What's wrong with this pricing picture ?
#1
What's wrong with this pricing picture ?
Is car getting much cheaper nowaday ? At least relatively company to everything else ?
I graduated in '96, making $42.5K/year out of school (good deal back then). As in '97, I was making $47K/year, and bought my house for $220k. With 10% down (enough to pay cash for a Camry), payment & tax for the house was $1650/month. A '96 S500 back then cost mid $90K, and lease payment would be around $1500/month. Anyway, I can either afford mortgage payment, or a car lease payment, but not both. A decent one bed room apartment cost around $800/month then. A dinner for two cost $40 at Maccroni or Malgiano. Vacation to Hawaii for two persons ran about $3000, 2 months of car payment.
Houses in my neighbohood, similar to mine, now run about $700-$750K. With 10% down (enought to pay cash for a new Mercedes), mortgage and tax would be $4800. A lease for a S500 now run about $1200 month. Even with salary of $122K/year, I can barely afford mortgage payment if I buy the house now, but can easily afford the S500 (or any car, except for the exotic) lease payment. A decent one bed room apartment now rund about $1200/month. A dinner for two cost $50 at Maccroni or Malgiano. A vacation to Hawaii now run about $3000, 2 1/2 months of car payment.
Is car just getting much cheaper nowaday. Basically, even a lease payment for something very nice like the Mercedes S class only run as much as a one bed room apartment rent ? and only a small portion compare to what one may pay for mortgage ? So forget social status of owning something "very few" can afford to own, but really, where do people get that much money to finance life style nowaday ? I know my pay is not little, but there's no way I can afford a $5K morgage and another $1.5K for car payment. I mean, how much one have to make nowaday to be able to afford that life style and not loose sleep at night ? One thing I know for sure is that not everyone around me are making more than $150K/year, actually, very few do.
And this is only Southern California, how do people in ultra-expensive place like Florida or Newyork live ???? Everyone talk and act nowaday as if money is so cheap and easy to earn. What's next, a Maybach at every garage ? heck, it's only cost as much as 1/2 to 1/10 of a house now.
Or is people just living on borrowing like now, and everyone just happily sleep atop a bubble ?
I graduated in '96, making $42.5K/year out of school (good deal back then). As in '97, I was making $47K/year, and bought my house for $220k. With 10% down (enough to pay cash for a Camry), payment & tax for the house was $1650/month. A '96 S500 back then cost mid $90K, and lease payment would be around $1500/month. Anyway, I can either afford mortgage payment, or a car lease payment, but not both. A decent one bed room apartment cost around $800/month then. A dinner for two cost $40 at Maccroni or Malgiano. Vacation to Hawaii for two persons ran about $3000, 2 months of car payment.
Houses in my neighbohood, similar to mine, now run about $700-$750K. With 10% down (enought to pay cash for a new Mercedes), mortgage and tax would be $4800. A lease for a S500 now run about $1200 month. Even with salary of $122K/year, I can barely afford mortgage payment if I buy the house now, but can easily afford the S500 (or any car, except for the exotic) lease payment. A decent one bed room apartment now rund about $1200/month. A dinner for two cost $50 at Maccroni or Malgiano. A vacation to Hawaii now run about $3000, 2 1/2 months of car payment.
Is car just getting much cheaper nowaday. Basically, even a lease payment for something very nice like the Mercedes S class only run as much as a one bed room apartment rent ? and only a small portion compare to what one may pay for mortgage ? So forget social status of owning something "very few" can afford to own, but really, where do people get that much money to finance life style nowaday ? I know my pay is not little, but there's no way I can afford a $5K morgage and another $1.5K for car payment. I mean, how much one have to make nowaday to be able to afford that life style and not loose sleep at night ? One thing I know for sure is that not everyone around me are making more than $150K/year, actually, very few do.
And this is only Southern California, how do people in ultra-expensive place like Florida or Newyork live ???? Everyone talk and act nowaday as if money is so cheap and easy to earn. What's next, a Maybach at every garage ? heck, it's only cost as much as 1/2 to 1/10 of a house now.
Or is people just living on borrowing like now, and everyone just happily sleep atop a bubble ?
Last edited by mbznchick; 03-15-2004 at 02:12 AM.
#4
Just remember that not everyone with an S-Class in their garage is debt free. The average American has over $10k in credit card debt. Many people live far beyond their means for status and end up paying for it with 'interest' in the long run.
