Bogleheads with $100K+ MSRP cars?

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HardHitter
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Bogleheads with $100K+ MSRP cars?

Post by HardHitter » Sun Feb 18, 2018 9:56 am

I'd be interested to see who in this group owns a car with a MSRP of $100K or greater. We preach living below our means, but from some of these car threads, I see plenty of people driving very nice cars! What is the car and why did you buy it?

I'll start, I bought a 2007 Porsche 911 Turbo, MSRP on the build with the options I have is $145K. It's actually for sale now, but only because I'm looking to get into the 991 Turbo generation. This was my first Porsche and I am now hooked!

Riztime
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Re: Bogleheads with $100K+ MSRP cars?

Post by Riztime » Sun Feb 18, 2018 10:17 am

We do. I have a Tesla Model X and my wife has a Tesla Model S. We still save 20% for retirement. Dual income physician household helps. YOLO...

NYCguy
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Re: Bogleheads with $100K+ MSRP cars?

Post by NYCguy » Sun Feb 18, 2018 10:39 am

HardHitter wrote:
Sun Feb 18, 2018 9:56 am
I'd be interested to see who in this group owns a car with a MSRP of $100K or greater. We preach living below our means, but from some of these car threads, I see plenty of people driving very nice cars! What is the car and why did you buy it?

I'll start, I bought a 2007 Porsche 911 Turbo, MSRP on the build with the options I have is $145K. It's actually for sale now, but only because I'm looking to get into the 991 Turbo generation. This was my first Porsche and I am now hooked!
You, my friend, have taken a very dangerous drug and so have I.

My gateway taste was a fully loaded Cayenne family hauler. Its MSRP was just under your threshold. A year later I purchased a fully loaded 911 TTS.

I LOVE both vehicles.

I did not allow myself these tastes until I thought I could easily afford them. Paid for houses, college savings complete, 8 figure net worth, steady 7 figure income and always investing 50%+ of income.

Transforming from someone who has been frugal to enjoying my financial success has been my journey.

There is no question that owning nice cars is a significant drag on one’s financial health. As someone who (I think) can afford nice cars, I do not highly recommend it if financial independence is a primary goal that has not yet been achieved.

Proceed with caution and enjoy.
If your out-go is greater than your income, your upkeep will be your DOWNFALL.

ssquared87
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Re: Bogleheads with $100K+ MSRP cars?

Post by ssquared87 » Sun Feb 18, 2018 12:06 pm

NYCguy wrote:
Sun Feb 18, 2018 10:39 am
HardHitter wrote:
Sun Feb 18, 2018 9:56 am
I'd be interested to see who in this group owns a car with a MSRP of $100K or greater. We preach living below our means, but from some of these car threads, I see plenty of people driving very nice cars! What is the car and why did you buy it?

I'll start, I bought a 2007 Porsche 911 Turbo, MSRP on the build with the options I have is $145K. It's actually for sale now, but only because I'm looking to get into the 991 Turbo generation. This was my first Porsche and I am now hooked!
You, my friend, have taken a very dangerous drug and so have I.

My gateway taste was a fully loaded Cayenne family hauler. Its MSRP was just under your threshold. A year later I purchased a fully loaded 911 TTS.

I LOVE both vehicles.

I did not allow myself these tastes until I thought I could easily afford them. Paid for houses, college savings complete, 8 figure net worth, steady 7 figure income and always investing 50%+ of income.

Transforming from someone who has been frugal to enjoying my financial success has been my journey.

There is no question that owning nice cars is a significant drag on one’s financial health. As someone who (I think) can afford nice cars, I do not highly recommend it if financial independence is a primary goal that has not yet been achieved.

Proceed with caution and enjoy.
It sounds like you have a very healthy financial situation and having a little bit of fun won't hurt as long as you don't go overboard with it. You have two amazing cars, so enjoy them and enjoy the hobby! As bogleheads I think we sometimes worry too much because we try to minimize costs and be super conservative, but we all have some sort of indulgence that makes us happy, and ultimately there's no point in saving all this money if we can't have some fun sometimes.

I think a lot of people are afraid of the costs associated with performance cars etc...but there are cheap ways to get into the hobby. A MX-5 or BRZ is within reach for most people on this forum and will put a smile on anyone's face. Also a nice way to build up your skill set until your financial position is one which affords you the luxury of something like a 911 which requires far more skill to drive properly than many other vehicles.

mhalley
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Re: Bogleheads with $100K+ MSRP cars?

Post by mhalley » Sun Feb 18, 2018 12:23 pm

I would get one, but the temptation to shoot it into space would be impossible to resist.

https://www.theverge.com/2018/2/17/1701 ... lcon-heavy

HardHitter
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Re: Bogleheads with $100K+ MSRP cars?

