The True Cost of Buying New Luxury Cars

[Anonymous No.14874916]

How does one reconcile the fact that buying new cars is financially disastrous, not just now but in the long term as well?

Say Mehmet goes out and buys a new base model 3 series for, say for the sake of round numbers, $40k. Well that $40k if instead invested over the next 40 years with an average annual return of 8% is closer to 900k at the end. That's 900k of future assets for a depreciating turkmobile now.

Sure, financing and leasing exists but it's the same idea more or less if you pay the $40k over a few years too. I love cars just as much as anyone else here but as someone with a basic grasp of personal finance I just can't justify buying a new luxury car unless I become uber fuck you rich. I think I'll stick to my used jap shitboxes

What is /biz/'s thoughts? I'm cross-posting this from /o/ also to gauge different reactions, if any

[Anonymous No.14874926]

>>14874916
Potential growth of 40k in a boomer index fund, assuming 8% returns. No additional money added, just the principal 40k on day 1.

[Anonymous No.14875052]

truly wealthy people notoriously rarely buy brand new cars.

[Anonymous No.14875053]

>>14874926
now factor in inflation, real returns (not meme 8% numbers from stagflation in the 70s), capital gains taxes, and the risk of dying before cashing out, and you're better off with the car if we are at the top of a bubble or something

why do boomers always lie about stock market returns? 8% is insane, no one gets that over a 40 year average except for times of stagflation

[Anonymous No.14875246]

>>14875053
STATISTICALLY you are more likely to live than die young, I never get this argument. Also if you're dead then you won't be able to care that you never spent your money.

[Anonymous No.14875251]

Waste of money
There are cheap comfortable cars.
There are cheap safe cars.
There are arguably cheap fun cars.

I bought a new car with lots of safety features because I was driving a shitbox without side airbags and a long stopping distance.
Rich people who drive janky old cars are fucking dumb and usually trying to show off how they are not “new money”.
I know one guy who drives old cars with his wife, and he buys the cheapest fucking tires! This dude makes tens of millions a year and can’t make himself buy fucking michelins. His wife’s car has a fucked up steering column that randomly shakes. Drove around with one headline out for 6 months.

Buy a safe car, maintain it. Then go focus on making money

[Anonymous No.14875293]

>>14874916
>8% returns every year

[Anonymous No.14875329]

>>14874916
If you buy the right car its an investment

[Anonymous No.14875344]

>>14874916
> 40 years
Lmao yeah just die without spending any money

[Anonymous No.14875350]

only mehmets and nouveaux-riches buy new cars

[Anonymous No.14875358]

>>14875344
NPC response
refer to
>>14875246

[Anonymous No.14875373]

>>14874916
you don't buy a luxury care if you don't 10x that amount invested somewhere else

[Anonymous No.14875377]

>>14874916
You get rich by not wasting money.

You buy new cars when you can afford to waste money.

[Anonymous No.14875378]

It mek de pus wet

[Anonymous No.14875379]

>8% for 40 years

anon....
I'm at 150K thanks to bitcoin and bought a 8K car, which is about the limit I want to spend on a car without owning a house first. Just buy second-hand

[Anonymous No.14875384]

>>14874916
Because here in the states, you need to drive. And if you have the disposable income to buy a nice new car, then why not? Not everything you buy needs returns

[Anonymous No.14875396]

>>14875379
are you a portuguese or a mexican?

[Anonymous No.14875397]

>>14875358
Yes that might apply to an investment of 5/10 years but 40 from working age is literally old age. You can buy all the werther's originals you could ever want!

[Anonymous No.14875438]

>>14875358
if you have a 10% chance of dying in the next 40 years then you have to take 10% off your expected returns for the "worth it" calculation.

the NPC is the one who blindly follows a boomer 7% meme (you put 8% to +1 the boomer meme and make it even more ridiculous for laughs)

[Anonymous No.14875449]

>>14875397
Would you rather be 70 and rich or 70 and greeting at Walmart?

Have to hedge bets for the future as best we can, and no one NEEDS a 40k car right when they get their first "big boy" job out of school.

