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2010 CTS
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Discussion Starter #1
ok, so I just graduated and have started my new government job starting at 60k a year. now, ive been pretty much obsessed with the new CTS. im pretty much convinced i NEED to buy one right away. a VERY small piece of me is saying not to buy this car and build up my money. and the rest of me is saying go ahead and get this car. so im pretty much gonna buy one at this point.

now, i need somebody to pursuade me not to buy this car if you think i shouldnt because im certainly not listening to the part that doesnt want to buy. if you think i should go ahead and do it, i still wanna hear what you wanna say.
 

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2010 CTS-4 3.6 & 2008 SRX-4 V6
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950 Posts
I don't know what your financial situation is, so I can't really give you any hard and fast rule. When I graduated, I had money in the bank, owned a car and had no debts. I bought my first new car within a few months of starting to work at a place with great job security. My first new car was far from a CTS I can tell you that but, it costed me ~1/2 my gross salary at the time and was paid off within a couple of years. I kept that car ~4 years and my next new car was nicer but more modest in terms of %age of my salary. As I was getting close to house downpayment years, modest was a good strategy.

My advice? Don't let yourself get chained down financially by a car - if buying a CTS won't do that to you, then go ahead. Buying a CPO '08 CTS will give you the same satisfaction as a brand new '09 or '10 but will look (and feel) far more financially responsible.

Another thought: it's hard to come down to a minivan from a luxury car when kids, childcare, and mortgage payments take you there. I've been there...
 

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2017 ATS-V Sedan, Vector Blue/Black, 6MT
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1,001 Posts
Zero per cent financing may help. No downside to a longer loan as any savings you accumulate towards payoff will get interest, but you won't pay any. You can get some smoking deals, too.
 

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CTS 08
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302 Posts
DO NOT DO IT.

Have you learned nothing from watching the economy melt down around you? I don't mean to sound harsh, but you seem to be where I was once. Take it from a guy who graduated and got his job handed to him (military officer) and then started spending every dime I had. $60k is chump change. No offense, but it is. It's good for where you are in life, provided you live like you only make $60k. I assume that's your gross income. Net will be more like $48k after FICA, Medicare, state withholding, etc. So be smart. Don't go buying a new car. Used car, sure. But buying a new one is ludicrous. Is being the "first" owner worth an extra $8000 to you? If so, then not much I've said will help you.

That's my advice. Live within your means! Our economy is a mess because we as a nation lost our financial discipline. Savings first. Savings first. Savings first. You're a young man, and you don't NEED a Cadillac. It took our parents and grandparents decades to work up to that level. Now we all think we deserve it NOW because our folks have it. Believe me, I am guilty of it too. Don't do it.

If you don't have 6 months of wages saved up to cover an injury or unemployment, you have no business buying a Cadillac. You're just begging fate to kick you right in the taint, like millions of other Americans who can't make ends meet right now.

That's my piece, nothing personal. Best of luck.
 

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CTS 08
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302 Posts
modest was a good strategy.
Here here. Best advice.

Before you go spending all that coin, look up the power of compound interest. See how much money you'll have if you invest all those big car payments now, versus deferring those savings for 5 years. You'll be shocked. Over 50 years, you're talking in hundreds of thousands of dollars.
 

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2014 SRX Premium w/20" chrome
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481 Posts
ok, so I just graduated and have started my new government job starting at 60k a year.
Just remember, it's not about how much you make, but how much you keep.

Economic's 101. It's pretty simple math. Just make up a spread sheet. List your net income minus your expenses. What are you left with? Now factor in your savings plan(s) for your future. Even if things look really good on paper now, it can all come to a screeching halt if you loose your job. So, you also need to consider having a sizable reserve.

Alot of foks got themselves into deep financial trouble because they bought with their hearts instead of their head. Unfortunately, this is a " I want it now society"

Congrats on your recent graduation and best of luck to you.
 

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2009 CTS DI AWD Premium
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585 Posts
I say go for it if you can. I just had an uncle who worked hard his whole life, saved, and was going to get that CTS right when he retired. Well he did, and he was diagnosed with cancer soon after. If it is one thing his life taught me it is there is a middle ground between always saving for the future and living in the moment. I do not have a six figure income, but I knew at 37 it was the time to get the car I really wanted and make it pay off in the long run by not getting a new car for a very long time. You'll make the right decision. Good luck!
 

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2013 300C - Looking at CT6
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92 Posts
Wait. It is an awesome car, no doubt. But, you are brand new in a job, in a very tough economy. Heck, even police officers and firefighters worry about getting laid off these days. Live as modestly as you can, until you understand the lay of the land in the job, and have a better understanding of the security of the job and your career trajectory. Nothing worse than being chained to a payment that makes your day to day life more stressful.
 

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CTS '08
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215 Posts
60k is not chump change living on your own and without any kids to support! My first job out of college teaching High School got me 30k a year...I was single with no obligations...I had so much spare money it wasn't even funny...I can't imagine double that...
 

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2009 CTS DI AWD Premium
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585 Posts
I make more than 60k, live in a very reasonable Midwest city, and have no kids . . . I do just fine!
 

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08 Platinum Escalade, 08 CTS, 01 TransAm WS6, 07 SolsticeGXP
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478 Posts
My rule of thumb is different than most Americans.

If I don't have the money, I don't buy it.

If I want a $50,000 car, and I can put aside $2,000 a month, then after 25 months (or two years), I write a check, and make the purchase.

If I want a $2,000 plasma screen TV, then I put aside money every month, and when I have the $2,000, I buy it.

No financing
No credit cards
No store credit.
Nothing

I also did the same thing with my house.
I worked all through school. Worked several jobs.
Videotaped weddings. Was a security guard doing 17 hour shifts over the weekends. Had a small business. Taught computers to old people in between classes.

