I may be leaving the mazda community. :\

[TXMazdaSpeeder]

I definitely don't want to sound judgemental, but if you follow this principle, you'll ALWAYS be better off --- NEVER make financial decisions based on the amount of payments that you're going to have for something. Any financial adviser will tell you what matters is how much money overall you shell out on things like this over the long haul. Thinking of payments is what can get people burdened down with a lot of debt.

If you want a new car w/ more hp, go for it on those grounds. However, let me point something out that I wish I had thought of when I was 20 or so: If you keep the MP3 and save all the money that you'd pay out over the next 5 years for the SRT-4 ($25k+), you'd have saved up the downpayment for your first home.

Oh, and about the warranty -- $25k or more for a new car is an expensive warranty.

Good luck!

and i'd spend all that money having motor mounts and clutchs and tranny casings replaced, no thanx, i dont have money to repair a car when it breaks right now, i need a warranty, and i've already considered a extended warranty from mazda but, mazda customer service can lick my left nut.

 

[MotegiMazdA]

i'll still stay on the boards i just wont have the mazda anymore. By this time next week i may have a electric blue pearl srt-4 in the driveway

at laest your stickin with the blue. Why the change? Im going to look at a wrangler today. I NEED a vehicle.

 

[AGR]

oh.

 

[redwagon02]

I'd do it! except I wanna know what it feels like to pay off a car. I've been making car payments for 12 straight years already on various autos.

 

[luckezero]

and i'd spend all that money having motor mounts and clutchs and tranny casings replaced, no thanx, i dont have money to repair a car when it breaks right now, i need a warranty, and i've already considered a extended warranty from mazda but, mazda customer service can lick my left nut.

an extended warranty, in some cases, will cost more than the actual repairs needed. and they have some funny language (small print) that may actually release them from liability ... I was at the Toyota dealership when a guy walks in with a power window problem. Because the window would go down, but not up, the extended warranty didn't cover it. The window had to be broke going up AND down. Some people win, some people lose

I think Rick had some very good points, but it appears you missed them. If you truly are looking for a new car warranty and want to have low payments, why aren't you looking at a Mazda3 or something else in the $15-$18k price range? Heck, you can get a Hyundai with a 100k powertrain warranty in the low teens. Albeit, I'd never buy a Hyundai (or Dodge...) or recommend one to anybody. I understand a) some people on here have had some issues with Mazda and b) some components are prone to premature failure, but if you think that 5 years owning a turbocharged Neon will be better financially, you're going to be in for a rude awakening. If you are tearing the crap out of your cars in ~ 3 years/50k miles because of how you drive, you're going to have the problem with any car. The smartest people I've ever met bought used cars (well taken care of used cars, mind you), warranty or not, and fixed them when they broke them. They kept a thousand or two in savings for said repairs, but have saved tens of thousands in the long run. Instead of putting all that money in a brand new car, they buy used and maybe some toys, modifications, motorcycles, jetskis, condos in Lake Tahoe, etc.

The biggest problem with colleges and universities today is that hardly anybody teaches financial responsibility. I went thru college, a business major even (!), and very rarely did I hear a good lesson from my professors on saving money, responsible spending, and debt-free/responsible debt living. Although, several of the guest speakers made those points... heh... they all worked for banks and insurance companies.

If you really are serious about having low payments and being financially responsible, the thing to do is this: you likely have a few thousand in "equity" in your MP3 (i.e. you owe ~$9k but could get loaned ~$12k). Refinance the MP3 at $11k, put the $2k in the bank and let it earn interest. When the MP3 has a problem, use the $2k savings to fix motor mounts or whatever else comes up. In the end, you'll owe much less than the $21k plus tax plus registration plus (and this is speculation) increase insurance.

