Poor V Rich mentality?

I just wanna discuss the irrationality of buying a new car.

Lets just say that you rationalise the purchase because the car is the best on the road and the performance is great - therefore the purchase is justified and it makes you inherantly happy.

This needs to be compared to the alternatives which is say a 10 year old second hand car.

But at the end of the day a car, broken down into parts, is basically a machine with bucket seats that gets you from A to B. Its irrational to love something that is a mode of transport that will never be THAT comfortable because at the end of the day a seat is a seat! Find me a car that I can lie down in then i will get excited!

So why then do some people get excited about new cars - and the real truth usual is because the buyer has something that other people dont - therefore you feel better about you lot in life. If this is truely the case then what a shallow lot we are...

Dont belive me? A survey was once done asking a simple question

What would you prefer

1. To be paid 100k salary when everyone else is earning 150k
or
2. The be pad 50k salary when everyone else is earing 30k.

all else being equal.

Rationally we should choose 1 - because 100k is more than 50k BUT Everyone in reality chooses number 2 because we compare ourselves to the point of destraction.

So that in a nutshell is why having a flashy new car has mostly to do with how you wish to project yourself rather than any realy overall benefit. Ask the advertising guys at holden, ford, Mercedes and BMW and I bet you they agree with me..

Then one might ask - yeh so what...its still my right to be shallow and buy a new car regradless of the motivation. And that is true. Everything is a choice. Our lives are made up of choices. But how much of these typed of choices are actually making us unhappy rather than happy. How many of these types of choices produce anything with long term benefits, any thing truely worthwhile.

Ok now it really is time for a beer.

Cheers
Aussie

A couple of points.

For some people, Cars are their passion. They enjoy building them, driving them, racing them, working on them, looking at them. Just as I enjoy property. ;)

Also it is possible having a new car has NOTHING to do with how you wish to project yourself. My car, which was purchased 'new', is hardly a status symbol. It is a Lancer wagon. Most people don't even know what one is and wouldn't bat an eyelid if they saw one on the street, even if it were new. If I had wanted the status symbol, I would have bought something else like the peugot - and most likely that would have been purchased secondhand.

And then there are people like my father. Who has over the years, purchased many cars both new and secondhand. Some have been status symbols, some have just been practicalities. The brand new Alfa he owns, he bought because he can finally own something impractical but flashy, becasue he no longer needs to cart 6 kids around - he can also afford it, it is also owned outright. The mazda 3 my mum drives is more about practicality, and is salary packaged.

Just saying you are generalising a hell of alot.

Oh and I would choose to be paid the 50k, not because of the comparision in and of itself (no need for anyone else to know how much I earn), but because what idiot wants to be paid less then the average. Been there done that, would rather not have to worry whether I could afford fuel this week, or if DH is going to have to spend a couple of $ on coffee for a work meeting, so we can no longer buy an extra loaf of bread if we run out. If 'Everyone else is getting more then you, things are going to be more expensive. It isn't how much you are being paid, rather how much that money is worth.
 
So that in a nutshell is why having a flashy new car has mostly to do with how you wish to project yourself rather than any realy overall benefit. Ask the advertising guys at holden, ford, Mercedes and BMW and I bet you they agree with me..

Aussie

I disagree, I have a brand new car. Why? Because i know it's reliable, im not saying that a 2nd hand car isn't but having a brand new car does have it's benefits.

Yes my car is done up, It's flashy and it has the lot, car sound system, lowered, rims, etc.. you get my drift. Why? Because i love cars. I enjoy them, I love cruz'n. I have a pasion for it, Just like i do for property. I don't have it because i want to project myself in a certain way. I have it for me!
 
I just wanna discuss the irrationality of buying a new car.

Lets just say that you rationalise the purchase because the car is the best on the road and the performance is great - therefore the purchase is justified and it makes you inherantly happy.

This needs to be compared to the alternatives which is say a 10 year old second hand car.

But at the end of the day a car, broken down into parts, is basically a machine with bucket seats that gets you from A to B. Its irrational to love something that is a mode of transport that will never be THAT comfortable because at the end of the day a seat is a seat! Find me a car that I can lie down in then i will get excited!

So why then do some people get excited about new cars - and the real truth usual is because the buyer has something that other people dont - therefore you feel better about you lot in life. If this is truely the case then what a shallow lot we are...

Dont belive me? A survey was once done asking a simple question

What would you prefer

1. To be paid 100k salary when everyone else is earning 150k
or
2. The be pad 50k salary when everyone else is earing 30k.

all else being equal.

