Buying a new car over $25k is a terrible idea [Archive]

InRareForm

11-09-2015, 02:20 PM

I. Hustle

11-09-2015, 02:29 PM

I never have and never will. I have the means to buy something more expensive but what for? I'd rather use that money for trips and things for my kids. I work with a moron that has a new Camaro with all the bells and whistles. The dude is getting calls regarding his mortgage and is too deep in debt though. To impress who? He has a girl and a new kid. Hopefully the car is roomy enough for all of them to live out of LOL.

boutons_deux

11-09-2015, 02:35 PM

I'm holding onto my 275K-mile Camry, hoping EVs come down in price and go up in range in the next few years, which means I'll have to buy new. If the Camry fails before then, I'll buy a used Toyota.

Camry runs great, just tires, free rotation/alignment by Costco, plus fluids.

I resurfaced my "sand blasted", frosted headlights and replaced the incandescent bulbs with LEDs. Amazing improvement.

Blake

11-09-2015, 03:02 PM

Buying a new car is not a good idea at any price imo.

hater

11-09-2015, 03:05 PM

Agree. Dumb idea. You can get 100x the bang for your buck with a 3-5 old car. It's nuts to buy new

DarrinS

11-09-2015, 03:21 PM

I won't even spend 20K, tbh. I buy used, low-mileage cars.

rmt

11-09-2015, 03:35 PM

baseline bum

11-09-2015, 03:43 PM

CosmicCowboy

11-09-2015, 04:03 PM

Unless you are incredible wealthy... it just seems like a waste of money and loss of future investing power.

Anyone live frugally when it comes to cars....Realizing it's a long term financial punch trying to impress others.

I just spent $50,000 on a new 2500HD Z71 LTZ that I plan to drive for 8-10 years. I don't consider myself to be incredibly wealthy or dumb for doing it.

boutons_deux

11-09-2015, 04:05 PM

I don't consider myself to be ... dumb for doing it.

.... but we do.

CosmicCowboy

11-09-2015, 04:08 PM

My last truck was a 2009 Z71 I bought certified used at 40,000 miles. Apparently the previous owner really believed that shit that you can go 6K-10K miles between oil changes. After the second time it spit up sludge and shut me down (plugged a screen one time, took out the oil pump the next time) I said fuck that and traded it in.

CosmicCowboy

11-09-2015, 04:09 PM

.... but we do.

Being called dumb by Boo is like a badge of honor.

I. Hustle

11-09-2015, 04:09 PM

LOL. Would you rather have a Camaro or a used GMC truck and a fishing boat?

The latter a hundred times over.

I. Hustle

11-09-2015, 04:13 PM

I just spent $50,000 on a new 2500HD Z71 LTZ that I plan to drive for 8-10 years. I don't consider myself to be incredibly wealthy or dumb for doing it.

A little different in that you use it for work as well though, right? I really don't see anything wrong with it in that case. I still wouldn't do it but that's not as bad as doing it just because you want that truck for nothing more than getting you from A to B.

CosmicCowboy

11-09-2015, 04:17 PM

A little different in that you use it for work as well though, right? I really don't see anything wrong with it in that case. I still wouldn't do it but that's not as bad as doing it just because you want that truck for nothing more than getting you from A to B.

Yep...I use it for work, pull heavy trailers, haul forklifts, skid loaders, etc. Also use the 4WD when necessary at the ranch. Can't do that with Boo's piece of shit Toyotabomb. Plus I paid cash so it's not like I have to choose between a house and truck payment.

rmt

11-09-2015, 04:19 PM

I just spent $50,000 on a new 2500HD Z71 LTZ that I plan to drive for 8-10 years. I don't consider myself to be incredibly wealthy or dumb for doing it.

Great for you - don't mind some of them. Nobody should call you dumb for spending your money the way you want. If you have it and can afford a Porsche (or whatever), go for it!

I. Hustle

11-09-2015, 04:32 PM

Yep...I use it for work, pull heavy trailers, haul forklifts, skid loaders, etc. Also use the 4WD when necessary at the ranch. Can't do that with Boo's piece of shit Toyotabomb. Plus I paid cash so it's not like I have to choose between a house and truck payment.

