 3 things now; good credit, lots of cash in the bank and a good work history. Right now you I know one of those (the job) will hurt you. I would wait it out until you get your house first. If they gave me a hard to to get a loan they will review everything with you before signing the docs.

Second, an NSX is a great car but not exactly a car for someone fresh out of school. Personally, I would hang on a little bit with the current economy and wait a bit to save some money first. BTW, I am a Mechanical Engineer, Registered PE in Nevada and Arizona.

 

[tbromley]

Although this is a tempting scenario as you optimistically outline - I'd pay real attention to what hybrdthry911 said and go through the numbers carefully. A mortgage by yourself and believe me it will be by yourself one day soon - factor in one big thing you have avoided in your scenario - WOMEN! They aren't cheap and have a lot of ideas. I love my wife so don't get me wrong - but one day and most likely one day soon with your employment outlook so good you'll meet a woman and then your roomies are out of there! It can happen in a heat beat.

An NSX is not a cheap car to own - if you have approx. 35k to spend - spend under 30k for a 91 - 93 with low mileage with a great ownership history and all records and you might just come out having spent about 35k after the maintenance things occur! That is almost guaranteed. So ownership is not just about purchase price. There are a lot of threads here about that!

My advice to you is to get your job, get settled into it, save some money over the first year. See how things are going with your funds - TAKE IT SLOW - don't let the prospects of having a job "burn a hole in your pocket". Let things simmer a bit and keep looking and reading about the NSX - there is a huge amount to know and learn! Check out the deals as others buy and talk of their trials and tribulations of ownership not even counting the desire for mods to the car. If I knew when I was first looking what I know now - well I may have something different now! It's taken me at least a year to become real familiar with the NSX and all that goes with it. Maybe 8 months but I'm 60 and have been buying and selling used sports cars all my life.

Words of patience and prudence come to mind with your scenario - you are young and have your whole life ahead of you - take it easy dude! You surely have time on your side. Hope this helps. Don't let other young guys your age start telling you to throw care to the wind - take it from someone that has always been on top of his finances - me - it makes a lot of sense to take it slow in your position - you haven't even started the job yet and already you're trying to spend the money. Not a great way to start out with huge debt in a car loan. With your room mates and a 400 buck a month rent - it won't take you long to save up a big pile of money and it's a whole lot better to spend within your means than go hog wild with an 800 buck a month car note - hell I wouldn't even do that and I could. Better make sure your employer likes you after a year of work and you like them too! Lots can happen and lots can change or go wrong. Keep a tight lid on things for a while!

All the best!

 

[mystican]

NSX is a luxury item...parts are expensive for proper maintanence...lot of new people on prime are dumping their NSXs bc they didn't realize this and the economy didn't help either...but if you have the passion...

 

[SuperSonic]

Hell yes, do it. I should have bought one at 23 as well. If I knew then what I know now...

Life is too short to miss out on opportunities when you have the chance.

Agreed. Buy the car if you can in fact afford it. I bought my car at 23 as well. I shot high for an 02. Can I afford it, barely lol. Long story short my z was a lemon and life gave me a free car for a few years and it was a now or never chance in my situation to get the nsx. If you have money to do it, then do it and dont look back ......well you could look back, since it is an nsx you wont regret it.

 

[R13]

If you do it right, it'll be no problem affording the car. I bought mine when I was 26, and I own and maintain it on a modest income...and it was a basket case when I bought it.

It's within your stated budget to find a very well documented early-year car, and still have some room left for unforeseen maintenance. Making sure you get the right car will save numerous headaches. I very-nearly DD my NSX and it works well as long as you don't have a very cramped parking lot.

If you're stretching your income to afford it...not the right move. If you have minimal other expenses and can comfortably do so, then by all means do so.

 

[Big_D]

No, I think you should wait till you have more money in the bank and more experience in your job.

Houses are always in need of repair and improvements. What happens if your roof leaks after a rain storm or one of the appliances decides to quit working? What if your roommates decide to move out? You should have a lot of money set aside to cover these scenarios.

Having a NSX to drive is cool, but maintenenace isn't cheap. Rear tires are always needing replacing and clutches are not cheap by any means. Cars are always a bad place to dump your money.

Did you look into the cost of insurance? It is not a cheap car to insure for someone under 25.

Congrats on your job and best of luck!

 

[rollinthunder4ever]

Hell, if I was 23 again(wishful thinking), I wouldn't think twice about getting it. I think you can handle it; some new camry cost even more than NSX. But you need to think about maintenance, but then again they are reliable cars.

 

[HIJACKER]

No, I think you should wait till you have more money in the bank and more experience in your job.

Houses are always in need of repair and improvements. What happens if your roof leaks after a rain storm or one of the appliances decides to quit working? What if your roommates decide to move out? You should have a lot of money set aside to cover these scenarios.

Having a NSX to drive is cool, but maintenenace isn't cheap. Rear tires are always needing replacing and clutches are not cheap by any means. Cars are always a bad place to dump your money.

Did you look into the cost of insurance? It is not a cheap car to insure for someone under 25.

Congrats on your job and best of luck!