Rationally we should choose 1 - because 100k is more than 50k BUT Everyone in reality chooses number 2 because we compare ourselves to the point of destraction.

So that in a nutshell is why having a flashy new car has mostly to do with how you wish to project yourself rather than any realy overall benefit. Ask the advertising guys at holden, ford, Mercedes and BMW and I bet you they agree with me..

Then one might ask - yeh so what...its still my right to be shallow and buy a new car regradless of the motivation. And that is true. Everything is a choice. Our lives are made up of choices. But how much of these typed of choices are actually making us unhappy rather than happy. How many of these types of choices produce anything with long term benefits, any thing truely worthwhile.

Ok now it really is time for a beer.

Cheers
Aussie

zzzzzzzzzzzz :(

yeah... all those 500 million (new) cars that were sold globally over the last 10 years have been bought by shallow, self absorbed, wanna be tossers !!

Now get yourself another beer and enrich our lives some more with your wild generalisations..
 
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Its not about new car vs old.. its about 'cost of ownership'.

I punch in the figures into a spreadsheet and work out out how much the per year costs are for a car (over a fixed period, like 4 years), whether its new or old.

Some cars like Falcon/Commodore holds value so amazingly bad that you'd be crazy to buy new (without some fancy company packaging)

For some cars like Corolla, the cost of ownership difference is very little between new and 3 year old.. like under 10% difference.

I've got no issue spending an extra $1k or so a year for a car that I'd really like... you only live once
 
where did the spreadsheet come from? would be interestign to see it.

Cars in oz hold their value so well that you may as well buy new... get to the end of 5 years and flick the old bomb off to a property investor.
 
at the end of the day a car, broken down into parts, is basically a machine with bucket seats that gets you from A to B. Its irrational to love something that is a mode of transport that will never be THAT comfortable because at the end of the day a seat is a seat! ... the real truth usual is because the buyer has something that other people dont - therefore you feel better about you lot in life. If this is truely the case then what a shallow lot we are...
aussierogue, in a sense, we are kindred spirits. I am not a car person; I totally don't get it, either. We have two Korean cars, both very "loved" and "worn in", but I feel absolutely zero sense of deprivation in this regard. They get me from A to B - most of the time ;) - and in relative comfort; I don't feel that I need anything more from a car.

But I recognise that there are many things that I appreciate - such as extra luxurious 100% Egyptian cotton sheets :cool: - which other people would think are a ridiculous extravagance. Including some people who drive much more expensive cars than I do!
I try not to be dogmatic about anything.
Well, I am politely suggesting that you don't seem to be making a great success of it at this stage. :p Your assumption that the only reason that people want nice and/or new cars is to impress others is pretty offensive; there could be a million other reasons why people want a "flasher" car.
BTW there is also an element of learning from the masters - like gandhi, tolstoy, buffet, buddha, jesus whoever they may be. For 20 years ive soaked alot of that stuff up because it interests me.
I don't think that many of those teachers would share your assumptions about the motivations of others. I'm pretty sure they'd assume that people with whom they differ are at least acting in good faith, in the absence of evidence to the contrary.
 
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Hehe

I just reckon for lots of people self projection is the case.

I dont reckon its always the case - just alot of the time.

There are many good reasons for buying a new car and yes many times its probably a good decision. But many times its just not!..........

If you have an awareness of consumerism and status anxieties then you would also be aware thet the 'house' and the 'car' are the two big ticket items. So what I am saying is not new....in terms of motivations. If there is one sure way to look flashy its by buying big house and flashy car. Full Stop.

Im always wrong so you dont have to agree with me..
 
Rugrat

it is obvious that you have made a new car purchase decision on sound prinicpals. Great. I didnt say 'all people do all of the time' with regards to bad purchase decisisons. There are many who buy for reasonable reasons.

An I am glad you admit and your dad does to that some of his purchases have been for status reasons. Atleast its understood!

I agree with all your points.

Cheers
 
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Hi Ozperp

Thanks for the message and appreciate its sentiment. You sound nice.

But hehe

I have never said im not a car person. I dont mind cars at all.

Occassionally I drive my mates expensive cars for a laugh and it seems fun. But I know that with cars the fun wares off after 3 months. At the end of the day its a contraption with bucket seats. I would enjoy it even less when i realise i am losing 2 k per month in depreciation 'enjoying' this contrasption with bucket seats. Thats where thrawns point is absolutely valid regarding cost of ownership. I can have so much more fun, hedonsitic value whatever you wanna call it spending that 2 k per month on something other than a machine!

Go to Paris! Spend it on wine woman and song...plently of options...

