U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 09-16-2017, 09:45 PM
 
Location: San Francisco
16,418 posts, read 5,354,959 times
Reputation: 51319

Advertisements

Last year we spent about 2.2% of our net worth (not counting the house we live in) on our new car. Although we could have spent more, we live in the city and don't drive that much. Our 2016 Subaru still has less than 3,000 miles on it. So it seems like a waste of time and money to buy luxury cars. We're also practical types who don't care about performance or impressing our friends. The most important factor in our decision was to find a car that is comfortable, meets our needs, is easy to park in the city, isn't a theft magnet and isn't horrendously expensive to insure.
Reply With Quote Quick reply to this message

 
Old 09-16-2017, 10:09 PM
 
Location: Florida -
8,764 posts, read 10,843,052 times
Reputation: 16634
Quote:
Originally Posted by mathjak107 View Post
I agree . jeep wrangler sahara with a 2018 Subaru outback being made now .

I worked my entire life at not being poor since that is how I started out . we scrimped ,saved and learned all we could about investing .

the goal has always been to live better in retirement than we did while raising a family and having to save

we don't want a step down in retirement , we want a step up in what we do
.

I like that! - That's also been my perspective -- and what we're doing, although I never really expressed it that way.
Reply With Quote Quick reply to this message
 
Old 09-16-2017, 11:29 PM
 
4,433 posts, read 2,612,363 times
Reputation: 10304
Quote:
Originally Posted by mathjak107 View Post
i am throwing myself a surprise party for my birthday . last year i hid my own Easter eggs .
I cant find my Easter eggs from the year before last.

And it's September, I've had my Christmas tree up for a month now.

My birthday is coming up, but I can't remember when it is. They say I was there the day of my birth, but I don't remember it.

Now if I can remember where I put the Valentine's day cards.....they need to go in the mail.....

And a tune keeps running through my head, I think it's called Auld Lang something.
I suddenly feel like a glass of champagne.....

Reply With Quote Quick reply to this message
 
Old 09-16-2017, 11:35 PM
miu
 
Location: MA/NH
17,144 posts, read 34,638,441 times
Reputation: 16241
What % of my wealth? I'm almost 59 and most likely will stick with buying older Civic Si hatchbacks. The '03 with 233K miles that I am driving now only cost us $1500 two years ago. I've only ever had one car loan in my life. I prefer buying my cars with cash. We do have an automotive lift in one of our garage bays. And fortunately for us, my husband is really mechanically inclined.

We don't believe in buying new cars. Even if we won Powerball, our car buying habits wouldn't change.
Reply With Quote Quick reply to this message
 
Old 09-16-2017, 11:45 PM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
5,469 posts, read 4,094,118 times
Reputation: 7268
Quote:
Originally Posted by Ruth4Truth View Post
OP, honestly, by the time one is retired, one should be past the stage of wanting "exciting" cars. One should go for what's practical. How long do you usually keep your cars? Until they die, or for a few years, then trade them in? Has your policy in that regard changed, now that you'll both be retired? I think the important thing is to be realistic, and to keep in mind that unforeseen expenses can happen in retirement. Especially in the later years, when one might need home health care, which is very expensive.

My brother and his wife will soon both be retired, and they're planning on buying used cars, only, from now on. She's a nurse, so she plans on putting in a weekend here and there, to keep a trickle of income happening, but they're still battening down the economic hatches, to play it safe. You're at a stage of life when nothing can be taken for granted, even your nest egg. Bear in mind that during the dot-com bubble burst, people lost about `1/3 of their investment funds, just from that. That really hurt people who were retired. Also bear in mind that the Glass-Steagal Act, which prevented debacles like the 2008 home loan and securities fiasco, has never been reinstated. The root cause of that crisis was never addressed. Your nest egg is still vulnerable to another similar crisis, to name only one of many factors that can, and some of which probably will, negatively impact your retirement funding.

It's best to be cautious and prudent in ordering one's priorities and deciding what to spend, and what to spend it on, IMO.
Lol. Practical is relative. My buddy is is 63 and just got a Porsche Carrera. I passed a guy in the parking lot today who was at least 70 he was driving a jaguar f type. My neighbors look like they are ready for wheelchairs and bought a new corvette . Some people are just car fanatics. I'm relatively newly retired and plan on getting a Mercedes sl 550 next year. If one has the money in retirement I say go for it. It's part of enjoying retirement. For me I am different than the op in that I never buy new I buy after at least the first 4 years when the depreciation has taken the biggest hit and pay half of the new price. I still do have a budget to stick to
Reply With Quote Quick reply to this message
 
Old 09-17-2017, 12:20 AM
 
Location: NNV
1,518 posts, read 974,563 times
Reputation: 3096
Quote:
Originally Posted by bpollen View Post

But if you have $5,000,000, then those two cars total $250,000, which seems unnecessary even for a multi-millionaire.
What? Judging by this statement, you are not a car enthusiast.

