A few days ago Jennifer from Live Richly commented on a post I had written entitled 8 Big Reasons Why You’re Getting an F in Personal Finance 101. She was lamenting the sense of entitlement she saw in many people. Here is an excerpt:
“I know a woman who is a single mother and hit up her friends for money to replace the engine in her SUV. I declined to participate because even though I have a lot more money than her, I have a 9-year-old car that’s worth maybe $2000, and hers is worth about $30K. Her engine costs more than my whole car… I will admit that peer pressure is real though. I’ve had many people mock my car, and if I cared, I would run out and get a fancier one.”
Ah, Jennifer. Let them mock you all they want because those people clearly have a misguided view of how the world really works.
Yes, it’s true a large segment of society still believes that the car a person drives is a status symbol that accurately reflects the level of financial success he or she has achieved.
The truth is smart people know nothing could be further from the, er, truth. (Dang, I hate when I do that.)
As far as smart people are concerned – and even dummies like me – the sticker price of somebody’s car can never be considered a reliable indicator of their financial success.
If you don’t believe me, just look around; the proof is everywhere.
For example, here in Southern California I see teenagers driving BMWs, and Lexuseseses (or is it Lexi?) all the time. I don’t think most of them hit it big blogging, or own wildly successful businesses at that tender age.
I also see people working in jobs that pay $30,000 per year driving Infinities. Is that supposed to be impressive?
More like stupid.
Heck, Jennifer’s friend owns a relatively-modest priced SUV and she couldn’t even afford to get the engine fixed.
So clearly, one cannot determine the size of a person’s bank account merely by the type of car they drive.
I know a couple that used to live in my little neighborhood community who drove brand new his and hers BMWs. Guess what? The bank foreclosed on their house a while back and they had to move away. Although I do not know the exact circumstances that led to the foreclosure, perhaps if they drove more modest cars that didn’t require monstrous monthly payments – or better yet, no payments at all – they might still be living in their home today.
Although we can truly afford to drive almost any car we desired, The Honeybee and I choose to drive a 2001 Honda Odyssey and 1997 Honda Civic, respectively. Our cars are not glamorous, obviously, but they are well-maintained and, best of all, they are paid for.
Although she didn’t say so, I bet Jennifer’s car is paid off. I’ll also wager the vast majority of newer luxury cars on the road aren’t.
And while those luxury car owners will continue to be saddled with some hefty car payments over the next several years for the privilege of traveling to their jobs in style, the rest of us will continue driving our Honda Civics, Toyota Corrolas, and Ford Focuseses-es (or is it Foci?) and use the money we save for our relentless drive toward financial freedom.
And guess what? Most of us won’t give a damn what the others think either.
If I had to give any advice to Jennifer on this subject, I would tell her that she should never fear peer pressure for owning a “beater” for a car.
Financially savvy people actually consider it a badge of honor.
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My husband once looked around our modest neighborhood and asked, “How these guys affording these cars?” I pointed out that most of them probably had 6 or 7 year loans for their cars, and were living paycheck to paycheck. The same is true for almost any fancy purchase. Big TVs can be financed, as can almost anything that you buy that tries to say, “Look at me; I’m awesome and living large.”
I get mocked all the time for being a young girl, driving a 11 year old minivan.
Seriously, I couldn’t care less.
I just smile and if I really get pushed, I say: I bought it in cash and it works beautifully.
(And it does!)
I won’t lose any sleep over people thinking I’m cheap.
There aren’t a lot of things people can do to save money that REALLY save a lot of money. Turning out lights when you leave the room, eating out a little less, etc, are good, but they don’t add up all that fast.
Choosing a cheap car ranks right up there as the biggest.
Mine: 1999 Saturn SL2, 150K miles, no car payments for last 7 years.
@Miranda – too funny. My wife and I used to laugh at the fancy luxury cars at our APARTMENTS too, hah.
@gn – Excellent point! Once I started driving paid for cars I could save and invest w/out breaking a sweat. So fun! It’s too bad most people will go on thinking that a car payment is a fact of life (I know I used to believe that).
