Over the years I’ve made my share of financial mistakes. There were minor splurges here and there, but I see my biggest financial mistake every time I leave my apartment. Sitting outside my rundown apartment is my Ford Mustang, the most expensive car in the parking lot.
While I do take pride in driving it and love getting the back-end to slide around corners, in the back of my mind I know I shouldn’t have spent so much on a car. What was I thinking?!
Deciding To Splurge On My Car
When I first bought my car about 6 years ago, my affiliate websites were going through their first peak. I was getting my biggest commission checks and I was on top of the world. After years of working at en entry level position, I was the definition of ‘new money’. I wanted to blow my money and show off my success.
So after wrecking my old Acura, I thought I deserved an upgrade. And why not get the car I’ve been wanting since it came out? I figured I was making enough money to have it paid off within 2 or 3 years.
My problem was that I was too set on a specific car and was paying for a rental until I bought something. The car salesman’s eyes must light up when they see someone pull up in a rental car. They know someone in that situation may be in a rush to make a purchase.
Because I had worked for several years marketing an online tire & wheel retailer, I felt a bit of pressure to get a car that would impress my coworkers. My old roommate had also just purchased a big new truck. So I ended up giving into peer pressure and tried keeping up with the Joneses.
Why Buying An Expensive Car Was A Mistake
Later that year I was hit with a big income tax bill after doing so well with my affiliate websites. Somehow I had not been anticipating this and had blown most of my money on things like nice restaurants and renting a decent apartment across from the beach. This was my first financial wake up call. I didn’t get the hint though.
I paid off that big tax bill, but lost motivation with my websites. Things started to decline as I spent less time doing work on them. By the time I renewed my efforts, it was too late to stop the slide. Before I knew it, it was time to get a job. Yes, just like my current situation.
Even if I had been able to pay off my car within a few years, it still would’ve been a horrible financial decision. As soon as I drove my Mustang off the lot, it lost a large percentage of its resale value. Obviously it’s not the most fuel efficient vehicle either and insurance is pricey. Since I’ve been unwilling to take the hit and sell it, I’m essentially tied to it.
Instead of wasting money on buying an expensive car, I would’ve been much better off settling for a used Honda or some other cheap car. If I had been smart enough to do that, I would have plenty of money in savings and would probably have committed to a mortgage by now. Basically this unnecessary purchase set me back at least a few years with my financial goals.
So what should I do now? I know some experts would say to sell my car even if I only get back half of what I originally paid. That would mean fully accepting my mistake, but it would lower my monthly vehicle expenses considerably.
Have any of you wasted money on a vehicle that you really couldn’t afford? Or have you been responsible and only bought lower priced cars? How do you avoid peer pressure when buying something like a car?
I bought a car that I probably shouldn’t have. It was $23,000 and I was 18 when I bought it. UGH
Ouch. Yeah at 18 years old that is a bit much. I hope that didn’t hold you back too much financially.
I did something very similar to that and really ended up regretting it.
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It seems that most of us have some kind of financial regret and a car is the common culprit. Luckily it’s an easy enough regret to move on from. At least it’s not a big house that ends up getting foreclosed.
Right after I graduated from university my boyfriend and I wrecked his old neon. I broke my wrist and was very beaten up over the whole thing since I was driving it at the time.
We perused the new car market but we were constrained by budget, we simply didn’t have the money to buy new. Eventually we opted to go for a used car, and ended up with a used VW golf. It set us back about 11k, which I’m still paying off. I’m still torn between whether I’m happy I didn’t buy new or whether I’m sad that I didn’t shop around for a better, cheaper car.
I think your mind will be made up when you have that car paid off. You’ll realize that by not buying new you were able to pay it off much quicker. Since cars drop so much in value when they are used, it does make financial sense to buy used, especially if it is a reliable model. It could be worse. You could’ve bought a used car that had all kinds of mechanical problems that required a lot of money to keep it running.
