[extramice]

So, again, thanks in advance to everyone!

I just jumped up in income about 180k (from grad student to professor), which may make it difficult for me to get a loan for my QP...

I don't have too much experience getting these kinds of loans and I know that credit companies look for priors that are similar (of which I have something similar, but not really in the same category).

Any advice on where to get a loan, how to get a loan and so on and so on...

Any advice would be greatly appreciated (especially in Texas!)...

all the best!
-andy

 

[Alex]

since you were in the education business why not try the credit union? Several credit unions work esp with teachers and offer great rates.

If your credit is good most auto loans are stated income where you just "state" your income. "I make $180,000" and the underwriter works the debt to income off the stated number. Maybe the bank needs to see prior W2s on a certain dollar amount but most auto loans are stated income (assume your credit is decent)

Any connection with the US military? USAA has awsome rates and work around you.

Try Maerati credit? I think they offer loans etc ... Not sure on dealer financing with Maserati.

Pick up the dupont registery and their adds in their for upscale auto financing as well. Loans up to 144 months or huge amounts with nothing down etc

you could always get a HELOC on your home (if you have equity you shoukd be able to get 7-8.5% and deduct the interest on your taxes.


how much are going to be putting down? how much do you need total?

 

[extramice]

since you were in the education business why not try the credit union? Several credit unions work esp with teachers and offer great rates.

If your credit is good most auto loans are stated income where you just "state" your income. "I make $180,000" and the underwriter works the debt to income off the stated number. Maybe the bank needs to see prior W2s on a certain dollar amount but most auto loans are stated income (assume your credit is decent)

Any connection with the US military? USAA has awsome rates and work around you.

Try Maerati credit? I think they offer loans etc ... Not sure on dealer financing with Maserati.

Pick up the dupont registery and their adds in their for upscale auto financing as well. Loans up to 144 months or huge amounts with nothing down etc

you could always get a HELOC on your home (if you have equity you shoukd be able to get 7-8.5% and deduct the interest on your taxes.


how much are going to be putting down? how much do you need total?

The only other message board I frequent is one about the University of Washington's (my undergrad institution) sports teams (of which I am a massive fan). Can I say one time again that this board is amazing relative to what I'm used to! Amazing. Thanks Alex!

I am going to borrow about 100k is my guess. I will definitely look at all the options you talked about... you were very helpful. Thank you!

 

[dsd]

I just jumped up in income about 180k (from grad student to professor)

Did I miss the part where professors make that kind of money?

-dsd

 

[extramice]

Marketing...

I have a Ph.D. in psychology, but marketing (business in general) is where the money is. This is because if they don't pay well, they will have no one left... many companies like to hire professors as consultants, etc., so being a business professor really is the best job in the world.

180k (or so, depending) to start... lined up consulting gigs at 2k/hour, you are only required to work 4 days a week (of course no one does just that, but in the contract it states you get one day off for consulting), complete freedom over your time, very small teaching load. Of course, you have to do reserach, but most of us love doing that, so it's not a burden.

I saw somewhere that Professor was the 2nd best job in America, beat only by IT guy. It said Prof would have been number 1 but for the cruddy pay (the average Prof makes around 80k... but that's for years of education and a high skill level). So business Prof is probably the best job in the world.

 

[MaseratiBoy]

I have a Ph.D. in psychology, but marketing (business in general) is where the money is. This is because if they don't pay well, they will have no one left... many companies like to hire professors as consultants, etc., so being a business professor really is the best job in the world.

180k (or so, depending) to start... lined up consulting gigs at 2k/hour, you are only required to work 4 days a week (of course no one does just that, but in the contract it states you get one day off for consulting), complete freedom over your time, very small teaching load. Of course, you have to do reserach, but most of us love doing that, so it's not a burden.

I saw somewhere that Professor was the 2nd best job in America, beat only by IT guy. It said Prof would have been number 1 but for the cruddy pay (the average Prof makes around 80k... but that's for years of education and a high skill level). So business Prof is probably the best job in the world.