Yeah, that seems fair. It's not just a personal vehicle. You're putting that bad boy to work.

HarlemHeat37

11-09-2015, 04:37 PM

I bought a brand new 2008 Civic when I was 18, paid for it in cash, it was around $20K IIRC..I drove it until last year, until I gave it to my dad..I would never buy a new car again, though..it never gave me any problems, but I've lost interest in whips, I'm good with any decent one that runs well and is good on gas..driving in Toronto is horrendous, though, to be fair, all the people that drive Bentleys and Bugattis here are fucking stupid IMO:lol..

I understand buying a new car if you're a gearhead, though, it's essentially a hobby, just like anybody else..if you aren't a car hobbyist and are just buying it to impress others, than ya, I agree with OP..

HarlemHeat37

11-09-2015, 04:38 PM

Yep...I use it for work, pull heavy trailers, haul forklifts, skid loaders, etc. Also use the 4WD when necessary at the ranch. Can't do that with Boo's piece of shit Toyotabomb. Plus I paid cash so it's not like I have to choose between a house and truck payment.

I don't hate on anybody for spending their money on whatever they want, regardless, but your case doesn't even really count since you're using it for work, tbh:lol..that's probably not what the OP meant IMO..

DMX7

11-09-2015, 04:44 PM

I just spent $50,000 on a new 2500HD Z71 LTZ that I plan to drive for 8-10 years. I don't consider myself to be incredibly wealthy or dumb for doing it.

I spent more than that on my last car and I feel the same way. Those of us in the upper-middle class should be able to do it easily as long as you're not buying a new one every 3 years. .

Blake

11-09-2015, 05:44 PM

If you want to toss needless cash at a car, go for it. I've definitely seen worse ways to blow money.

Splits

11-09-2015, 07:04 PM

Yep...I use it for work, pull heavy trailers, haul forklifts, skid loaders, etc. Also use the 4WD when necessary at the ranch. Can't do that with Boo's piece of shit Toyotabomb. Plus I paid cash so it's not like I have to choose between a house and truck payment.

Why pay cash with auto loans essentially 2.x% and the interest deductible if it's for work?

TeyshaBlue

11-09-2015, 07:21 PM

boutons_deux

11-09-2015, 08:05 PM

What bulbs did you end up choosing?

https://www.superbrightleds.com/moreinfo/low-beam-headlight-bulb/led-headlight-kit-9005-led-headlight-bulbs-conversion-kit-with-flexible-tinned-copper-braid/2213/5000/

and the 9006 for the high beam.

the copper braid heat sinks seemed like good idea rather than rigid heatsinks which I wasn't sure to have enough room.

Also, the price and lumens seemed serious.

been a couple weeks now, so far, so good.

CosmicCowboy

11-09-2015, 08:30 PM

Why pay cash with auto loans essentially 2.x% and the interest deductible if it's for work?

I prefer to keep my credit fully available for bigger fish than trucks. Understand I own a lot more trucks than just the one I drive. An example would be a receivable timing issue I had recently. I had a lot of cash out on completed jobs that labor and material had already been paid but I hadn't received payment yet. I was able to call my bank at 9am and have them put 100k in my account that afternoon. Didnt even have to go in. I was able to still discount all my bill payments keeping my credit perfect. I only needed the cash for a week until i got some checks in and interest was under $200.

CosmicCowboy

11-09-2015, 08:37 PM

https://www.superbrightleds.com/moreinfo/low-beam-headlight-bulb/led-headlight-kit-9005-led-headlight-bulbs-conversion-kit-with-flexible-tinned-copper-braid/2213/5000/

and the 9006 for the high beam.

the copper braid heat sinks seemed like good idea rather than rigid heatsinks which I wasn't sure to have enough room.

Also, the price and lumens seemed serious.

been a couple weeks now, so far, so good.

Lol...you put illegal off road headlight bulbs in your beater? Figures. You probably shine your high beams on people with nice cars and trucks.

DarrinS

11-09-2015, 08:42 PM

Lol...you put illegal off road headlight bulbs in your beater? Figures. You probably shine your high beams on people with nice cars and trucks.