[Anonymous No.14875474]

>>14875251
>There are cheap comfortable cars.
>There are cheap safe cars.
>There are arguably cheap fun cars.

Yes there are but people buy luxury cars for status mostly. And studies show people actually that reason feel good driving them, as people compare them to other drivers on the road. Average car price net millionaires drive in usa and europe is 30k ´

[Anonymous No.14875476]

>>14875449
There's a middle ground. Permanently living for tomorrow is a recipe for depression.

[Anonymous No.14875546]

Getting a 7 year loan to drive a meme luxury car outside your budget is retarded.
Driving a shitbox everyday with $500k in your bank account is also retarded.

[Anonymous No.14875554]

>>14875449
my car is $12k... but investing in the stock market today would be retarded since its about to pop and all the economic indicators are negative.

also, the most Jewish thing you can do is reply to this with some notion of a long term average. everyone here knows that number comes from presuming you bought the all time low and sell at the all time high, which never happens, and doesn't account for taxes, fees, or inflation.

[Anonymous No.14875585]

>>14875554
>investing in the stock market today would be retarded since its about to pop and all the economic indicators are negative.

So would buying a new S class be the wisest way to allocate $100k right now? Or are you going to shill me ChainLink instead?

[Anonymous No.14875640]

>>14875396
Nope, I'm so white I reflect sunlight. Why? I don't buy cars that I can't pay in one take, and have loads and loads of fun with it. It's not even expensive. What's your drive?


According to biz, if you have 200K, how much should your car be worth? If you buy a 15K car, drive it for 2 years and sell it off for 8K, how is that a """horrible" money waster? Do you know how much enjoyment a nice car gives when you drive more than an hour a day?

[Anonymous No.14875641]

>Co worker just bought a $50,000 SUV @ 6% interest

I just sighed to myself.

Debt enslavement is real

[Anonymous No.14875664]

My dad sells cars and I drove some luxury cars myself and I gotta tell you that cars are a boomer tier way to waste money.
As meme Robert Kiyosaki says: rich people should buy things that make money not useless things that worth half in a couple of years.
If you like cars you can buy a nice one, sure, but use money from your cash flow.

[Anonymous No.14875720]

>>14875664
How do you buy a vehicle that makes you money? Become an uber driver?

[Anonymous No.14875726]

>>14875640
theres a huge difference between a "nice" car and some plastic beamer where the symbols on the buttons get wiped out from you pressing them in a year.

a nice car is supposed to be made by REAL PARTS, REAL MATERIALS, not fake wooden trim.
its not supposed to bend in half when you hit something.

if were talking some old jag, old school bentley, when they used to make cars out of metal and wood, then yeah.

but your new plastic beamer that has 1000 sensors and plastic hoses.....you think the "trim is nice' but everything is made from fake leather and plastic.

[Anonymous No.14875768]

I have a decent networth. I could finance a new car but that's for retards or rich people anyway. I drive a 2005 Subaru legacy. Manual gearbox, turbo. What else do I need? Why do I want to display my wealth? People are stupid

[Anonymous No.14875769]

>>14875726
t. Howard Roark

[Anonymous No.14875815]

>>14875769
oh, i can accept innovation, but not when SHTF and you cant change the sensor yourself and the car wont run anymore.
new cars follow these "rules" where they are all fat, heavy and with zero visibility for example.

you can still find some nice new cars that arent too hard or too plasticy...but hard.

>>14875768
same. I have a 98 a3 that I painted lambo purple, fixed most things and tuned it to 138hp.
frankly i dont need anything more.

I could use a heavy rugged SUV/small truck so i can kill someone on the highway in an event of road rage...but other than that i really cant see my self "flipping cars" when i need a house in the woods.

what would i buy? a nice house in the woods or "change the audi for a sligthly newer plastic beamer"

[Anonymous No.14875831]

>>14875769
i would buy one of those 2005 jaguars that were with ford parts. i hear they are quite powerful, easier and cheaper to get fixed and still pretty high end comfy. definitely comfier interior than any boring mercedes.

