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MRM MRM is offline
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Join Date: Aug 2000
Location: Palm Beach, Florida, USA
Posts: 7,713
I didn't say you had shortcomings in your pants. I said that if you needed a fancy car to bolster your self image, you did. Kind of Freudian how you jumped on that subject, isn't it?

OK, I'm just giving you a hard time, but there is something serious in what I am saying and something contradictory about what you are saying. If you spent years driving rusty Crown Vics and liked it, what's the issue with turning in the flashy new car you own now? It's a car. You have a good job. You'll get another. Theres a saying about living like no one else would be willing to live until you can afford to live like no one else can. The two thoughts go together.

Look at the numbers. The lease buyout price is higher than you could get the same car for off the used car lot, but you wouldn't know another car's history. The cost of paying back your student loans and the car loan are more than you can comfortably afford.

If you can stand to buy a three to five year old Toyota Camry you'll have cheap, comfortable and efficient transportation for as long as you want it. The money you save driving that car for 200,000 miles will pay for a brand new 911.

Let me use myself as an example. My wife and I went through exactly what you are going through now. We're probably ten years older than you. We now have a very comfortable income (thanks to a very good client, knock on wood). You know what we have for daily drivers? A 2000 Camry and a 1998 Camry. We've had them both since 2000. We'll keep them for as long as I can see.

With the money we've saved we paid off our second house and are otherwise pretty debt free. I have enough cash to comfortably buy a newer 911 when I get ready. I'm targeting next fall when prices fall again, but you never know when the bug to buy will get the best of me. None of that could be possible if we were paying $500 a month times two for newer cars. Take that thousand dollar a month savings times almost seven years and you have a serious piece of change.

An article in the WSJ a couple of weeks ago gave five or six simple steps that people could do to save the $700,000 in cash it is probably necessary for them to retire in comfort. Step one was to buy a cheaper car and keep it two cycles instead of one. Total savings and income if the savings were invested over 40 years: $600,000.

Think about it. The decision you make today will live with you the rest of your financial life. I wouldn't waste my time and yours responding seriously to your question if I didn't care about you making the right decision.
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MRM 1994 Carrera
Old 02-22-2007, 06:13 PM
  Pelican Parts Catalog | Tech Articles | Promos & Specials    Reply With Quote #28 (permalink)