Post by HardHitter » Sun Feb 18, 2018 12:24 pm

ssquared87 wrote:
Sun Feb 18, 2018 12:06 pm
NYCguy wrote:
Sun Feb 18, 2018 10:39 am
HardHitter wrote:
Sun Feb 18, 2018 9:56 am
I'd be interested to see who in this group owns a car with a MSRP of $100K or greater. We preach living below our means, but from some of these car threads, I see plenty of people driving very nice cars! What is the car and why did you buy it?

I'll start, I bought a 2007 Porsche 911 Turbo, MSRP on the build with the options I have is $145K. It's actually for sale now, but only because I'm looking to get into the 991 Turbo generation. This was my first Porsche and I am now hooked!
You, my friend, have taken a very dangerous drug and so have I.

My gateway taste was a fully loaded Cayenne family hauler. Its MSRP was just under your threshold. A year later I purchased a fully loaded 911 TTS.

I LOVE both vehicles.

I did not allow myself these tastes until I thought I could easily afford them. Paid for houses, college savings complete, 8 figure net worth, steady 7 figure income and always investing 50%+ of income.

Transforming from someone who has been frugal to enjoying my financial success has been my journey.

There is no question that owning nice cars is a significant drag on one’s financial health. As someone who (I think) can afford nice cars, I do not highly recommend it if financial independence is a primary goal that has not yet been achieved.

Proceed with caution and enjoy.
It sounds like you have a very healthy financial situation and having a little bit of fun won't hurt as long as you don't go overboard with it. You have two amazing cars, so enjoy them and enjoy the hobby! As bogleheads I think we sometimes worry too much because we try to minimize costs and be super conservative, but we all have some sort of indulgence that makes us happy, and ultimately there's no point in saving all this money if we can't have some fun sometimes.

I think a lot of people are afraid of the costs associated with performance cars etc...but there are cheap ways to get into the hobby. A MX-5 or BRZ is within reach for most people on this forum and will put a smile on anyone's face. Also a nice way to build up your skill set until your financial position is one which affords you the luxury of something like a 911 which requires far more skill to drive properly than many other vehicles.
Funny you mention the Miata because I owned a 2000 Miata a while back. Even though it is the lowest HP car, it was the most fun I've had in a car because you just didn't care (parts are cheap if something broke) and it didn't have the power to really get you in trouble.

One point you made about building up your skill set, is sadly being taken away. There is now so much technology in these cars that they can make anyone fast. For example, before my Turbo, I had a 97 Viper GTS. Give that car to someone without experienced driving skills and they will wrap that car around a pole in the first turn. Literally just a huge motor in a chassis. No ABS, no traction control, nothing to save you but your foot and two hands.

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Re: Bogleheads with $100K+ MSRP cars?

Post by runner3081 » Sun Feb 18, 2018 12:38 pm

ssquared87 wrote:
Sun Feb 18, 2018 12:00 pm
Buster65 wrote:
Sun Feb 18, 2018 11:36 am
I'm closing in on eight figure net worth and wouldn't dream of buying a $100,000 car when a $30K car can get me to the same place. Totally stupid but to each is own.
You've probably never driven anything fun before then.
Or, he has no interest in cars. Of course, the response wasn't really needed. Just a condescending humble brag on his side!

I know some people who have road or mountain bikes worth more than their cars. Money is still spent, just on something more interesting to them :)

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TomatoTomahto
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Re: Bogleheads with $100K+ MSRP cars?

Post by TomatoTomahto » Sun Feb 18, 2018 1:20 pm

We have two such cars: a supercharged Range Rover and a Tesla Model X. Not having these cars would not decrease income inequality, just consumption inequality. It could be argued that we keep the economy humming.

It should be noted that my sum total wardrobe is < $2k, possibly less than $1k. My wife has to have work clothes, so she is higher.

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Re: Bogleheads with $100K+ MSRP cars?

Post by Dottie57 » Sun Feb 18, 2018 1:41 pm

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squirm
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Re: Bogleheads with $100K+ MSRP cars?

Post by squirm » Sun Feb 18, 2018 1:42 pm

we like Tesla's. Was going to get the S but decided our money is better spent buying bank notes. But we like Tesla's because they represent a clean future of no fossil fuel proposition. Hope Tesla continues to thrive.

we shop at thrift stores, my wife only wears used clothes and proud of it. I look homeless when I'm not in my work clothes. we only spend real money on vacations to be with each other and education.
Last edited by squirm on Sun Feb 18, 2018 1:48 pm, edited 1 time in total.

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Re: Bogleheads with $100K+ MSRP cars?

Post by TomatoTomahto » Sun Feb 18, 2018 1:45 pm

squirm wrote:
Sun Feb 18, 2018 1:42 pm
we like Tesla's. Was going to get the S but decided our money is better spent buying bank notes. But we like Tesla's because they represent a clean future of no fossil fuel proposition. Hope Tesla continues to thrive.
We are buying a house, next week, that has a solar farm that will be charging my Tesla. It still doesn't make up for my wife's Range Rover, but I'm working on her :D

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eye.surgeon
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Re: Bogleheads with $100K+ MSRP cars?