I love car stories (mostly because I’m not a car guy…). I drove a 1997 Geo Metro for 12 years. For the first six years people would make fun of me and I’d simply say “I’m not much of a car guy and am saving my money for something.” (I wouldn’t tell them what it was.) Once I bought what I was saving up for (a three-family brownstone in Boston) I’d just say something like, “I drive this car because it’s easy to park in front of the three-family investment property I own with the money I saved by not buying a fancy car like yours…” People quickly stopped dissing my Geo…
But I’m also a pretty “proud cheap guy” so I’d still be driving it… if my wife would let me, haha!
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Good on you for being so dedicated with your Geo Metro. Some people would think of that as being cheap, but it’s actually very wise. If that sacrifice allowed you to prosper in other areas, it must have been quite satisfying to park next to your coworkers’ luxury cars.
I’ve been fortunate not to fall into the peer pressure. Frankly, I take pride in being “different” and challenging the status quo. The reality is that normal in this country is being broke, and if you do as the “normal” people do then you’ll end up broke as well. (“you” in general terms)
I’ve never had a car payment and I don’t plan on it. My wife and I are currently searching for a vehicle and it’s really annoying the types of cars that can fit into our budget (not a lot of car). While I WANT a great car, I know I have to make the right decision at the end of the day. Honda/Toyota/Kia here I come.
Dangit!
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I’m going to have to work on adopting that mindset. As long as you are happy with what you own, what does it matter what others think? There’s nothing wrong with a reliable used Honda/Toyota. I’d still need some convincing to get a Kia though
I’ve heard some great things about Kia’s! My goal is to have a 2011 Optima by next year.
About the other people thing…if people want to judge me that’s their problem. I know I’m doing what needs to be done for my family and my future. Everybody is different though; I have goals of early retirement and freeing up my time to travel and do charitable work one day. So I have to make the necessary sacrifices today to make that happen. If people want to assume something or perceive me a certain way based on a material thing then that is their problem. Not mine.
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No I’m sure Kia’s are very good value for the price. I’ve just always been prejudiced against them for some reason. I guess that’s the part of me that feels the pressure to have a car as nice as what my friends drive.
Your sacrifices are sure to pay off. The money that you waste today is money that you won’t see in the future. So by making the right decisions now, you’ll be much happier in the long run.
We bought a Kia Optima 2004 for my wife a few years back and it has been the best car ever. *knock on wood* We have only had to do minimal maintenance to it like change brakes and oil. It was relatively cheap back then too. Now I think that they have made a name for themselves in the market, they are charging the premium prices. The car has a ton of features for the day and it rides like it is rock solid. I had a nissan altima 2005 that we got rid of because it just felt cheap. Up here in NY it snows a lot and they put salt down and you can hear the pinging in the wheel wells. The altima was terrible for that, the Kia you cant hear a thing. It has very little road noise inside too. The car was like 7500 and it has 20k miles on it in 2007, one of those old folks cars. We snagged it and have been in love ever since, we are up to 75k miles now.
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Glad to hear that you are enjoying the car. It is easier to focus on all the positives when you know you also got a great price.
Can I really fault you for buying a Mustang ?
No, you’re right. Buying a car is like buying a tool – it has a purpose and when it’s done, it’s done. Anything you spend beyond that is just silly. There are BMW’s and Mercedes in my parking lot at work, but I drive a 2005 Pontiac that has paint peeling off the side mirror. Why? Because with a 120 mile commute every day, what would be the point in owning anything more than what I need to get to work.
In your defense, I can easily see how if I was making some good cash with affiliate marketing that I’d want to buy something really nice too. I’m interested to hear more about this in the future.
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I’d probably be more inclined to want a nice car if I had such a long daily commute. I figure if I’m spending so much time in it each day, I might as well keep myself happy during that time. That’s probably just a way to rationalize overspending though. If you’re racking up that kind of mileage it would put a big dent in the resale value of your car.
Yup, I’ve made this mistake. I’m still paying off the new car I bought in 2008, but I am happy to say I plan to hold on to it for as long as it runs. I take care of the car and will probably always need transportation, even though I am a big fan of using public transportation as well. Thankfully my car will be paid off this year…it will be so nice to not have a car payment after having had one for nearly four years.
