Trouble stomaching car

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Keepcalm
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Trouble stomaching car

Post by Keepcalm » Mon Feb 18, 2019 12:42 pm

Going to keep this short and simple.

Pre-cursor: financially sound.

The issue: I purchased a 2016 Audi S4 a couple months ago. Love the car however I can not stop thinking about the cost of the vehicle even just over the next 24 months (finance payments).

It just seems like such a huge chunk of cash out the door just to drive the vehicle. Granted it’s not a lease.

Perhaps this is the burden of the boglehead mentality.

Over the next 24 months I’ll have “transferred” 13k in payments.

Am I looking at the in only one narrow angle?

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ResearchMed
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Re: Trouble stomaching car

Post by ResearchMed » Mon Feb 18, 2019 12:47 pm

Keepcalm wrote:
Mon Feb 18, 2019 12:42 pm
Going to keep this short and simple.

Pre-cursor: financially sound.

The issue: I purchased a 2016 Audi S4 a couple months ago. Love the car however I can not stop thinking about the cost of the vehicle even just over the next 24 months (finance payments).

It just seems like such a huge chunk of cash out the door just to drive the vehicle. Granted it’s not a lease.

Perhaps this is the burden of the boglehead mentality.

Over the next 24 months I’ll have “transferred” 13k in payments.

Am I looking at the in only one narrow angle?
Did you *need* to finance it?

If not, then just pay it off, and those pesky payments are gone. And you have a car you love.

However, IF you did *need* to finance it, then you probably shouldn't have purchased it, and your understanding of "financially sound" and a few consumption choices may need some... attitude adjustment.
You'd then need to decide whether to take a hit, and trade it for something you can better afford, or just "learn" for next time.

It's hard to tell if you are just "feeling" financial discomfort from the payments, or if it really *is* a financial problem.
If the former, it's BH mentality, which some might take to an extreme when not needed (and others might feel it should "always" be taken to an extreme, etc.)

RM
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alex_686
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Re: Trouble stomaching car

Post by alex_686 » Mon Feb 18, 2019 12:48 pm

Keepcalm wrote:
Mon Feb 18, 2019 12:42 pm
Am I looking at the in only one narrow angle?
A little. A car is a expense, no way around that. But the "Transfer" lingo does not make much sense.

First, what is the total ownership of the car? I am assuming you are not going to drive it for 24 months and throw it away. What is your expected lifespan of ownership of the car? What is the trade in value? This will give you the cost of the car, not the "transfer" bit.

Next, what is the marginal utility of buying this car? I am assuming you have to have a car. What would be the total ownership cost of a cheap car?

Lastly, what is the difference between owning your current car and a cheap car. You say you like to drive it. Is the enjoyment of driving the car / stress of a large purchase worth it? This step is highly subjective.

Topic Author
Keepcalm
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Re: Trouble stomaching car

Post by Keepcalm » Mon Feb 18, 2019 12:49 pm

I can pay the vehicle off right now, but just something about transferring all that cash and marrying the car doesn't sit with me. My APR is 2.2%, I am not paying much for the financing.

renue74
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Re: Trouble stomaching car

Post by renue74 » Mon Feb 18, 2019 12:51 pm

Does the car "give you joy?" If not, throw it out. - Marie Kondo

In all honesty, did you think about this before buying? It's buyers remorse. We've all had it. Remind me to tell you about the time I bought a 5000 lb. 23' Oday sailboat.

As time goes on, you'll either pay it off, sell it, or live with the payments. It's your choice to make.

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Keepcalm
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Re: Trouble stomaching car

Post by Keepcalm » Mon Feb 18, 2019 12:55 pm

renue74 wrote:
Mon Feb 18, 2019 12:51 pm
Does the car "give you joy?" If not, throw it out. - Marie Kondo

In all honesty, did you think about this before buying? It's buyers remorse. We've all had it. Remind me to tell you about the time I bought a 5000 lb. 23' Oday sailboat.

As time goes on, you'll either pay it off, sell it, or live with the payments. It's your choice to make.
Thanks for the laugh man, the boat line got me. :D

I will keep the car as I do love to drive it, besides tossing it now I was accrue a loss trading it in.