I knew I’d turned the financial-success corner and headed the right way when I started looking at BMWs and thinking, “man, glad I didn’t pay for that!” Awesome post!
Thanks Len for the shout out! I agree with you that an expensive car does not equal a fat wallet. I see college age folks driving new sports cars all the time. While it may be their parents bought it for them, that says a lot about the smarts of their parents!
My 2001 Mazda Protege is paid off, since my husband and I paid cash for it at the dealer (it was used then). Well, we sort of paid cash. They wouldn’t accept actual cash and it was too late to get a bank wire on a Saturday, so they insisted we take it home without paying a dime! We did wire the money on Monday of course
I’ve never owned a new car and the peer-pressure is very real, especially because I’m in management. I work at a medical device company and the lot is full of BMWs, Mercedes and Lexuses. I drive a 1996 Chevy Cavalier that I bought off the receptionist, when she upgraded to an SUV.
I just can’t see dumping a huge amount of money into tranportation. Cars cost too much and depreciate too quickly. Although, I may break down and buy my first new car, when electric cars are finally available. I would love to drive something with lower maintenance and fuel costs.
What is impressive is when you can afford to buy your BMW cash
I love nice cars but they are clearly a huge source of expense. I just bought a RX-8 but instead of paying a brand new one at 30-35K, I bought a 2004 for 12K… I then have the pleasure to drive a nice car without having huge car payments attached to it
When buying a car, you also have to consider if you make enough money to pay for its maintenance. Tires, oil changes, gas, insurance, etc. they add up in no times!
Funny how one of the worst investments possible is one of the most popular! The other day I saw a nurse in my neighborhood get into here new corvette and shook my head as a rode my bike past.
Too bad there aren’t more smart people out there cause I see a ton of high end cars where I live.
I find all of you to be extremely rude and perhaps jealous is the better word just because some of us drive nice expensive luxury cars . Your answer to living on the edge of poverty is to ridicule others by insinuating that those of us fortunate enough to earn high 6 digit incomes because in most cases we finished college or maybe took over successful family business. Did you ever stop to think that not everyone lives beyond their means ? Do you really feel that by stating ” Too bad there aren’t more smart people out there ” forgives you for earning less or spending less than you really wish you could ? I have friends who change their new cars ( yes cars – not car ) every three months because to them spending $ 25000 is like you spending $ 250 . Now, before you begin blogging that their money would be better off spent curing the ill or perhaps giving to charities , please be advised they already do that .
lol. You’re funny.
The article doesn’t state that every single person driving an expensive vehicle is living beyond their means. It states that many of them are, and that is absolutely true. People spend money they don’t need to spend simply because they want the world to know how important they are in their fancy car. I drive a small economical car though I could definitely afford a nicer one. I chose my car because it gets me where I’m going dependably and allows me to keep a lot of money where it belongs…. in my pocket. I guess if you don’t like it when people express their opinions of conspicuous consumption, I don’t know what to tell you. I guess you can believe that I’m jealous of you. The truth is, I grin when I think about how much money you spent that I didn’t.
I hear you. Just after college I paid $400 for a 1991 Geo Prizm with 97k miles. While it is definitely one of the most humble cars I’ve ever seen, it is also mechanically sound and (with proper care) should last many years to come. In the meantime my wife and I have been able to achieve most of our financial goals (working on Baby Step 6 now, paying off the house), and I am putting $200 a month aside as a car replacement fund. Any guess on what I’ll be able to pay CASH for when my little Geo dies?
Yeah, I live in an apartment complex: Nicer than some but not luxury living by any stretch of the imagination.
And yet…
There are an awful lot of nice cars. Granted, I consider a nice car to be anything above $30,000-$35,000. I don’t know how people measure cars in the real world. I just know that I’m perfectly happy if our next car is a Hyundai or something similar.
This whole car:living quarters ratio kind of blows my mind. Until I remember that there’s probably a reason these people are renting, and it’s sitting in their parking space.
@Miranda: Great point about other large purchases. You know, I look around my neighborhood and think the same thing sometimes. Especially when the homes have not one, but TWO fancy cars.
