Comments on: Dude, Where's my car fit in with my number? http://7m7y.com/2009/02/07/dude-wheres-my-car-fit-in-with-my-number/ Learn how to make $7 million in 7 years ... a NEW guided learning experience. Join now! Thu, 04 Aug 2011 07:45:42 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Steve http://7m7y.com/2009/02/07/dude-wheres-my-car-fit-in-with-my-number/comment-page-1/#comment-1362 Steve Wed, 08 Apr 2009 01:01:56 +0000 http://7m7y.com/?p=1408#comment-1362 OK just soemthing i read the other day. I know many have a loan on their cars and tade in while still owing on that car. this leaves the dealer promising to pay off your loan on the old one. But What i read the other day is, many dealers are going under, and not paying that promised loan ,then bank then comes after the seller ,who now has to cover the loan on the new car, and the loan on the old car. Big surprise huh? Scarry really. OK just soemthing i read the other day. I know many have a loan on their cars and tade in while still owing on that car. this leaves the dealer promising to pay off your loan on the old one. But What i read the other day is, many dealers are going under, and not paying that promised loan ,then bank then comes after the seller ,who now has to cover the loan on the new car, and the loan on the old car. Big surprise huh? Scarry really.

]]> By: Car or curse? 7 case studies … « How to Make 7 Million in 7 Years™ http://7m7y.com/2009/02/07/dude-wheres-my-car-fit-in-with-my-number/comment-page-1/#comment-1361 Car or curse? 7 case studies … « How to Make 7 Million in 7 Years™ Tue, 24 Feb 2009 09:00:51 +0000 http://7m7y.com/?p=1408#comment-1361 [...] Ryan also likes BMW’s, which cause Josh to recommend buying a new one because it means NO “maintenance bill for 4 years, 50,000 miles” … is this a good deal? [...] [...] Ryan also likes BMW’s, which cause Josh to recommend buying a new one because it means NO “maintenance bill for 4 years, 50,000 miles” … is this a good deal? [...]

]]> By: No such thing as a free lunch … « How to Make 7 Million in 7 Years™ http://7m7y.com/2009/02/07/dude-wheres-my-car-fit-in-with-my-number/comment-page-1/#comment-1360 No such thing as a free lunch … « How to Make 7 Million in 7 Years™ Mon, 16 Feb 2009 08:37:10 +0000 http://7m7y.com/?p=1408#comment-1360 [...] was posting about his car and Josh commented: I would suggest buying used until you have cash to buy a [...] [...] was posting about his car and Josh commented: I would suggest buying used until you have cash to buy a [...]

]]> By: Adrian http://7m7y.com/2009/02/07/dude-wheres-my-car-fit-in-with-my-number/comment-page-1/#comment-1359 Adrian Tue, 10 Feb 2009 07:13:13 +0000 http://7m7y.com/?p=1408#comment-1359 @ Chris - I assume that from what you're saying, you're essentially borrowing to invest and paying cash for the car ... except that in practice, it LOOKS like you're doing it the other way around: e.g. You Have: Cash: $10,000 HELOC: $10,000 You Buy: Investment: $10,000 Car: $10,000 If I am right, it matters not as you are basically paying cash for the car ... provided you don't cash out your investment and spend it ;) @ Chris – I assume that from what you’re saying, you’re essentially borrowing to invest and paying cash for the car … except that in practice, it LOOKS like you’re doing it the other way around: e.g.

You Have:

Cash: $10,000

HELOC: $10,000

You Buy:

Investment: $10,000

Car: $10,000

If I am right, it matters not as you are basically paying cash for the car … provided you don’t cash out your investment and spend it ;)

]]> By: Josh http://7m7y.com/2009/02/07/dude-wheres-my-car-fit-in-with-my-number/comment-page-1/#comment-1358 Josh Tue, 10 Feb 2009 05:03:05 +0000 http://7m7y.com/?p=1408#comment-1358 def agree about the dealership Chris, the ones i have been to in a pinch charge in excess of $100 an hour/ That nuts. @ Adrian, Thats basically what I'm getting at. When I have the money, I enjoy a fun car so much that I'm not really going to care about the initial depreciation, although I do fully understand and am aware of it. It's a vice I enjoy and will pay for. def agree about the dealership Chris, the ones i have been to in a pinch charge in excess of $100 an hour/ That nuts.

