Anonymous
Post 01/13/2014 09:03     Subject: Re:how much income or how much savings would you need before buying a $40K car?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Funny, I have a similar dilemma. I have an 11-year old Mazda Protege5 and $35K in cash (after emergency fund, college savings, 401K etc) to spend on a car. I thought I'd buy Lexus CT - efficient and reliable hatchback with a little bit of a status. And then I saw Mazda3 hatchback and totally fell in love. The design, the sporty handling, the stick! And it's half the price of Lexus. Or... is the price really a positive? That's my dilemma. Should I buy the more expensive car for status (I'm pushing forty and we do have a 200+ HHI) or stick with the car I love and have some money left over? I never even thought I would be in this position, but here it goes - status is an important factor in buying a car, even for people like myself who have long managed to disregard it.


On the road, nobody cares if you drive a Mazda or Lexus. Your friends or families might talk about it for 5 min, then forget about it and go on with their lives. Buy whatever you like to please yourself.

But it isn't just family or friends. When you pull into the parking lot at Balducci's/dentist/school parking lot people look at your vehicle and draw conclusions regarding your financial status. It's immediate and instinctive. People assume you have more money if they see you drive a luxury car than a cheap efficient one - they'll never know whether you leased your car or bought it for cash. And they take you more seriously if they think you have more money. Question is - what kind of impression do I want to make on people I don't even know and is it important enough to sacrifice my true preference (and 15K!) for it?


True. When I see the luxury cars I think to myself-they are broke, when I see a beater I think-I bet you they are sitting on a bunch of cash and are in a great financial position.


repeat that to yourself until you believe it. LOL.
Anonymous
Post 01/13/2014 08:55     Subject: how much income or how much savings would you need before buying a $40K car?
It would take "ten billlliiiooon dollars" for me to waste $40k on a car.
Anonymous
Post 01/13/2014 08:53     Subject: how much income or how much savings would you need before buying a $40K car?
Anonymous wrote:As someone who has owned a lotus in my 20s and then a BMW in my early 30s and now drives a honda, this thread is really interesting. I used to subscribe to the whole "what car I drive says something about me" (I was in banking), and then over time I actually came to the realization that the rich folks I knew drove Hondas, Subarus etc - at least those in the "attainable rich" category (say under $20M in liquid assets). Of course those with hundreds of millions drove whatever the hell they wanted, but otherwise, the only people impressed by my lotus (until they got in it and realized it's actually not a particularly comfortable car, at all) were people you wouldn't give a shit were impressed. Although I miss the fun of a lotus, my fourth the cost honda suits me fine.


It actually seems like very few people in this thread ascribe to the "what car I drive says something about me" belief.
Anonymous
Post 01/12/2014 22:22     Subject: Re:how much income or how much savings would you need before buying a $40K car?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:I would need the kids through college and $5 million net worth.


Thats crazy, you sound like a miser.


I spend $3,000 a year on wine. Is that miserly?

it's indicative of a problem.


What kind of problem? are you assuming that's a lot of bottle and that I'm drinking all that wine?
Anonymous
Post 01/12/2014 21:17     Subject: how much income or how much savings would you need before buying a $40K car?
As someone who has owned a lotus in my 20s and then a BMW in my early 30s and now drives a honda, this thread is really interesting. I used to subscribe to the whole "what car I drive says something about me" (I was in banking), and then over time I actually came to the realization that the rich folks I knew drove Hondas, Subarus etc - at least those in the "attainable rich" category (say under $20M in liquid assets). Of course those with hundreds of millions drove whatever the hell they wanted, but otherwise, the only people impressed by my lotus (until they got in it and realized it's actually not a particularly comfortable car, at all) were people you wouldn't give a shit were impressed. Although I miss the fun of a lotus, my fourth the cost honda suits me fine.
Anonymous
Post 01/12/2014 21:13     Subject: how much income or how much savings would you need before buying a $40K car?
I am pretty frugal and think it is no big deal to buy a $40k car. A Prius type car runs low to mid 20s. What difference does that extra $15k make over 10 or more years? A luxury car typically drives better and has extra comforts. That's something worth paying for.

