Comments on: The Driving Machine http://7m7y.com/2009/02/09/the-driving-machine/ 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: Car or curse? 7 case studies … « How to Make 7 Million in 7 Years™ http://7m7y.com/2009/02/09/the-driving-machine/comment-page-1/#comment-1370 Car or curse? 7 case studies … « How to Make 7 Million in 7 Years™ Tue, 24 Feb 2009 09:00:54 +0000 http://7m7y.com/?p=1406#comment-1370 [...] Josh is obviously the other BMW-fan; we use his post to re-introduce the 5% Rule for cars and other possessions; should Josh have broken the rule to get int his first car? You might be surprised by the answer (it’s in the comments)! [...] [...] Josh is obviously the other BMW-fan; we use his post to re-introduce the 5% Rule for cars and other possessions; should Josh have broken the rule to get int his first car? You might be surprised by the answer (it’s in the comments)! [...]

]]> By: Adrian http://7m7y.com/2009/02/09/the-driving-machine/comment-page-1/#comment-1369 Adrian Tue, 10 Feb 2009 20:04:08 +0000 http://7m7y.com/?p=1406#comment-1369 @ Josh - Even though I was thinking of your NEXT car (i.e. the shiny, brand new BMW) rather than this one, you bring up a great point: I can have no hard and fast rule around your FIRST/CURRENT car, just as I can't around your first house, other than saying that often you have to break the rule(s) to get INTO the market ... just use The Rule when you are thinking of upgrading: if your current car can suffice, don't upgrade until [the Rules say] you can afford it :) When you do the calc's you do need to consider the 'whole of life' cost (e.g. including maintenance, depreciation, etc.) ... just don't fool yourself by 'manipulating' the numbers in your mind to sway the result towards making the upgrade purchase ... @ Josh – Even though I was thinking of your NEXT car (i.e. the shiny, brand new BMW) rather than this one, you bring up a great point: I can have no hard and fast rule around your FIRST/CURRENT car, just as I can’t around your first house, other than saying that often you have to break the rule(s) to get INTO the market … just use The Rule when you are thinking of upgrading: if your current car can suffice, don’t upgrade until [the Rules say] you can afford it :)

When you do the calc’s you do need to consider the ‘whole of life’ cost (e.g. including maintenance, depreciation, etc.) … just don’t fool yourself by ‘manipulating’ the numbers in your mind to sway the result towards making the upgrade purchase …

]]> By: Josh http://7m7y.com/2009/02/09/the-driving-machine/comment-page-1/#comment-1368 Josh Tue, 10 Feb 2009 18:43:04 +0000 http://7m7y.com/?p=1406#comment-1368 thats true, I'm am breaking the rule. I would obey the rule, but I don't think I can find a reliable car for less money then this one. If I made any move to sell the audi and buy some wreck, I think in the long run it's going to cost me more if I try to re-adjust and get into a $1000-1500 dollar car, then if I were to just stick with this one for the future. This spring I plan to replace the timing belt, thermostate, accessory belts, and a tune up. Once completed, I wouldn't be surprised if this car lasted me another 100,000 miles, which is about seven years of driving. Buying a $1500 car could cost 0-1500 in maintenacne and could last anywhere from 0 miles to 50,0000 miles. I guess I'm just risk adverse in this situation. thats true, I’m am breaking the rule.
I would obey the rule, but I don’t think I can find a reliable car for less money then this one. If I made any move to sell the audi and buy some wreck, I think in the long run it’s going to cost me more if I try to re-adjust and get into a $1000-1500 dollar car, then if I were to just stick with this one for the future.

This spring I plan to replace the timing belt, thermostate, accessory belts, and a tune up. Once completed, I wouldn’t be surprised if this car lasted me another 100,000 miles, which is about seven years of driving.
Buying a $1500 car could cost 0-1500 in maintenacne and could last anywhere from 0 miles to 50,0000 miles. I guess I’m just risk adverse in this situation.