Re dogmatic - I said I TRY but i am not always succesful. To the contrary I have to work very hard at it. If I was completely unattached I wouldnt even be replying to this thread! haha..

Re good faith - We must be reading the wrong things. Did socratis question the motives of the everyday man? Did gandhi think the british were acting in good faith? Did Jesus think the jews were acting in good faith? The point here is that it is ok to question the motives of peoples and societies - its healthy. Being spiritual or being aware is not about winning Mr or Ms Congeniality.

Shake it up....

Cheers
Aussie
 
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aussierogue said:
Hi Ozperp

Thanks for the message and appreciate its sentiment. You sound nice.
Shucks, thanks. I like to think so. :)

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I don't think that many of those teachers would share your assumptions about the motivations of others. I'm pretty sure they'd assume that people with whom they differ are at least acting in good faith, in the absence of evidence to the contrary.
Re good faith - We must be reading the wrong things. Did socratis question the motives of the everyday man? Did gandhi think the british were acting in good faith? Did Jesus think the jews were acting in good faith? The point here is that it is ok to question the motives of peoples and societies - its healthy. Being spiritual or being aware is not about winning Mr or Ms Congeniality.
I don't think Socrates, Gandhi, or Jesus would, upon hearing of a particular action by a complete stranger, assume a base motive in the first instance. I don't think Jesus, upon hearing that Matthew had a new donkey, would have immediately said "That Matthew's a shallow pr**, he just wants a fancier donkey than Luke!" :D If, on the other hand, Matthew said "Jesus, I think I want to get a nice new donkey because Luke's is younger and prettier than mine", then I'm sure Jesus would have had some appropriate wise words for him. ;) It's not the judgement in itself that's the issue; it's judging in the absence of any information about what motivated the action.

In all cases where these teachers engaged in judgement or questioning of motives, it was based upon insight into the characters of the individuals/organisations involved, through experience.
 
Ozperp

I dont for one moment think you dont know your stuff! Well done.

You do seem attached to the theories - hehe

But my comments are not to judging people as individuals but merely making generalised observations. As I said the purchase decisison is not inherantly bad or inherantly good.

Have you read 'status anxiety' by alain de botton? Where in these types of arguements do you see room for judgements or opinions?
 
BTW Ozperp - I think Jesus vow of poverty is a pretty strong show of support for the anti commercial league. He may not have had a go (verbally) at the guy with the suped up donkey but his actions speak louder than words...

You reap what you sow....not sure where a highly depreciative asset fits into that little equation

hehe - this is fun
 
Aussie,

Which would you choose?:

(1) Buy a brand new car that makes you money after tax, ie. positive cash flow, for the first 5 years, and then loses money.

OR

(2) Buy a 10 year old car, that loses money from day 1.

Thanks.

I agree with the general observation (and I think it's OK to make such observations, as long as they are not directed at particular individuals) that a lot of people (if not most) buy cars with the underlying motive (conscious or not) of self-projection/ego. (In fact, I am about to do this very thing, consciously!)

But as others have mentioned, some people just have a passion for cars, like many here have a passion for property... nothing wrong with that IMO.

It just so happens that cars generally lose money, but property makes money.

Property investing for me is like a ''hobby'', it's just more profitable than most other hobbies!

People have other passions or hobbies that may have no real relationship to money at all, eg. running, bike riding, knitting, music etc...!
 
"Status Anxiety discusses the desire of people in many modern societies to "climb the social ladder" and the anxieties that result from a focus on how one is perceived by others. De Botton claims that chronic anxiety about status is an inevitable side effect of any democratic, ostensibly egalitarian society. De Botton lays out the causes of and solutions to status anxiety as follows"
 
I disagree, I have a brand new car. Why? Because i know it's reliable, im not saying that a 2nd hand car isn't but having a brand new car does have it's benefits.

I disagree, new doesn't always equal reliable.

Then again, once i can afford a newer car it's my first investment, much to my parent's dismay!

I must admit though, i love done up cars, (usually the people behind the wheel too :D) but for now, i'd go for a newish car, not brand new..If you can afford it though, why not?
 
I disagree, new doesn't always equal reliable.

Then again, once i can afford a newer car it's my first investment, much to my parent's dismay!

I must admit though, i love done up cars, (usually the people behind the wheel too :D) but for now, i'd go for a newish car, not brand new..If you can afford it though, why not?

True it doesn't but their always factory warranty which is good.

I love done up cars too, It's an addiction once you start, you can't stop. I still haven't done the sums on my car as to how much ive spent on it, nor do i wan't too!
 
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