For the record, DH and I each make $150-200k and each owns a pre-owned luxury car that cost $30k (sticker price $37-50k).
Anonymous
Post 01/12/2014 20:57     Subject: Re:how much income or how much savings would you need before buying a $40K car?
Anonymous wrote:
Anonymous wrote:

The other thing is I am rough on cars and I see people rear-ended/fender benders all the time in this area. My expensive car litmus test is if someone hits me I am more concerned that everyone is okay and not upset some idiot hit my 40-60K car. Until I can have the it's just money attitude about the car, I don't want to drive an expensive car.


This is actually the main reason I don't have an expensive car. DC drivers regularly do things to one another's cars that in the South would get you killed. Since I know I'd flip out if someone did the "just back up until you bump into something and then switch into drive" to my luxury car, I just don't own one. That and the worst accident rate in the country, overuse of road salts, and few garages make it such a hard city on nice vehicles.
Anonymous
Post 01/11/2014 13:33     Subject: how much income or how much savings would you need before buying a $40K car?
Anonymous wrote:My goal is to make enough money before I retire so that I can spend my golden years touring all the third world countries.


How is old age gold years? You might be so sick, you won't even be able to travel, alone to the third world.
Anonymous
Post 01/11/2014 12:13     Subject: Re:how much income or how much savings would you need before buying a $40K car?
Anonymous wrote:I do not think that driving expensive cars is part of living a good life. I think having millions in the bank so I can tell my job to shove it any day I want is living a good life.


This. I see money = freedom and more choices. At this stage in my life those choices/priority have to do with my career as well as what non-material things (school, summer camps, activities, college savings) I am able to provide to my kids. When I have provided what I want for my kids, and job wise am working because I want to and not to cover basic things like food and shelter then I can see a 40K plus car as a why not and type of reward.

The other thing is I am rough on cars and I see people rear-ended/fender benders all the time in this area. My expensive car litmus test is if someone hits me I am more concerned that everyone is okay and not upset some idiot hit my 40-60K car. Until I can have the it's just money attitude about the car, I don't want to drive an expensive car.
Anonymous
Post 01/09/2014 11:19     Subject: Re:how much income or how much savings would you need before buying a $40K car?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:I would need the kids through college and $5 million net worth.


Thats crazy, you sound like a miser.


I spend $3,000 a year on wine. Is that miserly?

it's indicative of a problem.
Anonymous
Post 01/09/2014 11:01     Subject: how much income or how much savings would you need before buying a $40K car?
My goal is to make enough money before I retire so that I can spend my golden years touring all the third world countries.
Anonymous
Post 01/09/2014 10:44     Subject: Re:how much income or how much savings would you need before buying a $40K car?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:If you supposedly can't afford 40k on your income, I am wondering who drives all those expensive cars?

This thread, like so many others (making 500k while living paycheck to paycheck and wearing hand me downs) is just so much BS. People are like counting every penny while getting ready to spend 5 million dollars in tuition for some worthless degree 15 years down the road.

We make 150k and will be buying BMW X5 when our old car dies. We can buy it for cash several times over but we would never do it, certainly not with these interest rates. Our old car is 10 yo audi A4, which cost maybe 35k when we bought it. At the time we made like 90k or something, though we lived in a much cheaper area. We have no debt. I find this whole forum crazy.


you are the one pissing tens of thousands away on a depreciating asset for no reason, and we are crazy? hey, if I was single I'd have a nice car. Might help get me girls, who knows? but I'm not trying to impress my 8 year old ...


no reason? the reason is i want to live a good life. driving nice cars is a part of that. what, i am supposed to save every penny? why? because he who saves most money wins or something? no, thanks.


I do not think that driving expensive cars is part of living a good life. I think having millions in the bank so I can tell my job to shove it any day I want is living a good life.


I love my job and actually fear retirement. That said I can retire right now to my home country and live a pretty comfortable life. I feel sorry for people whose main goal in life is to retire with as much money as possible.


My goal is to make enough money before I retire so I don't have to spend my golden years living in a third world country to save money.
Anonymous
Post 01/08/2014 18:39     Subject: Re:how much income or how much savings would you need before buying a $40K car?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Funny, I have a similar dilemma. I have an 11-year old Mazda Protege5 and $35K in cash (after emergency fund, college savings, 401K etc) to spend on a car. I thought I'd buy Lexus CT - efficient and reliable hatchback with a little bit of a status. And then I saw Mazda3 hatchback and totally fell in love. The design, the sporty handling, the stick! And it's half the price of Lexus. Or... is the price really a positive? That's my dilemma. Should I buy the more expensive car for status (I'm pushing forty and we do have a 200+ HHI) or stick with the car I love and have some money left over? I never even thought I would be in this position, but here it goes - status is an important factor in buying a car, even for people like myself who have long managed to disregard it.


