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When to buy a car?

Anything related to matters of the mind

Kokaka

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Hi all.
I have been thinking of getting a car because I need it for my new business that I started 2 month ago which is in the medical beauty machine industry. So far, business has been great and I have made 200k in turnover and 65k in profit in 2 month from an investment of just 60usd. The thing is, I am a struggling med-student who are used on living on 1.2k a month for the last 3 years so I have no expenses what so ever. I also feel a little bit of hubris creeping up due to the early success and have start to look for more expensive cars.
Now, cars is a bad investment but I need it for my business so it needs to check a few boxes.

Decent transport capacity
Good to drive for over 2 hours
Representative
Can drive on snowy roads

The cheapest one I can get that checks all the boxes cost about 7k.
However, due to Covid, there are alot of cheap Porsche Panameras out there which I can get for 16-17k which is one of my dream cars and it lets me save 2-3k from where it not a Pandemic.
View: https://www.youtube.com/watch?v=EAezax2ugQU


I will lease/get a loan for the cars so the montly expense will be about 65usd for the cheap one and 140usd for the expensive one. And it lets me have more liquidity in the business.
Insurance will be more or less the same for both since I have a great deal through my insurance firm.

I still have a "students mindset" and Im counting every cent and I know its crazy to get the expensive one, but still. Its not that expensive, its on sale, and it might be possible.

So yeah, my question is when is it time to spend a little on yourself when your business has taken off?
I know I will probably not make any sales in about 6 weeks now due to the new vaccine but in spring, I will probably sell like a madman to everyone who has waited to invest in their business.
 
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Last edited:

Strm

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Think long-term. I would get something newer than the Panamera if I'd throw out around 16K. And the old one doesn't look so good, although I like it too. I would be a bit patient and get a newer one later, because you know you are going to do well in the coming years. :smile2:

But if I were you, I'd probably spend around 10-12K, get something decent. And like @Fox said, do your research!
 

Kokaka

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Research maintenance and service costs.

A 30k Porsche is not like a 30k Toyota.
Thanks.
For a, lets say a 5 year old Toyota RAV4 its about 230usd service cost
For the Panamera its 655usd service cost.

Repair cost is on avarage 1200usd for a Porsche and 650usd for other cars a year.

Gas price will be 25% higher.
So lets say I will drive a round trip from my town to the capital, this will be my normal route, maybe once a month first year.
In a RAV4 it will cost 44USD
In Panamera it will cost 56USD

Car payment will be the following per year.
RAV4 1250USD
Panamera 1900usd

So the verdict between the cars will be the following per year (Excluding other costs who will be almost the same, like insurance, parking etc.)

RAV4 - 2650usd
Panamera - 4400usd

Month
RAV4 - 220usd
Panamera - 370usd

So it will cost me about 150usd more per month owning a Panamera than a resonably priced SUV, and the price include 1 avarage repair per year that isnt coverd by the insurance.
Maybe I have missed something because I dont have a driving license yet so I dont have any practical skills in owning or maintaining a car.

Think long-term. I would get something newer than the Panamera if I'd throw out around 16K. And the old one doesn't look so good, although I like it too. I would be a bit patient and get a newer one later, because you know you are going to do well in the coming years. :smile2:

But if I were you, I'd probably spend around 10-12K, get something decent. And like @Fox said, do your research!

The way I see it. The price of the Panameras is at an all time low. First because of the depreciation since its an "ugly" car if you compare it to its rivals. It is also about 10% cheaper now because of the pandemic, and I do believe I can get one for -20% asking price if I call around to some dealers and negotiate.
My idea, if I go with the Panamera is to get it for -20% off the avarage asking price. Own it for 2 years since historicly, the economy will return in about 2 years after a pandemic. Then sell it for +/- 0 and get a newer one.
I dont know if its smart because of my current situation and newly accuired wealth, and I will also try to open a franchise soon, hence the need of both a car and some money, but 150usd/month extra expenses wont break the bank.

So yeah, thats my conundrum. I am used to walking, biking and living on 1.2k so I am used on not spending anything, and now when I have some cash and a business who seems to do quite well, even though its new, I want to finally spend about 10% of the profit on myself, however, I still dont know if buying a fancy car for a bargain price is the best way to do it.
 
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Xeon

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With Uber/Lyft etc, I see buying your own car as an increasingly obsolete thing.
Unless it's to show your worth, then it's a different story (kind of like a watch and a phone.....you don't need a watch to tell the time due to smart phones, but it functions just like a fashion statement).
 

Kokaka

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With Uber/Lyft etc, I see buying your own car as an increasingly obsolete thing.
Unless it's to show your worth, then it's a different story (kind of like a watch and a phone.....you don't need a watch to tell the time due to smart phones, but it functions just like a fashion statement).
I totally agree. However, I need a car to transport machines, products and furniture, that is the only reason I will get one because it will be cheaper than renting a van, travel by train etc.
The reason for the fancy car is just as you say, a fashon statement.
I am however obsessed by good deals because it feels like you have defeated the system, and is the only reason I have theese thoughts in the first place.
 

fridge

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I have a 2004 toyota matrix with 105k miles, put 15k on it the past year. No problems besides maintenance. Of course it's a POS and has tons of road noise on the highway, and isn't exactly a ladies magnet, but it gets the job done, on top of that I pay maybe $10 a month for liability. Look into a well maintained lexus (toyota makes lexus) which is even more reliable than base toyotas. You can get a decent lexus for 5k-7k private party, these cars are excellent in reliability and they're also decently good looking. If you need something more fuel efficient then skip lexus because in that price range it's all going to be v6 engines.
 