I will decide over the next month or so if paying it off is something I want to do. I do not want to make a spontaneous decision. It did take me months to buy, so I would not call the car itself a spontaneous purchase.
Last edited by Keepcalm on Mon Feb 18, 2019 12:58 pm, edited 2 times in total.

smitcat
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Re: Trouble stomaching car

Post by smitcat » Mon Feb 18, 2019 12:55 pm

Keepcalm wrote:
Mon Feb 18, 2019 12:49 pm
I can pay the vehicle off right now, but just something about transferring all that cash and marrying the car doesn't sit with me. My APR is 2.2%, I am not paying much for the financing.
If you love the car and can afford it within your goals then not wanting to pay for it is an unreasonable reaction.
The car will be an expense but your payments will allow you to utilize the car and the car will have residual value after you have paid for it.
If you do not want to pay it off now, and you do not want to make the payments , and you do not want to sell it you have no other choices.

cadreamer2015
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Re: Trouble stomaching car

Post by cadreamer2015 » Mon Feb 18, 2019 12:57 pm

At least a car is not a hole in the water into which you pour money. (AKA a boat)
De gustibus non est disputandum

btenny
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Re: Trouble stomaching car

Post by btenny » Mon Feb 18, 2019 1:05 pm

Are you an older guy who used to buy cars for $18K or maybe less? I am. I know the cost to drive used to be 18 cents per mile. And now newer nice cars are $35K or more? So the cost to drive is now 35 cents or even 50 cents per mile. A HUGE increase.

I know I am bothered by how expensive cars have gotten but so has a lot of other stuff. Look at home costs. Heck a burger is $10.

I recommend you pay off the car so you will stop being reminded how expensive the car is every month. Doing this is like not having a mortgage. It gives you peace of mind. And just be glad and happy you can afford to buy these nice cars.....

Good Luck.

alex_686
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Re: Trouble stomaching car

Post by alex_686 » Mon Feb 18, 2019 1:07 pm

Keepcalm wrote:
Mon Feb 18, 2019 12:55 pm
I will keep the car as I do love to drive it, besides tossing it now I was accrue a loss trading it in.

I will decide over the next month or so if paying it off is something I want to do. I do not want to make a spontaneous decision. It did take me months to buy, so I would not call the car itself a spontaneous purchase.
Sunk cost fallacy. If it is a mill stone around your neck or a stress inducer, get rid of the car.

Next, the pay off should be a independent decision. Look at the auto loan as a negative bond. Then look at your portfolio and your asset allocation. If it is a low interest loan most people would be better off keeping their money in a higher risk / higher return equity portfolio. However, this depends on your risk aversion.

That being said, don't rush into anything. High emotions tend to cloud rational judgement.

NotWhoYouThink
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Re: Trouble stomaching car

Post by NotWhoYouThink » Mon Feb 18, 2019 1:08 pm

Are you contributing to your retirement plan? Can you afford the payments?

If the answers are yes, you are worrying too much. There is no particular virtue to minimizing your spending. As long as you are saving a substantial part of your income, and able to meet the monthly bills with the income you don't put toward retirement, you can spend on whatever you want without shame. Maybe you like good whiskey, or mechanical watches, or designer shoes. Good for you. Maybe you drink water, tell time on your flip phone and wear Tom's shoes. Also ok.

Life isn't about money, it's about enjoying and making productive use of the time you have. No reason a particular car choice should interfere with that.

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RootSki
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Re: Trouble stomaching car

Post by RootSki » Mon Feb 18, 2019 1:13 pm

You're not a "car guy" are you?

Do you enjoy driving?

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Watty
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Re: Trouble stomaching car

Post by Watty » Mon Feb 18, 2019 1:13 pm

Keepcalm wrote:
Mon Feb 18, 2019 12:42 pm
2016 Audi S4 a couple months ago.

.......

Over the next 24 months I’ll have “transferred” 13k in payments.

Am I looking at the in only one narrow angle?

