dude,

I think you're misinterpreting the point of my post. I already said there are times when cash makes sense. It wasn't intended as a criticism of how one person on this board bought their car. I don't know anything about his financial situation. Maybe it made sense, maybe it didn't--I have no way of knowing.

What I was getting at is that MOST OF THE TIME, financing makes more sense than paying cash. MOST people don't have 100% confidence that their retirement is fully funded. MOST people don't have a wad of cash sitting around that they wouldn't miss if it disappeared. MOST people aren't interested in investing in the risk-free rate only. For MOST people, paying cash IS the most expensive method of buying a car.

I was simply adding a contrasting view---that post sounded like he was recommending everyone pay cash for cars---I don't think that makes sense for the vast majority of car buyers out there. I felt that in a general discussion of auto finance, a general statement was appropriate.

 

Thats the point, if the trade in gives you less payments thats just one facet of the trade, you have to see if they are going to low-ball you on the AMG.

Did you put a big downpayment on the AMG b/c thats going to be lost, also many times the trade in is only going to cover the existing loan so you may have to put another down payment to get the bimmer, in that case it may not be cheaper than the AMG.

 

[QUOTE=dombey,Jan 4 2007, 08:45 AM] I think you're misinterpreting the point of my post. I already said there are times when cash makes sense. It wasn't intended as a criticism of how one person on this board bought their car. I don't know anything about his financial situation.

 

I think if people are unhappy with their choices of education, then that's their own beef. There is a sacrifice for higher education in the form of delayed gratification.

I did it so I could enjoy my job and be excited to go to work every day. I never want to retire. I took a pay cut over what I "could" have made if I had gone directly into the work force, but I've always believed it's about the journey, not the destination.

As for paying with cash vs borrowing... from a financial standpoint it's wiser to invest the money... but that is contingent on not being able to have that money liquid. Most investments do well over the long term, but fees and market variability make it hit or miss in the short term.

If I drank instant coffee and ate only PBJ sandwiches and put aside the money I currently spend on coffee and good food, I could have a lot of money by the time I retire... for the purpose of what? Enjoying myself more then? You know what I'd do at that time? Eat food and drink premium coffee....



Obviously this is a slippery slope. If people want to spend money on cars and they complain later that they can't afford a house... I have zero sympathy.

Or get financially devastated if they get laid off of work because they have no liquid safety cushion because they spent it on cars, I also have little sympathy.

In my book, we all have different levels of risk aversion. As long as you're man (or woman) enough to face the potential consequences without whining or regret, more power to ya!

 

(Man that was a high soapbox post, sorry.)

 

This is a silly thread. I'm only responding cus I'm bored and waiting for a phone call...

To the OP, only you know your financial situation, so only you know how much $300/mo. is worth to you. But, things really don't add up to the casual observer. Although Stack may have been indelicate, he did have a point. Your writing does not quite evidence the typical skills required of someone making the income necessary to support your automotive spending. If you are, in fact, spending $3,000 per month on cars, I would think that you should have a gross monthly income of no less than $15,000 per month ($180,000 per year). Granted, that's an arbitrary figure, but using that figure, you would see that there isn't much left over each month after taxes, your monthly car expenses, an equal amount for housing, and retirement contributions. And, if you can comfortably spend $3,000 per month on cars, why would the $300 difference between the 335i and the C55 matter? Plus, what did you mean by BMW "helping" you? Dealership finance departments don't "help" people. They provide a service for profit. If you're upside down, I'm sure they will roll the deficiency into your new loan (if your credit is good, I would think). But, like rai said, what does that get you?

If you're just curious about the cars, go drive a 335i. I did, and it's a wonderful car. I've never driven a C55, but they've never had a great reputation for handling, I believe. If I were looking at both new, I'd save the $$$ and go for the 335i, but, honestly, I'm not looking to "smoke" anyone on the road either, nor could I stomach your payments on the C55, which sound like about $1,000 per month. You, however, are not looking at both new, as you've already bought the Benz and will be looking at losing a ton of money on it if you trade it in at the Bimmer store. This is a decision only you can make knowing all of the relevant facts. Good luck.

 

^ maybe.

but on this board, you gotta say it like it is.

i agree with you everything you said.....

 

I wish the only sacrifice to higher education was deferred gratification...

 

[QUOTE=CKit,Jan 4 2007, 12:21 PM]I think if people are unhappy with their choices of education, then that's their own beef.

 

I would like to get at the satisfaction element.

If you go to the 335, what will you do with the 300 (ex. move to a different home)?

If at the end of the day you will have more satisfaction from the 335 and new whatever that results from moving the 300 from a car payment to that new whatever, then you have a reason to make the change.

Disclaimer Number 1 As has been mentioned, changing the 06 car will come with a depreciation hit which will lower your satisfaction.

Disclaimer Number 2 Related to some of the grousing in this string, there is no need to pounce on someone who spends their money on whatever they choose.

Disclaimer Number 3 Regarding what is fair about compensation in America, it is about having skills that someone wants/needs and is willing to pay for. I did not start to haul heavy coin until a few years after getting my MBA and support the comments about getting graduate education (if that is the thing for you). In any case hard work is the way to go and if you add keeping your eyes open and head in the game you give yourself the best chance to succeed.