I need someone to push me over the edge!

[Benjamin Simon]

Alright, I am finally ready to purchase the STS of my dreams. I think I found a great deal on a 2005 STS V8 1SG AWD with the ACC. It is also my color of choice which is White Diamond. The car only has 17,xxx on the clock and it is certified pre owned meaning the factory warranty is extended to 6 years, 100,000 miles. I can get it for $32,000 plus tax.
I checked the Black Book at my dealership and it is $30K on the STS. The Cadillac Certification cost $1,000. I am guessing the dealer fees are about $400. I am fine with them making at least $600 in profit. (Given they don't have less than the Black Book)
My payment looks like it will be $610 a month for 60 months.
My questions are, is this a good find and should I do it given my situation?

I feel it is a good deal, but sometimes when I get too excited, my judgment gets cloudy.

This is my situation.

I just turned 24 years old and I graduated from college 1 year ago. I gross $5100 a month. I have no children and I am getting married in June. I paid off my loans this year and have no debt to speak of. I am thinking about buying a house this fall when my lease runs up. I maxed out my Roth IRA and I put 10% on my gross in a IRA.

My mom has been bitching to me saying I am too young and I need buy a base model Impala or something. Easy for her to say, she drives a Caddy. For those that have been there and done that, is it a bad idea to buy such a nice car at this point. When I am 50, am I going to look back on my life and think, that was a dumb purchase or will I think that was the best idea ever!

I am just looking for a little reassurance or sense...

[Benjamin Simon]

Also, I wanted to buy it by May. Do you think I will find a much better deal in the next 2 - 3 months? With so much deprecation already, could I find one for $28K in 2 - 3 months? This car's MSRP was $67K. I still cannot fathom it being $35K less in 2 years after 17K miles...

[kbrown211]

Man from experience I would say just get the car you want. I pulled the trigger on a car last year that was a impulse buy and 6 months later I wanted a cadillac.

[malcolm]

You could lease a brand new one for that kind of money. Most likely you will not want to be in the car any longer than the term of a lease. If you buy and want to get out before the loan is paid you will most likely get only what you still owe, just like a lease. What's the finance charge on the loan?

[c5 rv]

From the numbers ($34K with tax, 60 mos, $610 per month, assuming zero down) it looks like a 2.9% interest rate. I would definitely want a good look at the service history on the car as some 05s had problems. The $32K price for a CPO V8 AWD STS with only 17K seems quite good.

Your mother is probably right - $610 a month is probably too much to spend on a car payment at your stage in life. The car payment plus insurance is likely to be about 25% of your take-home pay. However, if your car is your only vice... Plus, buying a CPO is a lot smarter than locking into a lease. If you decide to sell the car in a year, you'll have a lot more flexibility and the CPO warranty is transferable.

Another thing to consider is the recent announcement that starting in March, GM will be offering 100K powertrain warranties on all (certified?) used car purchases, not just Cadillacs. While this isn't as attractive as the Cadillac CPO program, you could get into a 2006 Buick LaCrosse CXS with the 3.6 engine for about $20K or a 2006 Lucerne V8 for about $25K.

[STS2002]

Originally Posted by Benjamin Simon

Alright, I am finally ready to purchase the STS of my dreams. I think I found a great deal on a 2005 STS V8 1SG AWD with the ACC. It is also my color of choice which is White Diamond. The car only has 17,xxx on the clock and it is certified pre owned meaning the factory warranty is extended to 6 years, 100,000 miles. I can get it for $32,000 plus tax.
I checked the Black Book at my dealership and it is $30K on the STS. The Cadillac Certification cost $1,000. I am guessing the dealer fees are about $400. I am fine with them making at least $600 in profit. (Given they don't have less than the Black Book)
My payment looks like it will be $610 a month for 60 months.
My questions are, is this a good find and should I do it given my situation?

I feel it is a good deal, but sometimes when I get too excited, my judgment gets cloudy.

This is my situation.

I just turned 24 years old and I graduated from college 1 year ago. I gross $5100 a month. I have no children and I am getting married in June. I paid off my loans this year and have no debt to speak of. I am thinking about buying a house this fall when my lease runs up. I maxed out my Roth IRA and I put 10% on my gross in a IRA.

My mom has been bitching to me saying I am too young and I need buy a base model Impala or something. Easy for her to say, she drives a Caddy. For those that have been there and done that, is it a bad idea to buy such a nice car at this point. When I am 50, am I going to look back on my life and think, that was a dumb purchase or will I think that was the best idea ever!

I am just looking for a little reassurance or sense...