A quick Google search looks like it would have actually cost around $30K.

If that is correct then you are likely missing the big picture.

Keepcalm wrote:
Mon Feb 18, 2019 12:49 pm
I can pay the vehicle off right now, but just something about transferring all that cash and marrying the car doesn't sit with me. My APR is 2.2%, I am not paying much for the financing.
You are already married to it, you just put the wedding expenses on a low interest rate credit card and the first bill just came in the mail.

One thing that I have found with paying cash for a car is that writing out a five figure check really makes you think if it is a good choice or not. I would pay it off and plan on paying cash for future cars

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Keepcalm
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Re: Trouble stomaching car

Post by Keepcalm » Mon Feb 18, 2019 1:26 pm

Solid input guys.

I can not help but notice the fact that I figured I was doing this correctly. It is clear I did not fully understand some concepts.

Makes me wonder how many out there just have no idea what they're doing with their financial situation. Not that I am anywhere near perfect, but I feel like the level of awareness I carry is more than many.

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Watty
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Re: Trouble stomaching car

Post by Watty » Mon Feb 18, 2019 1:28 pm

btenny wrote:
Mon Feb 18, 2019 1:05 pm
Are you an older guy who used to buy cars for $18K or maybe less? I am. I know the cost to drive used to be 18 cents per mile. And now newer nice cars are $35K or more? So the cost to drive is now 35 cents or even 50 cents per mile. A HUGE increase.

I know I am bothered by how expensive cars have gotten but so has a lot of other stuff.
You can still get a new Corolla for less than $18K.

There is no doubt that an Audi is a nicer car but the big question is if it is worth paying two or three times as much for it.

I like to look at choices like these in the terms of the opportunity cost of what you could other wise do with the money. For example the choice could be;

1) Buy a 2016 Audi

2) Buy new Corolla and take an African safari(or whatever turns your crank)

Assuming you can afford it there is no one right answer since it is a personal preference.

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Keepcalm
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Re: Trouble stomaching car

Post by Keepcalm » Mon Feb 18, 2019 1:36 pm

Is there ever a situation where someone can finance a used vehicle. Not put a single penny down on it, ride out low interest payments, and at some point throughout the loan term end up at the intersection of positive and negative equity?

In other words, are you always upside down in a car loan? I guess this would depend a lot on the depreciation rate of the car, which I would assume is very dependent on the market and what car you have. But I’m just looking for a general consensus.

Danman
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Re: Trouble stomaching car

Post by Danman » Mon Feb 18, 2019 1:38 pm

What was your rationale for buying it initially?

I am a BMW guy and love to drive my vehicles. I realized when I purchased them they are a depreciating asset. However, it's a balance in life - gotta enjoy these moments while we can.

alex_686
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Re: Trouble stomaching car

Post by alex_686 » Mon Feb 18, 2019 1:42 pm

Keepcalm wrote:
Mon Feb 18, 2019 1:36 pm
Is there ever a situation where someone can finance a used vehicle. Not put a single penny down on it, ride out low interest payments, and at some point throughout the loan term end up at the intersection of positive and negative equity?

In other words, are you always upside down in a car loan? I guess this would depend a lot on the depreciation rate of the car, which I would assume is very dependent on the market and what car you have. But I’m just looking for a general consensus.
Yes. Obliviously at the end of the loan you are going to have positive equity. The car (asset) must be worth something, even if only for scrap. The loan (liability) will be zero. If I recall correctly, you cross over into positive equity about 1/2 way through the loan if you borrow everything - car, taxes, licensing, etc.

UpperNwGuy
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Re: Trouble stomaching car

Post by UpperNwGuy » Mon Feb 18, 2019 1:45 pm

I have never had regrets about buying a car. I've paid cash for some cars, and gotten a loan for others. Paid too much for some cars, and gotten great deals on others. It makes no difference to me. Once I make a decision like that, I don't look back and try to second-guess myself. That would just add stress.

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whodidntante
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Re: Trouble stomaching car

Post by whodidntante » Mon Feb 18, 2019 1:53 pm

To me there are two issues that should be considered separately.

