At what income is it appropriate to buy a 200k car?

[Anonymous]

Why do these year old threads get revived? The OP posted this in May of 2017 and people are still answering? Very weird.

[Anonymous]

Anonymous wrote:

We are both retired (well before 50), have many, many millions and guaranteed income streams (trust $, buy out from companies, etc) and we would never do this.

You probably aren't interested in cars, then. I'm not interested in cars, either, but the OP's spouse is. I see no reason to begrudge that interest.

This thread is pretty silly, really, since people keep pointing out the obvious (cars are a bad investment, etc.). Lots of things that people like are not good investments, but people who buy them get pleasure out of them that justifies the expense. We all have different priorities.

My own answer would that the appropriate income level would be one where one can afford the car. And, by "afford," I mean "can pay cash for the car, including insurance, maintenance, and depreciation." And being able to do so while continuing to pay regular life expenses, including short-term and long-term savings, is implied. This will differ for each person depending upon his priorities.

The other obvious caveat is that one needs a stable income (or significant savings) in order to make such a big purchase, and one needs to go into it with an understanding of the real costs involved in high-end car ownership. But, as long as one is not delusional about such things and wants a nice car, I see no problem with buying one.

Personally, I have other priorities (when I last owned a car, it was a used Honda), but I am all for enjoying one's hobbies if one is in the position to do so in a responsible fashion.

To pay so much money for a deprecasting and costly to maintain asset is insanity. I don’t care if you like cars or not.

[Anonymous]

The question was not about whether buying such a car made financial sense. It doesn't. And anyone considering such a purchase probably already knows that. But lots of us make such purchases, anyway, and that is fine, as long as the buyer is comfortably able to do so and is not delusional about expecting a return on the investment (other than enjoyment).

A $200k car is on the high end, but Cadillacs and Mercedeses don't make financial sense, either. Many people buy and enjoy them, anyway, though.

[Anonymous]

Anonymous wrote:The question was not about whether buying such a car made financial sense. It doesn't. And anyone considering such a purchase probably already knows that. But lots of us make such purchases, anyway, and that is fine, as long as the buyer is comfortably able to do so and is not delusional about expecting a return on the investment (other than enjoyment).

A $200k car is on the high end, but Cadillacs and Mercedeses don't make financial sense, either. Many people buy and enjoy them, anyway, though.

The question was at what income it’s appropriate to buy the car. Never is an appropriate answer to that particular question since it is subjective.

[Anonymous]

Anonymous wrote:
To pay so much money for a deprecasting and costly to maintain asset is insanity. I don’t care if you like cars or not.

To each his own. Maybe buying an expensive car doesn't make sense for you but it does to some of us.
Paying for expensive travels makes no sense to me at all. This is a waste of money.
One of my best experience has been driving a Formula One racing car a Formula One race track. Priceless. This is pure joy.
If I could buy such a race car, I would.

[Anonymous]

Anonymous wrote:1 million per year in the bank conservatively invested makes about 20 g. So the way I see it you have about 60 to live on should your husband croak. Guessing you will put your kids in public...cause um...private school tuition is over 40... go ahead buy the car...the fact that you have school loans or had them lets me also know what you may getting down the pike.. seriously, sorry to be harsh but there is something wrong with this...or your generation.... but your man should buy the car..that way we will all know exactly what he is.

Your forgot to factor in the 3 million life insurance policy

[Anonymous]

Anonymous wrote:

Anonymous wrote:

We are both retired (well before 50), have many, many millions and guaranteed income streams (trust $, buy out from companies, etc) and we would never do this.

You probably aren't interested in cars, then. I'm not interested in cars, either, but the OP's spouse is. I see no reason to begrudge that interest.

This thread is pretty silly, really, since people keep pointing out the obvious (cars are a bad investment, etc.). Lots of things that people like are not good investments, but people who buy them get pleasure out of them that justifies the expense. We all have different priorities.

