Why do we buy high end vehicles ?

[George C]

i agree with george c's previous statement if you cant pay cash for it then dont buy it
and same goes for a house
everyone thinks going into debt to buy a car or mortgage is the best way im afraid it isnt
all your doing is making the banks and all those similar type companys filthy rich
say you get a mortgage for house for 100k 30 years at 4 percent
that calculates out to almost 72k in interest that your paying to what ever financial institution seriously id rather keep that

Where do you plan on living while saving up a quarter million or so to buy a house?
Renting is flushing money down the toilet.

If you learn anything from my post, know that there are two kinds of debt. There is good debt and bad debt.
Buying a home is good debt because it is a tax deductible appreciating asset.
Bad debt like a car loan. Just another toilet waiting for money to be flushed down.

 

[motorwerks]

Best is get loan 1.9% and you pay like 265 per month that is a stealing from a bank and the do not make a lot on money.
[emoji38] [emoji161]

Julian has an excellent point...at 1.9% of $75k, you are stupid to be paying all cash for a depreciating vehicle like this. Investing $75k into ANYTHING...heck a CD or a good hedge fund recoups more than 1.9% to even the most jaded investor. I know that for me, I can take $75K and multiply it by strategic cash management and business investments than to have it tied up in some Yukon. Of course, for the conservative, non-savvy type, an all cash purchase typically makes some sense. GM recently had 0% interest on all 2014 GMT900 series Yukons....now I ask anyone...why would ANYONE put down $55K all cash on a 0% interest finance deal from the manufacturer?

George is exactly right regarding mortgage interest. It's better to deduct all of that primary home mortgage interest...actually for your credit report too, then an all cash payout....with regards to conventional investment wisdoms.

 

[soulsea]

'High end' is a relative term.

There are folks out there that for them a 2003 Tahoe LS 2wd is a high end vehicle, and there are folks that consider an Escalade Platinum sliumming it.

As far as depreciating assets ... comparing apples to apples and not houses to cars, on average the percentage losses are higher on cheaper vehicles than more expensive ones. For example I bought my 2012 Esky in 2013 and sold in in 2014 for $5k less, taking a 6% hit. A $25k car would likely have depreciated the same dollar amount for a much higher percentage loss. Different vehecles obviously depreciate differently ... generally speaking the cheaper the car the more severe the loss, exept when it gets to the point of being so cheap that it can't depreciate much further.

 

[CHOO CHOO]

You only live once and you cant take money with you. Buy it, have fun, and **** the rest.

 

[motorwerks]

You only live once and you cant take money with you. Buy it, have fun, and **** the rest.

True...but there's a smart way and a dumb way to obtain the same item

 

[CHOO CHOO]

True, obviously dont go blowing all the money you have, but if you want to live paycheck to paycheck for a few years to have something nice, then why not.

 

[humer101]

True...but there's a smart way and a dumb way to obtain the same item

Agree why use you own money if you are legit the banks come to you not you to them.
[emoji385] [emoji542]

 

[motorwerks]

True, obviously dont go blowing all the money you have, but if you want to live paycheck to paycheck for a few years to have something nice, then why not.

Living paycheck to paycheck IS blowing all the money you have chief

 

[ccapehartusarmyINF.(ret)]

Where do you plan on living while saving up a quarter million or so to buy a house?
Renting is flushing money down the toilet.

If you learn anything from my post, know that there are two kinds of debt. There is good debt and bad debt.
Buying a home is good debt because it is a tax deductible appreciating asset.
Bad debt like a car loan. Just another toilet waiting for money to be flushed down.

im sorry but debt=bad i dont care how you slice it paying 379k for a 250k house is not good and thats only at a 3 percent apr
the only good loan is a zero interest loan

---------- Post added at 04:12 AM ---------- Previous post was at 04:05 AM ----------

Living paycheck to paycheck IS blowing all the money you have chief

it depends on the circumstances if you take home 5k per month and your expenses are 4900 permonth and yer driving really nice rides living in a enourmous house shopping at nieman marcus then yes yer blowing yer money
if you only make like 1500 permonth and yer expenses are almost 1500 and yer buying groceries as wall mart and driving a kia then yer just poor like me

 

[George C]

Clear logic Satish..
Who knew....