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Cars We Drive! - Page 402

post #6016 of 15715
Quote:
Originally Posted by TC (Houston) View Post


I'm just saying the two are not fungible choices. Most people who buy new Audis are not deciding between the Audi and a used exotic with potential five figure repair bills.

Yeah you are right.

post #6017 of 15715
Quote:
Originally Posted by Hampton View Post

You can get one almost as new for that price and that year. On the other hand you will get that Audi brand new with alot cheaper service in the future. But if you buy a car for $70-100k you must have double in the bank account (otherwise you are a stupid man) 

 

that is not practical, by your logic anyone buying a 50k car should have 100k liquid (excluding home, 401/retirement, and have no debt, other than a mortgage perhaps)

how many US households have 100k liquid in cash?

post #6018 of 15715
Quote:
Originally Posted by Arthur PE View Post

that is not practical, by your logic anyone buying a 50k car should have 100k liquid (excluding home, 401/retirement, and have no debt, other than a mortgage perhaps)
how many US households have 100k liquid in cash?

Doesn't sound too ridiculous to me. We live in a nation of people with POOR financial habits and ridiculous debts.

I think it'd be prudent to have $100K in the bank if you wanted to drop $50k in cold hard cash for a rapidly depreciating asset. Honestly, anyone who's worked hard to have $100K liquid probably has smart financial sense and wouldn't spend half his/her savings on a car.

If I had $100K cash and wanted to buy a car worth $50K, I'd probably put a downpayment of $20K and finance the $30K. I'm sure I'd be able to generate returns greater than the car loan's interest rate. I'd also most likely end up selling the car before fully paying it off.
post #6019 of 15715
thanks to SF's new homepage, found this thread.
post #6020 of 15715
Quote:
Originally Posted by GreenFrog View Post


Doesn't sound too ridiculous to me. We live in a nation of people with POOR financial habits and ridiculous debts.
I think it'd be prudent to have $100K in the bank if you wanted to drop $50k in cold hard cash for a rapidly depreciating asset. Honestly, anyone who's worked hard to have $100K liquid probably has smart financial sense and wouldn't spend half his/her savings on a car.
If I had $100K cash and wanted to buy a car worth $50K, I'd probably put a downpayment of $20K and finance the $30K. I'm sure I'd be able to generate returns greater than the car loan's interest rate. I'd also most likely end up selling the car before fully paying it off.

 

the average US bank account is $3800

only 20% of the population could come up with 25k the same day

most would have to sell something or cash in 401/etc.

 

unlikely that you could generate returns higher than the loan rate with only 30k

 

 a car is a consumable commodity, hardly an asset

the only way they make financial sense is to buy used, low mileage, let the other guy take the initial depreciation hit, put enough down, with short enough term, to never get upside down

maintain it well and drive it for a good bit after it's paid off, to bank the payments

 

I've made a little money, or paid $100/month 'lease' while driving M3's

post #6021 of 15715
Quote:
Originally Posted by Arthur PE View Post

the average US bank account is $3800
only 20% of the population could come up with 25k the same day
most would have to sell something or cash in 401/etc.

unlikely that you could generate returns higher than the loan rate with only 30k

Okay, but the average US person is not going to spend $50K on a car.

If you're considering a $50K car, you're probably someone who makes more money than the average person, or someone with poor impulse control and debt up to your neck.

Also, it's very easy to generate returns greater than today's loan rates. I have excellent credit and have a loan on my car. It's at 2.99% and I have a large portion of my money invested in the stock market.

I could easily pay off my entire loan but my portfolio's rate of return since inception is 19.76%. Every month, I've been generating returns greater than my car's monthly payment. I think that's a major win-win scenario.
post #6022 of 15715
Just buy cars that aren't still depreciating... it's not as ridiculous as it sounds. Only two of my vehicles are currently losing value.
post #6023 of 15715
Quote:
Originally Posted by TC (Houston) View Post

God help you with repair and maintenance on one of those.

Correct.....and you will need a damn good lawyer too....dont ask me how i know.