Ha! What are YOU doing driving a minivan? (Just kidding.) Seriously, minivans are very practical. We love ours. It can be used to haul large items or lots of people in real comfort. It ain’t sexy, true. But it’s a great way to travel – especially over long distances! 
I value a car by its ability to get me from point A to point B safely, reliably, comfortably and efficiently. Fortunately, there are lots of cars on the market (both used and new) that can meet those requirements for a relatively small amount of money.
@FB: Hi, Me!
@gn: You are right. It is a real luxury not having to make a car payment every month for five hundred dollars or more. That is a VERY significant amount of money that can be used to quickly build emergency or your retirement savings accounts.
@Deacon: LOL I assumed I was the only one who thought that way when I see those luxury cars.
@Jennifer: Thanks for sharing your story – for once I didn’t have to think too hard for an idea! LOL That car dealer took a bit of a risk, yes? If you had crashed the car over the weekend before you actually wired the money wouldn’t they have been on the hook to pay?
@Bret: There are a lot of high-end cars where I work too. The upside for me is when we have to travel locally, most of the time nobody wants to ride with me in my Civic so I get to ride with the engineers who bought the luxury vehicles!
@Mike: I know you didn’t ask me, but right now I spend between $1500 and $2000 per year on maintenance – that ensures my car continues to run like new. Yes, being able to pay cash for a BMW is impressive! On another note, my next car will probably be almost new. Maybe a year or two old, tops. That should result in some significant savings since, as Bret alluded to, cars depreciate a good chunk of their initial value when they are driven off the lot.
@Ryan: My old boss owns a Corvette and that thing seemed to always be in the shop. They are expensive to maintain – even for mundane things like tires.
@Mark: It all depends on how much cash you have! If your Prizm goes another 7 or 10 years, you should be able to buy something very very nice!
@Abigail: It’s all about priorities, I guess. There are folks out there who consider their car more important than their living arrangements – or being able to build a bigger nest egg, for example! To me, a car is near the bottom of my “priorities totem pole.”
@Len: Absolutely the dealer took a big risk! The funny thing is they INSISTED we take it home. They figured the bigger risk was me changing my mind and not returning. I might have been a deadbeat and never paid, and then they would have had to repo it. This was back in 2005 when US lenders threw money around like candy.
Glad I can help you out with an idea. You let me know when you need another
Um, Jennifer… I think I need another idea. :-}
Hmm, renting vs. buying a house? How to know when it’s time to leave a job?
i live in LA also and it is hard not to see some of the most expensive cars in the world here.
it is one of those things where you hope you don’t fall into the my car is nicer than yours trap.
@Jennifer: LOL! Don’t give up all your good ideas!
@James: Unfortunately that’s how a lot of people think out here, James – even if they can’t afford to try and impress the impressionable.
I like to relate peer pressure, or keeping up with the fictional “Joneses” as being part of the lemmings. Why jump off that cliff with your lemming friends when you know better. Now if only I could get my husband on board with the whole “you don’t need a luxury vehicle” point of view!
I am happily driving my 2007 Toyota Corolla CE, 5 speed manual transmission, around! It is paid for! It is reliable! It gets great gas mileage! If the battery dies or the alternator goes out, I simply start it rolling, jump in the car, put it in second gear and pop the clutch!
It is very low maintenance. It even has a timing CHAIN, not a BELT.
I love my car. At my income level (well over $100K), I could be driving a BMW or Lexus….especially since I am on Baby Step 6 and have been debt free, except the house, for quite some time.
Love my Toyota…it probably won’t die on me for at least 10 more years….maybe 15. Heck, at 40K miles, I just got the engine broken in….
Love this post. I drive a 1998 Jeep Cherokee that’s been paid off for years and laugh at all the people driving BMWs, Lexus, or whatever, knowing probably 2/3 can’t REALLY afford them.
Plus, I see them so often, it makes them less appealing…why pay $40k for a car a bunch of people drive when you could spend $20k for an Accord or Camry (which are basically the same cars anyway)?
