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This is my feeling too. I expect that if I am still living in the US of A when I am 70 I will have a self driving BMW Z# Roadster drop top. I put the # sign in cause I expect that it will be a Z5 or Z6 by then and with more bells and whistles. As long as it can hold a set of golf clubs I am good with it.
I gotta ask what is the point of a self driving roadster? That seems like buying a $600 driver and letting someone else hit it as you sit in the cart.
In my younger days, I was going thru new cars every few years and never getting ahead of the game. The Depreciation was punishing as soon as you drove it off the Lot. And the big Detroit V-8's were chewing up gas, tires and oil at an astounding rate.
I took one full year off of this cycle, banked the typical monthly payments and bought a used Porsche. I loved that car, drove it for years, the re-sale was pretty close to what I had paid for it. The Lightbulb came on. I've been driving upscale CPO's ever since, usually paying Cash and keeping it well beyond the free Dealer maintenance window. 8 years seems to be the point of diminishing return -- so sell it or trade it in and begin again.
I don't pay much attention to percentage of Net Worth. It's down in the noise. I'm currently driving an old school BMW, the Classic e-39.
To the OP, as others have suggested.....drive what you want. There will come a time when you can't.
I just wanted to get the opinion of retirees, especially those that have been retired for a number of years, what percent of your wealth do you consider acceptable to spend on cars in retirement?
Wife retired at 54 a couple years back and I'm getting ready to retire in the next few months and I was wanting to get the opinion of retirees.
We bought a new car recently for wife and I'm thinking of buying a very exciting car for myself and added together, it would constitute about 5% of our wealth (we won't have a note, pay cash)....do you think that's too much and if so, what do you recommend or if you think that's too little or not a problem, I want to hear that too.
Our pensions, investment income, SS should be easily sufficient to live on. Yes, we could conceivably get by on one vehicle but we are both pretty active and we live in an outer suburb so public transportation is not really feasible.
I don't think in terms of % for necessities. I view things more generally, to be frugal but practical, since I don't know what the future will hold.
For example: When I get a new car, I'll get what I need that I also find desirable, and weight new vs used, and negotiate to my best ability. I will not buy options I don't need, or the top model of the make I decide on.
I have in my "until death" budget certain annual and emergency expenses factored in. so unless they all happen at once, I should be able to afford a REASONABLE car, a REASONABLE new roof, a REASONABLE new a/c system, etc.
I do not count these special purchases as part of my annual budget. They are part of a special emergency part of my budget, set aside and not included in my annual budget for everyday expenses.
If you are saying that BOTH of your new cars together add up to about 5% of your total MONEY, that seems frugal, actually....unless you are really rich. If you have $1,000,000 in total money accounts, then both cars cost you $50,000, which is very reasonable. (Assuming those are low maintenance cars.)
But if you have $5,000,000, then those two cars total $250,000, which seems unnecessary even for a multi-millionaire.
I would think that, like taxes, the less money you have, the more % the cost of the cars will be out of necessity to get a decent car. The more $ you have, the less % the cars should be, since anything more would mean you're paying for luxury and not necessity.
It is also different for a single person vs. a couple. If your two cars total 5% of your total money, does that mean that 5.0% is what it should total for a single person? If I have $1,000,000 as a single person, then does that give me a budget of $50,000 for a car?
Does the 5% of total money include your future Social Security payments?
Yeah,...I don't think % of "total wealth" is the way to figure things.
On what do you base that $12,000 to $15,000 amount? The car I'm likely going to buy is many times more than that and has a top speed over 200 mph. What this thread has shown me is that I analyze things to a far greater degree than the overwhelming majority and no one else really looks at their car purchases and considers what that does to their wealth.
About your comment on admitting that you can't beat the market and better to go with an index fund.
That's the amount required for a few decent used cars or one older sports/luxury car.
So you're getting a car to drive at the track?
Unless you're really into your cars I can't see spending much money at all on them at any point in your life. Not as bad of an "investment" as a boat, but still.
I think you would've had a lot more luck if you started your thread with I want to buy a high end sports/super car. Here are the rough numbers. Is it irresponsibly to spent this much of my overall wealth?
You may analyze things to a great degree, but you surely aren't very good at explaining yourself.
As for the bit about the market statistics show most people don't beat the market. Some do, most don't. I'm likely to close up 30% or more this year, but it's easy to make money in a bull market. Not to mention the way returns tend to be lumpy from year to year is more than a lot of people's nerves can take.
I just wanted to get the opinion of retirees, especially those that have been retired for a number of years, what percent of your wealth do you consider acceptable to spend on cars in retirement?
Wife retired at 54 a couple years back and I'm getting ready to retire in the next few months and I was wanting to get the opinion of retirees.
We bought a new car recently for wife and I'm thinking of buying a very exciting car for myself and added together, it would constitute about 5% of our wealth (we won't have a note, pay cash)....do you think that's too much and if so, what do you recommend or if you think that's too little or not a problem, I want to hear that too.
Our pensions, investment income, SS should be easily sufficient to live on. Yes, we could conceivably get by on one vehicle but we are both pretty active and we live in an outer suburb so public transportation is not really feasible.
I just purchased a new AMG with most of the options, also fast and exciting and payed cash. This would be about 2.2% of our wealth. Wealth is only cash, stocks and bonds. I also had a trade in, which would skew the percentage. By the way, the amount I spend has already been replaced by the increase in stock value.
The movie The Bucket List came to mind, starring Morgan Freeman, Jack Nicholson.
Are you asking permission? Dave Ramsey, if I recall correctly, give 10%, save 10% and live on the other. As one who keeps a ledger, I have percentages for Housing, and several other categories. Savings I have for my Bucket List, when I have saved for that I item, go for it !
Warning ! For myself, I only discuss my financial situation with whom I trust, gain wisdom for making decisions. People, even dear friends can be envious, not understand my wants or needs. Though they think their spending is rational and mine is not. I.E. they spend $1,000. on clothes for the year, I would prefer to that amount on travel.
This literally happened on Wednesday when I picked my kid up from school:
My son (5 years old...has started to pick up my passion for cool cars): OOH! Look, mom! A red Corvette. Me: I see it. My daughter (3): Where?! Where!? My son: Oh. It has an old guy sitting in it. Me: HEY! Be nice. Also, who do you think has enough money to buy cool cars? Older people or younger people? My daughter: Where is the corvette? Where is red corvette!?? I wanna see the old guy! My son (grumbling): Older people. Me: Right. My son: But mom. You have a nice car and you're not old. Me: ............ Me: Who wants milkshakes!!!!??? My son: ME! VANILLA!!!!' My daughter: Chokwate! I want chokwate!
5% of what? You dont have to answer that question here, but 5% of $5 million is different from 5% of $500,000. Are you taking into consideration that 5, 10, 15 years down the road you may have to buy cars again?
I plan to buy a car for my wife in a couple of years and will spend about 2.5%. We will be 60/61 by then. But we do have 4 cars. Two newer drivers and two old German cars. The total value of our cars is less 4% of our wealth (if you include our house as wealth).
Everyone is different.
In the past I always purchased new cars but then I would run them into they literally died. Like my suburban; it now has 315,000 miles and I plan to keep it another 100,000 so, being 70, I don't know if I will ever purchase another car again. If I do I will be able to afford a new one by why should I if I don't need it?
I love my suburban; it has heated leather sits, it's built safe like a tank and the most comfortable ride I've ever had in any vehicle.
I've always driven a lot for business and once I purchased a new Ford truck that I finally got rid of when it had 505,000 miles. Buy new and sell it for scrap.
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