Lol

boutons_deux

11-09-2015, 08:52 PM

Lol...you put illegal off road headlight bulbs in your beater? Figures. You probably shine your high beams on people with nice cars and trucks.

why are they illegal? link?

CosmicCowboy

11-09-2015, 08:55 PM

Lol look at your own link. Headlight brightness is regulated. They are too bright in the eyes of oncoming traffic. Specifically says off road use only.

boutons_deux

11-09-2015, 09:11 PM

Lol look at your own link. Headlight brightness is regulated. They are too bright in the eyes of oncoming traffic. Specifically says off road use only.

search for toyota : 2000 : camry : front exterior and the ones I bought are listed.

CosmicCowboy

11-09-2015, 09:22 PM

Just because they fit doesn't make them legal. It said right there in black and white "for off road use only".

Splits

11-09-2015, 09:32 PM

I prefer to keep my credit fully available for bigger fish than trucks. Understand I own a lot more trucks than just the one I drive. An example would be a receivable timing issue I had recently. I had a lot of cash out on completed jobs that labor and material had already been paid but I hadn't received payment yet. I was able to call my bank at 9am and have them put 100k in my account that afternoon. Didnt even have to go in. I was able to still discount all my bill payments keeping my credit perfect. I only needed the cash for a week until i got some checks in and interest was under $200.

:lol so for all you kids out there thinking, "hmmm, this seems like a strange way to run a business?" well you're right. Exhibit A as to why you shouldn't try to be an entrepreneur with a theology degree from Liberty University. If you have these type of cash flow issues, the last thing you should be doing is blowing 50 large on a capital investment that depreciates faster than a 3rd world currency.

boutons_deux

11-09-2015, 09:43 PM

Just because they fit doesn't make them legal. It said right there in black and white "for off road use only".

bulshit. they are spec'd at 1200 and 1300 lumens, which is not excessive for low, hi beam

here's a discussion of headlights with 2000+ lumens

https://en.wikipedia.org/wiki/Headlamp#Low_beam

CosmicCowboy

11-09-2015, 09:45 PM

:lol so for all you kids out there thinking, "hmmm, this seems like a strange way to run a business?" well you're right. Exhibit A as to why you shouldn't try to be an entrepreneur with a theology degree from Liberty University. If you have these type of cash flow issues, the last thing you should be doing is blowing 50 large on a capital investment that depreciates faster than a 3rd world currency.
Lol. $650,000 in receivables for the month with zero outstanding accounts payable is hardly a bad business model.

CosmicCowboy

11-09-2015, 10:02 PM

bulshit. they are spec'd at 1200 and 1300 lumens, which is not excessive for low, hi beam

here's a discussion of headlights with 2000+ lumens

https://en.wikipedia.org/wiki/Headlamp#Low_beam

Headlight bulbs are either DOT approved or they aren't.

boutons_deux

11-09-2015, 10:08 PM

Headlight bulbs are either DOT approved or they aren't.

see the lumens here, on apparently DOT approved LED bulbs

http://www.streetglow.com/Catalog/Headlight-Bulbs

Splits

11-09-2015, 10:37 PM

Lol. $650,000 in receivables for the month with zero outstanding accounts payable is hardly a bad business model.

:lol business model. Pay attention, students.

Your business model may be great, perfect even. But it also has zero relevance on your decision to drop $50k in cash on a capital expenditure when you just needed a $100k emergency bank loan to cover expenses. That's just stupid, especially on something like a truck where a bank will loan you the money basically for free. You do realize, as a small business owner, that credit markets can freeze up, right? And you're the first guy frozen out? If you needed that $100k emergency loan to cover your outlays in 2008 you would have been wiped out. If you had $50k in cash on the other hand... much less risky position.

If you need a financial adviser PM me, I know some good ones.

CosmicCowboy

11-09-2015, 10:43 PM

CosmicCowboy

11-09-2015, 10:55 PM

You seem to be so determined to attack me it has affected your reading comprehension. I borrowed 100k for a week until a 300k check came in. For that loan I paid about $150 in interest. I would have paid that much interest in the first month of a 50k truck payment. You might want to study how amortization works. Interest is front loaded in the loan.