On the road, nobody cares if you drive a Mazda or Lexus. Your friends or families might talk about it for 5 min, then forget about it and go on with their lives. Buy whatever you like to please yourself.

But it isn't just family or friends. When you pull into the parking lot at Balducci's/dentist/school parking lot people look at your vehicle and draw conclusions regarding your financial status. It's immediate and instinctive. People assume you have more money if they see you drive a luxury car than a cheap efficient one - they'll never know whether you leased your car or bought it for cash. And they take you more seriously if they think you have more money. Question is - what kind of impression do I want to make on people I don't even know and is it important enough to sacrifice my true preference (and 15K!) for it?


Are you serious? Where do you live? I don't think this is the attitude in DC.
.
Anonymous
Post 01/08/2014 18:01     Subject: Re:how much income or how much savings would you need before buying a $40K car?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Funny, I have a similar dilemma. I have an 11-year old Mazda Protege5 and $35K in cash (after emergency fund, college savings, 401K etc) to spend on a car. I thought I'd buy Lexus CT - efficient and reliable hatchback with a little bit of a status. And then I saw Mazda3 hatchback and totally fell in love. The design, the sporty handling, the stick! And it's half the price of Lexus. Or... is the price really a positive? That's my dilemma. Should I buy the more expensive car for status (I'm pushing forty and we do have a 200+ HHI) or stick with the car I love and have some money left over? I never even thought I would be in this position, but here it goes - status is an important factor in buying a car, even for people like myself who have long managed to disregard it.


On the road, nobody cares if you drive a Mazda or Lexus. Your friends or families might talk about it for 5 min, then forget about it and go on with their lives. Buy whatever you like to please yourself.

But it isn't just family or friends. When you pull into the parking lot at Balducci's/dentist/school parking lot people look at your vehicle and draw conclusions regarding your financial status. It's immediate and instinctive. People assume you have more money if they see you drive a luxury car than a cheap efficient one - they'll never know whether you leased your car or bought it for cash. And they take you more seriously if they think you have more money. Question is - what kind of impression do I want to make on people I don't even know and is it important enough to sacrifice my true preference (and 15K!) for it?


True. When I see the luxury cars I think to myself-they are broke, when I see a beater I think-I bet you they are sitting on a bunch of cash and are in a great financial position.


Really, I think the opposite. Lol.

Agree. Hence the dilemma.


What is the dilemma? Who cares WTF anyone thinks of the car you drive? and even if you do care, you obviously can't control what message people are receiving, as the two totally different reactions above indicate. So there is no point to worrying about it. Which means, there is no dilemma.
Anonymous
Post 01/08/2014 16:49     Subject: Re:how much income or how much savings would you need before buying a $40K car?
Anonymous wrote:
Anonymous wrote:If you supposedly can't afford 40k on your income, I am wondering who drives all those expensive cars?

This thread, like so many others (making 500k while living paycheck to paycheck and wearing hand me downs) is just so much BS. People are like counting every penny while getting ready to spend 5 million dollars in tuition for some worthless degree 15 years down the road.

We make 150k and will be buying BMW X5 when our old car dies. We can buy it for cash several times over but we would never do it, certainly not with these interest rates. Our old car is 10 yo audi A4, which cost maybe 35k when we bought it. At the time we made like 90k or something, though we lived in a much cheaper area. We have no debt. I find this whole forum crazy.


What's your net worth? Do you have family money to bail you out if you lose your job? How old are you? WTH would I want to spend $40K on a car? I drive only 7,500 miles a year and I'm not out to impress anyone.


Luxury cars are dime and dozen and I doubt impress many people. That said, if they do, all the better.

I don't have a family to bail me out bug I do have a plan B should things here take a bad turn. But even if I didn't, I wouldn't live my life under the premise of the worst possible scenario. That is as irrational as pissing money away. Everyone u know in rl, including our financial advisor considers us savers. Only here it I am supposed feel like a reckless spender. People here have simply no sense of proportion. Americans in general lack cultural models of moderation in all areas.