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HOT TOPIC The road to wealth is simple: Drive a crappy car

Xeon

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If money is no object, why not get the best that’s available. What are you saving it for?
To re-invest back into the business to grow it further and bigger....
 

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Ravens_Shadow

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To re-invest back into the business to grow it further and bigger....
He just said if money wasn't an issue....
 

Kak

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There are risks in everything. The key here is really to mitigate them to the best of your ability and risk tolerance.

For example if you could pick an airline that had an uncrash-able plane vs current airlines, but cost 50x the price would you do it?

I would not because I couldn’t afford that. But if I had $50M, I would choose it.

But other $50M net worth people may not choose it because they are ok with the reliability of current planes.
Most of them choose the opposite. Flying private more than doubles your risk, but they find that worth it.

It is indeed a matter of perspective.
 

I AM THE SENATE

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Don't forget the cheap boots theory. Buy something reliable. As a person who has had a string of cheap crappy cars, if you're spending more time fixing them than a car note would cost, ditch it and get a more reliable car. I pay less than $200 a month for my accord and I'll drive it until one of us dies.
 

jon2089

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I don't think anyone has addressed that a car made in 2005 is not going to protect you and your family as well as a car made in 2015!
A car in 2005 has abs, airbags, crumple zones, etc. Now my 96 f250 is a death trap
 

wordwarrior

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How is it working out so far, and are there any challenges?
My commute changed from drive-train to bus-subway due to an impending train tunnel closure so I no longer drive to the train station. For errands and trips out of town we use my wife's car.

Benefits: my commute is now mindless (although long) as I don't need to pay attention and read or even type on my cheap laptop. Also, I saved over $130 on train station and condo parking (our unit only has one spot), not to mention car registration (including no fault insurance and public transport fee) as well as gas and maintenance (it was close to a 10 year old car and the battery's been dying every winter).

Cons: If I ever need to go out of town without my wife I need to ask nicely to borrow her car. I'm not able to drive anywhere on the days I work from home. There's an overall lack of freedom, but a surprising number of places are within walking distance for a suburban neighbourhood.
 

AgainstAllOdds

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I have $100k in work vehicles for my business, but drive an $8k used Volvo day to day.

I'm not a car guy, so my purchasing decision was simple: Something that won't break or give me headaches in the next 2-3 years, but also isn't so cheap that it will cost me reputation.

I sometimes get the itch to buy a luxury vehicle, but then remember MJ's quote that 85% of cars on the road are financed. I have zero intent of financing a car, so until I can drop $100k on a car and not feel it, I think I'm good.

However, I will say: I'd pay for a self-driving car if it was fully legal. I drive 2 hours per day to meetings when working, so 500 hours a year. Let's say on the low end my time is worth $50 an hour. $25,000 a year in opportunity cost saved is definitely worth it for me (I could be working on my business or just watching movies). Something like that justifies spending a $100,000 or whatever it costs on a car.
 

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minivanman

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You know, the more I think about this, the more you may be right. I better go out and buy me an armored van this week. And then, I'm going to have them move the drivers compartment to the middle of the van and drive via a monitor so I can be completely out of harms way. And this way I can also have my helmet on and no one can see me. Damn good idea..... Anyone know where I can get something like this? MUST be a gas saver :)
 

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Vitaly the Winne

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You know, the more I think about this, the more you may be right. I better go out and buy me an armored van this week. And then, I'm going to have them move the drivers compartment to the middle of the van and drive via a monitor so I can be completely out of harms way. And this way I can also have my helmet on and no one can see me. Damn good idea..... Anyone know where I can get something like this? MUST be a gas saver :)
Almost 2MPG, it has to be a gas saver!
 

ElenaStar

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You know, the more I think about this, the more you may be right. I better go out and buy me an armored van this week. And then, I'm going to have them move the drivers compartment to the middle of the van and drive via a monitor so I can be completely out of harms way. And this way I can also have my helmet on and no one can see me. Damn good idea..... Anyone know where I can get something like this? MUST be a gas saver :)
If your consistent sarcasm wasn’t amusing it would be complete crap.
 

Tossek

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Working in the automotive sector, I usually get smiles driving in with 10 year old Hyundai Matrix. It has more scratches than a LP record. But it was fine, I learned driving on this car and my GF as well, so in the end I did not care about any of the damages ^_^ . Maintenance is near zero, I passed technical surveilance test so far without any problems. Just recently the trunk cover on the top falls about. Weired issue, I have to find some glue. :-D
 

GPM

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Please spare 3 minutes to watch this 2 videos comparing a 2008 Ford Ranger - 2 stas EURO NCAP rating and a 2012 Ford Ranger with 5 stars EURO NCAP

2008 Ford Ranger 2012 Ford Ranger

There is a major difference, there is a reason why this rating system and agency exists :)
Holy crap, that 2008 just got destroyed!

