More Financial Advice: Skimp or Splurge - Millionaire's Car

[Mr Janny]

I think we all like cars, but I think you're somwhat missing the point of the article by putting them on the same level asr some of the other things (e.g...kids) you seemed to list as equavalents. A car can be substituted much easier than some of the other things you listed. Again:

yes, but your post assumes that it's only about status. That's not always the case.

[VeloClone]

This.

Everyone has different tastes and things that make them happy. What is important to one person is waste to another, and vice versa. It can cost a lot, but value is not only be measured by dollars and cents. If you are in massive debt, and struggling to make it paycheck to paycheck, then owning a brand new car might be an unnecessary extravagance, but if you're sitting well financially, and you buy that BMW, not because you see it as a tool to get from point A to point B, but because you enjoy it and like driving it, why is that such horrible thing?

For some professions a "status symbol" vehicle is almost a necessity. I have a friend who is a realtor who lists and shows higher end properties. Since she has to haul around clients in her vehicle she needs a larger vehicle that reflects the clientel and the properties she lists. Having a 1995 Buick just won't cut it if she wants to be successful.

[Cycl1]

This.

Everyone has different tastes and things that make them happy. What is important to one person is waste to another, and vice versa. It can cost a lot, but value is not only be measured by dollars and cents. If you are in massive debt, and struggling to make it paycheck to paycheck, then owning a brand new car might be an unnecessary extravagance, but if you're sitting well financially, and you buy that BMW, not because you see it as a tool to get from point A to point B, but because you enjoy it and like driving it, why is that such horrible thing?

I dont think anyone is saying it is. If you are financially in a good place, go for it. Even Dave Ramsey will tell people to buy nice stuff, if they have saved up and can afford to own it. His whole thing is get out of debt, build wealth, then enjoy and share it.

I think what the article is pointing out, is that while you can try and keep up with the jones', and purchase fancy cars, you can also save that money by driving cheaper. You know what kind of car you can have with 1.9 million saved? Damn near any car you want, straight up cash.

[dmclone]

I think we all like cars, but I think you're somwhat missing the point of the article by putting them on the same level asr some of the other things (e.g...kids) you seemed to list as equavalents. A car can be substituted much easier than some of the other things you listed. Again:

This assumes it's about status, which in my case is wrong.

As far as putting on them on the same level, I'd much rather have a 1998 Ducati 900fe then a kid.

[BoxsterCy]

To each his own. I have always like sporty cars (first car was a used ’68 MGB) but never drove anything that put a big bite on my income. Back than: rusty ’72 Nova when making $12k a year and renting an apartment in Edina was a huge expense for me. Today: ’04 A4, ’02 Boxster, ’87 924S (all purchased used and getting old but pretty cherry conditions) and a paid for house. The Porsches are both models that the status conscience Porsche 911 guys distain as “not real Porsches” so I am not driving them fors tatus with that crowd (I am like the guest at the country club that everyone recognizes as a non-member). BTW, the moniker of BoxsterCy only came because I wanted to post something, one day, had to register, ISUnorth was already taken and lacking imagination that day I just typed it in).

If folks can afford a fancy new luxury mobile without beingstupid about the debt, more power to them. Multi-millionaires driving around in old pickups can be just a little eccentric. Seems that some are making a bizarro world statement just like folks who only want spendy shiny cars to show-off. Of course, if they just don’t care about autos one way or the other dropping 70K on lux-mobile would be dumb. There are plenty of good value autos out there currently that folks can buy and drive for a dozen years that will give them the same safety, reliability and rust resistance that the autos costing three times as much offer. Longer last autos and the economy have our average car age up to almost 11 years old while at the some of the spendy brands are having record sales so there are still plenty of folks chasing the lux-mobiles.

[Mr Janny]

I dont think anyone is saying it is. If you are financially in a good place, go for it. Even Dave Ramsey will tell people to buy nice stuff, if they have saved up and can afford to own it. His whole thing is get out of debt, build wealth, then enjoy and share it.

I think what the article is pointing out, is that while you can try and keep up with the jones', and purchase fancy cars, you can also save that money by driving cheaper. You know what kind of car you can have with 1.9 million saved? Damn near any car you want, straight up cash.