#5
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Originally posted by oggle
$122k annual salary and you want to buy a $700k house? Isn't that kind of stretching it?
$122k annual salary and you want to buy a $700k house? Isn't that kind of stretching it?
John
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How come you dont list any investments in your financial outlook? You should be paying for your toys with the dividends/profits from your investments, not your salary...
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C280
Well, housing prices in certain areas have doubled in the past 4 years. Yes, some high end Mercedes (S class for example) have gotten cheaper, probably due to increased competition in the high-end market, a cheaper foreign labor force (from countries like Turkey), outsourcing, and other globalization factors.
I was talking to a friend, and we both agreed that the past 3-4 years have been very strange in the US and not very good for the average American. Some jobs are lost forever (manufacturing, tech), incomes are down, Americans are working more hours (for less pay), housing prices have double (increased property taxes, and even if you sell your house for more, you still have to buy another overpriced house). Interest rates are low, so many have refinanced and taken out cash from their overvalued home, so now Americans are deeper in debt (slave nation to debt?). Low interest rates mean low returns on CDs, savings, etc.
And even though there has been very little inflation, I’ve noticed in the past two years prices have gone up for most goods. Also there has been no real new job creation (yet). On the bright side, the stock market has gone back up (helps the rich?) unless you started investing in the bubble years (1999-2000). and some sectors like, housing have done well (only benefits a few though). We have lower federal taxes, but some states have raised taxes (and other "tricks" to get money).
In my area rent has gone down, because of all the home building.
What’s going on? Who knows… but I wouldn't call it good.
I was talking to a friend, and we both agreed that the past 3-4 years have been very strange in the US and not very good for the average American. Some jobs are lost forever (manufacturing, tech), incomes are down, Americans are working more hours (for less pay), housing prices have double (increased property taxes, and even if you sell your house for more, you still have to buy another overpriced house). Interest rates are low, so many have refinanced and taken out cash from their overvalued home, so now Americans are deeper in debt (slave nation to debt?). Low interest rates mean low returns on CDs, savings, etc.
And even though there has been very little inflation, I’ve noticed in the past two years prices have gone up for most goods. Also there has been no real new job creation (yet). On the bright side, the stock market has gone back up (helps the rich?) unless you started investing in the bubble years (1999-2000). and some sectors like, housing have done well (only benefits a few though). We have lower federal taxes, but some states have raised taxes (and other "tricks" to get money).
In my area rent has gone down, because of all the home building.
What’s going on? Who knows… but I wouldn't call it good.
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#9
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There are lots of insecure people in this world. Driving high end cars like an S Class is a must regardless if they sleep at night or not. I am guessing 90% of them are leases and there entire paycheck goes there car and mortgage with little left. thus using credit cards to buy other stuff (clothes, food, electronics, vacations) until they are thousands in debt.(these are not all S class owners, but most of them i assume) You will look like a big shot in your $100,000 Mercedes, but it in a few years to come you will dig yourself in a financial grave. From what i can see, people driving an S class are either extremely rich or extremely Stupid. MB still has the status, but like I said everyone kills to have on in there driveway and it is somewhat afffordable through leasing. If you want exclusivity your going to have to go in to the ferraris and lambos, rolls and bentleys. But even these cars depreciate insanely after a few years I think, so you can pick up a used one for less money.
Last edited by Guest0001; 03-20-2004 at 02:36 AM.
#10
Out Of Control!!
Originally posted by oggle
$122k annual salary and you want to buy a $700k house? Isn't that kind of stretching it?
$122k annual salary and you want to buy a $700k house? Isn't that kind of stretching it?
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2016 BMW Z4 sDrive35i M Sport
Most people I know (adults) lease their badass S-Classes and 740i/745i's because they can't afford to purchase it and it's just a status symbol. I personally drive a 9 year old Mercedes that my father owns and got a good deal on. He taught me that in life, it's best not to live beyond your means.
#14
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Answer....inflated real estate prices and cheap interest rates.
Suggestion: Live 20-25 % below your means, NOT including your retirement (that's 10-15% pre-tax). You never know when you'll need the cash for a rainy day (yes, they do come).
But be sure to indulge yourself a little too along the way...
Suggestion: Live 20-25 % below your means, NOT including your retirement (that's 10-15% pre-tax). You never know when you'll need the cash for a rainy day (yes, they do come).
