The Hunt for a FL5 CTR

[cp3297]

Hi all, I'd like to discuss the pros and cons of getting a CTR given my situation.

I'm 26, and have been going back and forth over purchasing a type R since the 2018 model came out, and I'm now in a position to purchase a one. I currently have a 2020 Honda Accord EX 1.5T, which I purchased mostly out of necessity, right before the market went crazy.

I have succeeded in getting an offer that's almost MSRP for the Sonic Gray Pearl color, plus or minus about $1500 for options, doc fees, and a couple other extras.

If I purchased outright, I think that would be too big of a chunk out of my finances - I am planning to move out soon as well. I was targeting a $700-$750 a month payment with a $15K / 48 months since that amount isn't too far above the "smart money" rule on wants for me.

How have you all fared with interest rates? The dealership wants a $4K deposit, but there interest rate/payments on the estimate deal are a minimum of $900 which is ridiculous.

I would qualify for the tier 1 Honda financial rates, but I'm still worried about putting that money down and finding out theyre going to charge me some insane 12% rate like I got quoted at a different dealer. I think they also won't allow me to bring my own financing.

Do you all think there's any benefit to financing to hold on a lot of cash for other potential expenses? (I have also been looking at houses, but I don't think I'm ready for that yet at my age)

If you guys had an anxiety or stress about making this purchase, how did you overcome it? I don't like thinking that I won't be able to test drive it before I purchase the car, but I have sat in one and played around witht the interior, it's nice enough. This car would be for 50-50 use, half time in my Accord and the the other half in my to-be CTR, with hopeful future track use.

In addition, a final thought- I have never driven a stick for an extended period of time, but the minimal experience I do have has been fun/rewarding in the way I'd hoped.

I feel like this probably comes off as a little cliche and I'd bet that there are other posts like this somewhere in the forum, but please let me know what you all think. I'd love to join this community some time soon!

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[ProjectDD]

How have you all fared with interest rates? The dealership wants a $4K deposit, but there interest rate/payments on the estimate deal are a minimum of $900 which is ridiculous.

Based on the numbers you posted, I'm guessing that's around an 8.3% interest rate. I personally couldn't swallow that.

How have you all fared with interest rates? The dealership wants a $4K deposit, but there interest rate/payments on the estimate deal are a minimum of $900 which is ridiculous.

I would qualify for the tier 1 Honda financial rates, but I'm still worried about putting that money down and finding out theyre going to charge me some insane 12% rate like I got quoted at a different dealer. I think they also won't allow me to bring my own financing.

For reference, I have excellent credit and am currently pre-qualified for 5.9% through a local credit union. If the dealership won't let you bring your own financing that should be a red flag that they are trying to stick you with a high interest rate. I would go find another dealership. Many dealerships on the east coast seem to be selling for MSRP now.

If you guys had an anxiety or stress about making this purchase, how did you overcome it? I don't like thinking that I won't be able to test drive it before I purchase the car, but I have sat in one and played around witht the interior, it's nice enough. This car would be for 50-50 use, half time in my Accord and the the other half in my to-be CTR, with hopeful future track use.

I had a lot of anxiety because no local dealerships would let me test drive an FL5. I was able to find a used one to test drive though. I very much enjoyed the car, so that really helped put my mind at ease.

You might also consider selling your Accord. You're young and trying to move out on your own. Having two cars and all the costs that come with that may not make sense.

At the end of the day, the best advice I can give is this: whatever you do, don't stretch yourself financially for a car. This is the best time to build a solid financial future for yourself. Buying an expensive new car can easily derail that.

 

[50Cal_Actual]

Avoid financing with Honda if you can. I bought a CW FL5 just over a week ago, and the dealer did everything they could to avoid giving me the "final" number, which kept me from going through my bank. For context, my wife and I have credit scores in the low- to mid-800s and only financed 18k of the CTR. When we got to finance, they gave us a monthly payment of over $300, which I wasn't expecting. I asked what interest rate they gave us and it was 8%. That rate with that high of a credit score, in my mind, is absolutely disrespectful. We immediately refinanced through my credit union at 5.29, which is still disrespectful, but saves $20 a month.

As for stress or anxiety, I had none. I owned a 10th gen Si and loved it, only sold it to buy a truck to fit a family because my wife didn't want to sell her Lexus. Fast forward a few years and the Lexus was traded for a Highlander, which made the truck not worth it for us. I was perfectly happy buying an 11th gen Si, but both the Si's I was looking at were sold so we bought the CTR. As they say, "no ragrets." Never test drove, just sat in the driver seat and was like, yep, this is mine now. I have about 300 miles on the odometer and I love the car.

At the end of the day, the FL5 is a wonderful car. That said, please make sure whatever you choose is comfortable for you financially and doesn't leave you needing to sell a car you love in a pinch.

Good luck!

 

[bstar24]

Save your money and Stay at Home. you're 26 years old signing up for 750 car payment, Gas and Insurance Cost. Only reason I bought Fl5 is because I have investments and tenant paying for

 

[BBFL524]

-Current rate for me was 6% at 72 months or 5.24% at 60 months with a credit score in the 800's. They also gave me estimate similar to yours prior to actually submitting a credit application.

-Also as far as the 4k deposit I would not put it down unless it's refundable. If the dealership insist on a non-refundable deposit then that would be a huge red flag for me.


-For me the stress and anxiety was overcome by the idea of me thinking I was getting a great deal on my FL5 which I just purchased. I've been eyeing them for a long time now as well and the last time I conducted a deep analysis of the market was a few months ago. During that time there were still ADM's of 5k+ and not many on the market. So when I had a dealership call me back offering it at msrp plus 1500 I jumped on it. I let my emotions cloud my judgement. If I would have done a quick search on cargurus I would have saw that many FL5's have been sitting on the lot for 84 plus days including the one I bought.