Splits

11-09-2015, 10:58 PM

Lol. Who the fuck are you to judge me? Zero debt and $650,000 in solid receivables for the month because of completed work you have already paid for is freaking rock solid. You are an idiot. Btw, how is YOUR company doing, big mouth?

:lol says the guy who just needed a $100k emergency loan to cover outlays, yet just gave away $50k cash.

:lol Liberty U degree

:lol can't understand freshman level finance

:lol probably employs illegals yet hates Mexicans

:lol probably doesn't provide health insurance to his employees

CosmicCowboy

11-09-2015, 11:01 PM

You are such an ass. Yes I hire Mexicans. Blacks too. Are you prejudiced against minorities? And yeah, I pay 100% of health care for my employees and their families. It was not an "emergency" loan. It was a loan in order to take 2% prompt payment discounts from my vendors instead of running them 45 days. It all good and as usual you are just showing what a stupid ass you are.

Splits

11-09-2015, 11:05 PM

You are such an ass. Yes I hire Mexicans. Blacks too. Are you prejudiced against minorities? And yeah, I pay 100% of health care for my employees and their families.

100% health care, not insurance? No employee contribution? Wow, that's unheard of. Are you running a charity?

CosmicCowboy

11-09-2015, 11:10 PM

100% health care, not insurance? No employee contribution? Wow, that's unheard of. Are you running a charity?

Yeah, it figures an ass like you would think paying for their health insurance is "unheard of". Is what it is.

CosmicCowboy

11-09-2015, 11:13 PM

To clarify before you start nit picking words I pay 100% of insurance premiums. They are still responsible for co pays and deductibles.

Splits

11-09-2015, 11:14 PM

Yeah, it figures an ass like you would think paying for their health insurance is "unheard of". Is what it is.

Except you didn't say insurance, you said care. Your lack of attention to detail is probaby why you needed an emergency $100k loan which could have wiped you out in a Bush economy.

CosmicCowboy

11-09-2015, 11:17 PM

Fuck off idiot. Your misrepresentation of facts to try to reinforce your baseless attack is not worth responding to anymore.

Splits

11-09-2015, 11:26 PM

Fuck off idiot. Your misrepresentation of facts to try to reinforce your baseless attack is not worth responding to anymore.

Your misunderstanding of basic finance is a threat to your family and employees. Next time you take a major financial decision, consult someone who took ECO 101 instead of depending on the credit market to be there to loan you $100k in an emergency when instead you could have half of that on hand or liquid (pm me if you need an explanation of a liquid asset, a truck to compensate for your tiny dick doesn't quite qualify)

CosmicCowboy

11-09-2015, 11:32 PM

Lol. Stupid loser trying to convince me I should finance a 50,000 truck when the interest in the first months payment would have been three times the interest I paid on a (very unusual) one week bridge loan. This week I have $300,000 in the bank, another 300,000 in current receivables and still no debt. Tell me again how stupid I am.

Splits

11-09-2015, 11:42 PM

Pretty stupid if you recently needed a same-day $100k emergency loan that could have bankrupted your company if denied, and then paid $50k cash for a new truck a few days later. I mean, are you really defending that? Just admit you could have made better decisions, it's no front to your manhood. You made a mistake, big deal.

CosmicCowboy

11-09-2015, 11:43 PM

Lol I think you are the one making the mistake, blowhard.

Splits

11-09-2015, 11:49 PM

Lol I think you are the one making the mistake, blowhard.

No, I didn't need a same-day loan for $100k to save my company recently, and then decided once I was cash flow positive to throw $50k away on a depreciating capital expenditure when I could have financed it at 2% and deducted the interest.

I mean, that's just dumb.

CosmicCowboy

11-09-2015, 11:53 PM

Lol you are misrepresenting facts again. No imminent bankruptcy, no saving the company. Just ordinary course of business stuff. Are you even out of high school? Your hysterical misrepresentation of facts just amplifies how stupid and uneducated you really are.

Splits

11-09-2015, 11:56 PM

Needing a $100k same-day emergency loan is not "ordinary course of business stuff".