Hi Benjamin,

I leased my first Seville SLS when I was 24 with a payment of $600. I caught so much crap from my parents about it. They just couldn't understand why I would want to spend so much on a car and not save the money by getting something cheaper. The Seville at that time was my dream car. I loved Cadillacs!!! Then I traded to a Seville STS and then eventually to the 06 STS 1SG AWD no ACC. All with payments no greater than $650. Now I'm 30 and I look back at my choices. Should I have got something cheaper?? I think that I should have. My situation was a little different, I was making a little less than you were at that time and still had other bills to pay. And really, I could have waited to get that dream car and saved a little more money. When you hit 50 you might look back and think it wasn't the best choice, but it's all relative. It sounds like you are in a great financial situation without any debt! I would say go for it if it's what you want. It would certainly be hypocritical of me to say don't buy it at your age. Just be smart about it and make sure that you have a long term financial plan in place and that this payment won't hurt your plan. I hope this helps.

Phil

[AllWheelEric]

Can I be a grumpy old man even though I'm in my 30s? I'm sorry if this comes off wrong. I only intend to help.

When I was your age in about the same financial situation, I bought a $13,000 new car (1992 dollars). Looking back, I'm glad I didn't spend more. I bought a nice condo 3 years later, and put more than 20% down (thus avoiding PMI). That was much more important use of money in the long run. The only thing I would do differently now is buy CPO instead of new. That was the only new car I ever bought.

Unless your 99 STS is falling apart, I would keep it. There was much that I liked better in my 96 (versus the 05) anyway. I only sold mine when it got some unsolvable gremlins in it.

Obviously, you won't be in financial ruin if you but the new STS. You can afford it. Good luck either way.

[gtragitt]

In Houston the 2005 V6 STS are about $30k. A V8 at $32k sounds like a great deal. You can buy a new Impala, but it won't cost too much less. Impalas are nice, but nothing close to the STS. I had a 2005 and just bought a 2006. I was considering trading down, but when I made the final decision, I bought another STS and am happy I did.
Greg

[sajn05sts]

You get what you pay for if this caddy is the colour and has all the options you want bite the bullet, get it. Although remember upkeep on these cars is expensive oil changes $100, 30 000 mile service $1200. These cars are tight I had my 05 sts up to 121 miles per hour this morning it drove as if I was going 30 miles per hour. My point is to keep these cars running and looking the way they should it will cost you in the future. I also hope you can handle the speed, it is not the car you want to drive on a Friday night after a few beers.If you are looking for a keeper get it.

[malatu]

Looking forward, you may find this car payment is a "ball and Chain" when getting qualified for a mortgage. Let me cloud the situation even more. I suggest going to a mortgage broker and get prequalified for a mortgage three ways: 1. with no car payment; 2. a car payment of $610; 3. car payment of $350 ish. You'll walk away with three mortage amounts for which you qualify. This information may shed some light for you. Either way, you'll learn from whatever decision you make.

Three ways to become financially independent. They are: Be thrifty, save regularly, and own your own home. Seems to me you are doing a pretty good job at these things. I can't tell you how many of my empoyees don't own a home because of their car payment. Although one employee who was in the home market increased her home buying power by reducing her car payment substantially. She sold her new Eddie Bauer Ford Explorer for a boring used Chevy Malabu. She bought the home three years ago she just bought sporty Monte Carlo. It's all about priorities. Fortunately (unfortunately) our priorities change.

[papaisrollin]

also if you lease...get the newest caddies off the lot..you get the most car for your $.

[papaisrollin]

oh almost forgot 5k a month? youve been a good boy. reward yourself PULL THE TRIGGER!

[ascariSTS]

Go on and get it... you wont enjoy STS as much as now... it's not as good when you get older... i just turned 24... i'm enjoying every moment and happy that i didn't wait ...

[bhoppes]

You should not have to pay for a certified warranty with a used Cadillac. They just brought out a new certified program for GM. Go to this link.
http://media.gm.com/servlet/GatewayS...74&docid=33044
I think what it is saying is that when you buy a certified Cadillac you should not have to pay to have it certified. They should just be able to certify without any additional cost. (But you know it is going to be in the price anyway.) They should not be able to charge you the extra $1000. Make sense?

[corvette00]

I am in my early 40's and on my seventh STS (started with an ETC). Having previuosly leased an 05 (currently leasing 07 1SG awd), I would not purchase an 05. My 05 had a lot of sqeeks and rattles. From the comments on this site, the 05's also are prone to mechanical problems. Regardless of your warrenty situation, trips to the dealer are a hassel. If you want a Cadillac, I would lease a new one. This way you are not tied to a long-term commitment.