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Congrats on getting close to paying off your car. I still have a bit owing still that is sitting in a 0% credit card balance transfer. It will be quite a relief to finally pay that off. I’ll probably keep my car for quite a while too. After spending so much on it, I’ll want to get a lot of use out of it.
I love the mustang! It looks like their model from 1965.
You must have been making some really nice money with your affiliate sites. Again, sorry that changed for you.
Have any of you wasted money on a vehicle that you really couldn’t afford?
Yes! We couldn’t afford a brand new truck 5 years ago, but we bought it anyways. Then 3 years later the same truck was selling for 2/3′s of the price.
Or have you been responsible and only bought lower priced cars?
Yes again. In 2003 I really wanted a Ford Escape but I didn’t want to pay a car loan. So I bought I used Ford Focus and paid cash for it.
That’s why I avoid looking at prices after buying something. I know I am bound to find it for a lower price down the road.
Good idea to buy the Ford Focus in cash. Think of how much you saved by avoiding that car loan.
I’ve actually only bought one car, and it was a used toyota highlander (1 or 2 years used). It was more than I wanted to spend, but only had ~25k miles and I wanted a car that wouldn’t strand me in the mountains, and could get me there when it was snowing. So I could go completely cheap and used.
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A 1 or 2 year old vehicle is really one of the best value purchases. It should still be in good condition, but it’s already gone through it’s biggest depreciation period. Toyotas are usually very reliable too. It must be holding up well if it’s the only vehicle you’ve purchased.
I’ve had it since 2007 now. Prior to that I was actually driving an older car that I borrow from my parents, and my wife drives a Mazda that she got for a college graduation gift (now 12 years old). Neither of us drive much though, so they both have less than 60k miles.
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Well it sounds like you’re both getting plenty of value out of your vehicles. Keeping the mileage low will help down the road if you ever try to resell them.
A good, clean low-mileage used car is one of the best investments one can make. But finding one is a JOB. A high-paying job, I might add. Whatever car you have, take an interest in keeping the oil changed – a cheap investment that can pay off in tens of thousands of trouble-free miles. Great topic!
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In my case I thought I didn’t have to worry about fuel economy. I thought I’d be able to easily afford the extra gas expenses. So it wasn’t even a consideration when buying my car. Not buying the GT does cut down on the gas usage though.
This post comes at a good time for me. I am in the process of looking for a second car after Mrs Scot was in an accident and wrote-off the other car.
While I have been telling myself to get a reasonably priced used car, a part of me was tempted to sign up for a new one. This has confirmed my original choice – Thanks
I would hold on to it now if I were you. You know how you have treated it and what needs done. Chances are it will last you a very long time and will remain reliable. Also, given that you have paid for your error financially, you may as well have something to show for it!
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That was my thinking too. After nearly paying it off, it didn’t seem to make much sense to sell it and downgrade. If money becomes tighter I’d consider that as an option though. Good luck on your used car search.
I don’t want to encourage you, but that is a sweet ride baller!
That being said, I used to get new cars every 3-5 years and my last purchase was back in 1998. It was an Acura Integra and I will say I loved driving that car. Since then I have owned a 10 year old Volkswagen Jetta, a 5 year old Saturn (totaled) and after that a 15 year old Buick (*cough* will ya buy my Buick). Now I am carless and rely on public transport and my own two legs. I miss driving sometimes, but not so much that I would want a $300/mo payment.
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My old car was a `98 Integra. It was a pretty good car, but not as flashy as my Mustang for sure. I’d thought about going carless and relying on transit, but the job I might get is a long walk from the nearest bus. It would just add too much time to my commute.
Right out of college I almost bought a car I couldn’t afford. I wanted the Acura RSX Type S. I was fairly confident I could afford it. Before I did though, I called up my insurance company to ask how much it would cost to insure…..$2,800/yr! I was blown away! There was no way I was going to spend that much on insurance for a car. I passed and ended up with a used Honda Accord.
