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The Real Cost of Owning a Car

startupceo.co.za

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Re: The Real Cost of Owning a Car

#51

Post by LeChuck »

jonasvp wrote: post #26

It depends on where you live. In the States or outside a fair-sized town, there's (so far) no alternative to owning your own car out of sheer necessity. In the city, especially here in Europe, it's a different story. The usual rule of thumb is the cheapest car costs you _at least_ 300 €/month (taxes, depreciation, not counting gas money)! When my son was born this made it easy for me to decide to buy an Xtracycle ( h…

>The usual rule of thumb is the cheapest car costs you _at least_ 300 €/month (taxes, depreciation, not counting gas money)!

These prices are hardly uniform across all of Europe. I live in a smallish city in the Netherlands and you can probably own a car for 60 - 100 €/month here.

Re: The Real Cost of Owning a Car

#52

Post by thesethings »

I really, really recommend reading The Millionaire Next Door (I have no affiliation with it. It's kinda old-school, but in no way out of date.).

Almost the entire book is about how luxury goods are NOT consumed by rich people, but by semi-struggling middle class people. (BMW's, Rolex, premium liquor, etc.) (Or at least people who have to go in to debt to consume these things.)

(It's also about how rich people DO live, choose to buy stuff, negotiate, etc.)

Everybody in this thread who's saying, "duh, cars aren't supposed to be an investment," are technically right. And everybody should indulge in things that really make them happy. If cars are your thing, go on, do your thing. It's all good.

But in the Millionaire Next Door, it goes over how cars are an especially precarious purchase for most people, as they just really eat up a lot of money over time. For most people, even non-luxury car purchases require a loan.

Cars might be more dangerous for us than say Rolexes, because most of us think "well either way I have to have a car, might as well get a _____."

Anyway, maybe this article wasn't the most persuasive case, but it is true. Most rich people don't have fancy cars, or probably fancy anything.

(In the Millionaire Next Door, it says we get confused by this because there are a famous outliers who show off their wealth, so we incorrectly associate wealth with luxury, when they're rarely related.)

Re: The Real Cost of Owning a Car

#53

Post by dedward »

matwood wrote: post #41
seltzered wrote: post #33

The one thing worse than car ownership? Taking a loan out to buy the car: http://www.itulip.com/forums/showthread.php?t=634&pagenu... . I'm shocked at how we allow people to take 5 year loans for cars that depreciate 30+% over that time. I live in Texas where a car is required, and bought a "new-to-me" year old used subaru a year after graduating college, with a couple years of warranty left on it. It was mentally be…

No, the worst thing is buying the car new . When you drive off the lot a car gets hit with immediate depreciation. The first year captures a lot more of that 30%. If you simply buy cars that are 1 year used you save a ton on the deprecation to the point where a 3-5 year loan at 6%ish never puts you underwater if you put a little money down.

Underwater? Viewed as an investment any car puts you underwater immediately - it's a net loss.

If you borrowed money and are also paying interest on the vehicle, that's just MORE cost... I don't get the rationalization.

Yes, a new-ish used car is a better value for money deal than a brand new car - but if you have to borrow money, you are probably better off convincing your ego to let you buy a cheaper model rather than borrowing money from the bank to purchase something.

Re: The Real Cost of Owning a Car

#54

Post by againstyou »

vaksel wrote: post #19

quick notify ferrari, lamborghini, porsche, maserati, aston martin, jaguar, bentley, audi, cadillac, morgan, rolls-royce, bugatti, TVR, volvo, spyker, saab, land rover, lotus, bmw, mercedes, lexus, lincoln, maybach, pagani, gumpert, koenigsegg, acura, infiniti, weismann, mosler, ascari, mclaren, ssc aero,..that they are in the wrong business. First of all a luxury car is not an investment. A person doesn't buy a Ferr…

well, you forgot some brands on your list like: hennesey, saleen, caterham, ariel, ultima.

Re: The Real Cost of Owning a Car

#55

Post by arethuza »

vaksel wrote: post #19

quick notify ferrari, lamborghini, porsche, maserati, aston martin, jaguar, bentley, audi, cadillac, morgan, rolls-royce, bugatti, TVR, volvo, spyker, saab, land rover, lotus, bmw, mercedes, lexus, lincoln, maybach, pagani, gumpert, koenigsegg, acura, infiniti, weismann, mosler, ascari, mclaren, ssc aero,..that they are in the wrong business. First of all a luxury car is not an investment. A person doesn't buy a Ferr…

I did know someone who belonged to the "those who see a car as just something to take you from point a to b" view of cars.

However, he owned his own jet (and other aircraft).

Re: The Real Cost of Owning a Car

#56

Post by jodrellblank »

shadowsun7 wrote: post #32
reitzensteinm wrote: post #25

Earlier quoted context omitted.

Anecdotally, for the first time in 6 years I don't have a car and I'm loving it. I'm living about 10 minutes walk from the CBD. To visit anyone I'd fly anyway, and the airport is only 15 minutes away by bus. Walking everywhere is much more satisfying, and not having to worry about breakdowns, oil changes, registration - not to mention the cost - is very nice. On the occasion that I decide to take a road trip, I can r…

You're truly blessed to be living in such an ideal location. I'd kill to be able to be 10 minutes away from both the CBD and the airport.

You'd kill, but you wouldn't move?

Re: The Real Cost of Owning a Car

#58

Post by [deleted] »

thesethings wrote: post #52

I really, really recommend reading The Millionaire Next Door (I have no affiliation with it. It's kinda old-school, but in no way out of date.). Almost the entire book is about how luxury goods are NOT consumed by rich people, but by semi-struggling middle class people. (BMW's, Rolex, premium liquor, etc.) (Or at least people who have to go in to debt to consume these things.) (It's also about how rich people DO live…

[deleted]

Re: The Real Cost of Owning a Car

#59

Post by Periodic »

jodrellblank wrote: post #56
shadowsun7 wrote: post #32

Earlier quoted context omitted.

You're truly blessed to be living in such an ideal location. I'd kill to be able to be 10 minutes away from both the CBD and the airport.

You'd kill, but you wouldn't move?

The market for hitmen is currently saturated, so even if he works overtime and does a few extra hits on the side under the table, he still isn't going to make enough to move into the more expensive, more central neighborhoods.

Plus, there's all those fees to keep your contract-killer's license up to date.

Re: The Real Cost of Owning a Car

#60

Post by vaksel »

againstyou wrote: post #54
vaksel wrote: post #19

quick notify ferrari, lamborghini, porsche, maserati, aston martin, jaguar, bentley, audi, cadillac, morgan, rolls-royce, bugatti, TVR, volvo, spyker, saab, land rover, lotus, bmw, mercedes, lexus, lincoln, maybach, pagani, gumpert, koenigsegg, acura, infiniti, weismann, mosler, ascari, mclaren, ssc aero,..that they are in the wrong business. First of all a luxury car is not an investment. A person doesn't buy a Ferr…

well, you forgot some brands on your list like: hennesey, saleen, caterham, ariel, ultima.

tuner, tuner, kit car, maybe, kit car
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