When can I justify buying a nice car?

I nice car is something that can never be justified. It's a want, plain and simple.

I had wanted a new V8 for my life up to that point, and when I finally got one it felt like one of the big achievements of my life.

Now I look back and laugh at myself.

If the OP wants an expensive toy, then decide if you're happy to make the sacrifices needed to get it. Then do it, or don't.

Thanks for the insight - I think this hits the nail on the head. I'll just wait a while and see if I still want it, and if I do, I'm gunning it.
 
I drive a 8 year old territory.
I rent nice cars on holidays. It feels special.
Sometimes I drive other people's cars. They feel special when compared to mine.
I have a 30k Westfield clubman in the garage that I use for weekend joyrides. Driving that feels special. (it gets the looks, goes like stink and I can do track days / enter a race series if i wished, and I get to tinker a little).
I've had nice, fast and luxury cars in the past. They all felt special when new. The special feeling wore off quickly. It became normal quickly.
In most things i am now trying to own the sensible and rent the special.
The Westfield is my exception to the rule, but I justify it to myself (kid myself its ok) as only 30k and cheap to run.

PS at 40 it will still feel special. You will think your still think your 20. The age won't make anything seem special. Special=different to normal.
 
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I think what the OP is really asking is at what sort of net worth is it reasonable to purchase a 100k car.

For example, if your net worth was $10 mil, it would be no sacrifice at all to spend 100k on a car. To take the example further if your net worth was $100 mil, I don't think you would need to think twice about buying any sort of car. No sacrifice would be involved. It would not really affect you in anyway at all in terms of future financial security for you or your progeny.

However, at net worths below $10 mil there may be still be quibbling and uncertainty about whether spending 100k on a car will affect your financial future.

Warren Buffet would disagree completely. He spent many many years as a Billionaire and with only a very modest 15 year old standard car and still lives in the first house he bought (so the story goes).

His reasoning? The amount of money he could be making out of that stake via a good compounding investment.
 
His reasoning? The amount of money he could be making out of that stake via a good compounding investment.

Perhaps so you might as well stay at home all day and not eat anything outside since that is money that could be compounding as well. Go for home brand foods because it's the same stuff, who cares what it tastes like it all goes to compounding.
 
only you can justify it,

I pay $1 per 1 Litre of water from the super market that I like,

some people laugh at me and say why would I pay $1 per litre for something I can get for $2 per 1000Litres from the tap
 
Scientist,

I know this is a bit of a fun thread, but one thing nobody has touched on yet is from what I can glean by reading into your commentary, if you're struggling with "should I or shouldn't I" syndrome now, God help you when a week or two after whatever purchase you get smacked in the face with buyers remorse :roll eyes:

Enjoy the Merc!
 
The other thing is (not for people like Warren Buffet), when your net worth goes up, your requirements change. When you over 10mil net worth, you don't want the merc, you now want a Rolls Royce :D

I still think it's a good problem to have, thinking whether to by a Rolls Royce or not.
 
I just turned 30 last December and been at $100k+ for the past few years (not as high are you though) and i've always driven pretty basic cars - owning an i30 the past 5 years. I have always loved BMW's and always wanted one for myself - my dream cars. This year I had a convo with my (now partner) about if my car reflected who i was and showed my accomplishes in life - the answer was no. In January i went to look at BMWs and put one under contract that day (just under $90k). It was one of the best decisions i have made and the amount of joy i now get from driving is insane. I use to hate driving but now i love it.

You have worked hard for your money so show your accomplishes and just buy it. Depending on what you do, maybe see if you can claim any on tax also.
 
Another thing to think of is the image it portrays.
Sometimes very nice cars can attract unwanted, undesirable attention or treatment.
I prefer to keep a low profile, apart from PPOR which I consider an investment.
 
The other thing is (not for people like Warren Buffet), when your net worth goes up, your requirements change. When you over 10mil net worth, you don't want the merc, you now want a Rolls Royce :D

I still think it's a good problem to have, thinking whether to by a Rolls Royce or not.

Exactly,

Im having ridiculous thoughts of buying this one

cp5348654440387857823.jpg


its a lot cheaper then most think, but im thinking of depreciation costs, which means I cant afford it, and ill probably be complaining about insurance/maintenance so maybe its not for me
 
Scientist, here's another perspective:

Buy the car now. You can always sell it in a few years when you're in the process of starting a family - ideally BEFORE you start a family. (Car interiors never smell the same once a kid's vomited in them.) You'll be able to look back fondly on the 'good old days' with the fast car, when you're getting up to a screaming baby every hour on the hour when they're crook.

Then when they're old enough, you can buy another sporty car to replace the family vehicle :D
 
Warren Buffet would disagree completely. He spent many many years as a Billionaire and with only a very modest 15 year old standard car and still lives in the first house he bought (so the story goes).

His reasoning? The amount of money he could be making out of that stake via a good compounding investment.

What a stingy idiot. :rolleyes:
 
Go for it. Just do it.

The goal of investing and making money is to improve your enjoyment of life. No one knows what the future brings. It is best to live in the now sometimes. Lets say you don't make 40 - then you will definitely regret not buying the dream car. And if you do live a long successful life, buying a car, regardless of price will not set you back too much in the overall scheme of things.

Agree with this. Don't forget to look at the big picture and the reasons for investing.
 
Perhaps so you might as well stay at home all day and not eat anything outside since that is money that could be compounding as well. Go for home brand foods because it's the same stuff, who cares what it tastes like it all goes to compounding.

Glad you agree.

Your examples are extreme but the principle is the same.
 
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I'll just come out and say it... you're being a scrouge, live a little, there is plenty of income and assets to justify a run of the mill 100k car
 
Hey bud, I'm in a similar-ish position, roughly same net income from salary (not including investments), roughly same equity, 33 yrs, married, family hopefully soon.

We bought a new 6+ figure vehicle in November and haven't looked back. Operating costs and depn are "mostly" tax deductible (around 85% business use) and blah blah blah. I wanted it, I got it. I wouldn't expect everyone to understand or agree with that though.

I was similar, working to the bone, looking to the future. Driving a sube Forester X, which by the way is a great car.

I had a pretty serious injury and was in and out of hospital with three rounds of fairly major surgery over about 4 months. There was a (not insignificant) chance I may have lost the use of my legs. Luckily I didn't, and now I'm rebuilding strength and more positive than ever. It did change my perspective on life a little, but I think for a better balance.

My gut feel is to live a little. Enjoy some of the spoils of your (obviously) hard and smart work. I believe rewarding yourself (within means, which it clearly will be) helps to remind you why you work so hard.

We are currently undertaking 4 new home developments (using the term "development" VERY liberally for splitter blocks), financing another purchase of a "development" block, and planning another 2 builds as we speak. By the end of the calendar year we'll have completed 4 property purchases, and completed, or at least financed 8 builds.

The reason I say this is because people will argue (quite correctly) that paying a more expensive car off will reduce cash flow to put into investments, but I physically don't think I could be focusing more cash flow on investments without dropping the ball somewhere. As such, I don't believe it's restricted us much at all.

Finally, I don't think you can put a price on the sound of that V8 either. Pure sex. Even idling it's BEASTY!

Good luck with your decision!
 
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