Post by eye.surgeon » Sun Feb 18, 2018 2:04 pm

I have two, a Tesla and a Range Rover. My justification is I spend less on cars as a % of my income than 95% of Americans who own cars.
Last edited by eye.surgeon on Sun Feb 18, 2018 2:31 pm, edited 1 time in total.
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Re: Bogleheads with $100K+ MSRP cars?

Post by neilpilot » Sun Feb 18, 2018 2:13 pm

eye.surgeon wrote:
Sun Feb 18, 2018 2:04 pm
I have two, a Tesla and a Range Rover. My justification is I spend less on cars as a % of my income than 95% of Americans.
So let's test the logic of your statement. It's generally accepted that 95% of Americans (in the USA) own cars. By your statement, you "spend less on cars as a % of my income than 95% of Americans".

Since about 5% of Americans don't own a car, you spend a hire % of your income than that 5%

Therefore, you say that you spend less as a % of your income than essentially all other Americans on your car. I very much doubt that's the case.

But the real question is why do you need to justify your excess?

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Re: Bogleheads with $100K+ MSRP cars?

Post by TimeMan » Sun Feb 18, 2018 2:32 pm

I have a Porsche 991 GT3. I bought it 2 years old with 2k miles, but it was only about $5k below MSRP. Prices have dropped ~10-15% since the new 991.2 came out though.

It's an incredible addiction. Before my winfall I bought a new 2011 Challenger, first new car I've ever bought for myself (at 35yo). I thought it would be enough power as I'd never had anything that fast. 9 months later I end up dumping 2x the MSRP into modifications to get it to around 800 crank HP.

After driving the GT3 for a year, I refuse to sell the Challenger as I'd take an enormous loss, but it feels like driving a brick even with all that power. It's now my rainy day car.

I feel like the GT3 has spoiled me. I want other, more expensive exotics (Mclaren, Lambo), but I know none of them will drive like this, so I'm content. Plus I stay active in the car scene here and get plenty of time to drool and live vicariously.

Yes I paid cash for a car that cost over 50% more than my first house who's note I struggled to pay just 13 years prior. However it was a gift to myself after 15 years of the start-up life, long hours and high stress.

Was it a wise financial decision? Hell no. Do I regret it? Hell no.

I still manage to put away 35% of my income into 401k and post-tax, and while I cannot quit working, I'm doing exceptional for my age and education. If I weren't doing that, different story all together though.

I figure by the time I'm 60 I likely won't be able to get in and out of one of these cars, so might as well enjoy it while I'm physically able to. Bad backs come from both sides of my family!

This is not to brag, just making a point that there's a LOT of different scenarios in the Boglehead group. Everyone has their justifications for their decisions. So long as you are being responsible with your savings rate, go for it.

For instance, I had spec'ed a 991.2 Turbo S and placed it on order. When I looked at the depreciation on those, I backed out and bought the used GT3 instead. The GT3s do depreciate, but not NEAR what a new Lambo or Turbo S does in the first few years, even with a new model released. THAT to me was not justifiable. To others it is.

Enjoy life at your own risk level :)
Last edited by TimeMan on Sun Feb 18, 2018 2:46 pm, edited 3 times in total.

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eye.surgeon
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Re: Bogleheads with $100K+ MSRP cars?

Post by eye.surgeon » Sun Feb 18, 2018 2:33 pm

neilpilot wrote:
Sun Feb 18, 2018 2:13 pm
eye.surgeon wrote:
Sun Feb 18, 2018 2:04 pm
I have two, a Tesla and a Range Rover. My justification is I spend less on cars as a % of my income than 95% of Americans.
But the real question is why do you need to justify your excess?
Don't you own an airplane as a hobby? :beer
"I would rather be certain of a good return than hopeful of a great one" | Warren Buffett

amitb00
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Re: Bogleheads with $100K+ MSRP cars?

Post by amitb00 » Sun Feb 18, 2018 3:07 pm

Own Tesla Model S and enjoy driving it.

NYCguy
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Re: Bogleheads with $100K+ MSRP cars?

Post by NYCguy » Sun Feb 18, 2018 3:13 pm

TimeMan wrote:
Sun Feb 18, 2018 2:32 pm
I have a Porsche 991 GT3. I bought it 2 years old with 2k miles, but it was only about $5k below MSRP. Prices have dropped ~10-15% since the new 991.2 came out though.

It's an incredible addiction. Before my winfall I bought a new 2011 Challenger, first new car I've ever bought for myself (at 35yo). I thought it would be enough power as I'd never had anything that fast. 9 months later I end up dumping 2x the MSRP into modifications to get it to around 800 crank HP.

After driving the GT3 for a year, I refuse to sell the Challenger as I'd take an enormous loss, but it feels like driving a brick even with all that power. It's now my rainy day car.

I feel like the GT3 has spoiled me. I want other, more expensive exotics (Mclaren, Lambo), but I know none of them will drive like this, so I'm content. Plus I stay active in the car scene here and get plenty of time to drool and live vicariously.