@Spedie: My Civic hasn’t crossed 120k miles, even though it is on its 14th year – but that is going to change since my commute doubled about six months ago. Still, I don’t see why I can’t squeeze another 130k miles out of it assuming I keep it well maintained (or maybe even longer).
@Kevin: I’m with you, brother!
I am in Cairo and a lot of people here dress in Western style, a lot of people wear arab style gowns and some just mix it up. The thing about the gowns is that they are comfy, protect from the sun and are cheap as hell…. A pair of Levi’s costs the same (or maybe slightly more) than a pair of Levi’s in USA, that is a LOT of cash in Egyptian pounds but people still save the money to buy them so they can look impressive. I know it’s extreme but I have almost considered wearing traditional Arab wear out of protest against the consumerism that takes over everything!
Completely agree with the sentiments of this post. Since most cars are financed anyway, when I see a new car, I often think to myself “Yuck, I wonder what the payments are like on that thing!”
@len Just included this post in my weekly round up
I appreciarte the shout out, Shawn!
It’s a bizarre sort of world we live in if people consider it better to impress strangers with an expensive car than to suck money off their friends just to keep it on the road.
Sometimes I think I’m from an alien planet.
We all love to look at that beautiful Ferrari or BMW that zips down the freeway at breakneck speeds. It is usually an indication of wealth but people who spend 6 figures on a vehicle probably aren’t especially wise with their money.
Thanks for the post. It has been nominated as the top five posts of the week on my website! Congratulations!
The obsession people have with cars in the US is interesting to say the least.
I’m not saying I wouldn’t ever drive a luxury car, but it’s simply not going to happen until it can be paid for in cash.
I currently drive a 1996 Ford Explorer with 196,000 miles and I’m hoping it’ll last me through the next 4 years of school. The engine was replaced at 176,000 and it’s been running great since then.
What I don’t get is that people will pay so much more for basically the exact same vehicle. Yes, I think you are much more successful because you drive a Lincoln Navigator instead of a Ford Expedition.
I won’t lie though, sometimes I give in to consumerism and think about how sweet it would be to drive an Escalade or Telsa Roadster (payment free of course!)
@LittleHouse: Some folks simply value nice cars more than others. If your hubby values them more than say a very nice vacation every year, then you’re going to have a lot of work ahead of you!
@Monevator: That story really was amazing, wasn’t it? I would never have the stones to ever make a request like Jennifer’s friend did.
@Conrad: Thanks for the nomination! I’m glad you enjoyed the post, Conrad!
@Ryan: I’ve been a passenger in a lot of luxury cars, and they ARE really nice. But when I sit back and try to determine value for the money, I can never justify buying one. That’s just my opinion. And if some people think that makes me cheap, so be it.
I don’t particularly like cars, and certainly wouldn’t measure my ‘worth’ against my vehicle. I think mine is the ‘top beater’ of the page, a 1989 (yes, that’s twenty years old!) VW Golf, solid as rock and still running smooth at just over the 100k miles. It cost me a whopping £300. I like that it’s old – it’s purely mechanical, no computer bits and bobs, no irritating voices if you don’t belt up etc. But most problems I can fix myself… well, some problems, I’m no mechanic … but I can manage my own oil changes and filters etc. It’s well battered (let’s say the previous owner wasn’t too good at cornering!) so all my work colleagues are constantly nagging at when I’m going to buy something newer. Simple – I’m not! It’s not broken, nothing to fix. But I do enjoy the occasional dig when they have to ‘pop out’ to buy a £300 sensor, or spend £100 on an oil change, or need a lift home because their computer won’t let them drive. “So, when you going to get rid of this expensive white elephant and get a car that works, then?” I ask.. Ah, schadenfreude.
You definitely win the prize among the readers for oldest car, Macs. Congratulations! The joys of a purely mechanical car are many, to be sure. When I was a teenager a lot of girls I knew drove VW bugs and they were so simple to work on that they often took care of their own repairs too.
But, Macs, 100 pounds for an oil change? That’s like, what, $160 right now? Are oil changes really that expensive across the pond?
“But, Macs, 100 pounds for an oil change? That’s like, what, $160 right now? Are oil changes really that expensive across the pond?”