Yeah, but how old will I be when I buy it? Why would I deny myself years of joy driving nice cars in my youth, just because I could possibly buy a really nice one when I'm 60?

[Mr Janny]

For some professions a "status symbol" vehicle is almost a necessity. I have a friend who is a realtor who lists and shows higher end properties. Since she has to haul around clients in her vehicle she needs a larger vehicle that reflects the clientel and the properties she lists. Having a 1995 Buick just won't cut it if she wants to be successful.

excellent point. Just because your friend gives up the psychological value of status, doesn't mean his clients will.

[VeloClone]

This assumes it's about status, which in my case is wrong.

As far as putting on them on the same level, I'd much rather have a 1998 Ducati 900fe then a kid.

Mrs. Velo and her siblings were once many years ago giving their dad crap because they saw another guy who started working for the same company at the same time as their dad and he had a giant boat, a Corvette, and a huge house among other toys. "Where's your giant boat, your Corvette and your huge new house, Dad?" My father-in-law just smiled and pointed at Mrs. Velo and her two siblings in turn and said "There is my giant boat; there is my Corvette; and there is my huge new house." The other guy had no kids.

Kids are their own reward but they certainly come at very real financial and opportunity costs.

[Bigman38]

Yeah, but how old will I be when I buy it? Why would I deny myself years of joy driving nice cars in my youth, just because I could possibly buy a really nice one when I'm 60?

You can own nice cars when you're young and pay cash for them. The key is just paying yourself a monthly car payment and then buying the car instead of paying the same amount of money to someone else plus interest and having a 5 year old car by the time you own it. It just takes some sacrifice in the front end.

[mtowncyclone13]

Why would I deny myself years of joy driving nice cars in my youth, just because I could possibly buy a really nice one when I'm 60?

Haha. so true. when you're retired and want to simplify your life you'll take up woodworking instead of sweet sports cars. 1.9 million will buy a lot of varnish!

[Cycl1]

Yeah, but how old will I be when I buy it? Why would I deny myself years of joy driving nice cars in my youth, just because I could possibly buy a really nice one when I'm 60?

As long as i dont have to pay for your medical bills and rent and food when you are old go for it. If you can drive fancy cars all your life while building wealth so you can still afford to take care of your self when you are old. Do it, more power to you, but as a nation, we have fancy cars sitting in section 8 housing parking lots. There are way to many people without the means too support themselves in life, blowing money on nice stuff they cant afford. No one is vilifying owning a nice car, i hope to own some nice ones someday myself, but to buy when you cant afford, (anything) is stupid. So much debt in this nation.

[00clone]

You know what kind of car you can have with 1.9 million saved? Damn near any car you want, straight up cash.

[Mr Janny]

As long as i dont have to pay for your medical bills and rent and food when you are old go for it. If you can drive fancy cars all your life while building wealth so you can still afford to take care of your self when you are old. Do it, more power to you, but as a nation, we have fancy cars sitting in section 8 housing parking lots. There are way to many people without the means too support themselves in life, blowing money on nice stuff they cant afford. No one is vilifying owning a nice car, i hope to own some nice ones someday myself, but to buy when you cant afford, (anything) is stupid. So much debt in this nation.

You don't and you won't.

[capitalcityguy]

Yeah, but how old will I be when I buy it? Why would I deny myself years of joy driving nice cars in my youth, just because I could possibly buy a really nice one when I'm 60?

Again, "deny myself". that is psychological. Not practical. That is fine, but it really isn't different than wanting it for status reasons, is it? I don't think the point of the article is only status.

[Cycl1]

You can own nice cars when you're young and pay cash for them. The key is just paying yourself a monthly car payment and then buying the car instead of paying the same amount of money to someone else plus interest and having a 5 year old car by the time you own it. It just takes some sacrifice in the front end.

This. Once you get started, it gets pretty easy. Every month we put money aside for a car. Which is easy because we dont have a car payment. when my car craps out, i buy a new( to me) car, and start the process over again, with out paying any interest to someone else. Never have to go into debt for it.