If you're left with $4,750,000, that's not enough for retirement? Unnecessary? Should I be limited to a Toyota Camry? I can tell you if I had $5M, I'd be looking for that Mercedes 600 ($150k plus $10k a year average for maintenance). I can pretty much guarantee that car will not go down in value. And my wife would get any car she wanted.

Fortunately, my favorite cars are relatively cheap to obtain...

Last edited by Vic Romano; 09-17-2017 at 12:29 AM..
Reply With Quote Quick reply to this message
 
Old 09-17-2017, 12:30 AM
 
29,779 posts, read 34,867,277 times
Reputation: 11705
Quote:
Originally Posted by Tall Traveler View Post
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.
Wrong question to mostly the wrong audience. Because of pensions, SS. You are living on fixed income. Your wealth isn't as important as many retirees. Your question is probably more in line with what percentage of monthly income would a person spend on a car. That of course depends on your current cash flow and debt to income.,
Reply With Quote Quick reply to this message
 
Old 09-17-2017, 12:45 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,569 posts, read 39,952,759 times
Reputation: 23704
I vote, spend what you want! (if you have it and it will not put you into poverty...)
You are all grown up and can spend what you like on WHAT you like! (beats wasting it on Healthcare!)

Just keep it insured and in good shape for the pending 'estate auction'

and DON'T do this!!! (Unless VERY well insured)
Two men in their 70s die in Challenger Hellcat test

for me... I have a $35 daily driver (since 1976) it is fine and I trust will last me 40 more yrs.
I have a very fun model that cost me $400 and is quite fast / fun ('series' SCCA race equipped). I drive mtn switchbacks everyday. (when in any of my USA destinations). VERY exciting roads within 5 miles of each!


A very good friend just bought his 3rd GT40 ~ $450k for this one. He also has several other 'custom' cars / trucks. He uses a $60k Hummer to beat around his ranch, I am fine with my $3000 CTD 4x4 dually. (I have 3 of those.. all MUCH cheaper than my tractors (3) and dozers) Each of our 'net worth' is not that different...

Of course for the REAL fun... I still have 9 vintage racing motorcycles I used in the 1970's. Each under $1000 NEW! Some day I may be too old to 'kick-them-over' Hope not!

I have the 'price-list' all made out for the 'estate auction', and my SO has GRAND plans to spend it!!! FAST!

Excellent!

Enjoy!
Reply With Quote Quick reply to this message
 
Old 09-17-2017, 07:53 AM
 
Location: RVA
2,165 posts, read 1,266,382 times
Reputation: 4456
Quote:
Originally Posted by TuborgP View Post
Wrong question to mostly the wrong audience. Because of pensions, SS. You are living on fixed income. Your wealth isn't as important as many retirees. Your question is probably more in line with what percentage of monthly income would a person spend on a car. That of course depends on your current cash flow and debt to income.,
A real Bada Bing for this. ^^^. How it affects your income in retirement is way more important. When working, an expensive car is reducing the compounded savings you could have had with a less expensive car. Use the 4% "rule" to determine what lost income would be. $50k would generate $2k/yr in income. In retirement, my savings will be more conservative, but with a defined income, the effect on that is what matters. I saved for a reason and leaving the money to heirs was not one of them.

The purchase price almost means nothing. It is the net cost of the depreciating asset that matters. And wht the cost of owning that vehicle means to you. I intensely dislike driving boring cars. I've owned fun performance cars (all BMWs & Porsches), none new, 2-4 years old, keep them for 8-12 years and never have had a high net cost, because I do my research and never take the new car depreciation. One has to look at what the cost per year is expected to be, and maintenance and repairs are a huge part of that. Never my only vehicle, they have all had well under 80k on them when I sold them, so I don't base it on cost per mile, but cost per year.
Since I am able and do maintain and repair my own cars, I've saved many many thousands, that would have made the above high net cost statement false. Performance cars always cost way more to put tires, brakes, water pumps and other wear items on, and if you pay to have them maintained and repaired then you better be prepared for that financial hit as well.

My current '02 Carrera was bought in Feb 2008 for $32k with 30k miles on it. Sticker was still in the glove box, $92k. Insane depreciation from when new. There is a fundamental issue with that series, that is mostly labor to repair preemptively, that drove their depreciation harder and faster. If you wait until the part fails it will cost you a $15k engine replacement. I counted on the fact that a long term solution would emerge, and it did. Someone else mentioned they paid $5k for the work, which is about right. I did the same work for under $1k. It did take me 3 days to do the work, and I have a lift. It now has 58k miles on it, & I could sell the car tomorrow for $22k. With the cost of everything I've paid in to the car, maybe $2k a year net cost? (Gets great mileage too when wanted, about 29mpg). And for ME, worth every penny. It doesn't compare in net cost to my utility 99 Dakota that I bought in 2006 for $4200 with 89k miles on it. Has 170k miles now and the only major repairs have been ball joints, heater core, brakes and the AC compressor. (I mentioned brakes because calipers don't normally need to be replaced) If I had paid to have them all replaced it would have been maybe 5k in repairs, but do it myself and the cost is under a grand. It failed inspection due to worn upper ball joints (that I replaced in 2006 for under $100). Estimate from the shop was $600 to replace them. It took me 3 hours to replace them with Moogs for $80. Taking my time. Net cost on the truck would be maybe $300/yr. But you have to have the space, tools, time and ability to do the work, which for many is not possible at all. A sports car is impractical as an only car, so the need for 2 cars is part of the accepted cost. If I had to pay for everything as a typical consumer, I would probably never own such cars.