[Anonymous No.14875854]

>>14875815
Howard Roark is mr. innovation. Its just the decrying hidden components and lavish detail in favour of minimalism and honesty.

[Anonymous No.14875910]

>>14875854
funny thing you can only get the best car/tools/electronics from "new" companies who are trying to make a "name for themselves".

so you would get a better S class from KIA until they shit it up in a few years.

[Anonymous No.14875936]

There's also a psychological dimension to owning nice things. They symbolize your achievements and how far you've come.

I would never fucking buy something that I can't truly afford (like spending over 10% of my networth on a car). Everytime I'd step in it, I'd feel guilt because I knew I haven't truly earned it yet.

However, buying something I know I have earned is the best feeling. It's the motivation that keeps you working for your goals.

[Anonymous No.14875957]

Thinking about getting a Tacoma currently. Hear they last forever. Issues with rust, tho?

[Anonymous No.14875984]

>>14875720
In this case it's not about making your vehicle profitable but simply by minimizing the costs overall; buying used over new, buying reliable brands and models, choosing cars with reasonable maintenance costs and/or better fuel efficiency.

[Anonymous No.14875993]

>>14875936
yes, we do need nice new things for a dopamine hit, nothing wrong with that.
However i find that many times we make the wrong choice and buy something thats shitty and doesnt bring us lasting joy.
-etc buying some plastic shit car thats "german".

i caved in and bought a ultrawide monitor to work from home and im still fucking enjoying it. it really was a great move. only like 300$ too.

[Anonymous No.14876015]

>>14875984
frankly, the case is that you can always shill 10k for some beamer/newer audi/merc and its going to be slightly more enjoyable than your car but it will decimate your money.

and lets not forget one hit totaling your car and youre fucked.

and for all that money you are not really buying some cool car like a porsche or maserati. Everyone is taking a loan to buy range rovers they cant afford and everyone is driving these expensive cars...so...would you give all your money to fit in?

[Anonymous No.14876329]

>>14875720
I didn't say that, I said buy things that make you make money: e.g. mortage for an apartment that you'll rent, not mortage for your house.
You should read 'rich dad, poor dad' anon.

[Anonymous No.14876404]

>>14874916
>8% return annualized
Made up
>living in poverty for no reason
Have fun never getting a wife. A good car can attract a mate that either makes money or will inherit money. You’re destined to be poor

[Anonymous No.14876444]

>>14875053
>8% is insane
i've received 10% gains since 2005, so...

[Anonymous No.14876493]

>>14875246
Zoom out
Statistically we're more likely to have a massive crisis and experience war in our lifetimes than not
You're projecting a trend that only applied in America, for only a century, and while the country was mostly white; to a present and future where demographics are diverse and the dominance of the US cannot be fueled by other countries to the same extent

[Anonymous No.14876512]

>>14876444
You’re a mental midget

[Anonymous No.14876525]

>>14876512
i'm a mental midget with over a half million dollar net worth and 435K in the market. stay poor and mad

[Anonymous No.14876546]

>>14876525
Stop flexing retard. That is not enough to retire and you will lose 40% or more of your “money in the market.” My net worth is literally 5x higher than yours yet you flex on here like a big shot

[Anonymous No.14876572]

>>14874916
if you're so shit-scared of wasting money why bother getting rich?

>>14875052
that's only for fag wasps who are too repressed to enjoy themselves

[Anonymous No.14876592]

Can you get a nice car for €2.5k-3k? It feels like my options are some 2001 BMW, 2004/2005 Subaru Legacy or some audi. But I dont know the maintenance costs. I got 20.7k LINK, but I want to wait until September at least. I don't just want to drive a shitbox as a 19yo while others are driving their parents new cars or buying some used BMWs. I know spending money on a car is shitty, but I have a dilemma whether I should just save that money in LINK or get a nice car(max 5% of my stack) and enjoy my youth a bit.

[Anonymous No.14876610]

This is why I just get around by bike/walking. I'm about to get an escooter or convert my bike into an ebike.