Yes I paid cash for a car that cost over 50% more than my first house who's note I struggled to pay just 13 years prior. However it was a gift to myself after 15 years of the start-up life, long hours and high stress.

Was it a wise financial decision? Hell no. Do I regret it? Hell no.

I still manage to put away 35% of my income into 401k and post-tax, and while I cannot quit working, I'm doing exceptional for my age and education. If I weren't doing that, different story all together though.

I figure by the time I'm 60 I likely won't be able to get in and out of one of these cars, so might as well enjoy it while I'm physically able to. Bad backs come from both sides of my family!

This is not to brag, just making a point that there's a LOT of different scenarios in the Boglehead group. Everyone has their justifications for their decisions. So long as you are being responsible with your savings rate, go for it.

For instance, I had spec'ed a 991.2 Turbo S and placed it on order. When I looked at the depreciation on those, I backed out and bought the used GT3 instead. The GT3s do depreciate, but not NEAR what a new Lambo or Turbo S does in the first few years, even with a new model released. THAT to me was not justifiable. To others it is.

Enjoy life at your own risk level :)
Congrats and nice. I’m guessing kids are not in your scene.

Ps. The new GT3 is really slick. You are right that you will not find a better high-performance daily driver. Stunning cars.
If your out-go is greater than your income, your upkeep will be your DOWNFALL.

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Re: Bogleheads with $100K+ MSRP cars?

Post by Sandtrap » Sun Feb 18, 2018 3:13 pm

I used to have a backhoe that was almost that much, and an excavator that was pretty pricey.
They are a blast to "drive" but go very very slow.
j :D

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Re: Bogleheads with $100K+ MSRP cars?

Post by darrvao777 » Sun Feb 18, 2018 3:21 pm

Mercedes g wagon

neilpilot
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Re: Bogleheads with $100K+ MSRP cars?

Post by neilpilot » Sun Feb 18, 2018 3:34 pm

eye.surgeon wrote:
Sun Feb 18, 2018 2:33 pm
neilpilot wrote:
Sun Feb 18, 2018 2:13 pm
eye.surgeon wrote:
Sun Feb 18, 2018 2:04 pm
I have two, a Tesla and a Range Rover. My justification is I spend less on cars as a % of my income than 95% of Americans.
But the real question is why do you need to justify your excess?
Don't you own an airplane as a hobby? :beer
Yes, but as much for transportation than as a hobby. I bought my airplane for way less than either of your cars; and I don't try to justify it based on my resources. Using your logic, I can honestly say that I paid less for my airplane than 95% of Americans.

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Re: Bogleheads with $100K+ MSRP cars?

Post by TheEternalVortex » Sun Feb 18, 2018 3:40 pm

To put it in perspective, a $100k car costs about the same as just using ridesharing (Lyft/Uber) for all travel.

TimeMan
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Re: Bogleheads with $100K+ MSRP cars?

Post by TimeMan » Sun Feb 18, 2018 3:45 pm

NYCguy wrote:
Sun Feb 18, 2018 3:13 pm

Congrats and nice. I’m guessing kids are not in your scene.

Ps. The new GT3 is really slick. You are right that you will not find a better high-performance daily driver. Stunning cars.
I have kids but they are teens. Only one co-pilot at a time! If I need to take more than one it's in the Challenger or the wife's Explorer.

My wife and daughter picked Porsche over the new R8 or Huracan, my son is still upset I didn't go for the Huracan. Maybe in 5-10 years when the Performante is "affordable".

My wife actually suggested I upgrade to the new GT3 but considering the higher MSRP and the market adjustment, I'm super happy with my "old" 2015! :)

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Re: Bogleheads with $100K+ MSRP cars?

Post by daveydoo » Sun Feb 18, 2018 3:54 pm

BH is an investment philosophy. It is not a complete lifestyle, right?

I totally get owning an MX-5 and I totally get owning a 911. And I totally get not spending six figures just to have slightly softer leather under you or a headliner with actual "stars" made from individual LEDs (that's you, RR). If you earn seven figures with an eight-figure NW, who could criticize?

I expected this thread to touch more on the "MSRP" angle. You can buy almost any $100K car at the three-year point for ~ $50K. (I know Porsche and some others flatten out pretty fast on the depreciation curve though.) I can't touch a $100K car new, but I've test-driven a handful that have been 3 - 6 years old. They're still pretty sweet -- assuming that it's performance you're chasing and not smart-phone integration and hands-free driving, etc.
"I mean, it's one banana, Michael...what could it cost? Ten dollars?"

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Re: Bogleheads with $100K+ MSRP cars?

Post by bhsince87 » Sun Feb 18, 2018 3:57 pm

I never broke the $100k barrier on one car, but I was on the path. So I can understand those who do, and I don't begrudge them one bit.

I was a "BMW guy". Bought my first one used just a few months out of college. And then I was on the proverbial "hedonistic treadmill".

I ran them on the track on the weekends, really enjoyed it, but always wanted more power, better handling, etc.