But be sure to indulge yourself a little too along the way...
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CLK 430 1999
Originally posted by Chappy
Answer....inflated real estate prices and cheap interest rates.
Suggestion: Live 20-25 % below your means, NOT including your retirement (that's 10-15% pre-tax). You never know when you'll need the cash for a rainy day (yes, they do come).
But be sure to indulge yourself a little too along the way...
Answer....inflated real estate prices and cheap interest rates.
Suggestion: Live 20-25 % below your means, NOT including your retirement (that's 10-15% pre-tax). You never know when you'll need the cash for a rainy day (yes, they do come).
But be sure to indulge yourself a little too along the way...
I have a salary of about $130-140k after taxes (computer systems designer) and drive a 1999 CLK430. I live alone in an apartment (well I'm only 26!), so my spendings aren't very high. I try to save at least $7k dollars per month, since you never know when bad days might come... Monthly bills including rent stops at some $1100 for me...
I just cannot understand how one can justify buying a new SL55. I wouldn't get one even if I made double of what I do now.
Cheers,
Martin
#16
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Originally posted by J Lucas
How come you dont list any investments in your financial outlook? You should be paying for your toys with the dividends/profits from your investments, not your salary...
How come you dont list any investments in your financial outlook? You should be paying for your toys with the dividends/profits from your investments, not your salary...
#17
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Originally posted by Azeteg
Very true.
I have a salary of about $130-140k after taxes (computer systems designer) and drive a 1999 CLK430. I live alone in an apartment (well I'm only 26!), so my spendings aren't very high. I try to save at least $7k dollars per month, since you never know when bad days might come... Monthly bills including rent stops at some $1100 for me...
I just cannot understand how one can justify buying a new SL55. I wouldn't get one even if I made double of what I do now.
Cheers,
Martin
Very true.
I have a salary of about $130-140k after taxes (computer systems designer) and drive a 1999 CLK430. I live alone in an apartment (well I'm only 26!), so my spendings aren't very high. I try to save at least $7k dollars per month, since you never know when bad days might come... Monthly bills including rent stops at some $1100 for me...
I just cannot understand how one can justify buying a new SL55. I wouldn't get one even if I made double of what I do now.
Cheers,
Martin
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CLK 430 1999
Wealth is by no means measured in $$ for me...
I'd like to start investing my $$ in alternative fuel/power technologies, seeing our fancy cars burning up all oil in the world.
If I spend $20k each on 20 different projects, I figured one of them might become a huge hit and give me $kazillions back...
I heard the oil wells in the US are more dry than my mouth after a night of clubbing, but perhaps you manage to create some trans-atlantic Iraqi-.US pipeline to keep the MBZ's rolling a few miles more ;-)
Cheers,
Martin
I'd like to start investing my $$ in alternative fuel/power technologies, seeing our fancy cars burning up all oil in the world.
If I spend $20k each on 20 different projects, I figured one of them might become a huge hit and give me $kazillions back...
I heard the oil wells in the US are more dry than my mouth after a night of clubbing, but perhaps you manage to create some trans-atlantic Iraqi-.US pipeline to keep the MBZ's rolling a few miles more ;-)
Cheers,
Martin
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Thats because people who are supposed to by sL55's make at least quadruple of what you do. If you bought an sl55 youd be out of a years savings, where as people who save 100's oof thousands of dollars would be out a couple months. Not to take away from your income because it is very respectable but when buying a 130,000 car you should be pulling in close tohalf a million a year easy. Unless you want to go into debt..
Originally posted by Azeteg
Very true.
I just cannot understand how one can justify buying a new SL55. I wouldn't get one even if I made double of what I do now.
Cheers,
Martin
Very true.
I just cannot understand how one can justify buying a new SL55. I wouldn't get one even if I made double of what I do now.
Cheers,
Martin
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CLK 430 1999
Originally posted by J Lucas
Thats because people who are supposed to by sL55's make at least quadruple of what you do. If you bought an sl55 youd be out of a years savings, where as people who save 100's oof thousands of dollars would be out a couple months. Not to take away from your income because it is very respectable but when buying a 130,000 car you should be pulling in close tohalf a million a year easy. Unless you want to go into debt..
Thats because people who are supposed to by sL55's make at least quadruple of what you do. If you bought an sl55 youd be out of a years savings, where as people who save 100's oof thousands of dollars would be out a couple months. Not to take away from your income because it is very respectable but when buying a 130,000 car you should be pulling in close tohalf a million a year easy. Unless you want to go into debt..