[Anonymous No.14876615]

But if it's not a stretch/burden to buy it and maintain it, couldn't a reasonable person conclude that they'd rather have years of enjoying a nice car now than $900k in 40 years?

I agree that dumb suburbanites who go bill-to-bill on luxury goods like cars they don't even really appreciate anyway are retarded, but that doesn't really mean it makes sense to call the machine a "financial disaster" in any objective sense.

[Anonymous No.14876627]

>>14875640
Absolutely based 320si. Don't listen to the poorfags

[Anonymous No.14876629]

>>14875474
any sane rich person wants to keep under the radar, after all showing wealth in this world is a double edged sword.

[Anonymous No.14876682]

>>14874916
>DUDE JUST BE A MILLIONAIRE IN 40 YEARS

[Anonymous No.14876769]

>>14876682
>LMAO JUST STOP BUYING THAT DARN COFFEE, THAT SIX-FIGURE STUDENT DEBT WILL PAY FOR ITSELF!!!

[Anonymous No.14877002]

>>14876629
Net millionaires (that mortgage on mcmansion is not net wealth) on average live on wealthier areas where there is no need to 'go under the radar'. Like i said most wealthier people drive rather nice, but necessarily not flashy cars they can buy with cash, and drives nicely and safely. Maybe few years used mercedes or honda or whatever.

https://www.cbsnews.com/pictures/10-most-popular-vehicles-in-americas-richest-neighborhoods/

[Anonymous No.14877054]

>>14876546
post proof LARP

[Anonymous No.14877294]

>>14874916
Base model 3 series is hardly a luxury car. And buying a new car is fucking retarded unless you really have money to blow you don't even care.

That being said, if you want to drive a nice car, you're better off looking for used cars that have bottomed in price and have even started appreciating (e.g. older M3s)

[Anonymous No.14877397]

>buying someone else's used car that's been touched all over with grubby greasy fingers and farted in hundreds of times
no thanks lol

[Anonymous No.14877607]

>>14876629
you are deluded i used to think the same way till i moved to a town where every 4th tax payer is a millionaire. I only see porsches, BMWs, Mercedes and Teslas. The kids get to drive Fiat 500 or some minis you are just deluded.

[Anonymous No.14877666]

>>14875476
>Permanently living for tomorrow is a recipe for fulfillment.
ftfy

[Anonymous No.14877722]

>>14875815
>but not when SHTF and you cant change the sensor yourself and the car wont run anymore
Retard. If you're that autistic buy a $1k shitwagon or dune buggy as zombie apocalypse insurance, it will save you tens of thousands.

[Anonymous No.14877737]

>>14875936
If you need nice shit to validate you, you haven't made it.

[Anonymous No.14877777]

Imagine not leasing and investing the difference.

[Anonymous No.14877785]

>>14877777
checked and leveragepilled

[Dobber !!qEeBALi+hGB No.14877813]

>>14877777
Kek speaks, this is the only way to buy a car properly. Take notes, Boomers.

[Anonymous No.14877841]

>>14877777
based quints but the mcmansion subdivision is cringe

[Anonymous No.14877846]

>>14877777
Based checked and redpilled leasebro

[Anonymous No.14877857]

>>14877777
Is leasing really the way go to though? You’re paying monthly for like no equity.
Can someone explain why this is better to a retard? Thanks

[Anonymous No.14877902]

>>14877857
I have been thinking about doing this.
Cars depreciate a lot so this has to be taken into account, just driving off the lot is expensive as hell. So instead of 30k on a car that loses over 5k before you even leave you could spent like 10k and lease for year while 20k is in thr market working for you. So now instead of having a 10k car in 5 years you have no car and almost 40 extra in investments.

[Anonymous No.14877953]

>>14877902
Leasing is literally paying the depreciation on a vehicle though.

[Anonymous No.14877962]

>>14874916
Simple.

You can.

Sure after 40 years it may be 900k and I will be over 70 by that time on god know what's meds to keep me alive.

You can ask the same question as why do people go to amusement parks... why some like to eat expensive exotic dishes, why some like to travel.