Lies.

Internet Marketer is the best job in america.

We beat business professors hands down

 

[Glenn Wallace]

I am going to borrow about 100k is my guess. I will definitely look at all the options you talked about... you were very helpful. Thank you!

What are you buying? I paid less than that for my 05 coupe new....

My opinion, if you have to borrow 100k to by a Maser, then you should buy something cheaper. You're going to be "underwater" pretty quickly.

 

[MaseratiBoy]

UPDATE

Quick update regarding this... Just in case nobody mentions it (Glenn touched on it).

Unless you have a set of "guaranteed" consulting jobs, dont get the Maserati... especially if you have to get a 100k+ loan...

Not trying to crush you, believe me...

You will have a VERY hard time finding a group of companies to pay you ANYWHERE near 2k an hour for a "fresh out" professor who majored in "business in general"

In fact, even if you DO find even one company to do that... dont get the maserati...

That company has NO idea as to what is going on, and will most likely be out of business very soon...

Not trying to be an ass... I just want you to understand that you can pretty much be screwed in life if this messes up...

Ive seen lots of people in debt... believe me, no matter how much you hear that you "can get out of it", you NEVER can...

Ever.

 

[dsd]

I think what the parent is saying is he is taking a job as a professor and the reason the pay is so high is they must compete with the consulting gigs at those rates.

I am what is known as an enabler so I would never tell anyone not to buy an exotic car regardless of finances. However, you will be upside down pretty quick on a new Maser and with a new job you may want to wait 6 months to year to make sure you don't hate the gig.

But what do I know.

-dsd

 

[F. Yu]

First of all, congratulations on the new job!

Secondly, I would agree with the people above that if you need to take out a 100k loan on a 110-120k car (I don't know which Maserati you're looking at, but I assume a QP?), you may want to wait awhile. Exotic cars are "wants" not "needs" and almost all of them depreciate.

My advice? Since you're making the moolah now and hopefully haven't already adjusted your lifestyle from penniless grad student to money-blowing consultant, you should be able to easily save $4-5k a month. Heck, on a 100k loan, that's almost what you'll be paying on a 3 yr loan. After a short six months of delayed gratification (and being able to see what the 2008 Coupe looks like), you'll have $24-30k more saved up for the down. Also, you'll have six months of employment record to be able to show to your lender.

In any case, good luck with however you decide to approach this.

 

[extramice]

I certainly appreciate that sort of advice...

However, the consulting jobs are lined up because they are just teaching executives about new research relevant to the issues they are interested in...

Also, you don't get a Ph.D. in 'general business'... I've published a few papers in top journals on specific issues related to unconscious processing... a Ph.D., for those who do not know, is not four more years of undergraduate work. It's research into a topic until you become an 'expert' in that field.

Also, I could put more down on the Maser, but I don't quite understand why I'd do it. It just seems a waste of money that could be going elsewhere. I'm planning on keeping the Maser at least 5 years, so the 'upside down' thing doesn't worry me as much. I'm sure in years 2-3 it would be a problem, and I suppose I would just pray I didn't wreck it... at the same time, it's just not something that I'm too worried about.

Also, Maseratiboy... my wife is an internet marketer! Where do you work? She has worked on the agency side for DDB, then for Zagat, now for Register.com and when we go to Dallas I think she's going to work for match.com...

I do appreciate the info, though!

 

[Alex]

just buy my bmw m3 convertible. The thing is mint. New clutch and inspection 1 just completed. College girls love the m3 and espically the young freshman ones in the fall.

I am not tell you not to go buy it, but you need to able to pay this if and when something goes wrong.

I rule of thumb is that no more then 15-20% of your monthly income AFTER taxes should go towards an auto (payment, gas, insurance, upkeep etc)

180,000/12 =$15,000 * 39% =$9150

$9150 * 20% =$1830

$100,000 loan at 7.00 for 144 months (why someone would go 12 years is beyond me but several auto loans go that loan for big ticket items)

the monthly payment is $1028.00 (included state tax) then 200-250 a month for auto insurance and at least 200 for gas a month (maybe more or less) and upkeep.
$1028+200+200 + ???(upkeep)??? = $1500 (on the low end)


I dont think you should finance more then $50,000 based off what I know. If I were you, I would save up and put a large amount down on the car later on. 4 months from now the Maserati will cheaper and plus you have more time look for one.