----

edit: I just saw on your cardomain page that you've only had the car since March 2003 ... the equity principle might not apply then unless you put money down and/or negotiated well. also means that the Dodge dealership will probably give you crap for trade ... putting you even deeper in the hole and making your payments even higher

 

[TXMazdaSpeeder]

an extended warranty, in some cases, will cost more than the actual repairs needed. and they have some funny language (small print) that may actually release them from liability ... I was at the Toyota dealership when a guy walks in with a power window problem. Because the window would go down, but not up, the extended warranty didn't cover it. The window had to be broke going up AND down. Some people win, some people lose

I think Rick had some very good points, but it appears you missed them. If you truly are looking for a new car warranty and want to have low payments, why aren't you looking at a Mazda3 or something else in the $15-$18k price range? Heck, you can get a Hyundai with a 100k powertrain warranty in the low teens. Albeit, I'd never buy a Hyundai (or Dodge...) or recommend one to anybody. I understand a) some people on here have had some issues with Mazda and b) some components are prone to premature failure, but if you think that 5 years owning a turbocharged Neon will be better financially, you're going to be in for a rude awakening. If you are tearing the crap out of your cars in ~ 3 years/50k miles because of how you drive, you're going to have the problem with any car. The smartest people I've ever met bought used cars (well taken care of used cars, mind you), warranty or not, and fixed them when they broke them. They kept a thousand or two in savings for said repairs, but have saved tens of thousands in the long run. Instead of putting all that money in a brand new car, they buy used and maybe some toys, modifications, motorcycles, jetskis, condos in Lake Tahoe, etc.

The biggest problem with colleges and universities today is that hardly anybody teaches financial responsibility. I went thru college, a business major even (!), and very rarely did I hear a good lesson from my professors on saving money, responsible spending, and debt-free/responsible debt living. Although, several of the guest speakers made those points... heh... they all worked for banks and insurance companies.

If you really are serious about having low payments and being financially responsible, the thing to do is this: you likely have a few thousand in "equity" in your MP3 (i.e. you owe ~$9k but could get loaned ~$12k). Refinance the MP3 at $11k, put the $2k in the bank and let it earn interest. When the MP3 has a problem, use the $2k savings to fix motor mounts or whatever else comes up. In the end, you'll owe much less than the $21k plus tax plus registration plus (and this is speculation) increase insurance.

----

edit: I just saw on your cardomain page that you've only had the car since March 2003 ... the equity principle might not apply then unless you put money down and/or negotiated well. also means that the Dodge dealership will probably give you crap for trade ... putting you even deeper in the hole and making your payments even higher

my friend wants the car and is willing to give me $11,500 for it. And the reason im not looking at the mazda 3 or such vehicles is...... running 16's is driving me insane, i can afford the srt-4 at the moment and my parents have VERY good credit so i will get it financed well and not have to worry about the car breaking s*** and me having to pay to get it fixed, my friend ashley who wants the car wouldnt put the throttle to the floor if her life depended on it so it should be fine for her.

 

[TXMazdaSpeeder]

hes not going anywhere..ill put my next paycheck on it.

so if i get the srt-4 i get ur next paycheck? deal

 

[luckezero]

my friend wants the car and is willing to give me $11,500 for it.

Awesome... seems real reasonable, considering the miles! Sorry if I sounded too much like an adult Just hoped you'd get an opportunity to see both sides of the deal. I think that MP3 is good enough a car it is hard to justify, but I certainly understand. A few weekends ago I was staring at a SRT-4 rainbow ... each 2004 color represented and each car spotless and clean. I personally dislike Dodge and Neons, but if it were something else I like for only ~$21k, you could bet I'd be thinkin' hard about it. Actually, a week ago I was looking at RX-8s and a VW R32... drool. Both were fun to drive, but the exhaust sound of the R32 had me sold. Then again, I jumped back in the MP3 and was sold that my infinitely less expensive auto was really the best "bang for the buck." It goes reasonably well and handling is incredible. $240/mo. vs. $650+ .... I'd rather have a second car or motorcycle for that kind of cash! $400/mo = $4800 each year!!

Best wishes with your purchase. I wouldn't expect you to get a $271/mo. payment except maybe on a balloon note, but hope that you make the best decision for you. Good luck.