My own answer would that the appropriate income level would be one where one can afford the car. And, by "afford," I mean "can pay cash for the car, including insurance, maintenance, and depreciation." And being able to do so while continuing to pay regular life expenses, including short-term and long-term savings, is implied. This will differ for each person depending upon his priorities.

The other obvious caveat is that one needs a stable income (or significant savings) in order to make such a big purchase, and one needs to go into it with an understanding of the real costs involved in high-end car ownership. But, as long as one is not delusional about such things and wants a nice car, I see no problem with buying one.

Personally, I have other priorities (when I last owned a car, it was a used Honda), but I am all for enjoying one's hobbies if one is in the position to do so in a responsible fashion.

To pay so much money for a deprecasting and costly to maintain asset is insanity. I don’t care if you like cars or not.

You just proved his/her point. If you love cars and driving, an expensive car is not a depreciating asset to him, it’s a thing of pleasure to be enjoyed. I don’t love dogs, which are also money and time sucking, but I get why people want to own them. You might love great steaks from Whole Foods, I prefer lentils and beans because I don’t see the point of spending $ on something wasteful like that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

We are both retired (well before 50), have many, many millions and guaranteed income streams (trust $, buy out from companies, etc) and we would never do this.

You probably aren't interested in cars, then. I'm not interested in cars, either, but the OP's spouse is. I see no reason to begrudge that interest.

This thread is pretty silly, really, since people keep pointing out the obvious (cars are a bad investment, etc.). Lots of things that people like are not good investments, but people who buy them get pleasure out of them that justifies the expense. We all have different priorities.

My own answer would that the appropriate income level would be one where one can afford the car. And, by "afford," I mean "can pay cash for the car, including insurance, maintenance, and depreciation." And being able to do so while continuing to pay regular life expenses, including short-term and long-term savings, is implied. This will differ for each person depending upon his priorities.

The other obvious caveat is that one needs a stable income (or significant savings) in order to make such a big purchase, and one needs to go into it with an understanding of the real costs involved in high-end car ownership. But, as long as one is not delusional about such things and wants a nice car, I see no problem with buying one.

Personally, I have other priorities (when I last owned a car, it was a used Honda), but I am all for enjoying one's hobbies if one is in the position to do so in a responsible fashion.

To pay so much money for a deprecasting and costly to maintain asset is insanity. I don’t care if you like cars or not.

You just proved his/her point. If you love cars and driving, an expensive car is not a depreciating asset to him, it’s a thing of pleasure to be enjoyed. I don’t love dogs, which are also money and time sucking, but I get why people want to own them. You might love great steaks from Whole Foods, I prefer lentils and beans because I don’t see the point of spending $ on something wasteful like that.

No, that didnt prove her point. The question is subjective. In my opinion it falls into a "never" - along with owning a horse. Others feel differently.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

We are both retired (well before 50), have many, many millions and guaranteed income streams (trust $, buy out from companies, etc) and we would never do this.

You probably aren't interested in cars, then. I'm not interested in cars, either, but the OP's spouse is. I see no reason to begrudge that interest.

This thread is pretty silly, really, since people keep pointing out the obvious (cars are a bad investment, etc.). Lots of things that people like are not good investments, but people who buy them get pleasure out of them that justifies the expense. We all have different priorities.

My own answer would that the appropriate income level would be one where one can afford the car. And, by "afford," I mean "can pay cash for the car, including insurance, maintenance, and depreciation." And being able to do so while continuing to pay regular life expenses, including short-term and long-term savings, is implied. This will differ for each person depending upon his priorities.

The other obvious caveat is that one needs a stable income (or significant savings) in order to make such a big purchase, and one needs to go into it with an understanding of the real costs involved in high-end car ownership. But, as long as one is not delusional about such things and wants a nice car, I see no problem with buying one.