Regards.
post #6024 of 15715
Quote:
Originally Posted by GreenFrog View Post


Okay, but the average US person is not going to spend $50K on a car.
If you're considering a $50K car, you're probably someone who makes more money than the average person, or someone with poor impulse control and debt up to your neck.
Also, it's very easy to generate returns greater than today's loan rates. I have excellent credit and have a loan on my car. It's at 2.99% and I have a large portion of my money invested in the stock market.
I could easily pay off my entire loan but my portfolio's rate of return since inception is 19.76%. Every month, I've been generating returns greater than my car's monthly payment. I think that's a major win-win scenario.

 

even 20k, means they need to have 40k cash

avg US car sold is 30k

 

A majority, or 64%, of Americans don't have enough cash on hand to handle a $1,000 emergency expense, according to a survey by the National Foundation for Credit Counseling, or NFCC, released on Wednesday.

 

tell me where you can get a guaranteed 3% on 10k, no risk

 

19.76% how? annual, last 10 years?  inception?

I've been doing 4-5% APY and consider that good for the environment, and it is minimum 10k blocks and long term, 12 to 18 months

 

if it is so easy to make 3% why are retirement funds suffering?

post #6025 of 15715
Quote:
Originally Posted by VLSI View Post

Just buy cars that aren't still depreciating... it's not as ridiculous as it sounds. Only two of my vehicles are currently losing value.

 

or ones that are at least leveling out

and drive it well after paid off

post #6026 of 15715
Quote:
Originally Posted by Shikar View Post

Correct.....and you will need a damn good lawyer too....dont ask me how i know.
Regards.

How do you know?
post #6027 of 15715
Quote:
Originally Posted by Arthur PE View Post

or ones that are at least leveling out
and drive it well after paid off

Definitely the way to go nod[1].gif

And you don't have to drive a piece of junk either. Generally just meet the following criteria:

1. No longer in production
2. Strong enthusiast following
3. Keep it well maintained
post #6028 of 15715
64% of americans don't have 1k backup? talk about a 3rd world country.less-developed country.
post #6029 of 15715
Quote:
Originally Posted by Arthur PE View Post

even 20k, means they need to have 40k cash
avg US car sold is 30k

A majority, or 64%, of Americans don't have enough cash on hand to handle a $1,000 emergency expense, according to a survey by the National Foundation for Credit Counseling, or NFCC, released on Wednesday.

tell me where you can get a guaranteed 3% on 10k, no risk

19.76% how? annual, last 10 years?  inception?
I've been doing 4-5% APY and consider that good for the environment, and it is minimum 10k blocks and long term, 12 to 18 months

if it is so easy to make 3% why are retirement funds suffering?

Yes, but when it comes to 'buying' a new car, the VAST majority of Americans lease or finance it. Very few people actually pay $30K in cash to buy a loaded Honda Accord, for example. The only people I know who pay cash outright for a brand new, non-luxury car (~$30,000) are people who have above-average incomes and don't care for performance or status. I also know people with above-average incomes who only lease/finance new cars that are in the $60-90K price range and never actually pay cash to own a car outright.

Never did I say you can generate a guaranteed 3%. I'm just saying that it's not hard if you're willing to invest in some more risky vehicles. The only 'guaranteed' returns you speak of can be found in money market funds or high yield savings accounts that yield 7-8 BPs.


19.76% since August 2011 (when I first started working). You are correct -- 4-5% APY is good for this environment. I place riskier bets and most of them have paid off.. hence my higher returns.

As for retirement funds, are you referring to pension funds? 401(k)s? IRAs?
post #6030 of 15715
Quote:
Originally Posted by VLSI View Post


Definitely the way to go nod[1].gif
And you don't have to drive a piece of junk either. Generally just meet the following criteria:
1. No longer in production
2. Strong enthusiast following
3. Keep it well maintained

 

exactly

 

e36 M3 (if you can find a stock one, not one rided out)

e39 M5

some older AMG's

even some Audi S models

 

keep it looking new and with good maintenance records and you can drive a nice car for very little. perhaps even nothing, or make a few bucks

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