View Poll Results: Responsible Net Worth for owning a $150K sports car?
$500,000
35
16.51%
$1MM
39
18.40%
$1.5MM
26
12.26%
$2MM
50
23.58%
$3MM+
62
29.25%
Voters: 212. You may not vote on this poll
Responsible Net Worth for owning a $150K sports car?
10-05-2013, 11:12 PM
#17
Instructor
Join Date: Mar 2004
Location: Chicago
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i'm sorry to be so blunt but this is really a nonsense question that nobody here can answer for you. your income shouldn't be the only factor, it has to be a decision you make on your overall financial situation. what's your income, debt, future plans, kids, house plans, etc...
i think if you have to ask the question...
i think if you have to ask the question...
10-05-2013, 11:25 PM
#18
Race Car
I don't believe that to be true.
For some the leap from standard car to luxury car isn't a light decision. I make a ton of dough (enough to be very comfortable) and yet I too am somewhat resigned to spending over $100k on the new 911...
Different scenarios for each of us...the OP is probably asking for perspective.
For some the leap from standard car to luxury car isn't a light decision. I make a ton of dough (enough to be very comfortable) and yet I too am somewhat resigned to spending over $100k on the new 911...
Different scenarios for each of us...the OP is probably asking for perspective.
10-06-2013, 12:52 PM
#19
Drifting
I don't believe that to be true.
For some the leap from standard car to luxury car isn't a light decision. I make a ton of dough (enough to be very comfortable) and yet I too am somewhat resigned to spending over $100k on the new 911...
Different scenarios for each of us...the OP is probably asking for perspective.
For some the leap from standard car to luxury car isn't a light decision. I make a ton of dough (enough to be very comfortable) and yet I too am somewhat resigned to spending over $100k on the new 911...
Different scenarios for each of us...the OP is probably asking for perspective.
If you covered all your bases, house, college, retirement, and you can weather out, or ride out emergencies, and you can buy a 911 - you should buy that 911.
10-07-2013, 11:28 AM
#21
+1 I agree with that. It depends on so many factors. I'm a managing partner of a software company and do well, but I thought long and hard before buying my 991. The 911 is my dream car and I waited a long time before I pulled the trigger. Your net worth is only one factor that plays a huge role. My biggest variable was my wife having had cancer twice - even with the best insurance your accounts will get drained at such a rapid rate that it will spin your head. We are very luck and my wife is doing great, and it was her who pushed me to get my dream car, because life is short and full of surprises.
If you covered all your bases, house, college, retirement, and you can weather out, or ride out emergencies, and you can buy a 911 - you should buy that 911.
If you covered all your bases, house, college, retirement, and you can weather out, or ride out emergencies, and you can buy a 911 - you should buy that 911.
You only live once, best of luck to you and your wife.
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tomingrassia (12-14-2021)
10-08-2013, 05:16 PM
#23
Instructor
Join Date: Apr 2008
Location: Chicago, IL
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I agree that each situation is unique:
- Current Net Worth
- Current and Guaranteed Future Annual Income (and +/- impact on net worth)
- Current Expenses
- Future Expenses (and +/- impact on net worth)
My theory is as follows... If the full cost of the car (if a 3rd car) or the incremental cost of the car (DD) can be paid in cash (after paying off any short-term debt), without a negative impact to current lifestyle and without adding risk to future lifestyle, go ahead and do it. No financing to increase the affordability of the car (you can finance to play the rate spread game, which I hire professionals to do, but not to increase affordability). A toy is just that, a toy. if you need to finance any incremental spend for that specific toy in order to have it, you shouldn't buy it...
- Current Net Worth
- Current and Guaranteed Future Annual Income (and +/- impact on net worth)
- Current Expenses
- Future Expenses (and +/- impact on net worth)
My theory is as follows... If the full cost of the car (if a 3rd car) or the incremental cost of the car (DD) can be paid in cash (after paying off any short-term debt), without a negative impact to current lifestyle and without adding risk to future lifestyle, go ahead and do it. No financing to increase the affordability of the car (you can finance to play the rate spread game, which I hire professionals to do, but not to increase affordability). A toy is just that, a toy. if you need to finance any incremental spend for that specific toy in order to have it, you shouldn't buy it...