For me it is hard to justify the price drop the first and second year... But I know there ae people practically subscribing to new SL's or S-Klasse's...
/Martin
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I believe its a number of things. People buy hit cars and fix them up. Used cars also are much cheaper than brand new. Some people out there fall in love with leasing cars. Then of course you got the guys who take out huge loans in there mothers, fathers, and grandmothers name to get the money and ending owing everyone.I would add one thing, once you get to the point where you actually 100% own a car and its value is in upwards of 40,000 , It is alot easier to keep upgrading, all you have to do is keep trading up and adding cash and before you know you you own a car at a much higher level than what your income should be able to afford. There are very few people who own high end 100k cars that can actually afford them in my opinion.
#22
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Originally posted by Azeteg
I just cannot understand how one can justify buying a new SL55. I wouldn't get one even if I made double of what I do now.
Cheers,
Martin
I just cannot understand how one can justify buying a new SL55. I wouldn't get one even if I made double of what I do now.
Cheers,
Martin
For me, I am still a college student which is why I drive my lowly C class for now, but I have my own business as well. In a few years, I will be looking at an CLK55(SL55 is overpriced IMO) and most likely lease it under the business and have a tax write off that will pretty much pay for the payments itself.
Also, most people here are enthusiasts and they dont mind spending a little more on there toys. It comes with the territory I think.
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1989 Toyota Tercel EZ - dyno'd @ 70whp/77wtq
Originally posted by Noble C320
there is a difference between buy and leasing sir. Im sure with your salary as well. You can EASILY lease one with some money down. Whether you want to or not that is your option
For me, I am still a college student which is why I drive my lowly C class for now, but I have my own business as well. In a few years, I will be looking at an CLK55(SL55 is overpriced IMO) and most likely lease it under the business and have a tax write off that will pretty much pay for the payments itself.
there is a difference between buy and leasing sir. Im sure with your salary as well. You can EASILY lease one with some money down. Whether you want to or not that is your option
For me, I am still a college student which is why I drive my lowly C class for now, but I have my own business as well. In a few years, I will be looking at an CLK55(SL55 is overpriced IMO) and most likely lease it under the business and have a tax write off that will pretty much pay for the payments itself.
Originally posted by Noble C320 Also, most people here are enthusiasts and they dont mind spending a little more on there toys. It comes with the territory I think.
Regardless what car you buy, you're gonna lose some money anyway..... it now depends on how long you want to use the car and how much you want to lose..... other than that, it's only a simple question whether or not you need the money when you have the car or not.....
I bought a '01 M5 last year for around $52K (a bit high mileage but from dealer auction and ABSOLUTELY flawless - not even one rock chip... thanks to invisible bra).... and just sold it 2 months ago (like E55 better ).... I ended up losing only $2.5K (sold for $49.5K private)....
So even if I bought a relatively new Accord.... I would have lost around $2.5K in one year also..... so, it was a no brainer for me...
Personally (call me stupid if you want to)..... I would rather spending on cars than putting your money in the bank doing nothing..... :p I can only sacrifice my cars for GOOD investment (i.e. property, business, etc.)
#24
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Well compared to the SL55 and CL600s its lowly But I love it and its my baby I am blessed to have one at my age, and I never take it for granted. I do plan to move up in 4-5 years though!
Indulging is great! Why shouldnt you? Im sure everyone here works there *** off every single day. If you want to treat yourself then damn it go for it. Life is short and you never know when your time on this planet is up. I say your life everyday to the fullest and for car enthusiasts, Drive any car you want as long you are not in debt can afford without sacrificing your family and health. For example I dont spend my money on beer, electronics, High maintenance women, highly expensive vacations and also drugs and smoking. Life is sometimes boring IMO. You eat, you ****, you go to work and come home and same all over again. Cars bring excitement into ones life. We are men(most of here that is) Men love cars, its natural. I love Mercedes-Benz, nice Clothes, and fine restaraunts. I dont mind spending money on either of these things.