I drive a 2010 Acura TL that I paid cash for in 2013 or 2014, for less than half of what it cost new. I have a baby girl who drives around with me all the time. I knew my car had a good safety rating, but I thought I would look up the videos anyways for mine. Makes me glad I drive what I drive! I would be absolutely ruined if something happened to my family due to me driving something that crumples like a tin can.
 

SparksCW

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I agree to a certain degree. There's no point having high finance costs on "boring" fancy motors just so you can "look the part" (been there done that).

However I'm a big car fan who doesn't currently have a "fun" car. I don't go out partying, I don't have lots of holidays or buy lots of things so I'm not going to wait until I'm a multi-millionaire before I buy an exotic car as it means more to me than a bit of metal to show off. There's lots of car meets, events and groups. My young kids love cars too so it'd be nice to take them out and enjoy it.

However, my daily driver is a truck, I sold the Range Rover a few years ago as it was keeping me tied to a job, so I fully get the principle behind it. But as soon as I can justify a fun car I'll be buying one - but by "justify" it I do mean to be in a very decent position. Not going to spend the bulk of my income on a car ever again.

I'm actually contemplating selling the truck and buying a Mini! Cheap to buy, cheap to run, fun & does everything I need as my daily driver.

And to be fair I'm talking about a £50,000 Nissan GTR not a £250,000 Ferrari. That can wait till I'm a millionaire!
 

minivanman

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This is not Myth busters. :-D

I will try a two component high temperature glue.

And no, I do not have this tape at home.
No myth. See that car to the left in my avatar (black & yellow 1BK). We put some duct tape on the top wing one time and it held it together at 140mph for a 25 lap race. Nascar used to use regular duct tape for many years.
 

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ryanbleau

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I drive a 2000 Tahoe with 200k miles on it. I'll drive it into the ground. Wife gets paid mileage and drives a lot for her 9-5 so I bought her a new car, which she will drive into the ground. I paid $2500 for my Tahoe a year and a half ago to replace a 85 s10 blazer with 350k miles on it. Her new Chevy replaced a Hyundai Tucson we had put 150k miles in 6 years. I'd love a new truck or sports car, but I'm not stupid and need my cash to work for me.
 

fishgodeep

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We can all agree with the premise of the article.

- If your goal is financial security than it would be unwise to spend more than you can afford on a vehicle.

But could it be written by a less likeable person? Honestly this lad sounds like he'd be a real treat at a party. Talks about other people's ego problems, describes them as 'Puke'. Then waxes poetically about his amazing Toyota. He sounds like he's trying to convince himself more than the reader.

I've driven bangers now I drive a belter. While I was driving a shitbox I never looked at someone driving a 'Beamer' (that term seems to trigger him) and think I had made a superior choice, this lad is a fool doesn't he know about depreciation etc. I'd think that's a really nice car, then move in with my day.
 

MrChill

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Great timing with this thread. I just bought a used Toyota Prius for $6500 with only 60k miles on it. Cars do not accelerate your wealth curve, but rather throw a monkey wrench in the equation if you lose sight of the goal. Thank you for this reminder! :thumbsup:
 

Richard Espinosa

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Personally I love cars. Sports/Luxury cars in particular. I really don't feel right in a cheap economy car.. I've had them (97 Camry) and while I enjoy the reliability, ultimately I need something that I can enjoy a long night drive with and stand out in. Something that I can be proud of, that I can have fun in, it's more than A to B for me. There's nothing like rowing through gears at night with the top down and engine roaring. Or just cruising in luxury. Driving gives me a lot of enjoyment. Plus I just love cars, and am kinda of an enthusiast for euro/jap cars.

I really don't think it has to cost a fortune to own something fun or decently nice. A little know-how on finding good deals and a slight mechanical inclination goes a long way. 5k can buy me something I'd enjoy driving so much more than a new Camry, etc. for 20k+.

I just bought a 2001 MR2 Spyder 5-
Manual (see pic) for $700. Engine is on it's way out. This is the same engine found in Toyota Corollas and one imported from Japan is only $800 with 40k-50k miles. I'm in the process of installing it now (with help from Google/YouTube). It will be like a brand new car, ready to go for another 200k+ miles. New convertible top $400. Total invested: $1900. It might be older but these cars are real fun, and still look modern. They're true sports cars, engine sits behind you (Mid-engine). Handles like a go kart, lighter than a Miata. Also Toyota Corolla engine = extreme reliability.

For $1900 I get to have a car I want to be seen in, feel good in and enjoy driving. Also when I'm done having fun I can sell it and profit. The car will be worth $5000 easily. A little hustle is all it took to avoid driving an old Toyota econobox that I would dread driving daily and spend the same amount of money on.

