When can I justify buying a nice car?

Is a tool that gets you from point A to point B or is it making up for something else that may be lacking? ;)

I could understand it if we were in a country where you could actually use some of the vehicles potential but whats the point of a expensive high priced performance vehicle if you can only do 60kph?

I should add that I once owned a high performance euro. It was nice to drive, but so is the well looked after $5k commodore I bought recently
 
We have 2 IPs and our own home, all paid off. We live frugally, not because we have to, we would live frugally anyway.

I am 50, now work part time, have started a PhD and am learning to ride. I have my own pony in the paddock next door. I don't want to travel or have a flash car. I want the time to spend on the PhD and the pony.

My partner is 66, and has a small part time business. He travels when he wants to but these days wants to stay home mostly.

Does this give you another perspective?
 
Hey I like maths, lets do some maths. 170k to buy, 7k in fuel per year(assuming 20,000km per year) and probably 5k per year in maintenance. Say I keep it for 10 years and sell it for 20k at the end of it. Total cost of the fantastic 10 years: 150 + 120 = 270k. Holy crap! Well I need to work out the PV which would be slightly lower, guestimating at 250k present value. Still, holy crap. Cannot. Self. Justify. Ok what if... buy second hand, and don't use as daily driver, only fun-times (friday night / weekend joyrides, no peak hour traffic). In that case, 100k to buy, fuel is probably 3k per year, maintenance 5k per year. After 10 years sell for 10k if lucky. Total cost of ownership: 90 + 80 = 170k. PV of probably 155k. With 155k TODAY I can maybe leverage it up by 5x (80% LVR) and watch it double every 7-12 years for the next 30 years and... it will turn into... billions! haha!

While I would quibble a little with your figures, I agree with your overall point. It is hard to pull the trigger when looking at the figures. In fact, no one would ever buy a new expensive car if they looked at the cold hard numbers.

But decisions like these are made with heart as much as head. A purchase like this is more of a 'reward' than a car purchase. It's the same for people who buy expensive watches, or other luxury purchases.

I have a friend who purchased a new X5 recently, and his rationale was that he'd worked (expletive) hard for this car, and he has. It's his reward to himself. And I think we all need rewards every now and then, if we've earned them.

So my question would be, do you feel as though you've earned your reward?
 
Want vs Need, a quandary we all suffer at times. I feel a lot of people would envy your financial position, especially, with you not yet being 30.
Unless you intend rolling around in $100 bills in the bath tub I suggest you make the purchase and stop beating yourself up.
We are a long time DEAD. Nothing ventured, nothing gained.
 
It's a very personal question.

End of the day, being on this forum, most of us will leave this world with excess funds so what you spend those funds on really depends on your interests.

If cars are what you enjoy, then go for it.

I love travel, a few of my friends do not so they would think I'm mad to spend money doing it, but its what I love, it is why I want to retire early with a nice cashflow, why I am here.

Buying a nice car doesn't appeal to me, but I know it does appeal to many others.
 
scientist: DINK here with similar age, income and property. just ordered a $110k car and contemplating adding a second $350k 'toy' car :)

i can afford it in cash but came onto the forum to look for threads on smarter ways to buy expensive toys; found this thread instead.

i doubt i am in a position to offer you advice, but i personally just look at my cashflows, work out the plan for worst-case scenarios, consider the costs of future endeavours (family etc) and if a toy will fit within those parameters, i get it. in my opinion, that's what money is for! i enjoy cars and i owe it to myself to enjoy them within my means.

time will inevitably improve affordability, but it will also inevitably diminish your ability to enjoy some of the finer spoils of life (high-end audio being another obvious one.) do what you know you want :)
 
You have done extremely well to be in the position you are in, and with a household income of $300K+ before tax, you can easily afford a nice car.

You know what? live a little and do some things you enjoy and that will make you happy. Last year i was a happy and healthy 26 year old, one night i wasnt feeling too well and went to the hospital... i wake up 2.5 weeks later from a coma and spend another 5 weeks in ICU/HD/Rehab. And you know what? all that money i saved for a rainy day would have meant nothing to me, but i would have always had the memories of buying a car i love, that still puts a smile on my face every time i jump inside.

Youre not here forever, enjoy yourself.

and oh... a C63AMG is closer to $200K than $100K, if youre going brand new :p
 
I have no idea what sort of car your chasing, but my 1996 rusty Hilux has taken me more places in this country than most ppl will ever see, before I got it, i was keen on a fast flashy car, but seen the light, get something that you can take off the beaten track, plus u will never be scared of gutters etc when parking, finding a car park will be easy when you could just drive over things (unless its one of those pesky under ground ones with 2.1m clearance), best part is it only cost me 10k, will drive it till it falls apart... It has a ding in every panel, the kids love it, missues is warming to it lol, mainly coz of the places we have been with it, I think of a 4wd as more than a vehicle, it's almost apart of your life style, they can take you anywhere, I think of it as more an investment for quality family time away from the city.
 
Buy it. You've got the dosh.

I don't know anything about Mercs but I drove a mate's $120k one the other year and I wanted to slap him for spending that much on a car that wasn't fast or tough.

If I spent 100k on a car, I would want the neighbours to complain that it's too loud as it idles past. Each to their own. A problem for the wealthy.
 
Buy it. You've got the dosh.

I don't know anything about Mercs but I drove a mate's $120k one the other year and I wanted to slap him for spending that much on a car that wasn't fast or tough.

If I spent 100k on a car, I would want the neighbours to complain that it's too loud as it idles past.
Sports exhaust on the bogan special will probably do that for you at a lot less cost.
Spend $5k and get a good one.


5.0L V8 1996 Holden Commodore VS Executive $2,500
 
Hi Scientist, I think your mad :D

Mercedes is just Latin for taxi isn't it

According to Dr. Thomas Stanley, "86% of those who drive prestige makes of motor vehicles are not millionaires".

It's all relative though, you're looking at spending 50% of your salary on a vehicle

I agree with the below, but then again I don't even notice (or care to be honest) who drives what. We're all different, if it floats your boat and makes you happy, then I agree with 'try before you buy'.

You've not mentioned anything about your investments; maybe you have a positive cashflow investment that can pay the costs of a luxury car lease? Maybe take it for 3 years, get it out of your system and then find a new expensive replacement (kids ?).

For me a car is just transport.

Hire one for a week & see if you still feel you 'need' one.... or does the materialistic feeling wear off after a few days.

Or keep your existing car, and spend the $6Kpa on hiring a different one each month!
 
time will inevitably improve affordability, but it will also inevitably diminish your ability to enjoy some of the finer spoils of life.


This is exactly how I feel. Older I get, the more money I have, the more toys I can afford but I don't even want them anymore. We have the "ideal" home we are striving to buy but apart from that if you gave me a million dollars I wouldn't even know what to spend it on and it's getting worse as I get older. If you gave me that money in my 20's I would have gone out and picked up a Ferrari. fancy cloths etc but these days it's just all junk to me.

I'm 32 now, can't see myself splurging more on big ticket toys as I get older.
 
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