Bad idea.
Very bad idea.
- You have two cars already; thus, this is far from a need.
- This car is not a practical choice: It's over 25 years old and won't be cheap to keep. Again, it serves no need.
- You say you may find yourself "bored" with this car in two years.
- You'd have to borrow to buy this car. Even if the interest is low, it's still money going out of your pocket.
- You're recently out of school and "believe" you can make the payment easily. That's hardly a ringing endorsement.
- You're young, and the money you save in these first years out of school has the longest to grow. The secret ingredient for making compound interest work in your favor is TIME. You have that on your side, but if you splurge on toys right now, you'll throw away that precious asset. These are your years for brown-bagging your lunch, going longer between hair cuts, and watching your pennies grow. You'll find as you save that your first $100,000 is hard to save -- it seems to take forever -- but once you have that figure in your portfolio, it begins to take off. The point: The sooner you reach that point, the better off you are.
- You're renting -- did I understand that right? You also mentioned mortgage pay-down. But your money should go FIRST to appreciating assets, and then to depreciating, just-for-fun assets only when you're financially secure.
- You said it yourself: You're rationalizing this purchase. Anytime you have to do that, you already know it's the wrong choice.
Something I tell my students all the time: Never trade what you want most for what you want most right now.