Since you are just getting in to the money I assume you are not coming out of an 911 turbo or an M6 to the Maserati so I assume you can "be content" in what you are currently driving

but I am not your dad or your financial advisor I am just some kid from Phx giving my opinion the matter. You could die in March so who knows? go get an f430 while you at it!

good luck!

 

[Alex]

Lies.

Internet Marketer is the best job in america.

We beat business professors hands down

can I work 40 hours a week from home and make $150,000? with some huge tax write offs?

lemme know! lol

I am sick of the salt mine

 

[MaseratiBoy]

can I work 40 hours a week from home and make $150,000? with some huge tax write offs?

lemme know! lol

I am sick of the salt mine

You can work much less and make 3x that a month

 

[MaseratiBoy]

Also, Maseratiboy... my wife is an internet marketer! Where do you work? She has worked on the agency side for DDB, then for Zagat, now for Register.com and when we go to Dallas I think she's going to work for match.com...

I got into IM because I didnt want to work for others...

If I AM working for others, it is because they have offered me a flat rate + percentage of sales...

Most of the time their offer is counterproductive for me, so I just say no

For you guys, of course

 

[Alex]

You can work much less and make 3x that a month

how!?


let me in on this!

lol I basically live in the office


(guilty of taking 30 minutes of my hour lunch in my car taking a nap) I need to clean my head out

 

[extramice]

Hey Alex

I really do appreciate your advice, but my wife also has a pretty nice 6 figure job and you know we are doing okay overall...

I think it's more just that neither of us are too crazy about putting 50k cash into a depreciating money suck.

I hope you are well and I thank you sincerely for your advice!

-Andy

 

[MaseratiBoy]

Then lease instead...

With a loan, you are STILL putting the whole ammount of the car down... except you are paying interest for all of it.

Plus. Leasing makes it easier to write off.

 

[BeeYouZeeZee]

Just got back from Minneapolis. You guys are all nuts (in a good way!). LOL!

I have a double masters from Stanford in electrical engineering and computer science. I have taught, lectured and (my favorite) worked full time for a living. I am currently the Chief Technology Officer for a major Plano telecom company but have also been a chief scientist for IBM/ROLM. I have been on my current job for 15 years and consider myself successful. I make about $30k/yr more than extramice and my wife makes $85k. I own a 540i (with 160k miles) and have owned a Viper, which I leased. This is the first time in my life I have been able to afford to BUY a car like the Maserati. OK, maybe kids and the like play a role in that but financing 100k is just wrong with a 180k income! I put over half down in cash on my Maser and still have $700/month payments. I plan on owning it outright in just a few years. God forbid payments for 5 or 6 or 7 years! Holy crap! I'm too old for that

I guess what I'm saying is don't strap yourself. Lease, buy used or wait. None are bad options. Let your lifestyle mature with you and drive accordingly.

Buzz

 

[F. Yu]

I really do appreciate your advice, but my wife also has a pretty nice 6 figure job and you know we are doing okay overall...

I think it's more just that neither of us are too crazy about putting 50k cash into a depreciating money suck.

As a business professor, I'm sure you didn't quite mean this statement the way it came out. By taking out a 100k loan, you ARE putting 50k cash into the depreciating money-suck. You're just delaying when you're putting that cash in. Plus interest, as mentioned before.

Unless you are so confident in your money-investing techniques that you can consistently beat a 6.5% car loan, AFTER taxes, its always better to buy things that are basically for fun with cash or at least a large chunk of it for cash (and if the second, admit to yourself you cannot fully afford it yet). Otherwise, as posted above, perhaps leasing is better as at least its a fixed amount you're out every month and there is a fixed end in sight.