Somewhere around age 40, I was about to spend $75k on one, and it donned on me that for the same amount, I could buy a nice convertible for summer, a 4X4 for winter, AND have enough left over for a used RV. So that's what I did. Gave me a lot more options for weekend fun!

Eventually, I realized that by investing more money instead, I could eventually retire 4-5-10 years earlier than I had originally planned. It was like buying weekends of fun permanently!

So I became an "Ex-car guy". I still go to car shows and races and such, and will occasionally rent something hot for the weekend. And thankfully, that's been enough to scratch the itch for me.
BH87

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Re: Bogleheads with $100K+ MSRP cars?

Post by LadyGeek » Sun Feb 18, 2018 3:57 pm

I removed some off-topic comments and replies. As a reminder, see: General Etiquette
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Re: Bogleheads with $100K+ MSRP cars?

Post by daveydoo » Sun Feb 18, 2018 4:00 pm

neilpilot wrote:
Sun Feb 18, 2018 3:34 pm
... and I don't try to justify it based on my resources...
But that's the most often-used justification on this forum. We all do things that we might not have done when we had less money. Years ago, replacing more than one tire at a time seemed like a laughable indulgence to me. If a tire still holds air -- what's the problem? I'm not so constrained now.
"I mean, it's one banana, Michael...what could it cost? Ten dollars?"

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Re: Bogleheads with $100K+ MSRP cars?

Post by NYCguy » Sun Feb 18, 2018 4:02 pm

TimeMan wrote:
Sun Feb 18, 2018 3:45 pm
NYCguy wrote:
Sun Feb 18, 2018 3:13 pm

My wife actually suggested I upgrade to the new GT3 but considering the higher MSRP and the market adjustment, I'm super happy with my "old" 2015! :)
Your wife is a keeper. :D
If your out-go is greater than your income, your upkeep will be your DOWNFALL.

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Re: Bogleheads with $100K+ MSRP cars?

Post by PFInterest » Sun Feb 18, 2018 4:04 pm

I would love a Tesla but don't know if I will ever pull trigger on that much :moneybag . We'll see what the future holds....
We are also keeping our saving at about 40% which I value more right now.

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Re: Bogleheads with $100K+ MSRP cars?

Post by TimeMan » Sun Feb 18, 2018 4:06 pm

daveydoo wrote:
Sun Feb 18, 2018 4:00 pm
neilpilot wrote:
Sun Feb 18, 2018 3:34 pm
... and I don't try to justify it based on my resources...
But that's the most often-used justification on this forum. We all do things that we might not have done when we had less money. Years ago, replacing more than one tire at a time seemed like a laughable indulgence to me. If a tire still holds air -- what's the problem? I'm not so constrained now.
Tell me about it. I just got a bolt (yes a bolt, not a screw or nail) in one of my GT3 tires last month. They took over a week to get delivered.

Rather than have one new and one old on the rear, I bought 2 new ones and put the 7k mile tire in the garage as a "spare".

Michelin Sport Cup 2's aren't cheap...For a set of 4 you might be able to buy a "cash car".

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Re: Bogleheads with $100K+ MSRP cars?

Post by TimeMan » Sun Feb 18, 2018 4:08 pm

NYCguy wrote:
Sun Feb 18, 2018 4:02 pm
TimeMan wrote:
Sun Feb 18, 2018 3:45 pm
NYCguy wrote:
Sun Feb 18, 2018 3:13 pm

My wife actually suggested I upgrade to the new GT3 but considering the higher MSRP and the market adjustment, I'm super happy with my "old" 2015! :)
Your wife is a keeper. :D
She is! I think she knew I'm too tight to do that though, but it's the thought that counts :)

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Re: Bogleheads with $100K+ MSRP cars?

Post by gator15 » Sun Feb 18, 2018 4:08 pm

I love these type of threads. Gives me ideas of cars to purchase if I ever get back in the performance car scene. I went to a Porsche and Mclaren dealership yesterday and saw a Porsche Turbo S in a turquoise color. It was stunning. Also saw several GT3’s. Stood there for several minutes drooling. Despite my love for performance vehicles I will stand on the sideline and appreciate everyone else’s vehicles. I’ve found just as much joy in looking at these cars opposed to owning them because of the luck I’ve had with them in the past.

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Re: Bogleheads with $100K+ MSRP cars?

Post by gator15 » Sun Feb 18, 2018 4:08 pm

I love these type of threads. Gives me ideas of cars to purchase if I ever get back in the performance car scene. I went to a Porsche and Mclaren dealership yesterday and saw a Porsche Turbo S in a turquoise color. It was stunning. Also saw several GT3’s. Stood there for several minutes drooling. Despite my love for performance vehicles I will stand on the sideline and appreciate everyone else’s vehicles. I’ve found just as much joy in looking at these cars opposed to owning them because of the luck I’ve had with them in the past.

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Re: Bogleheads with $100K+ MSRP cars?