If they see you coming… lol
To be honest I don’t know the actual cost, as I never do it. But I’m sure £50 would be a lower limit, plus the hassle factor of being without your vehicle for the morning. Compared to maybe £5 for new oil, £10 for filters, and a few minutes of getting greasy by doing it yourself, I think the DIY has to win out.
BTW I’m going to trawl the rest of your blog soon, I just arrived on a link from Monevator. Cheers!
In my line of work, 90+% of the people I speak with each day are millionaires. They typically drive nice cars, but very few of them purchase new cars every 1-2 years (I don’t know any who lease). I see a lot of them driving nice cars (occasionally I’ll see someone roll up in a ’80s honda with the muffler hanging on with coat hanger, who is a multi-millionaire, but that is the exception), and they are almost always paid for (if not, they could all be paid off in a heartbeat). What many people don’t realize is that these people have not always lived the lifestyles they are currently living.
The millionaire next door was a great book, but what has made an even better impact on me to is to see the it in real life. I once helped someone send money to a dealership to pay for a new car. I knew that the dealer sold Audi’s, so I asked if he was getting a new Audi. His response was awesome ‘I wish I could afford an Audi!’. Many people who are actually driving these cars are limiting themselves from being able to keep up their same lifestyle down the road, and meanwhile the guy who could pay cash for 50+ Audi’s doesn’t feel like he can afford one.
@Macs: Welcome aboard! I’ll have to thank my friend the Investor (again) for sending you here. Monevator fans (of which I am one of the biggest!) tend to be among my “stickiest” readers, so I hope that trend continues with you, Macs!
@CH: Very interesting! Can I ask what line of work you are in, CH? If I was a multi-millionaire, I would probably would buy a luxury car. Great insight on the fact that many folk driving these cars today are going to be unable to maintain that lifestyle down the road. I’m curious if they will be able to handle driving a more modest car down the road after years of driving a luxury car…
@Len – can’t really say much more than I work with people and their money/investments, and all my clients are millionaires. Most of them do drive luxury cars, but we’re talking Lexus, BMW, Cadillac, etc., not Bentley, Rolls, etc.
@CH You just reminded me that there was a brand new Maserati GranTurismo parked close to my house today. I guess the people with the premium vehicles above Mercedes and BMW tend to have many other cars as well. I know of this Maserati owner and hear that he has at least 5 others. I’ve also read that the average Bentley owner has 6 or 7 other cars.
For clarification – I’m in the Midwest, so people are a bit different with how they spend than some other places. However, I never said that there is anything wrong with buying expensive cars, I think it all just comes down to what people want to spend their money on. What is worth noting though is something that has been mentioned in other comments, that there is a difference between luxury vehicles and ‘ultra-luxury’ vehicles. BMW, Benz, etc. are not even in the same league as Maserati, and really shouldn’t even be compared IMO.
Bentley says that the average owner of a Bentley has a net worth of $30M. Should the person worth $1.5M buy one? That’s their call. There is a big difference between the person who has worked hard for average pay and saved a million bucks and the person who earns that or more in a year.
I guess all I’m really trying to point out is that a million bucks isn’t as much money as it once was (still a lot of money…but less so), and that just because someone accumulates $1M+, they can’t automatically afford anything in the world.
Great article! I generally agree with your views on this. However, I look at things a little differently. I basically consider every car under $70,000 to be non-luxury. I don’t believe there is any such thing as a prestigious Infiniti. The fact is that when you see an Audi R8, Aston Martin or other vehicle like that, they usually say quite a bit about the owner’s net worth. This $70,000 line simplifies things for me. People with a weak net worth have trouble buying cars over $70,000. In fact, moving my line up to $100,000 might not be a bad idea either.
Hey, Jon, that is an interesting observation that makes a lot of sense. My ex-neighbors with the his and her BMWs probably would never have qualified for his and hers Maybachs – let alone even one. Maybe I need to create a new category of auto – like pseudo-luxury, sub-luxury, or poor-man’s luxury car.