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Ing

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I would get the Panamera!

Why?:
- for me the old Panamera is one of the coolest cars available.
-Porsches are Quality cars. They are better than others. Italians ar a bit tinker cars. American cars seem allways a bit not finished. Japan cars are quite perfect but not for many km. Porsche doesn t give out crap. (Sorry for that opinion).

I don’t think all in all you spend more money driving the Panamera.
 

Kokaka

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I would get the Panamera!

Why?:
- for me the old Panamera is one of the coolest cars available.
-Porsches are Quality cars. They are better than others. Italians ar a bit tinker cars. American cars seem allways a bit not finished. Japan cars are quite perfect but not for many km. Porsche doesn t give out crap. (Sorry for that opinion).

I don’t think all in all you spend more money driving the Panamera.
Yes Porsche make super well built cars and the way I see it, a 2012 Porsche is in better condition today than a 2015 "other brand". The absolut dream car though is the Masserati Quattroporte but it is lesser built than the Panamera so the yearly cost is just through the roof.

But why I hesitate is I dont want to fall into the the trap of newly aquired money. The trap is when you get money, your expenses increases so you need to work more to maintain your standard. I have only been in business for 2 month after being pretty much broke so I dont want to fall into this trap. I do believe I this is just the beginning since I dont even have a webpage yet, just some ads. And when the pandmic is over and I can market my products for real, the sales should maintain as it is or increase.
 

Kokaka

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I have a 2004 toyota matrix with 105k miles, put 15k on it the past year. No problems besides maintenance. Of course it's a POS and has tons of road noise on the highway, and isn't exactly a ladies magnet, but it gets the job done, on top of that I pay maybe $10 a month for liability. Look into a well maintained lexus (toyota makes lexus) which is even more reliable than base toyotas. You can get a decent lexus for 5k-7k private party, these cars are excellent in reliability and they're also decently good looking. If you need something more fuel efficient then skip lexus because in that price range it's all going to be v6 engines.
Thanks. I will look into Lexuses. Found some really nice SUV's from them who seems well build and looks quite nice :)
 
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Captain Hoodie

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However, due to Covid, there are alot of cheap Porsche Panameras out there which I can get for 16-17k which is one of my dream cars and it lets me save 2-3k from where it not a Pandemic.
Proceeds to go down an autotrader rabit hole....
 

Ing

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Yes Porsche make super well built cars and the way I see it, a 2012 Porsche is in better condition today than a 2015 "other brand". The absolut dream car though is the Masserati Quattroporte but it is lesser built than the Panamera so the yearly cost is just through the roof.

But why I hesitate is I dont want to fall into the the trap of newly aquired money. The trap is when you get money, your expenses increases so you need to work more to maintain your standard. I have only been in business for 2 month after being pretty much broke so I dont want to fall into this trap. I do believe I this is just the beginning since I dont even have a webpage yet, just some ads. And when the pandmic is over and I can market my products for real, the sales should maintain as it is or increase.
With that you have answered your question yourself!
You have a car now, i think you don’t go by foot!
So drive your car proudly for another year and feed your business with tHat money!
No real customer will not buy anything because of your car!
 

Kokaka

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With that you have answered your question yourself!
You have a car now, i think you don’t go by foot!
So drive your car proudly for another year and feed your business with tHat money!
No real customer will not buy anything because of your car!
Actually, I dont have a drivers licence, less a car. I go by foot, bike and buss.
Its just that I like deals with tons of value. The Panamera has just lots of value.
However, Im not sure if its a smart Idea spending 150usd extra per month for something that dosent create value.
I do need a car however, and a license.
 
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Kevin88660

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With Uber/Lyft etc, I see buying your own car as an increasingly obsolete thing.
Unless it's to show your worth, then it's a different story (kind of like a watch and a phone.....you don't need a watch to tell the time due to smart phones, but it functions just like a fashion statement).
The math absolutely works against car ownership in Singapore.

Certificate of entitlement tax, parking fee, depreciation cost, insurance, maintenance and road tax.

Grab will cost less than 50 percent even if you are on the road everyday for several trips.

This is not even factoring the attention spans used on driving while I could seep on Grab-priceless.
 

Kak

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It depends on where you live...

I'd spend $100+ per day on Ubers if I didn't own a car. I'd also waste a lot of time waiting around for them.

For that kind of money, I could buy a limo and a driver.

In the exurbs of Houston, you absolutely need a car. On the other hand, DC is a perfect example of not needing a car and if you did have one, a driver is a must. I used to get a rental car every time I traveled. In DC, a car is a burden of epic proportions and almost useless.

A car feels like freedom to me, I like to explore. I like to be at my own mercy. I couldn't imagine not owning one.
 

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