Cause people enjoy it and find that's worth the money for them.
For some people this is having a luxary car. They like driving, they like driving fast, they like the engine rowr, they like the adrenalin and a run down Volkswagen is not good enough as 1$ dry steak is not good enough for the BBQ lover.

[Anonymous No.14878040]

>>14874916
Allow 5% of net-worth to be allocated on vehicles.

[Anonymous No.14878537]

>40 fucking years

[Anonymous No.14878583]

>>14877777
what happens when a roastie discovers u didnt buy the car and ur just leasing it? :)

[Anonymous No.14878645]

>>14877953
But you end up with no car in the end? Like you never own anything?
I’ve been considering leasing an A4 but I just can’t bring myself to justify a monthly car payment when I currently drive for free. Help me anons. My wheels are about to fall off my old ass SUV. What is the most pragmatic option here?

[Anonymous No.14878648]

>>14876525
kek, I made that much on chainlink (not selling btw)

get fucked, boomer

[Anonymous No.14878968]

If you can’t buy the car in cash you’re dumb. You can get a used Lexus for 150k miles for 5 grand. It’s a Toyota with luxury features. They go 250k+ with regular maintenance easily.

Literally 5 mins on CL and this is the whip. Get your dad to help you check for issues and boom, you just saved $35k+ and got a certified pussy wagon

[Anonymous No.14879052]

>>14875293
You can get an IRR of >15-20% being a landlord. 10% with minimal leverage.

[Anonymous No.14879072]

>>14878968
Yeah, you can even get an indestructable 1998-2000 LS400 for <$5K and drive it to 400K+ miles. Best luxury car Toyota ever made. Someone has one w/ 1M+ miles.

[Anonymous No.14879087]

>>14878645
>But you end up with no car in the end? Like you never own anything?

That's correct. It's just like renting, plus you have to pay for maintenance while you own it. And you're limited by miles.

>What is the most pragmatic option here?

Separate your wants and needs. Do you simply need point A to B, reliable transportation? Used Toyota/Honda.

[Anonymous No.14879517]

>>14879072
You can score those with just over 200k miles for like >2 grand. Incredible deal for what they are.

I’m bout to buy this thing rn someone please call and offer him 5k and settle 5.5 before I do thanks

[Anonymous No.14879652]

New cars wont braeak down on people for the most part, better for old people and whatnot. I have a 20 year old civic yes its economical but only a young person can deal with the bullshit that comes along with older cars. Eg. Its in the shop right now getting an accelerator cable replaced, it caused me to keep going randomly & and a boomer could not have reacted as quick.

[Anonymous No.14879916]

>>14875546
Watch out, we've got an enlightened centrist over here.

[Anonymous No.14879941]

>>14874916
>Just live like a pauper, bro

[Anonymous No.14879963]

>>14878583
She might realize you're doing the same to her, thats what

[Anonymous No.14880080]

>>14877857
>>14877902
You buy a used Lexus or Acura for $6k at 180k miles after it just got a new timing belt, get it to 250k over 4 years of you drive a lot and sell it for $3k, maybe with new belts and all for just under $4k.

How’s that for depreciation of value?

If any of you lease a fucking German piece of shit give up on making “smart buys” with cars.

[Anonymous No.14880198]

>>14875329
This anon knows

Bought a 2016 Honda Fit brand new in early 2017 for 16,600.

My business bought it so I deduct the mileage. The car costs less to run than the IRS deduction so I am making money the more I drive it. (Passive income)

It currently has 40k miles on it and I could sell it tomorrow for 15,000...so really no depreciation.

I put nothing down and financed it at 0.9% for 5 years so there is little opportunity cost from investment.

Fucked 3 girls in it so far they laugh and love how weird it is that I’m driving a nice new shitbox. It helps that I’m not insecure.

No you can’t do that with mass produced luxury shit, but many cars can be an asset if purchased right.

