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When I first came to the forum, I made a declaration about wanting to buy a Panoz Esparante as a badge of accomplishment for hitting certain milestones.
The gal that manages our office drives a brand new Mercedes. I know more than I would care to know about her finances, and I can tell you that she's in no position to pay for the car that she drives. She's flashy but car poor. A significant percentage of her disposable income goes into her depreciating asset. Actually, it's not even her asset as it is leased. She gets a new one every three years, and at this rate will be paying for it forever. She literally can't afford it, but she does it anyway.
At one point, I had $2,000 in car payments per month excluding insurance and maintenance. I didn't care, because I had the income to support it. Or so I thought... until the economy changed, and my W2 income changed. All the sudden, I didn't have the income to support it. Almost overnight. But I still had the cars and the debt. The lender who was super friendly when I was rolling with money falling out of my pockets wasn't as friendly when the money dried up. Boy, was I proud of those vehicles when I had no money to make the $2,000 in car payments. (?)
Fast forward several years. I now buy cars with cash. I still own the cars that were the subject of the $2,000 noose around my neck. I probably keep them around more as a memory of how NOT to live life. I still remember the calls from the creditors. I still remember not wanting to go to the mail box. I remember the down side of what everyone from the outside never saw. All they saw was me rolling fat in the vehicles they couldn't afford. They didn't know that I couldn't really afford them either.
So today. I bought my approaching adult age kids each a used car. Paid cash. That's it for them. They're on their own (vehicle wise) from there. As I said, I still own the cars that at one point almost took me completely under. They've been paid off for many years. A few of you have ridden in one or two of them.
Look at yourself in the mirror. Who are you trying to impress with your car? I could right now buy that Panoz I dreamed about. I don't need it any more. If cars make you happy, and you have money, buy a car. If you have enough money, buy a Jay Leno fleet of cars.
But... please learn from me. When you are younger and/or you don't have cash, no car is worth the downside if the downside is financial ruin. You can get the car later. If you need a reliable car and financing is the only way to get one, then get something modest so if your world falls in around you, you can still swim. Cars are temporary, and depreciate. Buy used. Pay cash.
In a poorly phrased reiteration of a quote from MJ, be willing to do today what nobody else will do so that you can live some day like nobody else can live. If I could go back and tell my younger self what to do, avoiding unnecessary/voluntary slavery through debt is one correction I could have made to make my life much easier.
End of sermon.
The gal that manages our office drives a brand new Mercedes. I know more than I would care to know about her finances, and I can tell you that she's in no position to pay for the car that she drives. She's flashy but car poor. A significant percentage of her disposable income goes into her depreciating asset. Actually, it's not even her asset as it is leased. She gets a new one every three years, and at this rate will be paying for it forever. She literally can't afford it, but she does it anyway.
At one point, I had $2,000 in car payments per month excluding insurance and maintenance. I didn't care, because I had the income to support it. Or so I thought... until the economy changed, and my W2 income changed. All the sudden, I didn't have the income to support it. Almost overnight. But I still had the cars and the debt. The lender who was super friendly when I was rolling with money falling out of my pockets wasn't as friendly when the money dried up. Boy, was I proud of those vehicles when I had no money to make the $2,000 in car payments. (?)
Fast forward several years. I now buy cars with cash. I still own the cars that were the subject of the $2,000 noose around my neck. I probably keep them around more as a memory of how NOT to live life. I still remember the calls from the creditors. I still remember not wanting to go to the mail box. I remember the down side of what everyone from the outside never saw. All they saw was me rolling fat in the vehicles they couldn't afford. They didn't know that I couldn't really afford them either.
So today. I bought my approaching adult age kids each a used car. Paid cash. That's it for them. They're on their own (vehicle wise) from there. As I said, I still own the cars that at one point almost took me completely under. They've been paid off for many years. A few of you have ridden in one or two of them.
Look at yourself in the mirror. Who are you trying to impress with your car? I could right now buy that Panoz I dreamed about. I don't need it any more. If cars make you happy, and you have money, buy a car. If you have enough money, buy a Jay Leno fleet of cars.
But... please learn from me. When you are younger and/or you don't have cash, no car is worth the downside if the downside is financial ruin. You can get the car later. If you need a reliable car and financing is the only way to get one, then get something modest so if your world falls in around you, you can still swim. Cars are temporary, and depreciate. Buy used. Pay cash.
In a poorly phrased reiteration of a quote from MJ, be willing to do today what nobody else will do so that you can live some day like nobody else can live. If I could go back and tell my younger self what to do, avoiding unnecessary/voluntary slavery through debt is one correction I could have made to make my life much easier.
End of sermon.
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