Personally, I have other priorities (when I last owned a car, it was a used Honda), but I am all for enjoying one's hobbies if one is in the position to do so in a responsible fashion.

To pay so much money for a deprecasting and costly to maintain asset is insanity. I don’t care if you like cars or not.

You just proved his/her point. If you love cars and driving, an expensive car is not a depreciating asset to him, it’s a thing of pleasure to be enjoyed. I don’t love dogs, which are also money and time sucking, but I get why people want to own them. You might love great steaks from Whole Foods, I prefer lentils and beans because I don’t see the point of spending $ on something wasteful like that.

No, that didnt prove her point. The question is subjective. In my opinion it falls into a "never" - along with owning a horse. Others feel differently.

Not the PP. Yes "never" is a subjective opinion, but you open yourself up to being challenged once you start using objective justifications such as "depreciating" and "costly to maintain".

[Anonymous]

Anonymous wrote:This thread is full of envious people. If you can afford it, what's the big deal?

This +1. I have a 300K income and net worth of 1.6 million and drive a 92K Porsche. Somebody ass keyed the back because (at my house) while I was in the Caymans last year. My wife has an 80K Mercedes. Live life. Can't take it with you. I had open heart surgery at 45 due to a heart defect I was born with. Changes your perspective.

[Anonymous]

Anonymous wrote:I'm in the never camp. That much money on a car is obscene. There are people who are hungry, homeless, dying because they don't have access to healthcare, etc etc. Indulge something far less expensive, and donate the extra to someone who really needs it, or an organization helping those in need. It's about values.

I voted for Hillary but this thread with idiots like this is turning me into a Trump supporter really really quick. I am a Democrat but people have a right to live their lives. Money is very important. I have raised a ton of money for Democratic candidates. You know why. Because I have money. My way of giving back. But this Elizabeth Warren wing is killing me. And people like me. Driving us from the Democrats.

[Anonymous]

Funny that this old thread took a political turn. Back in the day, my mother would tell me to clean my plate because children were starving in Africa/India/China. It was nonsensical because it wasn't as if eating everything would magically transport food to anyone who was hungry. Similarly, if someone with money didn't buy a crazy expensive car, no homeless person would suddenly have a place to live.

Theoretically, spending money on a consumer good like a car creates more income for other people (multiplier effect) than if they saved the money because money you spend is someone else's income.

[Anonymous]

Anonymous wrote:Funny that this old thread took a political turn. Back in the day, my mother would tell me to clean my plate because children were starving in Africa/India/China. It was nonsensical because it wasn't as if eating everything would magically transport food to anyone who was hungry. Similarly, if someone with money didn't buy a crazy expensive car, no homeless person would suddenly have a place to live.

Um, if they have $200K they don't need that they can spend on a car, they could instead donate all of that $200K, or 25% of that $200K, or even 5% of that $200K and still make a big difference for people in the world. Unlike uneaten food scraps, you can actually do that with money. I'm not saying that everyone who has lots of money should be giving away every last cent-- but let's be real, they could choose to use some of their "extra" to help others who are less well off, or they could just spend all of their "extra" on indulgences for themselves. Let's not pretend that's not an actual choice people are making.

[Anonymous]

Anonymous wrote:I hope OP bought the 200k car or even went for the 300k car. There too many ignorant people who don't know the joy of drive a great ride.
Have you seen Jay Leno's garage? Some of us like cars or bikes while you waste money in useless and expensive makeups.

My question is this: Where can you drive your expensive fast car? If you live in our society you have to go the speed limit and I'm sure you will have the cops on your radar. So, you will get more speeding tickets for sure!

[Anonymous]

One 200k sports car seems stupid as a street car. I would buy a used track car (with two seats), a truck/trailer, and do a bunch of DEs. Buy one that can be competitively raced in PCA or SCCA. Spend the rest of the money on that every year. Way more fun that driving down K street in a 200k 991 turbo, which I find highly stupid.