[Anonymous No.14880212]

>>14874916
If you think a difference of 15-20k over the life of a car is “financially disastrous” then you shouldn’t consider buying one

[Anonymous No.14880283]

>>14876525
500k net worth
87% in the market

Oof

[Anonymous No.14880296]

>>14880283
he's chadpilled

[Anonymous No.14880338]

>>14878583
Rich people don’t own depreciating assets they use them while they’re fun then ditch them

[Anonymous No.14880417]

>>14878583
If she cares, you’re clinically retarded to form a serious relationship with her

[Anonymous No.14880474]

>>14880338
rich people buy appreciating assets until they are rich, then it doesn't matter what they do once they get into the perma rich class

[Anonymous No.14880601]

How is 30-40k even a expensive car?

Most important thing is to keep your stuff for a long time.

You buy a nice car for 30k keep it for 15 years if you can.

You buy a house. Pay it off fast and live in it your whole life.

People make mistakes when they feel the need to just get a new car after 3-4 years just because.

[Anonymous No.14880703]

>>14874916

I have a 1995 Japanese Subaru STi which I imported in 2011 and have since spent $0 on, excluding oil changes and some performance upgrades I did because I like tinkering.

I was tempted to purchase a Cayman GT4 back in 2017 back when my shitcoins were worth $300,000 US, which would have probably been the prudent choice, because I held fucking REQ which lost 99.9999% of its value since ATH, lmao.

The irony. Absolutely REQt.

[Anonymous No.14880722]

Leave my 20 year old e46 alone.
Girls like it when I drop the roof.

[Anonymous No.14880786]

>>14875379
> you overpaid. I could get that car for $3k at auction. $4k with less than 70k miles.
T. I’ve bought and sold > 20 3-series.

[Anonymous No.14880860]

>>14880786

What's a good, second-hand and modern-ish 3-series.

I rented a 2018 BMW 3er on my trip to Germany and really liked it.

[Anonymous No.14880998]

Cars are literally nigger technology. So is a watch of that amount, but watches display status more mighty than cars/apple products/etc.

[Anonymous No.14881024]

>>14880786
3-4k gets you a shitload of wrench time.
If you are planning to keep the car for a couple of years, then I would take a properly maintained car for 8k every time over the 3-4k basket case.

[Anonymous No.14881062]

Cars are just a function that get you from a to b. Stop being a small brain reptile and drooling over car look nice me give big money to vroom vroom.

[Anonymous No.14881089]

>>14880722
That's E36 you fucking burger.

[Anonymous No.14881192]

My fleet of cars will be only Toyotas.
Toyota Supra
Toyota Tacoma
Toyota Camry
Toyota Prius

[Anonymous No.14881233]

>>14881192
spending 160k on garbage rather than buying something actually nice

[Anonymous No.14881510]

>>14874916

Well, lets think about it.

You start out with a need for transportation.

If you buy a new car and pay say $40k you'll get an asset you can only sell for maybe $30k if you're lucky. So the moment you buy a new car you immediately lose $10k or more net worth. Then the value slowly depreciates, so you lose money over time. But you have now gained transportation.

If you finance you can tack on the interest as loss, but the time value of the money you didn't spend as a gain, usually the interest is much more unless you have a very low interest rate and good alternative investments.

If you lease (rent) its just a pure, 100% loss since you get absolutely nothing in return. But, again you have transportation which you may be using to produce money.

The best option financially is usually buying with cash, unless you are a really good investor and think you can beat the auto interest loan. Leasing is the worse long term but requires the least amount of money up front since you never take an ownership in the asset. The only way leasing could work out is if there is a deflationary recession or something.

[Anonymous No.14881713]

>>14881192
Supras are legit and Tacoma/Tundra are the only non American trucks worth a look. Don’t be stupid.

[Anonymous No.14881758]

>>14880080
>German
>Piece of shit

LOL

[Anonymous No.14881848]

>>14881758
Expensive maintenance, or do it yourself and enjoy the unnecessary maintenance BS compared to Asian and American cars.

If you bought a German car in the US you are telling me you don’t know shit about cars.

Enjoy the clanking motor at 80k on your piece of shit Audi