Feeling a little foolish and weird for spending $150k on a car
#31
OP, I say go for it if you're comfortable doing it. Not having kids makes a world of a difference at any income level. I have friends and co-workers who spend over $30k a year on day care alone! Then add the cost of their kids’ daily living expenses, extracurricular activities, savings for college, time invested, etc. and suddenly a P-car is a bargain!
#32
Remember that a lot of people who make $390k a year are stretched. Kids in private school, huge mortgage, fancy vacations. So just 'cos they make that much doesn't mean they won't lease or take a loan. Self emplyed people do have a financial incentive to lease as well as some of that can be a tax write-off.
Rich people aren't necessarily as rich as they seem. Most Americans (and Canadians) have massive household debt. You don't. That changes the playing field.
Rich people aren't necessarily as rich as they seem. Most Americans (and Canadians) have massive household debt. You don't. That changes the playing field.
The following 2 users liked this post by Airandwater:
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maschinetheist (10-18-2020)
#33
So. Why remove the financial information? Do you feel I'm being rude? I get that it can be rude to talk about finances if you're significantly wealthier than your audience, but that doesn't seem to be the case. The consensus seems to be that I'm rather less well off than most of the people speaking here.
Talking in vague generalities makes it difficult to talk about subjects like this. People make all sorts of assumptions one way or another. Some of which we see in this thread, even with as much information as I've provided.
I've been retired for 13 years. I mentioned that upthread. I spent considerable time before retirement analyzing the margins of safety for cash flow in retirement, and of course I have some practical experience with it now.
As for why not finance, taking on debt would make me uncomfortable, regardless of the terms. I'm aware that this is a recreational expense, and financing a recreational expense when I don't have to seems like an unwise practice to enter.
#34
im paying 230k canadian for a turbo that I don't need. I own a brand new 2017 Z06 which I LOVE and it's been the best car I've ever owned.
But I have many friends who own a 911 and every one says the same thing, Just order the fricken car it's amazing. So lets hope trading in my 100k Z06 for a 230K turbo isn't a mistake....
It's only money! F it.
But I have many friends who own a 911 and every one says the same thing, Just order the fricken car it's amazing. So lets hope trading in my 100k Z06 for a 230K turbo isn't a mistake....
It's only money! F it.
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jimmiejam (10-15-2020)
#35
I always looked at the "cost" as = opportunity of investing that cash in a risk-free investment + depreciation + running costs...assuming that the car was paid for in cash.
So $155k @ 3%(risk free) for 5 years is about $24.6k
Depreciation = value in 5 years is about $73k (using the 20%, 10%, 10% etc. formula)
Costs = insurance, fuel, maintenance, etc...$12k a year or $60k for 6k miles a year.
Oddly enough its about $157k in this case...unless you drive it more or God forbid, the value is impaired for some reason.
When the elders are asked what their biggest regret was, they usually say "not taking more risks". Enjoy it!!
So $155k @ 3%(risk free) for 5 years is about $24.6k
Depreciation = value in 5 years is about $73k (using the 20%, 10%, 10% etc. formula)
Costs = insurance, fuel, maintenance, etc...$12k a year or $60k for 6k miles a year.
Oddly enough its about $157k in this case...unless you drive it more or God forbid, the value is impaired for some reason.
When the elders are asked what their biggest regret was, they usually say "not taking more risks". Enjoy it!!
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maschinetheist (10-18-2020)
#37
I've heard that, but I don't really understand at a gut level how that happens. Yes, kids cost money, but the delta doesn't seem to be so large that it'd swallow that much income. For that matter, plenty of people manage to raise kids on $70k or so of household income without slipping into poverty.
One way you can spend a lot of money, of course, is cars. Which is part of what makes me uncomfortable about the spending, regardless of my financial analysis. I don't want to acquire the spending habits of the people who are running up debt on $390k a year.
One way you can spend a lot of money, of course, is cars. Which is part of what makes me uncomfortable about the spending, regardless of my financial analysis. I don't want to acquire the spending habits of the people who are running up debt on $390k a year.
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maschinetheist (10-18-2020)
#38
Anyways, this is all moot. We all experience some buyers remorse at this kind of "frivolous" expenditures. It will pass!
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Als992 (01-02-2022)
#39
I completely understand the feelings buying an expensive car. Personal finances and tolerance for risk are indeed personal decisions, as noted above. When I bought my 991 Turbo S cabriolet I had the same thoughts. It wasn't that I couldn't afford it, it was just more than I had ever spent on a car. It was more than I spent on my first house. And it was for a third car; one primarily for fun and not for transportation. It's not a feeling you get because you can't afford it, it's one that you get because you wonder if you should spend that much money on a car. You've gotten through the hard part, now just enjoy the car!
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Jimmyk79 (10-14-2020)
#41
I hope you enjoy your Turbo. I think a Turbo is probably more car than I could really enjoy, even if I have the typical knee-jerk "more HP is always better!" reaction. Which I'm sure people here know about.
Plus, I want a manual transmission, which isn't possible with a Turbo.
Actual mileage tends to be around 2k a year, but expect depreciation will still be around what you're saying. I should drive more.
Part of my impulse to go GTS 4 instead of 4S was depreciation, actually. I've noticed that it's meaningfully less on GTS models due to the badge. I don't really need more than a 4S to be happy, though a base 4 proved to be not enough in test drives. Good, of course, but not enough for me.
#42
Thanks, this is exactly the sort of feedback I was hoping for when I started this thread. While this is my daily driver, uh, ok, weekly driver since I don't drive that much, the parallels are still there. It's more than I paid for my first house as well.
EDIT: Just noticed you're from Evergreen. I used to live in Bailey, I know the area. Not that anyone actually lives "in" Bailey, since there's not much to the town itself.
#43
There were tons of cars that I lusted after growing up - 289 Cobra, 427 Cobra, 930 Turbo, 'Vette, etc. Now that I can swing a "nice" car I'm going for it. Of course now I lust after cars that are still outside my comfort level - Ford GT, Turbo Carrera, McLaren, Lambo etc. So yes my Carrera S Cab cost way more than a Camary but it is a %$$ lot less than a McLaren.
And, as long as I am rambling here --- I'm not sure that I would ever have posted this question here as I really and truly don't care what others think about what I am doing to live my life. But since you did --- I wanted to tell you that your concerns were not way out of line from my viewpoint.
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#45
Dealers always say they can get you an allocation. If that were the case, Porsche's model wouldn't use an allocation system. They would instead operate like Tesla. Order whatever you want and we'll build it.
But that's not how it works. The allocation system is designed to preserve rarity and reward dealer volume. I waited 4 months on the promise of an allocation for a 4 GTS and then found out where the allocations actually were and bought the car from the closest dealer to me that had one. If you're spending ~$150k on a car you can afford a trip to go get it.
If your dealer is high enough volume and they come through then that's a good situation you found yourself in. But I'd think more likely you'll wait longer than you'd like.
But then your $80k cash can make you a little more money while it stays invested.