@ Adrian, Thats basically what I’m getting at. When I have the money, I enjoy a fun car so much that I’m not really going to care about the initial depreciation, although I do fully understand and am aware of it. It’s a vice I enjoy and will pay for.

]]> By: Chris http://7m7y.com/2009/02/07/dude-wheres-my-car-fit-in-with-my-number/comment-page-1/#comment-1357 Chris Tue, 10 Feb 2009 04:47:54 +0000 http://7m7y.com/?p=1408#comment-1357 My philosophy is to buy a used (3 or 4 with low milage) and pay with a HELOC instead of cash. That way, you can invest the cash and take out a low (tax deductable) % loan. Cars to me are a neccessity to get to and from work and are meant for transportation only (not a status symbol). Buy the best one to fit your circumstance. To me that is 1) compfortable and 'fun' to drive. 2) Fuel efficient and 3) Easy to maintain. I drive almost 70 miles each way to work and my 2003 Acura RSX stacks up (I bought for $16k in 2006 with 20k miles). 1) I love to drive it. It also fits 2 kids car seats in the back and has room for 'stuff' in the hatchback 2) 34 miles per gallon! 3) 10,000 miles between oil changes (just don't take it to the dealer for servicing). My philosophy is to buy a used (3 or 4 with low milage) and pay with a HELOC instead of cash. That way, you can invest the cash and take out a low (tax deductable) % loan. Cars to me are a neccessity to get to and from work and are meant for transportation only (not a status symbol). Buy the best one to fit your circumstance. To me that is
1) compfortable and ‘fun’ to drive.
2) Fuel efficient and
3) Easy to maintain.

I drive almost 70 miles each way to work and my 2003 Acura RSX stacks up (I bought for $16k in 2006 with 20k miles).
1) I love to drive it. It also fits 2 kids car seats in the back and has room for ‘stuff’ in the hatchback
2) 34 miles per gallon!
3) 10,000 miles between oil changes (just don’t take it to the dealer for servicing).

]]> By: Adrian http://7m7y.com/2009/02/07/dude-wheres-my-car-fit-in-with-my-number/comment-page-1/#comment-1356 Adrian Mon, 09 Feb 2009 06:28:08 +0000 http://7m7y.com/?p=1408#comment-1356 http://7million7years.com/2008/04/12/applying-the-20-rule-part-ii-your-possessions/ http://7million7years.com/2008/04/12/applying-the-20-rule-part-ii-your-possessions/

]]> By: Mark http://7m7y.com/2009/02/07/dude-wheres-my-car-fit-in-with-my-number/comment-page-1/#comment-1355 Mark Mon, 09 Feb 2009 03:18:04 +0000 http://7m7y.com/?p=1408#comment-1355 @Adrian - Do you mind posting the link to the 5% Rule in the comments section here for reference? I think I've read something about it before. @Adrian – Do you mind posting the link to the 5% Rule in the comments section here for reference? I think I’ve read something about it before.

]]> By: Ryan http://7m7y.com/2009/02/07/dude-wheres-my-car-fit-in-with-my-number/comment-page-1/#comment-1354 Ryan Sun, 08 Feb 2009 18:32:44 +0000 http://7m7y.com/?p=1408#comment-1354 Yikes! I've always known that it's better to pay cash for your car, and buy used, but I've never considered that my cars make up 30% of my net worth. And that 30% is depreciating at 50%/3 years! That's scary! Now, two cars are an absolute necessity for my family We need a reliable larger car because we have two kids and no public transportation available. I also need a non beater car to transport products and occasionally clients around in. So I'm not sure that we could get away with $5000 for two cars to obey the 5% rule. In an ideal world, my passive income would be sufficient to buy our next car. For now though, I've made the decision to buy used for the next vehicle, to wait at least 2 years, and to pay cash. And I'll focus on increasing my net worth to subsequently increase the 5%! Also, here is a cool video about paying cash for your cars. I'm not sure about the numbers they use (12% for a mutual fund) but the concept is good. http://www.youtube.com/watch?v=iIgLyl66QxQ Yikes! I’ve always known that it’s better to pay cash for your car, and buy used, but I’ve never considered that my cars make up 30% of my net worth. And that 30% is depreciating at 50%/3 years! That’s scary!
Now, two cars are an absolute necessity for my family We need a reliable larger car because we have two kids and no public transportation available. I also need a non beater car to transport products and occasionally clients around in. So I’m not sure that we could get away with $5000 for two cars to obey the 5% rule.
In an ideal world, my passive income would be sufficient to buy our next car. For now though, I’ve made the decision to buy used for the next vehicle, to wait at least 2 years, and to pay cash. And I’ll focus on increasing my net worth to subsequently increase the 5%!
Also, here is a cool video about paying cash for your cars. I’m not sure about the numbers they use (12% for a mutual fund) but the concept is good.
http://www.youtube.com/watch?v=iIgLyl66QxQ

