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Well, it takes money to make money.. and if your $80,000 is all in your driveway, then that money's basically gone forever.
I understand that. We have a Lexus SUV and it was not cheap, but to honest, it's not like we're missing that money. We bought it because we could afford to buy it.
It may in fact apply more to to higher priced cars, but it should still be close. But I can see a $2K repair bill easy in a number of ways. That could be an a/c repair and a major service for instance, or a significant suspension overhaul.
True, but what are the odds of this? Less then 10%, probably less than 1%. For a quality brand product, the odds are very much in favor of no major issues. That's why people tend to be very loyal to the brands that have worked for them.
Notice that the 10 least costly to maintain vehicles are fairly inexpensive cars. The numbers are inline with what I mentioned, that I spend about $500-600 per year or less in maintenance. That leads to a lower overall total ownership cost. Not to mention lower registration and insurance costs.
I understand that. We have a Lexus SUV and it was not cheap, but to honest, it's not like we're missing that money. We bought it because we could afford to buy it.
Your statement is called justifying a purchase. Just because you can afford it doesn't mean it's a smart investment.
I can afford to pay cash for a fleet of vehicles, but I chose to drive old, paid for cars.
For the last eight years, I drove a '91 S-10 pick-up I bought wreaked for $250 and repaired it. My wife drove an '87 Cavalier. We impressed no one with our vehicles, but plenty of people envy our bank account.
Making sacrifices like that allowed me to retire a multi millionaire on a modest salary. When I retired, I purchased an expensive new home, a new car for wife, new truck for me, and new SUV for the kid, and paid cash for all of them, with way more than enough left over..
Have the guy with the pencil figure out how much money you could acquire with zero car payments for 20 or 30 years. Invested properly, the figure will stagger you.
I'm not saying your way is wrong, just pointing out that the $80k in the driveway could be put to much better use, and would come back to you many fold if you invested it rather than spend money for something you don't need.
This is the long version of what Sonarrrat was trying to tell you. Whether you can afford the fancy car or not, it is a very poor use of money, and may bite you in the butt somewhere down the line. A lot of people losing their homes today are doing so because they chose to live the good life, rather than the practical life. It's called instant gratification. With credit, we can all live like kings today, the Hell with tomorrow.
I don't think the Op was really looking for advice, they wanted someone to tell them it's OK to lease the fancy car, and ease the conscience somewhat. He/she knows it's frivolous, but if enough people say it's ok, he/she will feel better about a poor investment.
The person who penciled it out and said it come out even is an admitted car salesman. 'Nuff said.
Just my .02 cents worth. Enjoy the new car....
I know people that are extremely well off and can afford to pay cash for a vehicle - but they choose to lease. I personally would never lease. Most people that have a financial plan / goal do what works best for them. We have no idea what kind of money the OP has - and that's their business. Glad you figured out something that works for you!
Your statement is called justifying a purchase. Just because you can afford it doesn't mean it's a smart investment.
I can afford to pay cash for a fleet of vehicles, but I chose to drive old, paid for cars.
For the last eight years, I drove a '91 S-10 pick-up I bought wreaked for $250 and repaired it. My wife drove an '87 Cavalier. We impressed no one with our vehicles, but plenty of people envy our bank account.
Making sacrifices like that allowed me to retire a multi millionaire on a modest salary. When I retired, I purchased an expensive new home, a new car for wife, new truck for me, and new SUV for the kid, and paid cash for all of them, with way more than enough left over..
Have the guy with the pencil figure out how much money you could acquire with zero car payments for 20 or 30 years. Invested properly, the figure will stagger you.
I'm not saying your way is wrong, just pointing out that the $80k in the driveway could be put to much better use, and would come back to you many fold if you invested it rather than spend money for something you don't need.
This is the long version of what Sonarrrat was trying to tell you. Whether you can afford the fancy car or not, it is a very poor use of money, and may bite you in the butt somewhere down the line. A lot of people losing their homes today are doing so because they chose to live the good life, rather than the practical life. It's called instant gratification. With credit, we can all live like kings today, the Hell with tomorrow.
I don't think the Op was really looking for advice, they wanted someone to tell them it's OK to lease the fancy car, and ease the conscience somewhat. He/she knows it's frivolous, but if enough people say it's ok, he/she will feel better about a poor investment.
The person who penciled it out and said it come out even is an admitted car salesman. 'Nuff said.
Just my .02 cents worth. Enjoy the new car....
We don't really use credit. We have an AMEX, but we like never use it.
True, but what are the odds of this? Less then 10%, probably less than 1%. For a quality brand product, the odds are very much in favor of no major issues. That's why people tend to be very loyal to the brands that have worked for them.
Notice that the 10 least costly to maintain vehicles are fairly inexpensive cars. The numbers are inline with what I mentioned, that I spend about $500-600 per year or less in maintenance. That leads to a lower overall total ownership cost. Not to mention lower registration and insurance costs.
I used to write service at a Toyota dealership, and I saw lots of $1000+ repair bills. IIRC replacing strut assemblies on all 4 corners on a Camry ran about $1800 (that is replacing all of the pieces, which add up fast). A timing belt and 90K service together was a good $600-700, and if you were due for tires too there's another $3-400. Air conditioning repairs are always $800.
We don't know what was wrong with the Nissan above, but repairs on any car can add up like that.
What I dont understand is why self gratification is stupid.
You are confused...! Self gratification is masturbation, that is not stupid, sometime very necessary...
However, instant gratification is something completely different.
Instant gratification is someone who wants, and buys, every new toy they see, and good sense is thrown to the wind. If you're Paris Hilton, instant gratification works fine, there is a never ending supply of money.
The average person should learn to pick their battles, meaning don't buy something as soon as you see it. Ask yourself, "Do I need it, or do I want it?"
Someone who buys everything on impulse because they "Want it" will never have the money for the big things they want later. Buy a new car every year, buy everything else you see, and when that house comes along, you have no money to buy it.
I was/am the cheapest SOB that ever walked the planet. I never spend money on anything that wouldn't make me money. After years of being frugal, I can buy anything I want. I couldn't say that if I spent money like a financial fool.
No one needs to make the sacrifices I did, but balancing it out is a wise move if you every want to get ahead.
Today, I'm old and give out, have far more money than I will be able to spend in my remaining years, but I'm still careful how I spend money. I still spend money like I'm poor, because if I don't, I just might be...
[quote=yo vanilla;5112825]I used to write service at a Toyota dealership, and I saw lots of $1000+ repair bills. IIRC replacing strut assemblies on all 4 corners on a Camry ran about $1800 (that is replacing all of the pieces, which add up fast). A timing belt and 90K service together was a good $600-700, and if you were due for tires too there's another $3-400. Air conditioning repairs are always $800.QUOTE]
Your estimates are correct, but you don't replace these items often. So worst case senerio you spend $2k a year on repair. You would have to be Hell on wheels to need to spend that much, but lets say you do.
Those expensive repairs are only every few years, not every year. Even so, $2k is far less that payments on a new car. You still have repairs on new(er) cars. Tires, brakes, service are all newer cars costs.
Can you get a new luxury car for less than $500 a month? That's six k$ a year, far more than an older car would cost if it's properly maintained. Seeing a $6k increase in my bank account would thrill me far more than a new car, which you continue to pay on long after the new car thrill has gone away...
I spend my career of over 40 years as an automotive tech, having worked in dealerships, independent garages, and private fleets, so I know of which I speak...
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