First car out of college

There's no right answer -- car loans are generally "bad" debt because the car is a depreciating asset. So financially, not needing to get a loan is by far your best option.

That said, if you can afford the payments and have a desire for a luxury car, it's ok to treat yourself -- wisely.

Me, I'm a car nut. I totally get it and and have overspent on cars. You have to pick your luxuries carefully.

My final advice: don't get an Audi right away. You are young and have plenty of time to search for the perfect car. Buy something a bit more practical for now and start saving now while the long-term, compound interest is most powerful (because you are so young). I think one of the best values in used cars today are Chevy Volts from 2015-2017. They're fun, peppy, hybrid plug-ins, get great mileage, excellent reliability and maintenance, and since Chevy discontinued the model, they are inexpensive for what you get. You can buy them for $10-11k in fantastic condition. They have a higher-end trim model that's worth the premium, especially used.

First, I am assuming that you are in the United States.

I think loans to buy depreciating assets for personal use are a bad idea. Hence, I would avoid them. You seem to be doing very well financially. If I really liked an Audi I would look to buy one used and pay cash. I would then safe up enough money to buy a new or slightly used Audi. At that point you could buy the car you really want or want until your car had to be replaced. The second would result in a larger retirement nest egg.

Of course you'll be considerably wealthier in the long run (and the short run!) if you buy a reliable, low-cost car rather than an expensive, high-maintenance car. That's nothing but simple math.

More importantly, it falls under the heading of "don't piss away your money just because you have a lot of it."

The problem is that if you get in the habit of buying all this cool stuff because You Have A Lot Of Money, then before you know it you're up to your eyeballs in debt, while managing it because of your high income. And saving a minimal amount.

But then you:

• lose your job, or
• hate your job and need to quit, or
• want to get married or
• buy a house or
• have a Pregnancy Event.

Suddenly, you're underwater and in deep trouble.

Bottom line: live noticeably below your means (without being miserly), because money brings choice to do and be things that people without money can't do.

Sure, $100,000 per year grants you quite a few luxuries and a $27k car is easily in your realm of affordability.

First and foremost: secure the job

Don't you dare buy an expensive car before having been employed for at least one month.

Out of college I was making about $40k and purchased a brand new $30k car after working for 6 months. 6 months later I moved into an apartment with my girlfriend who was also working and never felt crunched for money; car was paid off in about 3.5 years. 9.5 years later I still drive the same car because I've technically paid $263 per month for it plus repairs and will squeeze every dime of value I can from it. Luckily I've only had to do routine maintenance on it. The repairs have costed about $4500 and $2,000 of which was done by a shop (mainly tires, alignments, and other things that came up during inspection which I didn't want to deal with).

Whether or not an Audi is a good choice will depend on your experience as a mechanic. At $100k salary you could easily jump into a more reliable car if the repair expenses get overwhelming.

"Endless money pit" - sounds like a favorite YouTuber of mine, Scotty Kilmer. Listen to Scotty and stay away from that Audi. If you want to drive one, rent it by the day from Silvercar.

Forget "$10k as a down payment." You can get a reliable, economical car for $8k. E.g., a 2014 Honda Insight.

Stack your cash, go to Bogleheads or Mr. Money Mustache to get inspired to save.

There's a lot of good advice in the answers posted.

My two cents is that when I was your age, I bought used cars. They always involved a fair amount of problems and repairs.

Now, I would only buy a new car. They're built better and many offer warranties of 5 years and 60,000 miles. I bought a Toyota Camry in 2003 and apart from expected wear and tear (new tires, battery replacement, standard maintenance), I have had one repair in 17 years.

The big difference between us is that I now buy cars for cash. You're new to the work force and you have to determine when you can afford a new car (loan) as well as whether you prefer to go the frugal route (used). I vote for new when it's practical financially.

A luxury car purchase isn’t unreasonable for the salary you’ll be making. What you really need to figure out is if the Audi is worth the cost over what you would pay for a reliable used Honda/Toyota commuter car.

I’d recommend test driving the Audi, as well as the at least one of the cheaper options you’re considering. If the A4 is everything you’re imagining it to be and is going to put a smile on your face every time you drive it, go for it. Just remember that you’re paying a premium for a car that is going to be expensive to maintain and require more maintenance than the other options you’re considering.

As others have said, you’ll obviously be better off financially if you buy a cheaper car. However, at your salary you have the money to splurge on one or two aspects of your life, but if you splurge everywhere, you’re going to be broke and living paycheck to paycheck.

Ask yourself if you had to pick one or two items to splurge on from the list below, would a car be one of your top picks?

• House/Apartment
• Car
• Entertainment/Vacations
• Financial Security/Investments