Interesting to read the disdain of “luxury car drivers” from some of those who have commented here. I guess I could be mildly offended because I’m one of THOSE people. Being the previous owner of a BMW 525 and the current owner of a 2008 Audi A6 quattro. Yes..I’m a major car enthusiast and love to drive a well tuned automobile. It’s not necessarily a “symbol of my success”, I merely enjoy sweet cars..what can I say?? Trust me, I’ve driven my share of beaters! In college and after I drove a 1979 Toyota Celica..with ripped seats and a primered hood. I reached several milestones in my life before purchasing a “luxury car”. I bought my 2nd home, maintain a signifcant investment account.. married my beautiful wife (who drives a paid for ‘00 Maxima..her choice) we travel when we want and live a comfortable life. I guess my point is..don’t judge. If your neighbor wants to buy a Benz or whatever, if he can afford it or not, if hr planned for it or not..it’s his life. You do with your life what you want to do. Like drive a Focus! I’m sure he’s not judging you for that.
Don’t be offended. I understand there are many people who CAN afford nice cars – and bully for them (and you)! But many people buy expensive luxury cars they can’t afford precisely because they WANT to be judged. That is, they want to try and impress others with their supposed “wealth.” This was simply meant to be a public service notice to those folks that buying a car to impress others is a fool’s game because smart people (and me) rarely equate the type of car one drives with their financial success anyway.
Hey guys! I drive a new Toyota . Certainly it is not a luxury car. It is a reliable car. I hate it when people look at me. I don’t want any attentions from other people at all. I am going to tint the windows so they can’t see me. At the same time I hate to drive the car with tinted windows cuz it is hard to see at night and all seasons here are really dark except summer. You guys have any ideas why they like to look? Cuz they are jealous? Cuz I live in a bad neighborhood? I hope I have an old reliable car so they won’t pay attention to me. I am seriously hate it. If I like a luxury car I won’t drive a Toyota! Stop being a fool by judging what car they drive. Some rich people drive a 92 chevy that you will never know!
If you “don’t want any attentions from other people,” maybe you should just close your eyes! It’s a lot cheaper than getting the windows tinted.
They look at you because you are the reason why our country is in the shape it is today . You chose to give your American dollars to a country that operates in America almost tax free. You chose to give your hard earned dollars to the same country that may have killed your grandfather or grandmother or maybe even one of your closest friends relatives at Pearl Harbor . They even have a couple of words for others like you . One is stupid and the other is traitor .
Yeah , I know -your going to tell us the same stupid nonsense that when America builds a good car you wouldn’t be driving a Toyota . Isn’t that interesting because the last time I looked your dealer had a huge building behind the showroom called the SERVICE dept and its filled with broken Toyotas . Imagine that !
Yeah, I a think so.
Yeah, I think so.
I agree with Len… Why do people waste money on tinting their windows when you are just going to be forced to remove the tint when a cop pulls you over.
I can understand your point of view, however, while all the assumptions and judgement? Not everyone who drives a luxury car is living paycheck to paycheck. It’s almost as if you are insecure about your clunker, therefore it makes you and the other clunker drivers who commented feel better or smarter. People buy and pay for what they want. It’s not your place to judge. That’s what people work for. Some people actually like to pay for things that make them happy after they have worked hard to obtain them.
As for the person who said they laugh at people in apartments who drive luxury cars………not everyone wants to own a home. Home ownership is a lot of work. My aunt is single and makes over 100k a year. She owned a home when she was younger. She has great credit, is debt free, but she chooses to rent her home. She likes to drive decent cars as well. That is her right.
To the contrary, Mermaid. I am very proud of my 1997 Honda Civic! Stop on by and I’ll even give you a ride in it sometime. Don’t worry. I keep it very clean.
If you want to drive a $60,000 car and can comfortably afford the payments, bully for you.
This post is clearly directed at people who purchase fancy cars – even though they can’t reasonably afford to – because they are under the mistaken impression that they are impressing people. The truth is, there is nothing impressive about driving a fancy car if you are struggling to make ends meet.
