Is it wise to treat myself now or should I delay it... again ? (new car question)

[Jon Doe]

Hi,

I'm currently reading The Fastlane Millionaire and came across this forum so maybe you can help me.

Briefly about me:
I'm a programmer in mid-thirties working for a software company in Europe.
I live in my own apartment, own one other real estate for renting airbnb-style.
I have some savings for the next apartment for rent but not enough to buy it yet.
After-hours I am working on an app I am planning to launch myself in a couple of weeks / months.

Question:
My current car lease is coming to an end in a couple of months and I have to make a decision what to do next.
I currently drive a normal mid-size sedan, new with warranty til the end of the lease.
It costs 10% of my salary + annual insurance.
I lease the car for the time of warranty because I don't want to deal with mechanics or servicing it myself.

I am considering realizing my dream of owning and driving, at least for a few years with warranty, a 3-sec-to-60 sports car.

The sports car payment would take 20% of my salary + annual insurance.

I have no interest in traveling the world or any other expensive dreams or wishes.
I do not have a family to take care of, no debts.

Would you take the lease of the dream sports car or would you wait till I could pay cash for the whole thing or something ?

The other options are:

1. Taking a new lease for the more affordable model - like the one I have
2. Buying out the current car I drive for 5.5 times my current salary and having to deal with servicing it at the dealer etc.
3. ??

Thanks

 

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[MJ DeMarco]

Ask yourself, WHY do you want this car?

What emptiness does it fill, and will it fill it permanently, or just for 2 months?

 

[Jon Doe]

Ask yourself, WHY do you want this car?

What emptiness does it fill, and will it fill it permanently, or just for 2 months?

Thank you for the quick response!

I want this car because I have always wanted a fast, cool, sports car.
Maybe I'm wrong, but it seems to me that once I have it and drive it for let's say 5 years I would have peace in my heart that at least this one big dream I have realized in my life.

 

[MJ DeMarco]

I want this car because I have always wanted a fast, cool, sports car.

Why?

Why do you want a fast, cool, sports car?

Dig deeper.

 

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[Jon Doe]

Why?

Why do you want a fast, cool, sports car?

Dig deeper.

I guess it's from childhood and watching a lot of Top Gear growing up.
I watched a lot of car related content till now but never had the occasion to own and drive a really cool one for an extended period of time.
Maybe also proving to myself that I can do that.
That's what comes to my mind.

 

[Jon822]

I used to want an expensive car but don't anymore because I value a large house and experiences more than something I would occasionally drive. There's nothing wrong with valuing a nice car but I would say in your current financial situation, you shouldn't pay for one. When you can pay for it in cash without any murmuring from your bank account, that's when you splurge on something like this. You're trying to rush on a dream purchase and it isn't going to feel as good as it would if you waited.

 

[Jon Doe]

I used to want an expensive car but don't anymore because I value a large house and experiences more than something I would occasionally drive. There's nothing wrong with valuing a nice car but I would say in your current financial situation, you shouldn't pay for one. When you can pay for it in cash without any murmuring from your bank account, that's when you splurge on something like this. You're trying to rush on a dream purchase and it isn't going to feel as good as it would if you waited.

I get your point, but I have question then.

If it wasn't the car but a big-house loan payment and occasional "travel experiences" would you then consider it ok ?

I get the waiting part also, but at the same time in a couple of years I'm gonna be 40 and my life priorities can change by then, or a number of things can happen like war, creating a family, losing the vigour of life, I don't know.

 

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[Jon822]

1. A big house? No.
2. Travel experiences? Yes.

The reason being is that your time depreciates and it mostly affects your ability to enjoy physical activities. Enjoying a day at the beach at 40 is notably better than enjoying it in your 60s. There is going to come a time when you can no longer do a particular physical activity you used to enjoy and you'll wish you allocated your time (and money) better in light of this fact. Barring some extremely unlikely accident (unless you drive a motorcycle, in which case it is far more likely), you will very likely be able to drive a car in your 60s.

 

[ChrisGav]

what kind of fast sports car?

 

[Kak]

Hi,

I'm currently reading The Fastlane Millionaire and came across this forum so maybe you can help me.

Briefly about me:
I'm a programmer in mid-thirties working for a software company in Europe.
I live in my own apartment, own one other real estate for renting airbnb-style.
I have some savings for the next apartment for rent but not enough to buy it yet.
After-hours I am working on an app I am planning to launch myself in a couple of weeks / months.

Question:
My current car lease is coming to an end in a couple of months and I have to make a decision what to do next.
I currently drive a normal mid-size sedan, new with warranty til the end of the lease.
It costs 10% of my salary + annual insurance.
I lease the car for the time of warranty because I don't want to deal with mechanics or servicing it myself.

I am considering realizing my dream of owning and driving, at least for a few years with warranty, a 3-sec-to-60 sports car.

The sports car payment would take 20% of my salary + annual insurance.

I have no interest in traveling the world or any other expensive dreams or wishes.
I do not have a family to take care of, no debts.

Would you take the lease of the dream sports car or would you wait till I could pay cash for the whole thing or something ?

The other options are:

1. Taking a new lease for the more affordable model - like the one I have
2. Buying out the current car I drive for 5.5 times my current salary and having to deal with servicing it at the dealer etc.
3. ??

Thanks

Not only should you not buy it, but with this kind of attitude, you would do yourself some good to buy a 99 Carolla and drive that for a year or 10.

You are way way way too concerned about the car you drive if you are willing to give up 10+ percent of your salary to it.

You need to free yourself from car slavery. Don't be ok with your vehicle owning the fruits of your labor for 2-4 month a year. That's asinine. Make 5x your current salary with your own business before you go "treating yourself."

You haven't earned a treat.

 

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[Antifragile]

Would you take the lease of the dream sports car

If you have to ask here, in your heart you already know the answer… you just don’t want that answer.

There is a big difference between how we want the world to be and how it really is. Don’t let that desire fool you.

Zero to 60 in … no, you are going 60 to zero on your real freedom, the minute you sign a per for shit you can’t afford.

Money bills are your army, each one makes it easier to win the war.

I’m still amazed at how many people I meet who have over $100MM net worth and drive a 10 year old car…

This forum is for people who get to make f-u money, where you no longer have to even ask! Want a lambo? Buy it, it’s a rounding error on your balance sheet. No biggie.

Lastly, if you want to become an entrepreneur - stop listening to everyone and asking for their permission to do shit (correction: asking for “opinion”).

 

[MJ DeMarco]

I want to be clear, buying an awesome car for the experience is something I would never trade.

In other words, I'd do it all over again.

But here's the thing: I could afford it.

A car that sucks 20% of your income?

You can't afford it.

Moreover, I'm guessing you want this car to cover for some other mental deficiency in your life; perhaps you're not as successful as you'd like, or, you're not making enough money as you expected, and the car is a kneejerk attempt at a "F*ck you" to those realities.

The car will make you feel instantly successful, at least, for a few weeks, when deep down, you might know something else is missing.

That said, get the car... eventually.

But only do so when you truly can afford it -- and when you can finally afford it, you likely will be an entirely different person.

 

[JordanK]

Buy 10 more rental properties then you won't even have to ask this question to the forum.

 

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[Andy Black]

I was also an IT guy in my mid-thirties.

I remember asking one of my colleagues in the office if he thought I should get a Porsche or buy another rental property.

He just looked at me and asked:

"Do you want to keep working here?"