10-10-2013, 11:40 AM
#24
Rennlist Member
Well said.
Whole conversation should be cast in terms of degrees of financial irresponsibility. I think you're out of that description when money is no object, so to speak.
For the rest of us, it's a matter of degree for how irresponsible it is to buy a guaranteed depreciating asset with money that also has, let us not forget, an opportunity cost - that money could be invested in a diverse range of other areas and have appreciation over the same period of time that you own the car. I'm always amazed at how many people overlook opportunity costs in financial decisions.
10-10-2013, 11:51 AM
#25
Drifting
10-10-2013, 06:32 PM
#27
Race Car
Personally I would never drop 150k on a mass produced 911. If I was to drop 150k however, there would be 2 conditions.
1) 6 - 8 Million USD cash in the bank.
2) The 911 would be a very rare edition such as an RS 4.0. I would feel like a fool paying 150k for a product that will lose 50% of it's value over the next 5 years.
That's just me.
1) 6 - 8 Million USD cash in the bank.
2) The 911 would be a very rare edition such as an RS 4.0. I would feel like a fool paying 150k for a product that will lose 50% of it's value over the next 5 years.
That's just me.
10-10-2013, 06:58 PM
#28
Oh please!..... You can get a new, very well equipped 991S for not that much over $100K. A cherry used one for less. If your demographic were correct Porsche wouldn't be selling that many cars. It all depends on where and how you spend your money. Big house, boat, second home, fancy clothes, jewelry and watches, golf, vacations...yada, yada, yada. If cars are a part of your lifestyle and you don't care that much about the above, then go for it. Not saying Porsches are cheap, but financial responsibility is relative to your lifestyle. I am often amused ( and see it often in my business) at supposedly "rich" people that are actually financially tapped out, and living well beyond their means in order to maintain the "appearance" of wealth. They need high income to keep afloat, but have little "net" worth. Reminds me of a book I read years ago called the Millionaire Next Door. They coined a phrase..."big hat and no cattle". That has long been my catch phrase for being too big for your britches. As long as you have the basics covered there is absolutely nothing wrong with enjoying your life...you can't take it with you! Get that Porsche if you can, if it's within your means, you won't regret it.
10-10-2013, 10:36 PM
#29
Rennlist Member
Personally I would never drop 150k on a mass produced 911. If I was to drop 150k however, there would be 2 conditions.
1) 6 - 8 Million USD cash in the bank.
2) The 911 would be a very rare edition such as an RS 4.0. I would feel like a fool paying 150k for a product that will lose 50% of it's value over the next 5 years.
That's just me.
1) 6 - 8 Million USD cash in the bank.
2) The 911 would be a very rare edition such as an RS 4.0. I would feel like a fool paying 150k for a product that will lose 50% of it's value over the next 5 years.
That's just me.
You would fee like a fool losing barely over 1/1000 of your cash annually on depreciation of a nice automobile vs. something more mainstream? Wow, that's tight.
10-10-2013, 11:02 PM
#30
Oh please!..... You can get a new, very well equipped 991S for not that much over $100K. A cherry used one for less. If your demographic were correct Porsche wouldn't be selling that many cars. It all depends on where and how you spend your money. Big house, boat, second home, fancy clothes, jewelry and watches, golf, vacations...yada, yada, yada. If cars are a part of your lifestyle and you don't care that much about the above, then go for it. Not saying Porsches are cheap, but financial responsibility is relative to your lifestyle. I am often amused ( and see it often in my business) at supposedly "rich" people that are actually financially tapped out, and living well beyond their means in order to maintain the "appearance" of wealth. They need high income to keep afloat, but have little "net" worth. Reminds me of a book I read years ago called the Millionaire Next Door. They coined a phrase..."big hat and no cattle". That has long been my catch phrase for being too big for your britches. As long as you have the basics covered there is absolutely nothing wrong with enjoying your life...you can't take it with you! Get that Porsche if you can, if it's within your means, you won't regret it.
+1.
As I've seen too many times lately, life is short. If you want it, have the money, and have your bases covered, go for it! I just pulled the trigger today.