I think the times of ADM's are gone and urge you to not pay more than MSRP. Plenty of dealers in my area were strict on 3k+ mark up's a couple of weeks ago and now all of them are selling at MSRP plus $500 for forced accessories and I'm sure most will let go at MSRP. Let's face it with our current economy not many can afford to splurge on a 46k car.

Some things I didn't think I would want right away were things like all season tires/ppf or ceramic coating/tint/DE5 ADS. All these things add up and wish I would have not paid anything over MSRP so I could have purchased one or two things off that list.

Like other's have said please make sure this won't make you uncomfortable financially. No sense in you worrying about having to work extra to make some of the money back or missing out on hobby's because you paid for a car you weren't ready for financially. Ask me how I know............

On the flip side I've lost a lot more money over the years from trading in and switching out because I've settled on cars thinking I was saving money. In the end if I would have just bought the car that I wanted from the get go I would have probably still been driving it and would have saved more money that way.


Almost forgot I shared the same anxiety about not being able to test drive the car, however my dealership let me test drive it before I signed the paperwork. Only caveat to that is that you won't be able to get a good feel for it if you are anything like me, because I didn't push it past 4k rpm. Didn't want to go against break in period just in case I did buy car. But at least you'll get a general feel for it. Sorry I'm all over the place haha

 

[RUNN1N]

If I were in your position, I'd pass on the FL5, and look to trade my Accord toward a Civic Si or certified used Integra A-Spec + Tech with manual transmission--you'll be able to have most of the daily driving enjoyment that the FL5 provides, but at a fraction of the cost (sticker price, monthly insurance, maintenance, and gas--they're all cheaper, and it adds up quickly).

I'm not sure whose "Smart Money" rules you're referring to, but if they justify stretching yourself thin for a car, they're not too smart.

 

[HondaFan777]

At 26, I would focus on moving out on my own and purchasing a home. My oldest is 22 and living on his own. He owns his old Accord but living on his own and has money he can save.

Buying a home trumps any car.

I love my R but toys can wait until you get the fundamentals down 1st.

 

[AspecR]

I’m seeing a lot of sound advice and logic in this thread and to be honest, I don’t like it lol. Where’s all y’all emotion gone?

LET THAT MAN LIVE!!! ??

@cp3297

Buy the damn FL5 but by all means do your research on financing, pricing and the ownership experience.

Financing through Honda right now is not ideal. FL5s do not qualify for their special interest rates(3.9-5.9). Standard rates are generally 2 points higher depending on your credit. Find a good credit union I suggest: Space Coast, Northwest Federal or Navy Federal.

How comes so many of y’all suggesting buying a house first when interest rates on homes are pretty much the same or sometimes higher than a car loan? And the housing market is in the worst state it’s been in for years. Does a house have 6 gears and 320hp? Can a house beat a BMW M3 around the Nurburgring??

The only things you should be worried about is what color your new Type R is gonna be.

*I’ll be here all week, remember to tip your waitress!* ?

 

[TW00Si]

I see you got a few angels on one shoulder and @AspecR on the other shoulder. As a semi “older guy”, I’d say to keep your current car and wait a few years before making a financial mistake. I made mine when I was 28 and bought the S2000 brand new.

 

[Phillie9284]

If you have to get the car, I would suggest you stay patience and find a car at MSRP plus tax, title, and license only. Please don’t let these dealers force you to spend more on unnecessary things. Make sure any deposits are refundable in writing. It is a major red flag if the dealership doesn’t let you use your own financing. From all the cars I have bought over the years I alway had interest rates no more than 2% and always paid under MSRP. When I bought my CTR it hurt me when I paid MSRP for it. I’m fortunate enough to be able to buy the car cash, to avoid the ridiculous interest rates currently.

What I recommend you do is invest your money instead of buying this car. When I was 25 or so I was thinking about buying a new S2000 CR. Even though that car has appreciated in value over the years, I made a lot more money putting my money into real estate and stocks and resisted my temptation of buying a cool car.

 

[egxflash]

Save your money and Stay at Home. you're 26 years old signing up for 750 car payment, Gas and Insurance Cost. Only reason I bought Fl5 is because I have investments and tenant paying for

100%

I think you ought to get your finances in order first before spending $50k on a car. There' plenty of others out there that give a ton of fun factor and still allow you to be somewhat practical.

If it were me at your age, I'd save up for a place, max out your 401k, make sure you have a few months of emergency fund first.

 

[egxflash]

I see you got a few angels on one shoulder and @AspecR on the other shoulder. As a semi “older guy”, I’d say to keep your current car and wait a few years before making a financial mistake. I made mine when I was 28 and bought the S2000 brand new.

Curious - is that the same s2000 you have on your avatar?

 

[TW00Si]

Curious - is that the same s2000 you have on your avatar?

Yes

 

[egxflash]

Yes

Nice. Glad it worked out in the end! Haha.

I also commented elsewhere but I do agree with you. I'm a semi "older" guy as well and usually err on the side of conservatism when it comes to finances so despite being able to more than afford the Type S, I still sometimes grapple with its opportunity cost.

 

[TW00Si]

Nice. Glad it worked out in the end! Haha.

I also commented elsewhere but I do agree with you. I'm a semi "older" guy as well and usually err on the side of conservatism when it comes to finances so despite being able to more than afford the Type S, I still sometimes grapple with its opportunity cost.

Yeah it’s just that in hind sight I would’ve saved some money.

Don’t get me wrong, I’m giving an advice that I, myself would likely not heed. Even now, I’m not doing everything I should financially because I’m doing the “live a little” sometimes too much. But it would not be responsible for me to not give that advice. ?

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