1) do I want to spend so much on a car? Or related, do I want to keep owning a car that costs x?
2) do I take a loan?

For #1, cars generally depreciate rapidly and depreciation for a newish car is probably the main expense. So financially, owning an inexpensive car is going to help you have a larger net worth. But that doesn't mean it is what you want to do. Maybe you prefer to have less money and pay more for your car.

For #2, financially you want to do this if the interest rate is lower than inflation, or if raising the capital will incur capital gains taxes. For my recent purchase, I took a 1.89% loan that saved me a significant tax bill, and I plan to let the loan die of old age because the rate is low. However, if you are the type to bellyache over debt, you should not have an auto loan.

DJP1944
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Re: Trouble stomaching car

Post by DJP1944 » Mon Feb 18, 2019 1:57 pm

The fact that you're even thinking (worrying) about it indicates you probably are fine to be honest. Something to consider is paying cash for cars/toys (even houses) has a great effect at increasing scrutiny to purchases. As your post suggested, you didn't want to write a check, but somehow financing was ok. I know there are all sorts of math reasons why financing for this or that may be "better". In my humble opinion, cash is king because it hurts more so you'll tend to spend just a fraction more wisely.

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corn18
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Re: Trouble stomaching car

Post by corn18 » Mon Feb 18, 2019 2:00 pm

Back when we couldn’t afford to buy a new car and always had a loan, we would buy a new car every 3-4 years. Just kept the car payment. Why not have a car payment and a new car?

Now that we pay cash for cars and can afford any car we want, we don’t buy new cars and keep the ones we have for 10 years. Hurts a lot more in our minds to pull $35k out of savings.
Don't do something, just stand there!

Tracker968
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Re: Trouble stomaching car

Post by Tracker968 » Mon Feb 18, 2019 2:05 pm

For some reason I just hate making payments. I took out a loan for my truck just to get the $1000 rebate. I made the first payment and realized I had just given $75 to the bank. So I immediately paid it off. An S4 is an awesome car! I suggest joining the Audi Club and doing events with them. They will turn you into a car guy!

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bligh
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Re: Trouble stomaching car

Post by bligh » Mon Feb 18, 2019 2:13 pm

Keepcalm wrote:
Mon Feb 18, 2019 12:42 pm
Going to keep this short and simple.

Pre-cursor: financially sound.

The issue: I purchased a 2016 Audi S4 a couple months ago. Love the car however I can not stop thinking about the cost of the vehicle even just over the next 24 months (finance payments).

It just seems like such a huge chunk of cash out the door just to drive the vehicle. Granted it’s not a lease.

Perhaps this is the burden of the boglehead mentality.

Over the next 24 months I’ll have “transferred” 13k in payments.

Am I looking at the in only one narrow angle?
Ever since I have been able to afford doing so, I pay cash for my cars.

1) You will see the money disappear instantly, so you will feel the full pain of the purchase and that pain will stop you from spending more than you are comfortable with. It worked for me for my most recent car purchase where the pain of paying cash helped me spend a little less than half of my original budget.

2) You don't prolong the pain. You take your hit, and can move on to enjoying the car guilt/pain free.

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mrspock
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Re: Trouble stomaching car

Post by mrspock » Mon Feb 18, 2019 2:47 pm

Watty wrote:
Mon Feb 18, 2019 1:13 pm
One thing that I have found with paying cash for a car is that writing out a five figure check really makes you think if it is a good choice or not. I would pay it off and plan on paying cash for future cars
This is the advice I was given in my 20s and has served me well. It’s really easy to pay 50k for a car when it isn’t your money, less easy (dare I say painful?) when you see that amount leaving your bank account. The result? I’d never spend a dime over 30k on a car, and when I do I drive them into the ground (almost 200k on my current car).

Once you hit your “number” for retirement... then you can probably let loose a bit with a mid-life crisis-mobile...

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sunny_socal
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Re: Trouble stomaching car

Post by sunny_socal » Mon Feb 18, 2019 3:14 pm

Relax. Sounds like a case of buyer's remorse.