 

[TXMazdaSpeeder]

Awesome... seems real reasonable, considering the miles! Sorry if I sounded too much like an adult Just hoped you'd get an opportunity to see both sides of the deal. I think that MP3 is good enough a car it is hard to justify, but I certainly understand. A few weekends ago I was staring at a SRT-4 rainbow ... each 2004 color represented and each car spotless and clean. I personally dislike Dodge and Neons, but if it were something else I like for only ~$21k, you could bet I'd be thinkin' hard about it. Actually, a week ago I was looking at RX-8s and a VW R32... drool. Both were fun to drive, but the exhaust sound of the R32 had me sold. Then again, I jumped back in the MP3 and was sold that my infinitely less expensive auto was really the best "bang for the buck." It goes reasonably well and handling is incredible. $240/mo. vs. $650+ .... I'd rather have a second car or motorcycle for that kind of cash! $400/mo = $4800 each year!!

Best wishes with your purchase. I wouldn't expect you to get a $271/mo. payment except maybe on a balloon note, but hope that you make the best decision for you. Good luck.

most of the srt-4's around here have been going for anywhere form $18-19k

 

[Stormtrooper77]

it was meant as a joke ( as it's been beaten to death around here ). I know dodge seems to be standing behind the srt4, and I can't say the same thing for Mazda. Props to dodge for that.

I can say that my car has been trouble free ( minus clunk repaired at 4500kms) so far (knock on wood). And I start my car in the winter in temps of -45 C with no issues. Maybe I'm lucky so far.

No issues here either.

Good luck with the Neon, I mean SRT-4.

 

[osudewd]

I definitely don't want to sound judgemental, but if you follow this principle, you'll ALWAYS be better off --- NEVER make financial decisions based on the amount of payments that you're going to have for something. Any financial adviser will tell you what matters is how much money overall you shell out on things like this over the long haul. Thinking of payments is what can get people burdened down with a lot of debt.

If you want a new car w/ more hp, go for it on those grounds. However, let me point something out that I wish I had thought of when I was 20 or so: If you keep the MP3 and save all the money that you'd pay out over the next 5 years for the SRT-4 ($25k+), you'd have saved up the downpayment for your first home.

Oh, and about the warranty -- $25k or more for a new car is an expensive warranty.

Good luck!

Good point and I agree, however, I have an exception. I am 21 and saving up a good bit, but I plan to blow it all on a sweet car. No loans, I will only ever get a loan for a house. Reason being, once I get into owning a house, starting a family and justifying to a wife that it is a good idea to spend the 30k I have saved on a car, I think I will pass. I just couldn't see her going for the logic that I saved all this money before we were married and its mine all mine and if I wanna buy a car I'm gonna buy a car. And that is why before I take the plunge, the bank account is going for the best car I can afford. It may be my last chance for a while.

 

[protegeV]

hey, if my payment went down for trading in the P5 on an SRT id do it in a heartbeat...hell, if it stayed within $50 more id do it, but I dont see that possibility

 

[luckezero]

Reason being, once I get into owning a house, starting a family and justifying to a wife that it is a good idea to spend the 30k I have saved on a car, I think I will pass.

you might want to do some financial simulations on that before sinking all your cash on the car. Here's an example for you:

a) $150k house, 0 down, 30 yr. mortgage @ 5.49% = $850.74/mo.
Total Interest Paid over the life of loan: $156,267.34
b) $150k house, $30k down, 30 yr. mortgage @ 5.49% = $680.59/mo.
Total Interest Paid over the life of loan: $125,013.87

okay, paying the $30k down on the house "saved" you $30k in interest!! Let's look at a lower life loan, same mortgage with the $30k down:

c) $150k house, $30k down, 20 yr. mortgage @ 5.49% = $824.79/mo.
Total Interest Paid over the life of loan: $77,948.92

So if you were comfortable with a $850.74 payment, go ahead and put the $30k down and pay off the house 10 years sooners, and you save a WHOPPING $80,000!! I've always heard it said that you should put your money into appreciating assets and make payments on depreciating assets. If, God forbid, you lose your job or hit hard times, a car might could be sold for a few grand less than you originally paid. A house, likely, will at least net you what you paid or even more if it appreciates! Plus, you could always refinance or get a second mortgage to come up with more cash... a car, well, sometimes you're lucky just to get a loan for private party value.