I've bought 5 new "practical" cars in my life, and 4 of the 5 had a much much higher net cost, because the resale after 8 years is so bad. (Latest was a 1 year old car with 9k miles, still under warranty cost me $24k in 2009, had a sticker of $31. So I figured the major depreciation had occured. Worth about $5k now with less than 70k miles on it! With out of warranty repairs, cost would be over $3k/yr, even with me doing the expensive labor. ) Naturally no repairs while under warranty. But we drive relatively few miles per yr. Choose your poison.

Last edited by Perryinva; 09-17-2017 at 09:13 AM..
Reply With Quote Quick reply to this message
 
Old 09-17-2017, 09:24 AM
 
1,061 posts, read 516,164 times
Reputation: 1814
Quote:
Originally Posted by Perryinva View Post
A real Bada Bing for this. ^^^. How it affects your income in retirement is way more important. When working, an expensive car is reducing the compounded savings you could have had with a less expensive car. Use the 4% "rule" to determine what lost income would be. $50k would generate $2k/yr in income. In retirement, my savings will be more conservative, but with a defined income, the effect on that is what matters. I saved for a reason and leaving the money to heirs was not one of them.

The purchase price almost means nothing. It is the net cost of the depreciating asset that matters. And wht the cost of owning that vehicle means to you. I intensely dislike driving boring cars. I've owned fun performance cars (all BMWs & Porsches), none new, 2-4 years old, keep them for 8-12 years and never have had a high net cost, because I do my research and never take the new car depreciation. One has to look at what the cost per year is expected to be, and maintenance and repairs are a huge part of that. Never my only vehicle, they have all had well under 80k on them when I sold them, so I don't base it on cost per mile, but cost per year.
Since I am able and do maintain and repair my own cars, I've saved many many thousands, that would have made the above high net cost statement false. Performance cars always cost way more to put tires, brakes, water pumps and other wear items on, and if you pay to have them maintained and repaired then you better be prepared for that financial hit as well.

My current '02 Carrera was bought in Feb 2008 for $32k with 30k miles on it. Sticker was still in the glove box, $92k. Insane depreciation from when new. There is a fundamental issue with that series, that is mostly labor to repair preemptively, that drove their depreciation harder and faster. If you wait until the part fails it will cost you a $15k engine replacement. I counted on the fact that a long term solution would emerge, and it did. Someone else mentioned they paid $5k for the work, which is about right. I did the same work for under $1k. It did take me 3 days to do the work, and I have a lift. It now has 58k miles on it, & I could sell the car tomorrow for $22k. With the cost of everything I've paid in to the car, maybe $2k a year net cost? (Gets great mileage too when wanted, about 29mpg). And for ME, worth every penny. It doesn't compare in net cost to my utility 99 Dakota that I bought in 2006 for $4200 with 89k miles on it. Has 170k miles now and the only major repairs have been ball joints, heater core, brakes and the AC compressor. (I mentioned brakes because calipers don't normally need to be replaced) If I had paid to have them all replaced it would have been maybe 5k in repairs, but do it myself and the cost is under a grand. It failed inspection due to worn upper ball joints (that I replaced in 2006 for under $100). Estimate from the shop was $600 to replace them. It took me 3 hours to replace them with Moogs for $80. Taking my time. Net cost on the truck would be maybe $300/yr. But you have to have the space, tools, time and ability to do the work, which for many is not possible at all. A sports car is impractical as an only car, so the need for 2 cars is part of the accepted cost. If I had to pay for everything as a typical consumer, I would probably never own such cars.

I've bought 5 new "practical" cars in my life, and 4 of the 5 had a much much higher net cost, because the resale after 8 years is so bad. (Latest was a 1 year old car with 9k miles, still under warranty cost me $24k in 2009, had a sticker of $31. So I figured the major depreciation had occured. Worth about $5k now with less than 70k miles on it! With out of warranty repairs, cost would be over $3k/yr, even with me doing the expensive labor. ) Naturally no repairs while under warranty. But we drive relatively few miles per yr. Choose your poison.
I know all about that issue with the 996 series. You did that yourself? I sure couldn't. Hell, I can't even do an oil change. Can I message you next time I think I'm getting taken by the dealer?
Btw, that 5k also included a rear main seal while they were in there.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top