Mr. America,
I don’t think anyone is finding fault with someone that has the resources to purchase whatever they please. I think that the point being made is that there are so many people that are not financially savy making poor consumer choices. I too could afford to purchase more expensive cars. I choose to put my money into non-depreciating assets. To each his own. Generally speaking, most people are clueless about how money works.
Mermaids614, I completely understand your point. However, at the same time, there seem to be far too many people nowadays who don’t have much money yet buy mid range luxury like the E-Class and 5-Series.
Simply put, because of this, you now have to spend even more if you want to stand out. It makes having an amazing car even more expensive for those of us who *can* afford it. I’m becoming more and more unsatisfied with my sub-100k luxury car because all this overspending allows these people to get cars that are only ten or fifteen thousand dollars less than mine.
I figure you’ll soon need a 100k+ car in order to stand out. If people bought what they could afford, this wouldn’t be the case.
Great point, Jon.
I drive a 2001 Dodge Caravan and it so rocks my socks! It can get me from Memphis, TN to Chicago, IL on ONE tank of gas! Seriously! We went last year and got a little worried on the way and stopped at Edinburgh to gas up at half a tank. But on the way home, we filled up and made it to our driveway just as the gas light came on! How sweet is that?!
Oh and at over 133K miles, I see many more road trips ahead!
While I understand the fact that not everyone cares about what they drive and I agree that a car doesn’t always accurately represent what a person is worth, don’t look at me funny for driving a nice car. I was the kid that grew up poor and had the Ferrari posters on my bedroom wall. We had old hand-me-down cars. I always dreamed about owning cool cars. Now that I’m old enough and have a decent job, I spend more than is necessary on cars. I’m not trying to impress you. I don’t care what you think about what I drive. I buy and drive nice cars because I want to. It’s something I’m passionate about. Something that I have fun with. I buy cars that are a few years old, that have lost half there value but are still very fun to drive. I drive them for a year or so and then get a new one. I can sell them for a loss of a few thousand, which is basically just a car payment. It works for me…
So to all the financially smart people posting here that have-paid off 2002 Subaru’s, we’re not all trying to impress you and remember, you can’t take it with you!
I totally agree. I struggle with the balance between only what I need (minimum $$$) and what I would like/enjoy more (extra $$$). How much is the extra fun worth to me?
While some people will unfortunately take it to the extreme and negatively judge people because they have nice cars, I think the important criticism here is about the people who drive cars that they can’t safely afford. If you have sufficient funds, you’re certainly welcome to drive whatever you wish. But if you can’t afford it, you’re a fool if you overextend yourself just to impress people.
I was in that vehicle rat race, but for different reasons. I used to drive a F250 Super Duty Crew Cab diesel, but unless you saw it pulling the trailer we had for our store you would have thought it was overkill (then again, we live in Austin TX, so big trucks are normal around here). Our first mini-van was high-end fully loaded model I bought from a credit-union repossession auction. Paid $20k for a $36k 1-1/2yr old vehicle.
Got rid of my last truck (Dodge Ram, terrible gas mileage) in 2008 just as the lease was up and gas prices were killing us, and my neighbor had his daughter’s low-mileage car for sale,a little Hyundai Accent. Took a 3 yr note from the credit union and have 12 months to go. Simple cheap car to do maintenance on, timing belt is next and I do my own maintenance.
I do a lot of other stuff to reduce my expenses so I probably save a lot that way. Schedule all my errands at once in the most efficient route;try to time my gas usage to run by the cheapest gas station around just when I need to fill up, etc.
I also use synthetic oil for better engine management temperatures, lubrication, and cheaper cost in the long run. I used to average 15k miles/yr, but with planning and lower-income, I now do about 10k, including driving to work. I’ll be keeping that car for a long time as a commuter. The big problem we have in Austin is you’re only allowed to have 1 vehicle per driver in your driveway. Even older non-registered vehicles are not allowed and since everyone uses their garages as storage nowadays…..
I’ve still got the old ‘67 Impala with a 4-brl Holley and 283 small block w/Powerglide tranny, simple to work on. And the ‘91 Ford Crown Vic Police Interceptor (bought at auction), all mechanical
, so…..simple to work on and maintain, and ALL PAID OFF.