Indulging is great! Why shouldnt you? Im sure everyone here works there *** off every single day. If you want to treat yourself then damn it go for it. Life is short and you never know when your time on this planet is up. I say your life everyday to the fullest and for car enthusiasts, Drive any car you want as long you are not in debt can afford without sacrificing your family and health. For example I dont spend my money on beer, electronics, High maintenance women, highly expensive vacations and also drugs and smoking. Life is sometimes boring IMO. You eat, you ****, you go to work and come home and same all over again. Cars bring excitement into ones life. We are men(most of here that is) Men love cars, its natural. I love Mercedes-Benz, nice Clothes, and fine restaraunts. I dont mind spending money on either of these things.
Originally posted by zoink
C320..... lowly C Class?? I only had a civic when I was in college
Yep..... indulging yourself a bit some time is certainly a good thing
Regardless what car you buy, you're gonna lose some money anyway..... it now depends on how long you want to use the car and how much you want to lose..... other than that, it's only a simple question whether or not you need the money when you have the car or not.....
I bought a '01 M5 last year for around $52K (a bit high mileage but from dealer auction and ABSOLUTELY flawless - not even one rock chip... thanks to invisible bra).... and just sold it 2 months ago (like E55 better ).... I ended up losing only $2.5K (sold for $49.5K private)....
So even if I bought a relatively new Accord.... I would have lost around $2.5K in one year also..... so, it was a no brainer for me...
Personally (call me stupid if you want to)..... I would rather spending on cars than putting your money in the bank doing nothing..... :p I can only sacrifice my cars for GOOD investment (i.e. property, business, etc.)
C320..... lowly C Class?? I only had a civic when I was in college
Yep..... indulging yourself a bit some time is certainly a good thing
Regardless what car you buy, you're gonna lose some money anyway..... it now depends on how long you want to use the car and how much you want to lose..... other than that, it's only a simple question whether or not you need the money when you have the car or not.....
I bought a '01 M5 last year for around $52K (a bit high mileage but from dealer auction and ABSOLUTELY flawless - not even one rock chip... thanks to invisible bra).... and just sold it 2 months ago (like E55 better ).... I ended up losing only $2.5K (sold for $49.5K private)....
So even if I bought a relatively new Accord.... I would have lost around $2.5K in one year also..... so, it was a no brainer for me...
Personally (call me stupid if you want to)..... I would rather spending on cars than putting your money in the bank doing nothing..... :p I can only sacrifice my cars for GOOD investment (i.e. property, business, etc.)
Last edited by Guest0001; 04-05-2004 at 04:52 AM.
#25
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E320
Originally posted by Noble C320
Well compared to the SL55 and CL600s its lowly But I love it and its my baby I am blessed to have one at my age, and I never take it for granted. I do plan to move up in 4-5 years though!
Indulging is great! Why shouldnt you? Im sure everyone here works there *** off every single day. If you want to treat yourself then damn it go for it. Life is short and you never know when your time on this planet is up. I say your life everyday to the fullest and for car enthusiasts, Drive any car you want as long you are not in debt can afford without sacrificing your family and health. For example I dont spend my money on beer, electronics, High maintenance women, highly expensive vacations and also drugs and smoking. Life is sometimes boring IMO. You eat, you ****, you go to work and come home and same all over again. Cars bring excitement into ones life. We are men(most of here that is) Men love cars, its natural. I love Mercedes-Benz, nice Clothes, and fine restaraunts. I dont mind spending money on either of these things.
Well compared to the SL55 and CL600s its lowly But I love it and its my baby I am blessed to have one at my age, and I never take it for granted. I do plan to move up in 4-5 years though!
Indulging is great! Why shouldnt you? Im sure everyone here works there *** off every single day. If you want to treat yourself then damn it go for it. Life is short and you never know when your time on this planet is up. I say your life everyday to the fullest and for car enthusiasts, Drive any car you want as long you are not in debt can afford without sacrificing your family and health. For example I dont spend my money on beer, electronics, High maintenance women, highly expensive vacations and also drugs and smoking. Life is sometimes boring IMO. You eat, you ****, you go to work and come home and same all over again. Cars bring excitement into ones life. We are men(most of here that is) Men love cars, its natural. I love Mercedes-Benz, nice Clothes, and fine restaraunts. I dont mind spending money on either of these things.
Although it's always good to keep your finances in check, a little indulgence is good. Different people throw their money at different things. Many people here like spending it on their cars. I mean you only have one life to live. Why live it miserably? I see some people horde money like as if they'll live on forever. That to me is equally as sad as squandering your wealth.
Personally, I only do it on disposable income. If I had to take on loans and be in debt, I wouldn't be able to live with myself.