For me, being a car guy, it isn’t hard for me to not buy a car that I currently ‘love’ because there are so many of them and every year, more come out. My trick is if I really like it, to wait for 5 years and then buy it if it has been reliable.
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Ouch $2800 for insurance is quite steep. Luckily my insurance isn’t quite that high. I liked the RSX too and it was actually the replacement for the Integra once they stopped making them. A used Accord is usually a good purchase though. That’s a good strategy to wait several years before committing to a car. Often the first year or two has various problems that gradually get addressed.
I think the RSX takes the premium gas too….at 4 a gallon now…eek
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I’m surprised that the RSX requires the premium gas. I guess I’m glad I didn’t consider buying that instead of my Mustang then. I would’ve thought the old NSX would be the only Acura models needing higher octane gas.
Great topic,
I bought myself a brand new Ford Focus. Do I regret buying new? Of course.
However, I do feel I made a better decision than most with my first ‘brand new’ car as instead of getting the hottest car out there, I went with a car that gets great gas mileage and is relatively inexpensive. (Although I still feel the pull on the wallet for sure). But even so, spending roughly $20,000 on a car is something I will not do again.
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I would regret my decision a lot less if it had only been a $20,000 purchase. Unfortunately I thought my website progress would continue to grow at its initial pace. I figured the sky was the limit. If I was going to be making big money, I thought I needed a nice car to reflect that.
I think there are a ton of people who made that same “mistake”. Fortunately when I bought my first car my parents were there to keep me thinking straight. I ended up with a honda civic that drove well, had good gas millage, and was moderately “cool” back in the day. I don’t regret that decision in itself, but I do wish I had thought about my next plan in life, because about 2 years later I moved to NYC where I didn’t need a car and ended up selling it. Luckily the resale values on hondas are high, and my dad bought it from me.
My mom did help keep me grounded when I bought my first car, my Acura Integra. Since it was a few years old, it was a pretty good deal. But when it came time to replace that car, she stepped back and let me make my own decision. Sometimes you have to make mistakes on your own to truly learn from it.
I’m really happy with my car – I bought it in January for $11500 (+ taxes) and it’s a 2008 Honda Civic. It will last me probably forever, and it only has 44,000 KM on it. Plus, it’s cute and comfortable – I drive a LOT so that helps.
I think that we all have things like this – maybe not a mustang but certainly big purchases we wish we hadn’t made. A coworker always talks about regretting buying her house. Hindsight is always 20/20.
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All you Honda drivers are making me wish I had instead opted for a reasonably priced Accord or Civic. Growing up my mom had a couple of Hondas and they were always very reliable. One was even going to be passed down to me until she ran into a moose.
You’re right though. Hindsight is indeed 20/20. It’s easy to look back and see it as a mistake now, but back then it seemed like a great decision. It’s too late to change that now, but hopefully others will learn from my mistake.
I once made the mistake of buying an expensive car but it has lasted forever. I think if it lasts it’s not AS BAD of a decision. That being said, I was going through a quarter life crisis and I probably should not have done it! Great article.
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Well I guess I’ll have to try to make my car last forever. It just isn’t very practical for some things though. I’ve never ridden in the backseat myself, but I’ve been told it’s quite cramped back there.
It’s ok, this type of thing happens to a lot of young males. Just don’t let it discourage you and effect your future.
As for me, I bought a 2004 Mitsubishi Lancer on craigslist as my first car. It is not a Lancer Evo, it is just the plain old lancer ES. I love cars so it was tough buying such a basic car, but now that I own it outright, I’m glad I made the decision. The car is close to 100K miles and still reliable as ever. I plan to run it until the engine explodes!
Glad to hear that you’ve been happy with your car purchase. I was pretty happy with my first car too, but this 2nd car was a little excessive. It already has affected my financial future, but I hope by acknowledging that mistake I can better learn from it.
We bought a nice, used car and were really happy about it. The insurance is cheaper and we had thorough maintenance records. We paid cash and there were no issues. It leads to peace of mind just paying cash. Expensive cars are usually about status and they’re not really necessary.