You did mean one-hundred-thousand, not one-hundred, right? Maybe I misunderstood

sickdsm

11-10-2015, 01:31 AM

People seen pretty quick to judge from a book. I bought some equipment,was going to pay but hard to pass on2.5% interest. Bought a new Malibu couple years ago after getting hosed on two used cars. Bought a new ram 2500 for $31k last year. Buying a used work pickup is dumb. Not enough depreciation. Maybe when I'm older I'll treat myself to a fancy pickup but my family loves the room in the Ram.

sickdsm

11-10-2015, 01:34 AM

Is this all real world experience talking Splits? Sometimes the playbook changes as the game goes on. Maybe a.deal.comes up.after the.loan is maxed? Great to be elastic.

baseline bum

11-10-2015, 01:40 AM

baseline bum

11-10-2015, 01:41 AM

Splits

11-10-2015, 01:45 AM

Fabbs is a retard, no need to argue with him.

So you also graduated from the Liberty school of economics with a theology degree?

Splits

11-10-2015, 02:01 AM

Is this all real world experience talking Splits? Sometimes the playbook changes as the game goes on. Maybe a.deal.comes up.after the.loan is maxed? Great to be elastic.

What is "elastic" is that a bank will give you a loan one day, and not give it to you the next. That's the nature of small business. If you tried to get $100k loan during the final year of the Bush presidency, you would be skull fucked and told NO. If you had $50k on hand to pay off some of your debtors, you could survive as a business. What CC is trying to sell you is that he is sooooo smart that he had $50k in cash right after he had to take out an emergency loan of $100k in order to pay off his debtors because his cash flow was fucked up, and then decided that he couldn't make more than 2% on his $50k so he decided to pay cash for a captial asset that depreciates faster than almost any other asset you can own.

There is no other "playbook" to look at. This is finance 101. He fucked it up and he refuses to admit it. Well, unless he is lying about his $50k truck or the $100k emergency loan he needed to cover expenses because his cash flow was fucked, and he would have otherwise bankrupt his company.

This is basic stuff guys, c'mon.

sickdsm

11-10-2015, 02:48 AM

So no small businesses qualified for an impromptu 100k loan that year? Interesting.

Splits

11-10-2015, 02:56 AM

So no small businesses qualified for an impromptu 100k loan that year? Interesting.

That's your takeaway? SMH

Of course small businesses obtain credit when credit markets are fluid. There are plenty of reasons for small businesses to take out lines of credit. Perhaps they want to upgrade their facilities, expand their market, hire additional personnel, etc etc. In a "normal" business environment, they can secure those loans without much scrutiny. In "abnormal" business environments, banks apply greater scrutiny and refuse such loans. If you're a responsible small business owner, you should have cash on hand to deal with "abnormal" environments in case shit hits the fan. CC didn't do that. He survived this time. His bank gave him the emergency $100k, but you can't always count on that. Credit lines can be retracted as quickly as they are granted.

Instead what CC did is completely irresponsible. You don't take out a $100k loan to pay off debt in an emergency because you can't properly manage your cash flow, then turn around the next day and be like, "oh hey I got $50k I'm gonna buy myself a fancy new truck with cash instead of having a bank give me free money".

I can't believe this is even debatable.

pgardn

11-10-2015, 08:08 AM

I see absolutely nothing wrong with buying a nice new car. Some people love to drive,and in comfort, while they are driving. I have a friend with one of the really fast Teslas and he loves the thing. He rockets off down empty streets to let me feel the acceleration. He gets endless fun out of that thing.

I am not one of the aforementioned who loves to drive. When I travel via plane and get picked up, its usually in a nice car simply because the clients think the people they are picking up want a nice ride to their site. I personally don't care but obviously some of the folks they pick up do. They want you to arrive comfy and ready I guess.

sickdsm

11-10-2015, 09:18 AM

Opportunities don't wait. I've made major purchases that I didn't have the money for because I have a good relationship with my banker. I don't really know or care what he used the funds for but people don't like making deals with someone who can't do things on a whim. Folks who love the low interest rates offered sometimes find it easy to get over there head's on loans.

clambake

11-10-2015, 10:20 AM

well cowboy, sometimes the kids just don't get it.

