The Real Cost of Owning a Car
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The Real Cost of Owning a Car
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Re: The Real Cost of Owning a Car
#2Most of the wealthier people I know have reasonably nice cars. Maybe not Zonda/Lambo nice, but Audi, BMW, MB, Infiniti, Lexus and Cadillac are the norm.
Re: The Real Cost of Owning a Car
#3Owning an expensive car is actually not as bad as the author suggests. Once you get beyond around $80K cars depreciate at a much slower rate than other cheaper cars. One reason for this is that the more exotic a car is the lower the mileage it is likely to carry becomes. Another strong factor is that when you are paying more than $80K for a car you are paying a lot for the brand of the car and this is likely to be evaluated later at an emotional rather than mechanical level. A 5 year old Aston Martin is still an Aston Martin, whereas a 5 year old Honda is basically a commodity to be evaluated on its mechanical merits.
In terms of this argument the worst car to buy would be something like a BMW 5 Series - its not expensive or rare enough to ensure it would be evaluated on its emotional appeal when you are selling it - but it is still pretty expensive.
Re: The Real Cost of Owning a Car
#4> How much would I have after three years? Assuming a modest 10% return per year
Is 10% really a modest return?
Re: The Real Cost of Owning a Car
#5Technically, owning anything that is depreciating is a bad investment and that includes cars.
Re: The Real Cost of Owning a Car
#6> How much would I have after three years? Assuming a modest 10% return per year Is 10% really a modest return?
No, it's not. If you're steadily earning a 10% return on your investment, year over year, you are doing amazingly well and should stop doing whatever day job you have now.
Re: The Real Cost of Owning a Car
#7I find it difficult to believe that a Ferrari would consume 100x on all of fuel, fines, insurance and licensing costs.
But I would rather consider your choice of car beyond basic requirements as consumption, much like food. I'm sure one wouldn't consider fine cuisine a good investment either under these circumstances, but that doesn't justify living off ramen your whole life.
Re: The Real Cost of Owning a Car
#8Owning an expensive car is actually not as bad as the author suggests. Once you get beyond around $80K cars depreciate at a much slower rate than other cheaper cars. One reason for this is that the more exotic a car is the lower the mileage it is likely to carry becomes. Another strong factor is that when you are paying more than $80K for a car you are paying a lot for the brand of the car and this is likely to be ev…
I love it when somebody makes an intelligent distinction in an overarching argument. Thanks.
Especially when it's something I can use to talk my husband out of his delusion of getting a BMW as our first car, when we'll drive it 10 hours a month. In Europe, where BMWs are twice as expensive... and four times as common.
Re: The Real Cost of Owning a Car
#9Technically, owning anything that is depreciating is a bad investment and that includes cars.
Only if the value you are getting from using the asset is not more than the amount by which it is depreciating.
Re: The Real Cost of Owning a Car
#10> How much would I have after three years? Assuming a modest 10% return per year Is 10% really a modest return?
In my paste buffer: "Assuming a modest 10% return per year"
The article lost me at this point too.