That’s the route I’ll go with my next car. Used cars are such a better deal provided that it truly is in good condition. I did buy my car with some misguided intentions such as the whole status symbol thing.
I sure did. I just calculated it and did a blog post on it actually. I lost $8,000 in four years on it so far. And, like you, I shouldn’t have bought it in the first place. It was too nice of a car and I was still in debt when I bought it, with no money down. Thankfully, it was a wake up call to me and because of it, I kicked personal finance in gear, got out of debt and am now living far beneath my means, meaning I actually have money left at the end of the month. I’ve linked this comment to my car post if you’re interested in reading it.
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Kraig consider yourself lucky that you only lost $8000. I just looked up my car on Kelley Blue Book and it wasn’t pretty. I don’t even want to admit how much money I lost on my car. Boy would I like to have that money back.
I know A LOT of people who have made the new car mistake… and I see quite a few in this comment thread. It makes me wonder who keeps buying new cars? There have been a number of stories in the news lately of the rebound of the auto industry, but who can afford to buy new cars these days? And who would buy a new car again, since so many fall into this trap when they’re younger and avoid it at all costs when they’re older?
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I don’t think it’s necessarily always a bad idea to buy new. There are the people who have been burned with lemon used cars in the past. They just want something that will be problem free with a good warranty. A lot of people also want to have bought at least one new car. There is something satisfying of owning a brand new car that has never been owned or regularly driven by anyone else. It is truly yours. Then there are all the well off people who just wouldn’t consider buying used. Buying a new car can be a good idea, but you need to be sure it is something that you can truly afford and that it is a reliable enough model that you can get plenty of use out of it.
Used cars are better value but there is no reason why (esp if you gain pleasure from it) you should not buy a new car. Just make sure you get money off! My next post is going to be about how to buy a brand new car and get $1000s off the value. Look out for it! Well written article.
I think the money involved is still a pretty big reason. That’s not to say that you should never buy new, but you should only be doing so if you can really afford it. Negotiating is a big part of buying a car. So I’ll be looking forward to your upcoming post.
My parents bought me an infinity m37 it was an 08 fully loaded at car max and they put down 3k on it and it was I was 20 at the time. My monthly payment were right at 500 bucks a month..I paid that each month and then when i got my refund check I put 3k on it…do i regret it? ehhhhhhhhh, possibly…jk I dont…I dont look for validation from others and thats what alot of peoples’ problems are in my opinion. But I do modifications for cars so affording it wasnt a problem and I could get a cheaper performance car for racing but then i’d put the money back in the cheaper car to produce the same power and it helps I do the work myself. People try to live beyond their means wayyy too much for me. And people say i’m spoiled/insecure but I thank my parents everyday for the blessing they gave me and I plan on buying them a condo on the beach out of respect. Nice part is i can make the car last at least 15 more years easily and i’ll never get rid of it. i’ll never buy a new car for sure. Not worth it! Ill have my car paid off in 2 more years so i cant complain.
Sounds like a nice car, but you’d think you’d know how to spell your car’s make
Since you do car modifications, you probably really wanted a nice car and were under a bit of peer pressure to keep up with friends. When I got my car I happened to be doing marketing for an automotive website. So that is part of what made me avoid getting something much cheaper. I felt like I had to impress my coworkers. As long as you’re ultimately happy with the purchase, that’s what is important. If you do drive it for another 15 years it will be even easier to justify.
I made the mistake of buying a brand new car last year , but the worst part is that im still in college! I’ve wanted to trade it in for something cheaper but the car has obviously depreciated and the difference that would be added to the used car would leave me with a balance similiar to what I have now. I dont know maybe if i keep looking I might find something that would workout for me. I feel like its the worst mistake of my life thus far, but now there is nothing left to do but keep pushing forward.
I can definitely relate Alex. I recently looked into how much money I’d get by selling my car and it was a bit of a shock. It has depreciated so much that I just couldn’t bring myself to sell it off and take that big hit and settle for a lesser car. Making that mistake in college must’ve made it even tougher to face since you wouldn’t have the income to make significant payments. Try not to worry about that mistake too much though. Just learn from it and focus on improving your finances going forward.
