How car buying attitudes have changed

[jamesqf]

Originally Posted by redpoint5

If I had taken the initial offer on the car, I would have lost $7,000.

Nope, you would have lost $24K. Instead, you only lost $17K.

My definition of poor is being up to your eyeballs in debt, but not owning any appreciating assets.

That's one definition. Another is just not having any money, period. And spending lots of money on a newish car, whether it's $24K or $17K, means you're either getting deeper in debt, or foregoing an opportunity to purchase some appreciating assets.

Buying a new car is among the poor investment decisions.

Buying a car is NOT an investment.

[UltArc]

Originally Posted by jamesqf

Buying a car is NOT an investment.

A car is definitely an investment. Putting money into anything tangible is an investment. Getting something out of it does not need to mean financial gain- investing in a car expands ones range of opportunity, and changes their value of time.

If one lived 10 miles from their job, their time has a different value if they can drive that ten miles, or have to walk (I have heard of a bike, but if you want to try and bike 10 miles in Northern Ohio during winter, you need a straight jacket first).

A $300 vehicle that runs is an investment for a person who has close to nothing, and wants to expand the range of jobs they can get to. Or, move further from their job to get more affordable housing.

Saying he only lost 17k instead of 24k is a bit...well, absurd. The car is not completely valueless. Even if completely totaled or stolen, I'm sure Redpoint has insurance, let alone the value of the car as a fun car, and any utility he gets from it. To say buying a car is the same as burning money, a total loss, is not accurate.

[nemo]

Originally Posted by jamesqf

Buying a car is NOT an investment.

Not most anyway and none I've owned.

Originally Posted by UltArc

A car is definitely an investment. Putting money into anything tangible is an investment. Getting something out of it does not need to mean financial gain- investing in a car expands ones range of opportunity, and changes their value of time.

Better description would be a tool.

[UltArc]

Agreed. When my house or car has an issue, I use a tool that I invested in to fix it.

I had to build a cabinet I bought, I used a tool I invested in to drive it home instead of carrying it for miles, and I used a tool I invested in to build it

[Frank Lee]

Anyway, I read several other synopses from that author and I thought she was spot-on.

[Cobb]

Yeah, I think most missed the point. Still I think it was a shameless plug to sell a book.

Originally Posted by Frank Lee

Anyway, I read several other synopses from that author and I thought she was spot-on.

[redpoint5]

Originally Posted by jamesqf

...spending lots of money on a newish car, whether it's $24K or $17K, means you're either getting deeper in debt, or foregoing an opportunity to purchase some appreciating assets.

Agreed. Opportunity cost is at play here.

The Prius, Corolla, Golf TDI, and Outback were also on my list of used vehicles I was considering purchasing. I choose the TSX because my grandpa generously donated $6k if I choose the TSX. He just wanted to see me drive a nice car.

Originally Posted by nemo

Better description would be a tool.

I primarily view my car as a tool, but I also have a good deal of fun driving a sporty 210hp car. I'd probably get serious about buying a used Lotus Elise if I didn't already own a sport bike.

[jamesqf]

Originally Posted by UltArc

A car is definitely an investment. Putting money into anything tangible is an investment.

No, it's only an investment if you can reasonably expect to sell it for more than you paid. That's just not true of cars, other than a few collector ones. Just for example, if I'd bought a $17K car 5 years ago, today I'd have a car that I might be able to sell for $8500. If instead I'd bought a $3K car (which in fact I did - well, a pickup) and invested the $14K in my mutual fund accounts, I'd have about $32K and a vehicle I could sell for about $3K.

[Frank Lee]

No, I expected to get back the money I INVESTED in the stock market, plus more, but that didn't happen. I invest in food but that gets turned into poop right away. Many investments are investments even though you don't get "more" back.

[redpoint5]

Originally Posted by Frank Lee

I invest in food but that gets turned into poop right away.

This is the reason I generally try to buy high calorie per dollar food. I'd like to minimize the amount of money I turn into poop.