CosmicCowboy

11-10-2015, 12:23 PM

well cowboy, sometimes the kids just don't get it.

:lol

Yeah, Splits is an ignorant troll I should have just ignored. For someone who tries to pretend he understands business you would think he would have heard of bank credit lines for individuals and businesses with impeccable credit. Only really stupid people would try to stubbornly continue to make the case that financing a 50K depreciating asset for 5 or 6 years is good business. Arguing that tying yourself to a 5 year, $50,000 amortization schedule is superior to paying $150 to borrow 100K for a week proves he is clearly an idiot.

CosmicCowboy

11-10-2015, 12:30 PM

Anytime you hear some idiot using "well it's deductible" to a business acting like it's free money you know they don't know what the fuck they are talking about. It's not like it's a personal tax credit.

ElNono

11-10-2015, 01:04 PM

Just paid off my lexus last month... only 88k miles on it, plan to keep it until it starts to fall down... car is loaded and a joy to drive...

TeyshaBlue

11-10-2015, 06:00 PM

https://www.superbrightleds.com/moreinfo/low-beam-headlight-bulb/led-headlight-kit-9005-led-headlight-bulbs-conversion-kit-with-flexible-tinned-copper-braid/2213/5000/

and the 9006 for the high beam.

the copper braid heat sinks seemed like good idea rather than rigid heatsinks which I wasn't sure to have enough room.

Also, the price and lumens seemed serious.

been a couple weeks now, so far, so good.

Thanks, boutons. :tu
Interesting heat sink design. Have you had any heat issues with them, and how warm do those braids actually get? The site says they'll fit my truck so I think I'll try a pair.

Nbadan

11-10-2015, 08:08 PM

well cowboy, sometimes the kids just don't get it.

I can see what Split is saying...but anyone who runs a small business knows that covering short-term happens...I would have to lower CC's company rating to B+ though...

:lol

boutons_deux

11-11-2015, 06:18 AM

Thanks, boutons. :tu
Interesting heat sink design. Have you had any heat issues with them, and how warm do those braids actually get? The site says they'll fit my truck so I think I'll try a pair.

the headlights sockets where they plug in are kinda worn, so the LEDS don't stay put. I'm probably gonna put little drop of gorilla glue or duct tape to hold them.

a couple times, I've popped the hood after a long night drive and fiddled with the LED positioning, the braids were not even warm to touch, kinda weird.

pgardn

11-11-2015, 05:36 PM

the headlights sockets where they plug in are kinda worn, so the LEDS don't stay put. I'm probably gonna put little drop of gorilla glue or duct tape to hold them.

a couple times, I've popped the hood after a long night drive and fiddled with the LED positioning, the braids were not even warm to touch, kinda weird.

If you brought the copper "radiator fan" through the dust cover like in the video, and there is some air flow through your particular car in that volume and the night was cool, I can see it being cooled quickly.

DMC

11-13-2015, 05:36 PM

All of my cars are leases. I own a truck, and it cost more than 25K, but I don't care.

DMC

11-13-2015, 05:38 PM

Just paid off my lexus last month... only 88k miles on it, plan to keep it until it starts to fall down... car is loaded and a joy to drive...
"till the wheels fall off"

sickdsm

11-15-2015, 01:05 AM

All of my cars are leases. I own a truck, and it cost more than 25K, but I don't care.

Any 3/4.ton or.bigger pickup (truck must be a southern thing) it's almost a terrible thing not to buy new these days. Not enough depreciation.

DMC

11-15-2015, 01:51 AM

Any 3/4.ton or.bigger pickup (truck must be a southern thing) it's almost a terrible thing not to buy new these days. Not enough depreciation.
It's a 3/4 ton. 5.5K miles in 3 years lol. Just sits there, looking lonely.

Cane

11-15-2015, 02:45 AM

Realizing it's a long term financial punch trying to impress others.

Flashy cars have some of the worst resale and upkeep costs as well. Tbh I'd raise the OP to $35k, depreciation isn't that bad on popular cars, and I want new tech like self driving highway modes