I bought a used 2003 Hyundai Elantra with 50K miles on it in 2008 for $5600. It has 99K miles now and has it fair share of dings, scratches and dents . Every now and then whenever I see those nice 35K + cars in my parking lot, I wish that I upgrade. But everytime I look at my car dents and think about how costly those mistakes would be on a newer car, that thought dies out. I intend to keep this car for another 30K miles, before thinking about upgrading.
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Well you made a smart decision by buying a used car with minimal mileage on it. You got a much better deal than the people who blew the big money on a brand new car. When you see those cars in the parking lot just remind yourself how much those cars dropped in value when they drove them out of the dealership.
Oh jeez. I’m 18 and just bought a 25k car, hope I don’t regret this like you guys are.
Well work hard to make a ton of money and then you can’t regret anything. Make that $25k inconsequential.
Well now I want a nice car. Thanks….
I would definitely keep the car. How else will you get hot girls to go on dates with you?
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Yep I guess the car is my only chance lol. A nice car is pretty good have, but not so fun paying off.
It’s all about finding that balance when purchasing a vehicle.
A new vehicle is going to depreciate the fastest – this can be balanced by really controlled ownership costs ( full warranty / minimal maintenance / a vehicle running at full efficiency).
Finding a vehicle a few years old – preferably with low kms and some manufacturers warranty allows you to get the best of both worlds. Even if these vehicles mean taking out an auto loan you can control your transportation costs a lot more effectively than that $1200 car you sink hundreds of maintenance dollars into every month.
I know I’m unlikely to go with a new car with my next purchase. It would’ve been so much smarter to buy used. I wouldn’t be too concerned about time left on the warranty, but it would really good if the mileage wasn’t too high. I don’t ever plan on going for a super cheap used car though. I couldn’t be bothered to deal with those problems.
We financed our first couple of cars, but when we decided to get out of debt we just kept driving the cars and putting the car payment in the bank to save for the next one. We only pay cash for good USED cars now.
Our Latest is a sweet Infiniti we bought from an auto auction in mint condition with only 40k miles. It felt so good to pay cash and be done with it. We will NEVER have a car payment again because now we know better.
I wrote a post about it that might be of interest that details exactly how we did it.
“How Not to Finance a Car”
http://www.cfinancialfreedom.com/CFFwordpress/how-not-to-finance-a-car/
I like that savings strategy. When you are so used to a bill coming out every month, you might as well keep paying it towards something.
Sounds like you got a sweet deal via with auctions too. It would make sense that there would be some really good cars there because they are selling because the people couldn’t make payments or they got caught up in something illegal. It’s not like they are trying to ditch a car that has problems.
Wait… is a mustang an upgrade from an Acura? I would think it would be the other way around… I guess it depends what you want.
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I guess you aren’t familiar with pricing of those different cars. An Acura is just a slightly better Honda. Newer Mustangs are rather expensive in comparison. If it was comparing 90s Mustangs it would be a lot closer in price.
Many people don’t realize the additional costs that are associated with high cost vehicles. From premium gas to foreign parts, owning a high profile car is a significant investment. And, this doesn’t even factor in the cost to insure the car and keep it on the road.
Well I’m glad my car at least didn’t need premium gas or rare replacement parts. That is one advantage to getting an expensive domestic car rather than a less common foreign car. Insurance is a problem either way though.
I’m in sorta the same boat. I bought a ’13 mustang v6 and I absolutely love the car, but I feel really foolish buying at 25 on 30K a year. My payment is like $360 @2.75 but that’s for FIVE YEARS. I can pay it off in two years if I stay with my parents and that plan sounded great at first, but now I really wish I had thought things through a little more.
Sometimes it’s just so much easier to buy with our hearts instead of thinking things through. At first we might think we can easily pay something off quicker, but when it comes down to it, other things come in the way. I had planned on paying off my car in 2 or 3 years at first too. Then reality set in and I took much longer to pay it off.
The cheapest car you’ll ever own is the one you already have if you keep it and make it last !!!!