]]> By: Adrian http://7m7y.com/2009/02/09/the-driving-machine/comment-page-1/#comment-1367 Adrian Tue, 10 Feb 2009 05:39:22 +0000 http://7m7y.com/?p=1406#comment-1367 @ Josh - ... as long as the purchase price of the car + the current value of your other possessions doesn't equal more than 5% of your total Net Worth ... and, assuming that reaching your Number (by your Date) is your primary financial concern ... right now, you're at 20% ;) @ Josh – … as long as the purchase price of the car + the current value of your other possessions doesn’t equal more than 5% of your total Net Worth … and, assuming that reaching your Number (by your Date) is your primary financial concern … right now, you’re at 20% ;)

]]> By: Josh http://7m7y.com/2009/02/09/the-driving-machine/comment-page-1/#comment-1366 Josh Tue, 10 Feb 2009 05:03:34 +0000 http://7m7y.com/?p=1406#comment-1366 @ 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. @ 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: Adrian http://7m7y.com/2009/02/09/the-driving-machine/comment-page-1/#comment-1365 Adrian Tue, 10 Feb 2009 04:42:56 +0000 http://7m7y.com/?p=1406#comment-1365 @ Josh - All I can say is that you seem 'cursed' to share the same fetish for shiny metal with European badges on them that Scott and I seem to share :P But, you did exactly what I did with my third car: I bought a 10 y.o. Porsche 911 (1972 model ... I'm THAT old!). I actually made more money, when I sold that car a few years later, than I made selling my 1st investment apartment. My biggest cost was mechanicals (a new gearbox cost me $4k ... about 1/3 the cost of the whole car) and a friend and I stripped the car and repainted it from that horrible lime green to a beautiful 'Ferrari' red ourselves ... we did the exterior in acrylic (!) and the interior (door sills, etc.) in over-the-counter spray cans!?! I agree ... this is the BEST way to get into a fancy car. As to the new BMW: any ideas on what you are going to do, after reading my comments on Ryan's post, yesterday? http://7m7y.com/2009/02/07/dude-wheres-my-car-fit-in-with-my-number/ @ Josh – All I can say is that you seem ‘cursed’ to share the same fetish for shiny metal with European badges on them that Scott and I seem to share :P

But, you did exactly what I did with my third car: I bought a 10 y.o. Porsche 911 (1972 model … I’m THAT old!). I actually made more money, when I sold that car a few years later, than I made selling my 1st investment apartment.

My biggest cost was mechanicals (a new gearbox cost me $4k … about 1/3 the cost of the whole car) and a friend and I stripped the car and repainted it from that horrible lime green to a beautiful ‘Ferrari’ red ourselves … we did the exterior in acrylic (!) and the interior (door sills, etc.) in over-the-counter spray cans!?!

I agree … this is the BEST way to get into a fancy car.

As to the new BMW: any ideas on what you are going to do, after reading my comments on Ryan’s post, yesterday?

http://7m7y.com/2009/02/07/dude-wheres-my-car-fit-in-with-my-number/

]]> By: Josh http://7m7y.com/2009/02/09/the-driving-machine/comment-page-1/#comment-1364 Josh Mon, 09 Feb 2009 22:59:38 +0000 http://7m7y.com/?p=1406#comment-1364 lol, thanks Scott. Where there is a will, there is a way. lol, thanks Scott. Where there is a will, there is a way.

]]> By: Scott http://7m7y.com/2009/02/09/the-driving-machine/comment-page-1/#comment-1363 Scott Mon, 09 Feb 2009 11:51:28 +0000 http://7m7y.com/?p=1406#comment-1363 Great work on your car purchases Josh! I've tried to tell friends and people I know how to do this all the time. So many people will see someone in an Audi, BMW, or Mercedes and be like "Well, that must be nice, but i'm not loaded like them" or "That must have been a dumb finacial move. They probably have a car payment the size of their mortgage". But I tell them, nope, buy used, take your time, look for good deals, pay cash and you'll be driving a 'premiere' brand, European luxury automobile and paying less for it than they have paid with their ford focus payments for 6 years and 12% interest. And the average person couldn't tell you the year of your Audi, or BMW, or Mercedes, or whatever. They just see the car and brand and go "ooooh, must be nice....if the man weren't holding me down, I could drive that too". Good job ;) Great work on your car purchases Josh! I’ve tried to tell friends and people I know how to do this all the time. So many people will see someone in an Audi, BMW, or Mercedes and be like “Well, that must be nice, but i’m not loaded like them” or “That must have been a dumb finacial move. They probably have a car payment the size of their mortgage”.

But I tell them, nope, buy used, take your time, look for good deals, pay cash and you’ll be driving a ‘premiere’ brand, European luxury automobile and paying less for it than they have paid with their ford focus payments for 6 years and 12% interest.

And the average person couldn’t tell you the year of your Audi, or BMW, or Mercedes, or whatever. They just see the car and brand and go “ooooh, must be nice….if the man weren’t holding me down, I could drive that too”.

Good job ;)

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