In a way I think there's a positive to insist on driving something nicer in that you're setting a standard for yourself. It drives you to reach that standard. You do not allow yourself to live below this standard. Of course it's within reason - would be idiotic to go broke because you insisted upon a 2019 S-Class and couldn't afford it.
20190625_160325.jpg
 
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DavidTT

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I actually own a 300zx which I bought back in October of 2007. Ya it's just a toy and was nothing but a money pit for a few early years but its the only car I have and at this point, it actually retains its value. I don't really need a car since I work downtown and can take public transit. It's paid off a long time ago and doesn't cost me anything to own right now besides basic vehicle registration and insurance. I did think about selling it because I don't NEED it and is one of those material possessions that act like ballast since it needs greater maintenance, indoor parking etc. However, I also would like to think that the reason why I am keeping it also stops me from eyeing other cars since its already pretty quick and a nice drive. If I would have sold it, I would probably be more tempted to look at other nice/fast cars. By keeping it, it gives me the fast/nice car fix.

View attachment 25252

If I would sell it, I don't think I would own a car because I really don't need one. Living downtown and having services such as UBER, Lyft or Car-to-go, a car really isn't a necessity anymore.
@MJ DeMarco
What is your honest opinion on me keeping this car? What would you do at my place? The only logical reason that I can think of with this car (besides it being fun and a money pit) is that it might be worth something down the line and gives me that fix for having/owning something fast while being paid off. It's still much less expensive than leasing a newer car or having a european luxury. I also do my own maintenance on it too and it's super reliable.
 

Seamster

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Scotty Kilmer of Youtube fame is like 70 years old and says he has only spent $7500 on automobiles IN HIS LIFE.

I've had 6 cars in my life:

Below are the Paid/Sold for prices:
500/200
2600/800
3200/2400
2800/3200
1000/1500 (estimated...still driving, 350,000 miles)
800/2000 (estimated....still driving [work truck])
 

SeizedCheese

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I gotta say I'm pretty guilty of this, especially as a car lover. I don't need a car, and I used to have an 07 Jetta that worked just fine (was also unnecessary).

Though I pride myself on being able to say I paid for my BMW in cash (only cost me $7500USD with only 76k miles), as well as about 3000USD in repairs and preventative maintenance I've done to it to make it last another 5-10 years (I hope).

While I wholeheartedly agree that buying cheap cars is great (you don't need to worry about them), there is a grey area. If you can do your own repairs and maintenance on a 10-year-old car of your choice and have some spare time to do it as a hobby, go for it.

I can't say I regret buying this torquey inline-6 coupe with a 6-speed manual transmission. It's a nice balance of quick/agile and handles like it's on rails, especially on KW coilovers. Gotta say it lives up to the "ultimate driving machine" slogan. A true productocracy for BMW in 2009 anyways.

And yeah it's no $3000 beater, but I still paid less for a luxury german car than someone who goes out and buys (or god forbid leases/finances) a brand new base model civic or corolla :D

EDIT: I need to add, I think the majority of flashy car owners get them for the wrong reasons, to flex.
I got this car because I enjoy the feeling of driving it, hell any manual trans car is a blast to bang through gears on.

I think if you separate your identity as a person from the car and push the ego aside, you're good. Don't lease, don't finance, learn how your car works, how to fix it, maintain it and maybe you can create an aftermarket product for it.

And finally, no one likes obnoxiously loud catless straight piped cars. Us sensible and courteous BMW drivers exist.
 
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MJ DeMarco

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@MJ DeMarco
What is your honest opinion on me keeping this car? What would you do at my place? The only logical reason that I can think of with this car (besides it being fun and a money pit) is that it might be worth something down the line and gives me that fix for having/owning something fast while being paid off. It's still much less expensive than leasing a newer car or having a european luxury. I also do my own maintenance on it too and it's super reliable.
From my POV...

If it's a money pit, dump it. Depends on aggregate costs and your financial situation, how often you use it, what it's used for.

If it's reliable and costs little to maintain and impacts little on your budget, I may keep it.

I own an old Toyota truck that runs like a stallion. I keep it because it's reliable and cost very little to keep. It's worth more to me owned than to sell it. But I'm also in a different financial situation.

But to be honest, if I was just starting and in saving/growth mode, I'd sell. Especially if I was getting hit with a parking cost every month. JMO.
 

stephen kageche

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Buying a car is often an ego trip that lands you in debt for years. I have had expensive new cars and after a very short period of time the buzz wears off and you're just left with an expensive monthly bill for little or no pleasure.

Don't get me wrong, a car is fairly essential in this day and age but I encourage my kids to only buy something they can afford and not get hung up keeping up with the Jones's.
I couldn't agree more,a car is essential but if you will have to keep coughing out money to maintain it and you have a business to grow might not be a wise idea.
 

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