Post by TimeMan » Sun Feb 18, 2018 4:12 pm

gator15 wrote:
Sun Feb 18, 2018 4:08 pm
I love these type of threads. Gives me ideas of cars to purchase if I ever get back in the performance car scene. I went to a Porsche and Mclaren dealership yesterday and saw a Porsche Turbo S in a turquoise color. It was stunning. Also saw several GT3’s. Stood there for several minutes drooling. Despite my love for performance vehicles I will stand on the sideline and appreciate everyone else’s vehicles. I’ve found just as much joy in looking at these cars opposed to owning them because of the luck I’ve had with them in the past.
Find a Coffee and Cars event near you, lots to drool over.

I'm in DFW and there's a brand new Bugatti Chicharon in town. First one in Texas. That's a lot of fun to look at. Couldn't imagine owning something like that. Honestly surprised he lets people mouth-breath on it.

There's another owners group here I've been going to and the people are super nice. I sat in the new Mclaren 720S a few days ago. If I asked nicely I'd probably get at least a ride.

I will say, the group is full of single guys, 30-50. My wife pointed out the lack of rings to me, I was oblivious. No wonder they have the funds for the cars they have!
Last edited by TimeMan on Sun Feb 18, 2018 4:42 pm, edited 1 time in total.

investor997
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Re: Bogleheads with $100K+ MSRP cars?

Post by investor997 » Sun Feb 18, 2018 4:18 pm

I have a 2010 911 Carrera S (997.2). Original MSRP was $105K. Bought it in 2014 for $60K. Can't see buying any of these things new. I'm happy to let someone more "fortunate" than I to suffer the worst part of the depreciation curve.

Deltaflaze
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Re: Bogleheads with $100K+ MSRP cars?

Post by Deltaflaze » Sun Feb 18, 2018 4:27 pm

Have a Tesla Model S. Single guy, Nurse Practitioner. But the Tesla actually was only 84k minus 7.5k tax credit. So 76k. The fact that I live in an apartment building which doesn't charge me for the electricity means I don't have to pay for the electric "gas" bill. Planning to keep it for 10 years or so (already had it for 3 years now and driven 50,000 miles).

So while yes it's an expensive car, it's changed my perspective on how important it is to include the cost of "gas" into the purchase price of an electric vehicle.

Also - YOLO. It's what gives me happiness. I cut back in other areas and still save 25% for retirement.

TimeMan
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Re: Bogleheads with $100K+ MSRP cars?

Post by TimeMan » Sun Feb 18, 2018 4:39 pm

Deltaflaze wrote:
Sun Feb 18, 2018 4:27 pm
Have a Tesla Model S. Single guy, Nurse Practitioner. But the Tesla actually was only 84k minus 7.5k tax credit. So 76k. The fact that I live in an apartment building which doesn't charge me for the electricity means I don't have to pay for the electric "gas" bill. Planning to keep it for 10 years or so (already had it for 3 years now and driven 50,000 miles).

So while yes it's an expensive car, it's changed my perspective on how important it is to include the cost of "gas" into the purchase price of an electric vehicle.

Also - YOLO. It's what gives me happiness. I cut back in other areas and still save 25% for retirement.
That's a lot of miles. Approx 2k gallons of gas (at 25mpg), approx $2.50 for premium for a luxury car, $5k in gas savings. Divided by 3, ~$1,600 per year.

Smile factor is exponential though when you are saving well above the minimum let alone the average ;)

My 2011 has 48k miles on it (24k on the built engine)...I've had short commutes.

sport
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Re: Bogleheads with $100K+ MSRP cars?

Post by sport » Sun Feb 18, 2018 4:54 pm

Reading this thread shows me how times have changed. My first car was a performance car. It was a new SS396. It set me back $2600 out the door price. I guess I'm showing my age. :)

TimeMan
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Re: Bogleheads with $100K+ MSRP cars?

Post by TimeMan » Sun Feb 18, 2018 5:04 pm

sport wrote:
Sun Feb 18, 2018 4:54 pm
Reading this thread shows me how times have changed. My first car was a performance car. It was a new SS396. It set me back $2600 out the door price. I guess I'm showing my age. :)
LOL Engineering has come a long way grandpa! I laugh because I blame my father for my need for speed. He used to drag race my grandma's brand new 64 SS Impala as a teenager.

Like I said, my muscle car, for all it's improvements over the last 50 years, is still a brick shaped boat compared to my Porsche!

HardHitter
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Re: Bogleheads with $100K+ MSRP cars?

Post by HardHitter » Sun Feb 18, 2018 6:38 pm

TimeMan wrote:
Sun Feb 18, 2018 2:32 pm
I have a Porsche 991 GT3. I bought it 2 years old with 2k miles, but it was only about $5k below MSRP. Prices have dropped ~10-15% since the new 991.2 came out though.

It's an incredible addiction. Before my winfall I bought a new 2011 Challenger, first new car I've ever bought for myself (at 35yo). I thought it would be enough power as I'd never had anything that fast. 9 months later I end up dumping 2x the MSRP into modifications to get it to around 800 crank HP.

