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OK, people, give him a break. That's why he used the quotation marks around the word. He doesn't look at them an investment. But other people do, often using the term "investment" (see those quote marks again!) as a rationalization to spend more than they need or can reasonably afford.
But other people do? I haven’t seen one single poster here who said a car was an investment.
It’s simply a vehicle they have chosen to drive in their short lives on earth. My colleague drives some Ford F-150, not everyone wants to drive a cash car Honda Civic until the wheels fall off. Some people want a truck, some an SUV, others a sportscar. So good for them on living life to the fullest since they can’t take their money with them and will be spending years of their life behind the wheel of a car.
If people are buying cars they truly can’t reasonably afford then the banks will suffer the consequences when the buyer defaults on the loan. It’s none of my business.
Yes, they definitely do. I don't know if anyone did on this thread and I'm not going to go through 52 pages of posts to find out, but regardless, I wish people would learn the subtleties of written communication.
But other people do? I haven’t seen one single poster here who said a car was an investment.
It’s simply a vehicle they have chosen to drive in their short lives on earth. My colleague drives some Ford F-150, not everyone wants to drive a cash car Honda Civic until the wheels fall off. Some people want a truck, some an SUV, others a sportscar. So good for them on living life to the fullest since they can’t take their money with them and will be spending years of their life behind the wheel of a car.
If people are buying cars they truly can’t reasonably afford then the banks will suffer the consequences when the buyer defaults on the loan. It’s none of my business.
I do believe I used that idea when I convinced myself to spend $35k to buy a brand new Audi when we got our first major bonus (and again when I purchased a rare old turbo Audi). Thinking back now, it was stupid and I'm quite sure there are plenty of people who purchase the latest Dodge high performance whatever thinking it will be a collector car in a few years and will be able to sell for more than they purchased the car for. I doubt you'd see that sentiment reflected here, a forum for personal finance, but you'd definitely see it all over the car forums.
He doesn't. Hence the quotation marks " ". That implies he doesn't view a car as such, even though many other people do....or at least use the word investment, often to justify buying something they can't really afford.
Yikes, this should be really obvious, yet two people can't 1) Comprehend the quotation marks, and 2) Can't understand the context that when a poster writes "horrible" in front of "investment" in quotation marks, that poster probably doesn't see cars as an investment :P
The irony is that a lot of the cars that do hold their value or appreciate, the supercars of the world, aren't bought by people who care about that at all anyway. They buy cars like that for fun, because they can. If you have the money to spend, you enjoy your life. Like my dad always says, "I can't take it with me."
I bet most "investment" cars cost more money to maintain, store, etc., over the years than any investment return. Especially if your time is counted. In other words, it might make sense if it's a hobby but not as a financial investment.
I think this is another simplistic view of his. Every time I’ve looked to buy gently used I’ve been able to find deals on new cars where it doesn’t really make sense to deal with the additional 50-70k miles. I’ve bought two new cars after researching both used and new in the model I wanted. Both times the 3-4 year old models with 50-70k miles on them were almost the same price after negotiatons and rebates. The first one cost 15% more new and the second one cost 12% more. I’ll likely have both for the next 10-12 years. Both are paid off and one is 5 years old and just crossed the 30k miles mark and the other is 3 years old and just crossed the 30k mark.
But of course if you compare the sticker price new vs used there is a drastic difference (which proves his point). I guess I just didn’t know anyone actually paid the sticker price.
I think this is another simplistic view of his. Every time I’ve looked to buy gently used I’ve been able to find deals on new cars where it doesn’t really make sense to deal with the additional 50-70k miles. I’ve bought two new cars after researching both used and new in the model I wanted. Both times the 3-4 year old models with 50-70k miles on them were almost the same price after negotiatons and rebates. The first one cost 15% more new and the second one cost 12% more. I’ll likely have both for the next 10-12 years. Both are paid off and one is 5 years old and just crossed the 30k miles mark and the other is 3 years old and just crossed the 30k mark.
But of course if you compare the sticker price new vs used there is a drastic difference (which proves his point). I guess I just didn’t know anyone actually paid the sticker price.
Yep. With most cars, the street price is about 8% under MSRP. I've bought leftovers rotting on dealer lots in the fall that had rebates/incentives for 25% under MSRP. There's no way I'd buy a late model used car for similar money. I want the new car warranty and I want to know how the car was driven & maintained since that's the big impact on long term reliability.
That said, there are always deals to be had on cars that depreciate like a stone. My girlfriend bought a 5 year old Volvo S80 with 30,000 miles on it for 40 cents on the dollar. Volvo didn't change body styles for a decade so you couldn't tell it from a new one. She's driving a European luxury sedan for the price of a stripped Hyundai Accent. Like just about any car, it's going to be boringly reliable for the first 125,000 miles. After 2 1/2 years of ownership, all she's done is oil changes.
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