]]> By: Adrian http://7m7y.com/2009/02/07/dude-wheres-my-car-fit-in-with-my-number/comment-page-1/#comment-1353 Adrian Sun, 08 Feb 2009 09:25:09 +0000 http://7m7y.com/?p=1408#comment-1353 @ Lee - If you calculated what your cars have actually cost you over a 'lifetime' because you did finance, I think you'd be shocked. @ Josh - I think you'll find that the trade-off between depreciation and maintenance cost-savings is a very poor one ... I'd much rather be the the 'poor sap' who buys these 4 year old Bimmers from you (although, I might choose one from somebody who hasn't "driven the heck" out of it) ;) Strangely enough, I actually don't care, though .... here's why: if your cars' total value is below some threshold (remember: ALL of your personal possessions, INCLUDING CARS, should total NO MORE THAN 5% of your Net Worth - once you have satisfied your basic transport and living NEEDS) then who says that you actually need to make the wisest financial decision with your discretionary/spending money?! One also has to LIVE :) For example, my aim is to buy a Ferrari, if I can buy one for cash and fit in the rule, I'll buy the latest model if I like it better than my current fav. the F430 Spyder, else I'll happily buy the used F430 ... as long as I fit withing the rule, I'll waste my money any way that like ;) Remember: the KEY [<em>pun intended</em>] is <strong>not</strong> to break the 5% Rule (cars + other possessions) ... investing 75% of your net worth always comes first! And, don't think you can cheat because you have less than 20% of your Net Worth tied up in your house: at least a house appreciates! So, think about buying one of those instead of the new BMW ... @ Ryan - Payments over 60 months v leasing: my point was meant to be "pay cash or don't buy" ... that's been my philosophy for most of my cars (I have leased through my business on occasion, on the advice of my accountant, but the last 3 cars have all been cash purchases). Your biggest problem is that your cars represent 30% of your current net worth ... instead of appreciating at your required annual compound growth rate, that's 30% DEPRECIATING for you at the rate of 50% every 3 years, or so the story goes: http://www.uexpress.com/scottburns/index.html?uc_full_date=20040205 @ Lee – If you calculated what your cars have actually cost you over a ‘lifetime’ because you did finance, I think you’d be shocked.

@ Josh – I think you’ll find that the trade-off between depreciation and maintenance cost-savings is a very poor one … I’d much rather be the the ‘poor sap’ who buys these 4 year old Bimmers from you (although, I might choose one from somebody who hasn’t “driven the heck” out of it) ;)

Strangely enough, I actually don’t care, though …. here’s why: if your cars’ total value is below some threshold (remember: ALL of your personal possessions, INCLUDING CARS, should total NO MORE THAN 5% of your Net Worth – once you have satisfied your basic transport and living NEEDS) then who says that you actually need to make the wisest financial decision with your discretionary/spending money?! One also has to LIVE :)

For example, my aim is to buy a Ferrari, if I can buy one for cash and fit in the rule, I’ll buy the latest model if I like it better than my current fav. the F430 Spyder, else I’ll happily buy the used F430 … as long as I fit withing the rule, I’ll waste my money any way that like ;)

Remember: the KEY [pun intended] is not to break the 5% Rule (cars + other possessions) … investing 75% of your net worth always comes first! And, don’t think you can cheat because you have less than 20% of your Net Worth tied up in your house: at least a house appreciates! So, think about buying one of those instead of the new BMW …

@ Ryan – Payments over 60 months v leasing: my point was meant to be “pay cash or don’t buy” … that’s been my philosophy for most of my cars (I have leased through my business on occasion, on the advice of my accountant, but the last 3 cars have all been cash purchases).

Your biggest problem is that your cars represent 30% of your current net worth … instead of appreciating at your required annual compound growth rate, that’s 30% DEPRECIATING for you at the rate of 50% every 3 years, or so the story goes:

http://www.uexpress.com/scottburns/index.html?uc_full_date=20040205

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