The Financial Blogger put out a post yesterday, about suppressing the urge to buy a nice car because…well, just because. I get that the monthly payment was going to be higher than he was aiming for, and that some of the car’s features might not have been necessary.
On the other hand, I’ve found that when people don’t get the car they wanted in the first place, this tends to happen:
Day 1: Ehhh, who really needs a Bose sound system, GPS, automatic shift, power windows and all of that hoopla? [Grinds gear pulling out of Costco parking lot]
Day 30: Yannow, I really could’ve used AC. [Girlfriend asks “OH REALLY NOW”, as her windblown hair clings to the ceiling fabric]
Day 100: Screw this noise, I’m buying the car I want next time [Flexes biceps, shredded from window roller-uppering]
I’d trade $40 or $50 a month to drive a car that I enjoy owning, rather than cheaping out on some of the better perks, while still paying the finance/lease costs that are in the hundreds of dollars a month anyway.
Additionally, as I mentioned on his comments page, a car doesn’t always lose value. In fact, it can add value.
Yes, it will depreciate in terms of resale price, but a car isn’t a financial investment in and of itself. For an HR manager working downtown, and living near a subway line, the car can indeed be a drag on net worth. Most of her transportation needs can likely be accomplished via public transit. On the other hand, for an outbound salesman living in Milton, who takes calls all over the GTA, a nice, reliable car does several things for him:
1) Allows him to take calls wherever he needs to, leading to high sales volume (assuming he’s good at what he does), leading to increased income.
2) Doesn’t require excessive maintenance, or break down and leave him stranded by the roadside, thereby holding its functional value.
3) May boost his image among the people he does business with.
Early on in the practice, I used to knock cars as well, buying into the idea that if you can’t sell it for at least what you paid for it, it’s a bad investment. Now I know better. I say buy the car you want, as long as it fits within your transportation budget*.
*Not to be taken as advice to increase your transportation budget. I get enough grief from wives, as it is, for giving hubby the okay to buy nice toys.