That same $30k car, 0 down, at the same 5.49% APR over 60 months is $572.90/mo., and the interest saved by paying all cash is only $4,373.78. One other combination would be $15k house and $15k car, at both 25 and 30 years:

d) $135,000 house, $15k down, 25 yr. mortgage @ 5.49% = $828.21/mo.
Total Interest Paid over the life of loan: $113,463.33
-or - $135,000 house, $15k down, 30 yr. mortgage @ 5.49% = $765.67/mo.
Total Interest Paid over the life of loan: $140,640.61
-and- $30,000 car, $15k down, 5 yr. loan @ 5.49% = $286.45/mo.
Total Interest Paid over the life of loan: $2,186.89

As you can see, the interest savings from a $30k down, 20-year mortgage between a $15k down, 25-year mortgage is still huge -- about $35k. And that $82x house payment you aren't making those last 5 years, it will buy a $43,000 car assuming a 5.49% loan. Not only does it take money to make money, but it takes money to save money.

 

[osudewd]

you might want to do some financial simulations on that before sinking all your cash on the car.

Yes, I know it doesn't make a whole lot of financial sense. And I very well may be overcome with reason when decision time comes. But I am speaking with the brash impetousness of youth. My simulations also include an 'X' factor that puts a price on the fun I will have. My preliminary findings indicate an X value close to your estimated interest savings, so I guess it is still a tossup

 

[luckezero]

My preliminary findings indicate an X value close to your estimated interest savings, so I guess it is still a tossup

agreed. driving a brand new Honda Prelude VTEC during college was my sweet release from cramming and tests. Maybe that's why I graduated with a respectable GPA I suppose I was lucky to have experienced my X value earlier in life, so that now I am free(er) to make logical decisions.

Here's another alternative for you: Take half your money and Lease that dream car for 2 or 3 years, maybe even pay it all in advance.... that way you still have the $15k for a house and you have the X-experience you're looking for. If current trends stay the same, most likely the lease will cost you the same as a purchase and resale after 2-3 years anyway. You will STILL SAVE ~$40k on the 25 vs. 30 year mortgage with the $15k down, and maybe get a better interest rate. Food for thought.

 

[luckezero]

So I take it that Matthew isn't losing his paycheck? Did you get to test drive the SRT-4?? If so, how was it?

 

[TXMazdaSpeeder]

Were getting my mom a new car first and waiting till the end of 04 to get me one, so matt's paycheck is safe for the moment. Mom's getting a GT convertible or a buick regal gsx

 

[Mazdaspeedgirl]

What ever makes you happy hun. And you are more than welcome to stay, even if you don't have an MSP anymore. Friends don't dump friends just because they get another make of car...people become friends because of a similiar choice in car just because it is a common interest to get a conversation started.

And just a friend's personal experience: Ben traded his 99 NOS miata on an SRT-4 about 6 months ago. he loved the SRT-4 at first, but is now having severe withdrawal from the handling. SRT-4s just can't be whipped around as easily as a Mazda. He is wishing he could have another miata and just turbo it, but is stuck with the SRT-4 now. (dunno)

Just food for thought.

Good luck with your decision.

 

[changedman]

i test drove the srt-4, and it had s*** for handling. it may be faster, but it handles just like any neon. and whats more is that the dealer was going to give me 4500 for my MP3. WTF>?!?!?!?! I will never visit that dealer again. 4500$ for my 2001, perfect condition, just 29000 miles. **** them. now because of that i hate dodge.

 

[pr5owner]

yeah handling is horse s***, even the slalom is crap, but its REALLY fast in a strait line (general trend? hmmm) just visit us often though AND DONT LOOK DOWN ON PROTEGE's! as you fly by them lol