- You bought a used car, someone else paid for the depreciation
- It's a fun car, enjoy it
- The car is fairly new, no worries

Drive it for the next 10 years and you'll feel better! :mrgreen:

rashad3000
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Re: Trouble stomaching car

Post by rashad3000 » Mon Feb 18, 2019 3:22 pm

Every time I think about upgrading my 2003 Pilot, I remember that there is not a car out there that can do more for me than what this car does. The objective is to get from point A to point B, plain and simple. So I understand where you are coming from with this post. As someone who has done all kinds of stupid things with cars, I have vowed to never put myself in a bad position again.

stimulacra
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Re: Trouble stomaching car

Post by stimulacra » Mon Feb 18, 2019 3:32 pm

Keepcalm wrote:
Mon Feb 18, 2019 1:36 pm
Is there ever a situation where someone can finance a used vehicle. Not put a single penny down on it, ride out low interest payments, and at some point throughout the loan term end up at the intersection of positive and negative equity?

In other words, are you always upside down in a car loan? I guess this would depend a lot on the depreciation rate of the car, which I would assume is very dependent on the market and what car you have. But I’m just looking for a general consensus.
Google “Amortization Table” or “Amortization Schedule”. It depends on the asset in question and the market but usually it's around the halfway point of the repayment schedule.

There are a few new cars you can buy where you are not underwater for very long compared to others. Toyota Tacoma comes to mind.

With that said, the depreciation curve of German luxury performance is eye-openingly steep. Good luck.

an_asker
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Re: Trouble stomaching car

Post by an_asker » Mon Feb 18, 2019 3:45 pm

sunny_socal wrote:
Mon Feb 18, 2019 3:14 pm
Relax. Sounds like a case of buyer's remorse.

- You bought a used car, someone else paid for the depreciation
- It's a fun car, enjoy it
- The car is fairly new, no worries

Drive it for the next 10 years and you'll feel better! :mrgreen:
More like Boglehead Envy, i.e., instead of Living Like the Joneses, OP is falling victim to Saving Like the Bogleheads! :oops:

Eno Deb
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Re: Trouble stomaching car

Post by Eno Deb » Mon Feb 18, 2019 4:53 pm

The fact that you have trouble stomaching this purchase tells me that you are doing well. :D The S4 is a sweet ride. Enjoy. I recently fulfilled my longtime wish to go all electric (Tesla Model 3). Too much money for a car really, but I'm truly enjoying it and am otherwise pretty frugal, so I don't feel too bad about it. :happy

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ResearchMed
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Re: Trouble stomaching car

Post by ResearchMed » Mon Feb 18, 2019 4:56 pm

an_asker wrote:
Mon Feb 18, 2019 3:45 pm
sunny_socal wrote:
Mon Feb 18, 2019 3:14 pm
Relax. Sounds like a case of buyer's remorse.

- You bought a used car, someone else paid for the depreciation
- It's a fun car, enjoy it
- The car is fairly new, no worries

Drive it for the next 10 years and you'll feel better! :mrgreen:
More like Boglehead Envy, i.e., instead of Living Like the Joneses, OP is falling victim to Saving Like the Bogleheads! :oops:
:happy

Good one!

RM
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Keepcalm
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Re: Trouble stomaching car

Post by Keepcalm » Fri Feb 22, 2019 7:20 am

a little update...I was not happy being 3/4 of the way towards the car I actually wanted. So I took the extra half step and just got the one I wanted.

"Man I should have just spent the extra I was already almost there anyway" was not something I wanted to keep saying to myself.

ImageImage
Last edited by Keepcalm on Fri Feb 22, 2019 7:46 am, edited 1 time in total.

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MillennialFinance19
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Re: Trouble stomaching car

Post by MillennialFinance19 » Fri Feb 22, 2019 7:30 am

If you're funding retirement accounts per your own goals, why not enjoy it? You only live once (sorry, millennial tagline - YOLO). What's the point in having a glorious retirement if you didn't enjoy the previous 30 years? I constantly have to remind myself to enjoy our money now, not just in the future, so I certainly understand your dilemma.

andypanda
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Re: Trouble stomaching car

Post by andypanda » Fri Feb 22, 2019 7:37 am

Good for you.

