SLR/C199/R199/Z199: Black & Silver SLR in the OC!
#27
Actually
If your money 'as invested' is making upwards of 15% like most of these guys, why in the world would you pay cash for a car? That's throwing money away. High end car owners ALWAYS finance it, it's the smart thing to do.
#28
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SL65/BENTLEY GT
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Originally Posted by SleeperZZZ
I *seriously* doubt he's a billionare (with a "B"). There's only 2 in Orange county that I know of, Donald Bren of the Irvine Company, and some guy named Brandes. And as far as his dream garage goes, never underestimate the power of credit, leverage, and just-in-time income. I've seen many "on paper" millionares that can't really afford their lifestyle past their next paycheck.
The top 1% of americans make I think $360,000 a year. When you see someone in a CL, SL or Bentley, it's probably leased at around $2000 - $3000 per month, plus the $5000 to $6000 mortgage, add to that expenses and lifestyle and it dosen't leave you very much. I would say the average person driving around in a $100K+ car in the OC can safely be put in the $180K to $240K per year range.
I have no idea where that rant came from....![nix](https://mbworld.org/forums/images/smilies/nixweiss.gif)
The top 1% of americans make I think $360,000 a year. When you see someone in a CL, SL or Bentley, it's probably leased at around $2000 - $3000 per month, plus the $5000 to $6000 mortgage, add to that expenses and lifestyle and it dosen't leave you very much. I would say the average person driving around in a $100K+ car in the OC can safely be put in the $180K to $240K per year range.
I have no idea where that rant came from....
![nix](https://mbworld.org/forums/images/smilies/nixweiss.gif)
By the way, why take $200,000.00 out of your cash flow and purchase a car if that cash can make more for you by doing something else, unless you have reached the level of the ultra-rich. I believe that most wealthy people purchase toys at the same income percentage as working class people. There are alot of families making $100,000.00 a year, and driving two 40-60 thousand dollar cars, as there are families that make $400,000.00 a year driving $100,000.00-$200,000.00 cars. Personally, I enjoy living very much below my means, but with-out refusing to enjoy some of the material riches of life.
I believe that some people are trapped in the old economy concept of people having to put 20% + down for a house, or buy a car cash in order to show their financial wealth. Todays financial advisors has proven time and time again that putting your money in the right place is more important than avoiding an interest rate of 7.5% and losing the ability to make 20% returns on that same money. The bottom line is the untimate indicator. Hopwever, this does not exclude the person who is completely over-leveraged and in financial crisis, but many people of all income levels are in that boat.
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#29
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2004 S500 & 2011 Mini JCW
Let me know where I can make 15% on my money and I would have enough from investment cash to pay cash for a new SLR every year! 15% is possible, but you must be willing to be patient and or risk loss of capital!
#30
Originally Posted by srknutson
Let me know where I can make 15% on my money and I would have enough from investment cash to pay cash for a new SLR every year! 15% is possible, but you must be willing to be patient and or risk loss of capital!
I hear that ****e!
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#31
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SL65/BENTLEY GT
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Originally Posted by srknutson
Let me know where I can make 15% on my money and I would have enough from investment cash to pay cash for a new SLR every year! 15% is possible, but you must be willing to be patient and or risk loss of capital!
.The best way to escape financial meltdown is by having as much of your cash onhand as possible to recover..
Imagine buying a car cash, and two minutes later it is worth 20-40 grand less. Imagine then you are then forced to sell your possessions at a major discount because you ran into a financial crisis. You just guaranteed yourself a big loss of cash, and little cash to turn to. This will only enhance your downturn.
Then imagine leasing a vehicle with a modest down payment to lower your monthly payment, and you run into a financial crisis. You have a choice of returning the car or trading down and possibly receiving a short term blemish on your credit, and still have cash in the bank to stabilize yourself.
When it comes to recovering from a downturn, cash on hand beats begging someone else to give you a hand any day of the week. The ultra-rich can make cash purchases and not feel a thing. The rich/wealthy can not live by the same rules as the ultra rich without becoming financially vurnerable with little to no cash on hand. Just my professional opinion.
Other peoples money/Not your own.