Bottom line, doing your own maintenance work will save you a ton of money and it’s not that expensive.
It’s a pretty reliable indicator that anything sold as “Luxury” can be translated to “Waste of Money”.
Just found your post–interesting stuff! I must confess I did buy a Lexus back in 2001…but I bought it used (2 years old) and am still driving it. It’s gonna be 12 years old soon and we just passed 120K miles. LOVE the car. Paid it off in three years and never looked back. I have no interest in anything new, so it was a pretty good investment for me. It didn’t cost me any more than a new Avalon at the time, I had the bucks, and it’s a great car. Plan on keeping it to 200K!
Good for you! I think that is the best way to buy a car, Southside. Especially when you consider most cars lose almost half their value as soon as you drive them off the lot.
When I first started working, the first car I bought was a very very old Datsun. It got me where I wanted to go, even though it was probably the most dangerous car I will ever drive,but I was happy. Then I was transferred to Germany where my second car was a very old Ford. Again,I drove all over Europe in that thing, until it died. All my colleagues told me to get a BMW,or a Porsche, since it was the level they were driving.I seriously thought about it, but in the end, wound up buying a brand new Datsun 350(this was 1982, the year before they started calling all their cars Nissan). I was single with no debt except for the car note. I got married in 1984,still had my Datsun. My son was born in 1988,still had it; my daughter in 1990. The car had been in Germany, California, Indiana, Illinois, and Texas. We were moving to UPPER STATE NEW YORK in December 1991, the car was still going strong, but with two babies, I just did not feel as if we should be taking any chances, so we finally bought a new mini-van. Had the van until it died in my kids’ high school parking lot in 2005. No pricey car then, none now. We replaced it with another mini-van.We’re in the market for a new car since my husband’s car, purchased in 1990,just died last month , and it won’t be a luxury car although we could afford one. I’m at a point where I absolutely feel no need to show wealth by driving an expensive auto.
Good for you! And best of all, just think about all the money you saved over the years, Brenda, by not having a monthly car payment or two every year! Thanks for sharing!
But Lenzo..obviously you’ve never driven a high end auto like a Bentley or similar vehicle. If so, you probably would not question the difference between them and some mid-range vehicles like BMW’s and the like.
I must say there is clearly a difference.
Obviously.
Len, I read about a rapper that just bought a new Veyron last week. It cost him $2 Million, plus $180K per year in maintenance. I’ll bet it’s fun to drive a 1,000 HP car. Of course, I rarely need to go 260 MPH.
“I rarely need to go 260 MPH.” Me too, Bret. Only when I make the trip from from LA to Vegas.
Mr fake America. Why dont you preach instead to the millions of fake patriots driving huge suvs and pickups wasting precious gasoline. Its these fake patriots who are keeping Mr Happy Arab, happy.
Many posters have mentioned they drove blah blah until it “died”. The vehicle “dies” only in an accident with damage impossible/uneconomical to repair. I’ll wager a Mercury dime nearly all of those that “died” did so from decreasing levels of maintenance,brought on by an unwillingness to pay for sometimes expensive repairs.If your 10 year old $2500 car needs repainted and you won’t spend 400 for an econo paint job, you don’t get to say the car “died” 5 years later when you can toss your Value Menu wrappers out the rust holes. Buy yourself a quality car, maintain it and keep it forever. I’m more impressed with your 25 year old/600,000 mile immaculate Rabbit diesel than your neighbors brand-new Jag.
Well said, but come on, Dave; after such a well-stated comment, I’m dying to know what you drive. Don’t leave me hanging!
@CH: I really don’t find it surprising that most of your millionaire clients drive the mid-level premiums like Beemers, as opposed to Bentley’s. If I was a millionaire, I’d “settle” for the BMW (or similar lower-priced luxury marque) too. As a millionaire, I would ask myself the same question I ask when I choose between a Civic and a BMW as a “thousandaire:” for the extra $50,000 or $100,000+ I’d pay for a Rolls or Maybach, what am I really getting? Whatever it is, from a utility perspective, I can’t believe it would be worth the price premium.
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