My wife is finally understanding what I mean when I say Buy Nice or Buy Twice.

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Keepcalm
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Re: Trouble stomaching car

Post by Keepcalm » Fri Feb 22, 2019 7:41 am

I lost 800.00 with my trade in unfortunately. I mitigated that yearly loss by promising to skip the dunks/starbucks line during my morning commute for at least the next year. Even picked up a burr grinder and French press. :D

Retirement accounts are just fine and kept in check. Besides I am an engineer, and M3's are absolute engineering marvels!

Colorado13
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Re: Trouble stomaching car

Post by Colorado13 » Fri Feb 22, 2019 10:24 am

I had trouble stomaching my mattress purchase and my thread was locked. It was worth the money, but a challenge to spend that much dough. I agree it's part of the burden of the BH mentality.

triggerfish10
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Re: Trouble stomaching car

Post by triggerfish10 » Fri Feb 22, 2019 10:33 am

I was not happy being 3/4 of the way towards the car I actually wanted. So I took the extra half step and just got the one I wanted
. Wouldn't it be the extra 1/4 step? :D Now it feels like even less of a stretch!
"A quiet and modest life brings more joy than a pursuit of success bound with constant unrest" - Albert Einstein

aristotelian
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Re: Trouble stomaching car

Post by aristotelian » Fri Feb 22, 2019 10:40 am

I just bought a new car for the first time in my life. I can definitely identify. In my case, I got a Nissan LEAF and decided to purchase new because of the tax credit and the range improvements of the 2018-19 models. It just made so much more sense than an older model. I'm sure you had good reasons for your purchase. As with any big purchase, all you can do is make the best informed choice. If it turns out to be a disaster, so be it.

As far as whether to keep the loan, that is a personal choice. In effect, it is a negative bond that you can keep to leverage your portfolio. If you keep your bond allocation level, you will in effect arbitrage the difference between the bond yield and your favorable interest rate. If that difference isn't worth the effort, then you might as well pay it off.

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greg24
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Re: Trouble stomaching car

Post by greg24 » Fri Feb 22, 2019 11:02 am

Keepcalm wrote:
Fri Feb 22, 2019 7:20 am
a little update...I was not happy being 3/4 of the way towards the car I actually wanted. So I took the extra half step and just got the one I wanted.
You hated seeing how much you paid or owed on the first car, so your answer was to buy a more expensive one?

quantAndHold
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Re: Trouble stomaching car

Post by quantAndHold » Fri Feb 22, 2019 11:02 am

What did you eventually do wih the expensive camera?

You seem to have a pattern of buying expensive stuff then worrying about what you did afterwards. Done enough times, that pattern could be hard on your finances.

Dandy
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Re: Trouble stomaching car

Post by Dandy » Fri Feb 22, 2019 11:26 am

You choice of going used makes sense from a Boglehead standpoint. The choice of what car to buy probably wasn't. The Audi is an expensive car to own an maintain but fun to drive. Not all decisions have to be frugal to the max some allowance should be made to enjoying the ride. You probably could have had a cheaper used car - but let's face it cars are expensive new, used or very used.

I car pooled with a person who drove an Audi 4 and he loved it but found that the repairs once 4 years old were too much. Good luck.

stocknoob4111
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Re: Trouble stomaching car

Post by stocknoob4111 » Fri Feb 22, 2019 11:49 am

keep the car and enjoy it if you can afford it. No point hoarding all your cash of it means you're living like a monk. I bought a new car about 2 years ago after driving my old one for 15 years. Technically did not need it as my work is only 4 miles away but I wanted something nicer. Not the best decision from a purely financial standpoint but it makes me happy so I don't regret it.

nick evets
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Re: Trouble stomaching car