After driving the GT3 for a year, I refuse to sell the Challenger as I'd take an enormous loss, but it feels like driving a brick even with all that power. It's now my rainy day car.

I feel like the GT3 has spoiled me. I want other, more expensive exotics (Mclaren, Lambo), but I know none of them will drive like this, so I'm content. Plus I stay active in the car scene here and get plenty of time to drool and live vicariously.

Yes I paid cash for a car that cost over 50% more than my first house who's note I struggled to pay just 13 years prior. However it was a gift to myself after 15 years of the start-up life, long hours and high stress.

Was it a wise financial decision? Hell no. Do I regret it? Hell no.

I still manage to put away 35% of my income into 401k and post-tax, and while I cannot quit working, I'm doing exceptional for my age and education. If I weren't doing that, different story all together though.

I figure by the time I'm 60 I likely won't be able to get in and out of one of these cars, so might as well enjoy it while I'm physically able to. Bad backs come from both sides of my family!

This is not to brag, just making a point that there's a LOT of different scenarios in the Boglehead group. Everyone has their justifications for their decisions. So long as you are being responsible with your savings rate, go for it.

For instance, I had spec'ed a 991.2 Turbo S and placed it on order. When I looked at the depreciation on those, I backed out and bought the used GT3 instead. The GT3s do depreciate, but not NEAR what a new Lambo or Turbo S does in the first few years, even with a new model released. THAT to me was not justifiable. To others it is.

Enjoy life at your own risk level :)
Congrats on the GT3. If I end up selling my 997.1 Turbo, I'm considering a 991.1 Turbo (would love 991.2 Turbo but don't know if its worth the extra cost for a slight jump in power). I'm also considering an R8 V10 Plus and if I can, look into a Mclaren 570S. Out of all the reviews I've seen between the three cars, the Porsche still excels over them all. The R8 and Mclaren has more "flashy" styling if that's what you want though. The Porsche, like mine, flies under the radar as if it just any other Porsche.

You mentioned you paid cash. So you paid it all up front or you financed that?

To everyone else's point, out of the 15-20 cars I've bought in my 30ish years, I've only bought 2 brand new off the dealership. Let the other people take the depreciation hit. That allows me to buy a car, enjoy my time with it and then move on to something else without losing much money (take example the story about the guys Charger hit).

As mentioned below, my Porsche is a $145K MSRP car, but I bought it for less than half that. Sure its a 10 year old car, but it still holds its own and one of the better all around sports cars on the road.

jehovasfitness
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Re: Bogleheads with $100K+ MSRP cars?

Post by jehovasfitness » Sun Feb 18, 2018 6:59 pm

neilpilot wrote:
Sun Feb 18, 2018 3:34 pm
eye.surgeon wrote:
Sun Feb 18, 2018 2:33 pm
neilpilot wrote:
Sun Feb 18, 2018 2:13 pm
eye.surgeon wrote:
Sun Feb 18, 2018 2:04 pm
I have two, a Tesla and a Range Rover. My justification is I spend less on cars as a % of my income than 95% of Americans.
But the real question is why do you need to justify your excess?
Don't you own an airplane as a hobby? :beer
Yes, but as much for transportation than as a hobby. I bought my airplane for way less than either of your cars; and I don't try to justify it based on my resources. Using your logic, I can honestly say that I paid less for my airplane than 95% of Americans.
Legit LOLD

ssquared87
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Re: Bogleheads with $100K+ MSRP cars?

Post by ssquared87 » Sun Feb 18, 2018 7:33 pm

HardHitter wrote:
Sun Feb 18, 2018 12:24 pm
There is now so much technology in these cars that they can make anyone fast. For example, before my Turbo, I had a 97 Viper GTS. Give that car to someone without experienced driving skills and they will wrap that car around a pole in the first turn. Literally just a huge motor in a chassis. No ABS, no traction control, nothing to save you but your foot and two hands.
Yeah, sometimes its well done and the cars are still fun, other times the electronics take away from the fun. I was considering an M2 but I hated the rev matching on downshifts.

At some point I see a Cayman GT4 in my future, but for now I'm happy with my E36 M3...the ABS and Traction Control are both shot, but given the excellent balance, its not a hard car to drive fast with a moderate skill level, and its extremely rewarding.

JuniorBH
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Re: Bogleheads with $100K+ MSRP cars?

Post by JuniorBH » Sun Feb 18, 2018 8:44 pm

I'm moving in that direction: $68K M3 -> $72K Jeep SRT -> $82K BMW X5 50i. But, I bought all of those cars used, generally at about 60% of MSRP.

As with some other folks in this thread, a GT3 is my "dream car" so hopefully one day I'll get there.

carguyny
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Re: Bogleheads with $100K+ MSRP cars?

Post by carguyny » Sun Feb 18, 2018 9:36 pm

I have a McLaren 720s, 991 GT3 RS and 997.2 GT3 Cup Car. Non sports cars I prefer to stick to less than $100k as they never really drive the same.

randomguy
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Re: Bogleheads with $100K+ MSRP cars?