And as my bank account went higher and higher and higher, when it finally hit $395,000, I bought my house. No mortgage.


"Buy now, pay later" is just something I don't understand.

Well, I DO understand!

Every day the average Joe American is BOMBARDED with billboards, TV commercials, Radio ads, and direct mail campaigns about how much luxury they need (and deserve), along with very exciting offers of credit. It's a sick, sick system.

BRILLIANT for those with the money, though.

Most Americans are one medical emergency away from bankruptcy.
A few paychecks away from going hungry.

It's truly a messed up system, with messed up values. A little scary, actually.

It reminds me of a conversation I had with a friend of mine when I bought my 04 CTS. He was asking me what it cost. At the time it was 05, and I got it for $32,000.

He didn't understand what I meant.

"THIRTY-TWO THOUSAND DOLLARS PLUS TAX" I said.

"No, but how much per MONTH is that car?"

"I PAID CASH."

"okay, I understand. But how much comes out of your account each month?"

"NOTHING. I WROTE A CHECK FOR $32,000+TAX"

"okay, and what's the buy-back?"

...it was too funny!


Weird.

..Just some food for thought..
 

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2009 Cadillac CTS4
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39 Posts
Do not buy this car because:
- it will make you look too successful
- it has all the features anyone could ask for in a vehicle
- it is car & driver's car of the year
- it is great on regular gas
- it is made in North America
 

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Sedan de Ville, CTS
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1. Save some $$ prior to a purchase.
2. Maintain 6 months of sal in bank.
3. Buy a low mileage used CTS after checking it out thoroughly.
4. Let someone else pay the depreciation.
5. Use your money wisely.
6. How much are you putting in your retirement monthly?
7. Try to buy with cash whenever buying a major item like this. (Or finance only a portion of it.)

As grandma said: "Don't count your chickens before they are hatched."

Keep this in mind. Any vehicle you buy today will be worth about half of what you pay--two years from now. That is a big hit. That is like taking 50% of your money and throwing it down the toilet.

Nice cars are like fine women; there is always another one around the corner.
 

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2010 CTS-4 3.6 & 2008 SRX-4 V6
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950 Posts
In the end, a salary of $60k can easily absorb the payments on a CPO '08 CTS and I would never advise anybody to not buy a CTS. If you are sufficiently financially savvy and have a budget, then go ahead.

My rule of thumb is different than most Americans.

If I don't have the money, I don't buy it...

..Just some food for thought..
Good advice and hard to argue. I am close to being this way but I have a few exceptions.

I think comfort with borrowing depends on the individual but some are way too comfortable, IMO, and risk getting into some serious trouble. Most of these people do not understand delayed gratification, are not financially savvy, do not take the time to develop a budget, do not set savings targets, and do not track their expenses.

My bachelor's degree is in finance and I suffer from OCD on this stuff - I easily spend an hour or two a week on the household's finances. Still, I have never been totally averse to borrowing for cars and home (mortgage) but I have never ever gone into debt for anything else. Ever.

While we are now mortgage and debt free, it hasn't always been thus - we even leased our '04 SRX when I calculated that this was the best strategy (GMAC set those residuals optimistically high). A lease paid off that time but I wouldn't recommend it as the thing to do.

I would never advise somebody to not buy a CTS or not do so with a loan but I would certainly be more comfortable with my advice if I knew that the person was financially savvy and budgeted.
 

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CTS 08
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302 Posts
1. Save some $$ prior to a purchase.
2. Maintain 6 months of sal in bank.
3. Buy a low mileage used CTS after checking it out thoroughly.
4. Let someone else pay the depreciation.
5. Use your money wisely.
6. How much are you putting in your retirement monthly?
7. Try to buy with cash whenever buying a major item like this. (Or finance only a portion of it.)

As grandma said: "Don't count your chickens before they are hatched."

Keep this in mind. Any vehicle you buy today will be worth about half of what you pay--two years from now. That is a big hit. That is like taking 50% of your money and throwing it down the toilet.

Nice cars are like fine women; there is always another one around the corner.
Excellent advice.

Remember, too, that in two years the CTS may not tickle your fancy the way it does now.

To me, the bottom line lesson from this economy is simple. If you don't have 6 months of money to live on when your job gets eliminated, you are playing with fire. The last thing you want to face is a bankruptcy in your 20s because you bought a car and a bunch of other things for your life, and then budget cuts eliminated your paycheck and you had nothing to fall back on.

The one fella was right about having to live in the moment sometimes, but don't use that mentality to justify being foolhardy with your money in your early 20s. "Living in the moment" can be used to justify that instant where impatience and entitlement meet your paycheck.
 

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2008 CTS 3.6L DI RWD, GMPP new engine 11/2013
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2,092 Posts
EARN $3 BEFORE YOU SPEND $1.

If you follow that simple rule, regardless of age or income level, then you can pretty much spend your money on anything that you want.
 

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Cadillac
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TRUE, BUT NOT ALL, BE SMART! AND ENJOY YOUR LIFE. YOUR CHOICE! [COFFEE]

:cheer:
Nice cars are like fine ...; there is always another one around the corner.
:bomb:
Most Americans are one medical emergency away from bankruptcy.
A few paychecks away from going hungry.
It's truly a messed up system, with messed up values. A little scary, actually.
 

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08 Platinum Escalade, 08 CTS, 01 TransAm WS6, 07 SolsticeGXP
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478 Posts
EARN $3 BEFORE YOU SPEND $1.

VERY well said!!
It basically summed up my long diatribe into one sentence. Bravo!

I guess I am old school, coming from a family that went through World War II and all. I don't think the words "just graduated" and "Cadillac" ever appeared in the same sentence in my household! :)
 
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