My thoughts exactly. I especially don't think you should add a $800/month debt to yourself for 3 years not having a solid foundation. (living arrangement isn't secure, new job, little savings, etc). The risks are high, don't roll the dice.

 

[docjohn]

the longer you wait the more financial responsability/obligations you will have...the downside of financing a car at your age may be mitigated by the relative lack of obligations/dependants currently...plus you probably have your parents holding a life line if the sheet hit the fan.If you buy a good car at a good price you could most likely not loose $ in the proccess.

 

[tosugrad]

Im with BigD and Hijacker on this one. Wait a few years.

 

[vmlinsx]

Grats on your degree and new job. Recent EE here. :biggrin:

Low miles late model NSXes are still fairly expensive, but there are some nice NA1s in the $20s.

I would suggest saving up enough money to buy a well-maintained NA1 for cash.

The advantage here is:

1.) the time it takes you to save for it will help you gauge your income and expenses, and

2.) you will own the car outright and it won't impact your debt/income ratio.

 

[dreamynsx]

Just eat out less and go to bars less and use that money towards the NSX. You'd be surprise how much money you can blow on lunch, dinners and drinks going out.

Other things to consider are vacations and trips you may want to take. The NSX will eat up that portion of your expendable income.

Its all a trade of. As entry level engineer salary, you can only do so much =)

 

[Dtrigg]

Im with BigD and Hijacker on this one. Wait a few years.

Sorry, but I have to agree with these guys.

Congratulations on your new position and good luck.

 

[nsx_2k]

I believe I know what you are talking about (used to live in OKC). Personally, I would wait. I did (waited 8 years after graduation) and I truly believe that I enjoy my car more for I don't have as many fiscal worries. It sounds like you are on the right track financially. Save up your money, research the cars and when the time is right (in a few years) nab the right one.

One facet that I believe you may be underestimating is the maintenance (I did). The cost of parts is greater than other Hondas/Acuras. Additionally, any labor is notably greater as well. You mentioned an independent shop specializing in exotic car maintenance. Last I recall, the best place to service an NSX was Bob Howard Acura (I maybe wrong cause things can certainly change). Strangely, their prices are reasonable and always had work done right. It was one of the few places I've been where the service manager knew the car's VIN # by memory. They knew everything about the cars especially when they sensed that you, too, were passionate about your car.

In OK, there can be some pretty nasty days and I don't think you want to take out a nice NSX, instead drag out a beater (ie. those freak hail storm's, etc). Those roads leading to Tinker can get pretty nasty in the winter and I would hate for you to get accidentally bumped by a bubba in a run down F150.

Just my .02

 

[Vega$ NSX]

Oh man... engineering. Sorry for the lack of social life, now and in the past and future. Ask me how I know...

:tongue:

 

[mknmoves]

I'm probably the last person who should be answering this question, but screw it......get an NSX now, not later. You only live once and you don't know for how long.

If I were in your position I wouldn't spend 35k, I would spend a lot less on my 1st one, probably 20ish. This should buy you an early model with decent miles, just look they exist, people are negotiating. I've even seen 95/96 models under 25k, this is the way I would go. Most of the early models are coming to "bottom end" in their pricing.

IMO if you buy an early model now, you will drive the car for next to nothing. Meaning buy at the right price, some maintenance of course, and the car may depreciate a few grand over the next few years. Not too bad to drive an exotic car and lose very little.

If you buy it right, you can always sell it if something pops up, ie roommates leaving, job eliminated etc., but at least you would get to enjoy it even if for a short time, and that would be something I don't think you would ever regret!

 

[haveblue]

I believe I know what you are talking about (used to live in OKC). Personally, I would wait. I did (waited 8 years after graduation) and I truly believe that I enjoy my car more for I don't have as many fiscal worries. It sounds like you are on the right track financially. Save up your money, research the cars and when the time is right (in a few years) nab the right one.

One facet that I believe you may be underestimating is the maintenance (I did). The cost of parts is greater than other Hondas/Acuras. Additionally, any labor is notably greater as well. You mentioned an independent shop specializing in exotic car maintenance. Last I recall, the best place to service an NSX was Bob Howard Acura (I maybe wrong cause things can certainly change). Strangely, their prices are reasonable and always had work done right. It was one of the few places I've been where the service manager knew the car's VIN # by memory. They knew everything about the cars especially when they sensed that you, too, were passionate about your car.

In OK, there can be some pretty nasty days and I don't think you want to take out a nice NSX, instead drag out a beater (ie. those freak hail storm's, etc). Those roads leading to Tinker can get pretty nasty in the winter and I would hate for you to get accidentally bumped by a bubba in a run down F150.

Just my .02

I'll consider the car again after I'm comfortable with the job.

I live in Norman so Bob Howard Acura is 32 miles away. The shop in question is Eurosport. They might not have been up yet while you were still here but they service all exotics, so I'm sure they can handle an NSX.

http://www.eurosportok.com/service.htm

 

[mickeylex]

I'll consider the car again after I'm comfortable with the job.

Good idea. I said yes, get the NSX now, meaning, don't wait 2-5 years. Get it sooner. Start your search now, so six months to a year from now you will be ready to buy.