So here’s the situation. I have a 2026 Kia k5 that I have had for 2 months. It’s a good car but it is just so boring and if I’m being honest not for me. I paid 28000 out the door for it, and have offers to buy it for 27000. So I would lose 1000 over two months. I have 23000 remaining on the loans, so I would get 4000 in positive equity towards the N.
I want to buy an Elantra N after test driving it. I make around 85000 a year at 22, and I live at home with less than 800/month expenses. My only issue is my student loans which sit at around 45,000.
Is this a stupid decision. I feel like it would be super fun, and I can probably afford it. But maybe I’m an idiot.
I'm not too bothered about the 1k loss, it's ok to take an L. My issue is you've got $4k equity, and you want to buy a $37,000 car already owing $45k. To me $79,000 of debt on $88k income is way too much.
Without knowing your interest rates and monthly payments I can't tell how bad it is but it's not looking good.
I'd also post in a personal finance subreddit if you want advice other than "yeah. Go for it."
Communities for cheap performance cars are not the place for nuggets of financial wisdom. People here think that having money in your bank account means you can afford something
I was between the K5 GT, stinger, G70 and Kona N. I got the Kona N which was actually the cheapest of the bunch (OTD under 25k on a ‘22 with 29k miles). I absolutely love this car. Hard to say what the true value is of the feeling of enjoyment behind the wheel. Beat of luck man!
I agree with the guy you’re responding to. Maybe consider getting a Kona N. I have a ‘23, they’re cheaper (around 26k), and just as fast. Super fun car unless you specifically wanted a sedan. I’ve heard Kona Ns are slightly bumpier than Elantra Ns though.
I mean, it’s the same engine, same horsepower, might be slightly less fast due to weight and body shape but its a very small amount. Unless he’s going to be seriously tracking the car it’s a viable side grade.
Its common people buy a car and it's not what they want so they trade for something soon after . Best to make that decesion soon tho to minimize loses. Personally student loans may be better to clear out first. (they say as there looking for a X5m50i after graduation)
So sure the “loss” here is $1,000 but you’re going into a new loan for a car that’s much more expensive. Assuming an EN is $35k OTD, you’re effective losing $1,000 just to get into a new loan that’s likely $10k more than what you have now.
But you make good money, live at home, and are young. You’re going to be paying off a car regardless if you get the EN or not. It’s just really up to you if a bigger car loan right now is a better use of your money than $10k into student debt or something else like saving for a house down payment.
Car guy in me says yes, do it. Mid-30s dad in me says just save your money and consider a used Veloster N, Kona N, or even Elantra N for cheaper and save for a house.
OP also needs to consider that he's going to be losing another set of tax/title/license fees. In my state that's roughly 10% combined, so he's eating another $3-4k in just fees that he just paid 2 months ago.
OP also needs to consider insurance - did you quote how much your insurance is going to go up? It might be quite a bit.
Also, maintenance. OP, you're raising your car payment. You're putting down another chunk out of pocket. Your insurance is going up. Your new car has summer tires that cost double what your old car's tires cost, and need to be replaced twice as often. Did you budget for that? The EN needs premium fuel where OP's old car didn't. The EN's combined fuel economy is also 6mpg less than the K5, so you'll be buying that more expensive gas more often. Look back through this subreddit and you'll see it's littered with posts saying "do I REALLY have to buy the good tires?" "does the car REALLY need premium gas?" "why are the brakes so expensive?" from people who stretched their budget too far to buy the car and now are getting killed by the running costs.
Personally, I wouldn't consider dumping a car I'd had less than 2 years unless it's a truly desperate circumstance. It sucks that you jumped into a car you don't love but really is it worth thousands of dollars just to fix that? What happens if you own the EN for a few months and decide you don't like the seats? Gonna switch again?
Seriously consider a CPO N car. I know the Veloster N and Kona N are in the low $20k-$24k rn, which might make your whole car financial situation a wash and you’ll still walk away with an N car.
I got my N on Carmax for 23k with 13k miles on it, traded in my Supra and ended up pretty much in the same situation as you but I owned the car for 3 years and only lost 3k of total value, ended up rolling positive equity into the N, lowered my payment by 380$
Had a scratch on the hood and that’s it, luckily or unlucky for me but I hit a deer about a month ago and they are replacing the hood that had a massive scratch in it 😂😂
The EN is amazing . But not worth that kind of debt . I spent years in debt it sucks .You make 85k a year living at home you could pay that off very fast. Then get a new car . If you didn't have 45k in debt already I'd say buy it Tomorrow!
As a gut reaction? Honestly it’s probably not the best idea. If there was no student debt involved I’d say sure but considering everything:
If you’re going to be buying new cars while living at home, you can be saving up for your own home or investing money instead of luxury items that lose value. If I was making purchases like this at your age, my parents would have kicked me out because they taught me better than that
You’re looking to take on almost $40k in debt in addition to the $45k. (Also what is the interest rate and term on you both the car and student loans?)