Post by randomguy » Sun Feb 18, 2018 9:47 pm

daveydoo wrote:
Sun Feb 18, 2018 3:54 pm
BH is an investment philosophy. It is not a complete lifestyle, right?

I totally get owning an MX-5 and I totally get owning a 911. And I totally get not spending six figures just to have slightly softer leather under you or a headliner with actual "stars" made from individual LEDs (that's you, RR). If you earn seven figures with an eight-figure NW, who could criticize?

I expected this thread to touch more on the "MSRP" angle. You can buy almost any $100K car at the three-year point for ~ $50K. (I know Porsche and some others flatten out pretty fast on the depreciation curve though.) I can't touch a $100K car new, but I've test-driven a handful that have been 3 - 6 years old. They're still pretty sweet -- assuming that it's performance you're chasing and not smart-phone integration and hands-free driving, etc.

Its both. But a lot of people confuse living below your means with living cheaply. The person making 500k/year buying a 100k car is living below their means the same way the person making 100k buying a 20k car is. Both have cheaper options but they might gain enough enjoyment to put up the money. I assume the people paying 10k for the Rolls Royce are at the level where that is a rounding error in their checking account:).

I am not a big car guy. I max out at about 60k where the money after that doesn't do much. The 300k Ferrari is an incredible track machine. An E-Class is a much more enjoyable car to drive around in.

And yeah you can buy them cheaper after 3 years. Your TCO ownership is still going to be high compared to your other options. Accept it and enjoy it.

HardHitter
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Re: Bogleheads with $100K+ MSRP cars?

Post by HardHitter » Sun Feb 18, 2018 10:31 pm

carguyny wrote:
Sun Feb 18, 2018 9:36 pm
I have a McLaren 720s, 991 GT3 RS and 997.2 GT3 Cup Car. Non sports cars I prefer to stick to less than $100k as they never really drive the same.
Well isn't that a nice collection haha. I am a level below you but what would you think of the 991 Turbo vs the Mclaren 570S?

DC3509
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Re: Bogleheads with $100K+ MSRP cars?

Post by DC3509 » Mon Feb 19, 2018 2:16 am

So, it doesn't have a $100K+ MSRP, but it was definitely expensive enough -- we just leased a Maserati Levante, the new SUV model from Maserati. Kind of a long story, but needed a new car, finally have my financial house in order, and I became more and more curious about luxury cars and whether they are worth it or not. I figured we would essentially give this a 3 year test drive on the lease and reassess things after that -- maybe we will love the luxury car and buy one or perhaps we will decide it wasn't worth it, and go back to something more economical.

We got a great deal though on a 2017 model that was never previously driven or owned. The 2018's are here and the dealers need to move the 2017's off the lot and are willing to cut deals. The brand actually has the 2017 listed now at a higher residual value for a lease than a 2018 even though economically speaking, the 2017 should be worth less because it is a year older. An inflated residual however is a good thing when you are leasing, and you can essentially drive the same car as the 2018 for less money. We had dealers competing for our business from all over the country when we expressed serious interest in a 2017 -- had a spreadsheet with all of the features, costs, etc.

As far as the car itself is concerned, I love it so far. Has that great vroommmmmm Ferrari engine, but enough SUV space that everything still fits. A great cross between a SUV and a sports car. We also looked at the Macan and F-Pace, and became convinced this was the best bang for the buck. It is still a pretty rare car in the United States, which was also something else we liked about it.

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Cycle
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Re: Bogleheads with $100K+ MSRP cars?

Post by Cycle » Mon Feb 19, 2018 2:32 am

TheEternalVortex wrote:
Sun Feb 18, 2018 3:40 pm
To put it in perspective, a $100k car costs about the same as just using ridesharing (Lyft/Uber) for all travel.
Perhaps for you, not for someone in a walkable / bikeable city.

gundlached
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Re: Bogleheads with $100K+ MSRP cars?

Post by gundlached » Mon Feb 19, 2018 7:53 am

My Toyota Avalon feels like a $100k+ ride to me! :sharebeer

Cyclesafe
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Re: Bogleheads with $100K+ MSRP cars?

Post by Cyclesafe » Mon Feb 19, 2018 9:47 am

I scratched the itch with a Porsche Macan Turbo. It handles very well for an SUV and is far faster than I like to drive. Never once used launch control. Get lots of compliments.

However, the car draws lots of envy too. Several snarky comments, a minor keying, a break-in. Worries about parking lot dings and errant shopping carts. Although I have had my eye on a 991.2 base, I'm thinking now of abandoning this idea a getting a sleeper Golf instead. Less hassle. Those snarking have been disinherited. No point in risking the irony of them immediately splurging on a new Porsche after my demise.

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Re: Bogleheads with $100K+ MSRP cars?

Post by travellight » Mon Feb 19, 2018 10:01 am

I bought a new Tesla S, cash. It was my first new car purchase; and I had not previously spent more than 32k before but I had always paid cash.

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