I think that is true up to a certain point. Eventually it just starts costing too much to maintain and keep fixing. That sentiment is also much more true for certain makes and models of cars.
If you look at it another way, maybe this mistake has saved you from the housing bubble of 2007.
Good point Logan. That would be true, but here in Vancouver, we weren’t directly affected by that. In fact, house prices just kept rising during that time.
hi there, i made the same mistake , i bought an audi tt, in 2007, at first i was resally happy with it, than i started using it less and less…my main hobby is cycling , i go every were with my bike…i m selling it next sunday…i also feel a real show off with it, its totally a ‘not me’ car. i also notice that my ego gets stronger when i m driving it….also recently i m living a more simple life, i prefer my other car, a humble ford ka….
Sounds like it’s a good decision to sell it. Sometimes we do later realize that something we previously wanted ends up not fitting out lifestyles and personalities. I think my ego picks up a bit when I’m driving my car lol.
I believe that you should get the most expensive car you can afford! I did that; a brand new BMW M3 in red. It took time to convinces my parents to co-sign the lease agreement but it is worth it! I now am in the in a different social class! I can get “hot ladies” just by mentioning that I drive a brand new BMW “M3″. Most ladies do not know how much a M3 cost and I have to point it out to them that retailed priced for my car is $72,560 without the registration and sales tax! They are more then willing to give me their phone, email and even setup a time to meet again on the spot! I use to talk and even plead to get their contact numbers so I could ask them out! Now, they more then happy to give that and more without hesitation!
Plus, if you happen to go and have trouble finding a parking spot; just go to the nearest restaurant or hotel; and the valet give you top priority in parking! People will respect you when you drive a M3 too!
I work in a warehouse and I drive a car that is better then the owner of the company drives. He drives a used Honda Accord and he suppose to be worth over $50 million too. He ask how I can afford the car? I just smile! I know that I am personally just a bit better then he is because I drive an lot more expensive car then he does.
Everyone know you are a success! People judge you on what you drive! I know I am a success because I drive a M3 around.
Well I’d have to disagree. Look into the average car value that millionaires drive. They realize that a car is the worst investment you can make. The value drops so quickly that you are bound to lose money unless you buy a reliable used car. The less you care about other people’s opinions, the smarter you can be with your money. Instead put that money into real investments are you’ll find out who is the better man.
Personally I’d rather get a woman that wants to be with me without having to tell her how much my car cost. If I had to tell a girl about my money to get them, I’d be paranoid that they are just with me for my money. I’d end up trusting them less and be suspicious of their intentions.
Dear Jeremy,
It is a fact that society in general looks to clues to who you are and how you fit into it’s structure. If you drive a Honda or Toyota or even a Chevrolet; they treat you that way since they consider you a nobody! If you want to go through life with style and respect; drive something that represent to them that you are a person above the “average” person and deserves the respect and class one seeks in society.
It makes talking and getting hot chicks much more easier. You can go and just strike a conversation on cars and you can impress them in a matter of a couple of minutes instead of talking your heart out and they at the end reject you because they figure you are a “nobody” and they want to be with somebody that has style and class. It is all about the image that one projects out. Look at all the “A” list celebrities and what they drive! Sure most of them get their cars for free for publicity but still it project that they are way above the rest of society in turns of coolness and status.
Go and buy/lease yourself an vehicle that you can project out that you are a somebody instead a nobody.
Sorry but I just don’t care about the part of society that would judge me based on my car. A lot of the richest people in the world actually drive very average cars. They know better than to worry so much about what other people think. I definitely won’t be basing my financial decisions based on how celebrities choose their vehicles. They are usually not known to be very financially savvy with their money. I don’t care about trying to impress some hot girl that is looking for some sugar daddy. I think you’ll have to comment on a different blog if you want someone to agree with your view on this.
Ladies for the most part are attractive to “bad boys”. Guys that treat them badly – lie to them; cheat on them, etc… For what ever reason, they love it when they find things out about you like you just cheated on them. They will leave you for a day or two but then they comeback and worship you even more afterward. A car represent an image that a girl is dreaming of for the ideal guy! Better life style, success, wealth, even fame! Things they need to have in their mind to come around to falling in love with you!