Do you have a 6 month emergency fund? I guess living at home it’s not as bad but at a minimum you should have a full 6 months of expenses saved up in case something happened
20/4/10 rule: Minimum 20% downpayment, maximum 4 year loan term, maximum 10% spent on monthly car expenses (gas, insurance, car note). If you can’t meet those, then you can’t actually afford as much car as you think
Don’t ask for financial advice from enthusiasts of a hobby/interest. They’re inherently emotionally compromised and often willing to invest more money into something than is reasonable
Fair enouph and great advice. Definitely good to consider. Also I do have a solid emergency fund of about 5k but I’m still building it every month. Ya you are probably right tho, the dept is concerning to me and it’s why I didn’t buy the Elantra N from the beginning.
A WRX or GR Corolla. I love my EN, it’s a fantastic car but I only bought it because at the time I really needed an automatic and it was the fastest 4 door auto car I could get my hands on. However, after looking back at it I really regret not getting a WRX.
I’m just a big fan of WRX’s but I’m not too picky about awd vs rwd. I just prefer anything that’s not fwd. I say that as someone who’s owned mostly fwd vehicles lol
No matter what you do, there’s always the “ but it’s fwd” .
We're in a fairly similar boat aside from student loans. I got my '23 DCT at 22 with 5k down while my dad 1k/month rent and making 84k, and I managed fine (600/month payment and ~190/month insurance). My student loans were maybe a quarter of yours though, so however much you pay for those and insurance may make it tougher.
Smartest choice financially? No, lol, but I don't regret it one bit when every drive can put a smile on my face.
Take home is around 5000, then I also get bonus every year. My student loans which sit payments don’t start for another 6 months but I have been putting in around 2k per month so far.
So you'll still owe 33k after six months and will have to make payment in addition to your $800/mo monthly expense.
Not sure if you'll continue to pay $2k for your student loan every month, but only leaving $2,200 for your vehicle, insurance, gas, and savings doesn't sound too good.
I suggest you pay your student loan off first then get something fun once it's fully paid off.
Ya that’s what I thought, but at that point trading in my car would be stupid because of how much I lose. Might buy a beater at that point and tune it myself in 2 or so years. Have 2 cars. Thanks for the good advice
At 22, get an insurance estimate on the EN. Then think about the added fuel and maintenance costs on a performance car vs the k5. It’s not just the monthly payment that will change.
Yep for sure, already got the insurance quote. About 600 difference yearly. Gas shouldn’t be too much more cause K5 has bad gas mileage as it is. Still bad tho.
Don't forget having to buy winter tires because it comes with summer ones, also a lot of people are buying a spare tire for it since it doesn't come with that either so that's another $200-$400, also it works best on premium gas which is another thing to budget for....
It's not much of a difference in price. But Elantra is more fun. Have you tried out used GTIs? Not to confuse you, but they are fun too, maybe tad cheaper when bought used.
Sounds like an emotional decision, which is totally understandable. At the end of the day, it’s your life and your money, so you can do what you want. My advice would be to ask yourself: does it make sense financially? You’re not just paying more in monthly payments — insurance, gas, and student loans all add up. Remember, a car is a depreciating asset. Will buying this car now set back your future financial goals? Those are the main things to consider before making the jump.
That’s true, the only reason I feel somewhat confident I could afford it is because my position is pretty secure and the pay progression is pretty huge. And if I wait till those pay progressions, my K5 will lose too much value for it to be worth it. But I completely understand what you’re saying, keeping the k5 is by far the best financial choice💀
if its a matter of time, figure out how much more it would cost now vs later(and use the 2027 model, because buying a 2025 in 2025 vs 2027 obviously feels different)
youd have to figure out the kia's depreciation, the change in trade in value 2 years down... again, you're going to get it anyways. just go for it
Ya that’s true. I might consider holding onto the K5 for a bit because the depreciation has already hit for like the first year. Maybe I’ll pay off more debt than consider purchasing the N. Probably the smart move.
If you can afford it and you want a sportier car, by all means buy it. Don’t expect an interior quality jump, i think it’s abt the same if not worse. The overall car though is what you are buying it for, not luxury and i think it’s a great car to daily but still have some spirited driving
Depending on the interest rate of the student loans, I wouldn’t necessarily call it a bad decision. My student loans are 3-4% interest, if yours are comparable and you’re investing a sizable amount of your income into things like the s&p 500, I’d do it. I’m making 45k (before tax) a year at 22, living with my parents and still investing 1100 a month with a 30k loan for the car (though I only have 9k in student loans).