Post by nick evets » Fri Feb 22, 2019 11:54 am

greg24 wrote:
Fri Feb 22, 2019 11:02 am
You hated seeing how much you paid or owed on the first car, so your answer was to buy a more expensive one?
It's like feeling guilty about an upcoming vacation that's going to cost $8000 for 4 days, but then cancelling, and spending $12,000 to go where you really want to go. Might as well, since you're spending all that money.... :)

stoptothink
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Re: Trouble stomaching car

Post by stoptothink » Fri Feb 22, 2019 12:00 pm

nick evets wrote:
Fri Feb 22, 2019 11:54 am
greg24 wrote:
Fri Feb 22, 2019 11:02 am
You hated seeing how much you paid or owed on the first car, so your answer was to buy a more expensive one?
It's like feeling guilty about an upcoming vacation that's going to cost $8000 for 4 days, but then cancelling, and spending $12,000 to go where you really want to go. Might as well, since you're spending all that money.... :)
I predict a 2nd buyer's remorse thread coming in about 6 months.

dziuniek
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Joined: Mon Jul 23, 2012 2:54 pm
Location: Corrupticut

Re: Trouble stomaching car

Post by dziuniek » Fri Feb 22, 2019 12:05 pm

Well you didn't lease it but it's not like you own it until you pay it off.... miss 2 payments and see what happens :)

Also... that's a lot of car, I'm jealous :)

randomguy
Posts: 8415
Joined: Wed Sep 17, 2014 9:00 am

Re: Trouble stomaching car

Post by randomguy » Fri Feb 22, 2019 12:21 pm

triggerfish10 wrote:
Fri Feb 22, 2019 10:33 am
I was not happy being 3/4 of the way towards the car I actually wanted. So I took the extra half step and just got the one I wanted
. Wouldn't it be the extra 1/4 step? :D Now it feels like even less of a stretch!
You lose 1/4 to transaction overhead:)

desihorn
Posts: 13
Joined: Thu Sep 27, 2018 9:01 am

Re: Trouble stomaching car

Post by desihorn » Fri Feb 22, 2019 12:32 pm

It is about your life's utility curve. I bought a fancy car once and could comfortably afford it. I couldn't fight the pangs of first-gen immigrant guilt on spending so much on a car every time I drove it. I sold it and bought a used Honda and am much happier. Now I do spend a whole bunch of money on family vacations equivalent to the cost of the car over not too many years but I am happy to spend it during and after. I feel no regrets.

Olemiss540
Posts: 1136
Joined: Fri Aug 18, 2017 8:46 pm

Re: Trouble stomaching car

Post by Olemiss540 » Fri Feb 22, 2019 12:34 pm

Should have went for a pristine 2011 m3 instead. Not so bloated, capable and reliable around a racetrack, and a high strung, high revving v8 to satiate the engineer in you (all while costing less that the S4 you replaced and putting some cash in your pocket).

New one looks great though and white is absolutely beautiful.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

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Sandtrap
Posts: 8490
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii No Ka Oi , N. Arizona

Re: Trouble stomaching car

Post by Sandtrap » Fri Feb 22, 2019 12:41 pm

Keepcalm wrote:
Mon Feb 18, 2019 12:42 pm
Going to keep this short and simple.

Pre-cursor: financially sound.

The issue: I purchased a 2016 Audi S4 a couple months ago. Love the car however I can not stop thinking about the cost of the vehicle even just over the next 24 months (finance payments).

It just seems like such a huge chunk of cash out the door just to drive the vehicle. Granted it’s not a lease.

Perhaps this is the burden of the boglehead mentality.

Over the next 24 months I’ll have “transferred” 13k in payments.

Am I looking at the in only one narrow angle?
Research "buyer's remorse".
Common issue.
Wiki Bogleheads Wiki: Everything You Need to Know

PinotGris
Posts: 674
Joined: Tue Feb 14, 2012 9:38 pm

About that financing ...

Post by PinotGris » Fri Feb 22, 2019 12:49 pm

We financed our new Lexus. As a Boglehead it bothered me but my husband felt strongly we should even though we could have paid cash. I am kind of glad now because my car has depreciated in value while cost amount is still in the market and going up in value. In 5 years we would have made more than the finance charge.
Enjoy your car.

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