I bought a old neon car. But, now the car is not in good condition. I have wasted money on second-hand car. I have planned to buy BMW series in a couple of month.
That is quite an upgrade. At least you wore out that Neon instead of the BMW. You have potential to lose a lot more money on an expensive car.
If you needed your parents to co-sign that car you obviously could not afford it on your own, on another note, you working in a warehouse and driving an M3 doesn’t make you better than anyone in that warehouse even if that person is the owner. Your car doesn’t make you, YOU make you. What’s the point of having that shiny new car if you get in an accident that $72k goes with it. Not to mention the parts for that car. Oh by the way, those girls that seem to be all over you because of that car are OBVIOUSLY gold diggers. You could have gotten a house for that much money. Personally I love BMW, they are indeed the ultimate driving machine but after experiencing one at 18 years old and depleting my little tiny bank account on a timing belt ($500!) I was done with it! I’m now 25 and drive a Pontiac Grand Am that has taken me from point a to point b in just under 3 years aside from the routine maintenance that car drives great and has never left me on the side of the road. Heck I’ve driven to Arizona and back (I’m in southern cali) more than 5 times and it drives like a breeze! Now that I’m older and have a good paying job I’m looking in to buying a new car, a brand spanking new car
! It’s either a Sonata or a Lexus ES 350. Although I’m not sure how much I can afford. I make roughly $35,000/year, any suggestions? I know a new Lexus runs about $36k and I heard somewhere once not to buy a car that costs more than you make per year but….its soooo pretty!
Well said Julie…other than your temptation to buy a Lexus on your current salary
I learned the hard way to not dump that much money into a new car. Take your advice for the M3 guy and apply it to your situation. Sure a Lexus looks pretty, but you’d lose a lot of money in depreciation and it could all be gone in a second due to an accident. If you want real value from your car purchase, try to buy a car that is a few years old.
Have you thought about a certified used Lexus ?
I think this point has been missed here by all the posts. Look for a certified (backed by the manufacturer for long warranties) used vehicle. The depreciation has been taken into account and manufacturer’s will not sell any vehicle as certified if it does not meet strict standards (one owner, thorough inspection).
Overall it’s all up to you to find the best value for the money you want to spend. Going cheapest isn’t always best. There’s an emotional satisfaction that gets met with a nice vehicle. It’s no different than eating out or buying expensive steaks for a grill. Why eat out for when you can make peanut butter and jelly sandwiches at home for relatively next to nothing?
Good idea Steve. When I bought a used vehicle it was from a new car dealership. By doing that I felt more confident that the car had been more thoroughly checked out. The dealership was willing to put their reputation behind the car. Sure I could’ve found cheaper through a private seller, but then I’d be a lot more paranoid about potential problems. In that case, a full mechanic inspection would be a must.
I’ve always had cheaper, second hand econo cars. Far from depriving myself, because I saved all that money I didn’t need to work as much (sporadic temporary employment) so I could have more time to actually ENJOY driving my cheap car to many places and fun recreational pursuits, or just leave it a home and fly to more distant places for vacations.
That’s the smart way to approach car ownership. Sure you could put a big chunk of your money into a nice car, but I’m sure you could think of better things to spend that money on.
I want to buy another car as I have 2 children. I am wondering which one would be smart choice between these two options. 1. New ford edge for $32000 2. Used buick enclave with 9000 miles for $ 37500.
Any suggestions would be appreciated. My financial situation is not bad and I have a stable job. Thanks in advance
I’m not really sure what is the best choice there as I’m not familiar with either vehicle. I’d look into some consumer reviews and focus on what are your top priorities in a vehicle.
Every few weeks I have to drown myself with things to do to avoid going to a dealership and buying the amazing car/truck/suv/motorcycle that has been occupying my mind. Its like I cant wait to blow it all!
Some people are that way with their money. They have to really fight the temptation to spend it. Really they just need to get more into the mindset of thinking long term.