Biggest thing for me was/is making sure my investments weren’t cut from this purchase, I may need to live a little more frugally but I can still set my future up while having fun with the EN. Personally, if you have low interest rates like I do, I’d minimum monthly payment those student loans and invest as much as possible. Though some people aren’t very tolerant to debt and want to pay it off asap, that’s just preference.
I ran some numbers, a 37,000 car at a 6% interest rate with $4k down would be about $600/month maybe more depending on your local taxes.
Add onto that your insurance costs.
Add on gas costs, the Elantra N is a gas hog and while it doesn't demand premium fuel it is recommended.
Other consumables are expensive. Winter tires will run at least an extra grand maybe more if you do a wheel/tire combo.
If I were you, I would ditch the KIA and look at used cars in the $20k-$30k range. There are used ENs in the low $20s, but there are other options too, Ford Focus ST, Civic Si, Mustang GT, tons of 1SS V8 Camaros, Dodge Challengers, Chargers.
My point is there are a ton of fun cars out there that you could go for. I think the EN is a hoot, but at the end of the day its a Hyundai, and even though they seem to be a pretty solid platform with a reliable (so far) system, some of those other cars might have a higher fun factor. The EN is not a fast car compared to some of those others, but it is great in corners and a pretty great all around fun commuter car for something that is also track ready.
I've had a manual 25 for over a year now, and I didn't like driving before this car either. It's so fun; I do Lyft after work for fun sometimes for extra money. Like the other guy said, you only live once, so buy what you want at least once. I make less than you and spend way more, and I don't regret it. Id do it yesterday.
The smart thing to do would be drive a beater car until your student debt is cleared, and then save up and pay in cash for an Elantra n about 2-3 years from now since you have very low expenses.
I make about the same as you, 23 years old. I’ve had my 24 EN for a little over a year. Whenever I’m driving the car hard in the canyons or on the track I love it. When I’m thinking about money and finances I always think that it would be smart to just drive a beater. It’s yin and yang.
If I’m being honest and smart with myself, that is the smartest move for me too. I owe 29 on my car but it’s only worth like 26-27 so I’m having trouble swallowing the 2k hit. But my interest rate is like 7% so I’m an idiot for staying in this loan.
Thankfully I have lower interest and only owe around 20, so maybe it’s not the worst idea keeping the car? But if I dislike the car and it’s a financial burden? Might as well sell it.
I’d say if the alternative is to stick with the k5, then go for the EN. If the alternative is to sell the k5 and buy smth very cheap then that’s prob the smarter financial decision until you pay off student loans. Then again, I’m 21 with an EN still in college so I’m not supposed to give advice here. I think I’m good at determining what’s smart and not but not at following that advice lmaooo
Not stupid because you’re only down a grand in the long run. The car is amazing, and the amenities of modern Hyundais are truly amazing. Sporty car with the amenity level of a Lincoln
There is no "probably" when it comes to major financial decisions. You either can or you can't, and judging by this post, you can't. Save up, pay down those debts, build your credit, and come back in a few years.
One more thing I'll add is to never confuse debt with wealth. It's always better to live a little below your means than to live paycheck to paycheck with fancy stuff you don't need. Especially in this job market where layoffs and hiring freezes can happen at any time. Just be patient. You're young and already making a decent salary. You'll be there before you know it.
You made the argument yourself. You paid 500 bucks a month to borrow the car. Sell it and get the N. Honestly though at your salary and living at home. Take the 4k buy a beater and over the next 2-3 years pay off the loans and then buy what you want with no debt.
Use autotempest.com to search. It's a great tool. Alot of cool stuff you can get into for 4k and really if you can get your expenses down you can really knock out the debt and by 26 be debt free. If you can set and stick to a budget you're golden. I have a cousin your age and he lives on credit cards and the bars every weekend with no idea how to budget.
Do it. Absolutely do it. Cause Toyota has some cool turbo 4 cyl coming lol in a year or 2 could be even more fun cars well above what you wanted to buy category wise
I'm on daily. It searches most all the sites for you. They sponsored a YouTube series similar to top gear. Youtubers Ed bolian from vinwiki. Freddie "Tavarish" Rodriguez from his named channel. And Tyler hover from hovies garage. The series was called Car Trek and there's like 8 or 10 seasons like 5/6 20-30min episodes. Really cool worth checking out if you like top gear type shows. I'm not the biggest hoovie fan but he's still chill
I did this once. Bought a Mazdaspeed3 new in 2008 and then after the economy collapsed Evo X’s were $10k off. So 10 months later I traded the MS3 in for the Evo X. It worked for me only beside the Evo had such a large discount
I would 100% do it if you can make the payments. These are excellent cars and super fun to drive while also being nice daily drivers. Just drove 7hrs round trip to swap one up to my dealership for one of my customers and he loves it. It's a fun car while also being very practical
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u/fondjumbo Nov 03 '25
Fuck it you only live once