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#32
Originally Posted by DBERRY7578
...When it comes to recovering from a downturn, cash on hand beats begging someone else to give you a hand any day of the week. The ultra-rich can make cash purchases and not feel a thing. The rich/wealthy can not live by the same rules as the ultra rich without becoming financially vurnerable with little to no cash on hand. Just my professional opinion.
"Doesn't matter how much you're worth on paper or how much money you have -- if you don't have the cashflow, you're broke".
"One of the things you must learn in business - in any business - is how to properly manage debt".
That said? Yes, the Ultra Rich can buy whatever they want, for however much they are willing to pay for it -- doesn't matter if it is a good 'deal' or not, a good 'investment' or not.
This is not the actual reality for everyone else on the planet, be they 'wealthy' or not, as you point out.
Generally speaking, it doesn't make sense to take potential investment capital which could generate a 10% return to pay for an item when that item could be financed at a lower percentage. But is that numerical difference of percentages the true net reality in the transaction? Cashflow, tax considerations, liquidity - and many other factors - may figure in to the true 'net' difference in the method of a purchase.
I will say this: I believe that one should not live beyond one's means; one must know or learn how to properly manage debt and utilize it accordingly; cash is king (and equity and leverage are mere princes in comparison); maintaining some liquidity is essential
-- and I choose to pay cash for all of my purchases, in truth, mostly because I can.
I would never recommend that someone lease a car, any car, for $1000 a month.
What you do, and why you do it, is up to you -- but I would at least recommend to you that you take a pause for the cause, and at least think objectively and critically about and before making any large purchase or expense or taking on any obligation: is it what you should actually do? is it the best alternative among the options available to you? is this the right or best time to do it? are you doing it in the best manner available to you? and finally, what are you missing in the equation?
Just my two billion cents...
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Last edited by ClayJ; 01-01-2006 at 01:16 PM.
#33
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SL65/BENTLEY GT
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I guess each individual has to make discisions that best fit their situation, and will allow them to receive the greatest return for their buck!!!
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#34
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2020 BMW X3M Comp
Originally Posted by ClayJ
Probably can't afford it.... ![Smilie](https://mbworld.org/forums/images/smilies/smile.gif)
![Smilie](https://mbworld.org/forums/images/smilies/smile.gif)
I live in the heart of New York and I drive a car thats nice but not too nice where I'll lose sleep over if it gets a ding or two.
Last edited by NY C32; 01-01-2006 at 05:35 PM.
#35
NY C32 - Don't get your drawers in an uproars! LOL
The intent of my post was to add to your comment, "Its one thing to finance or lease a $40, $50, even $90k car because some find a tax benefit since many use their cars for business. If I needed financing to buy a $200k car, I can't afford it." that it isn't necessarily that they can't afford it - they may need financing for another reason, they made need to procure the financing at that point in time to purchase the car but will more than be able to afford ownership, etc. - so that I commented, in italics, that it is more correct perhaps to say that they "Probably can't afford it...." . Just a small, distinguishing, correcting comment on my part. Certainly ny comment wasn't intended to be about you at all - it was about people in general terms as I took your "I" to be in the general sense, such as one might use "one".
I found your comments about your personal situation and philosophy somewhat interesting; and I fully agree that one should make funding their retirement a priority over what might be for that person an arguably not-so-affordable or wise purchase. Hmmmm...hope that helped!
The intent of my post was to add to your comment, "Its one thing to finance or lease a $40, $50, even $90k car because some find a tax benefit since many use their cars for business. If I needed financing to buy a $200k car, I can't afford it." that it isn't necessarily that they can't afford it - they may need financing for another reason, they made need to procure the financing at that point in time to purchase the car but will more than be able to afford ownership, etc. - so that I commented, in italics, that it is more correct perhaps to say that they "Probably can't afford it...." . Just a small, distinguishing, correcting comment on my part. Certainly ny comment wasn't intended to be about you at all - it was about people in general terms as I took your "I" to be in the general sense, such as one might use "one".
I found your comments about your personal situation and philosophy somewhat interesting; and I fully agree that one should make funding their retirement a priority over what might be for that person an arguably not-so-affordable or wise purchase. Hmmmm...hope that helped!
![Smilie](https://mbworld.org/forums/images/smilies/smile.gif)