SLC Tortfeasor
Recycles dryer sheets
- Joined
- Jun 17, 2005
- Messages
- 233
geeman said:Ok, I'll push the Porsche to age 25
I was thoroughly committed to the idea of getting a Ferrari 308 (the kind Magnum P.I. drove!) by the time I was 30. I mean, it was something just short of a religion for me. What I found was that after years of hard work, once I could finally afford that car, I realized it just wasn't worth it to me anymore. Once you realize the true long-term cost (especially the opportunity cost) of an expensive car, you realize what a waste they are. I'd rather be the smart, high net worth guy driving a relative beater than the dumb, high income guy with debt driving a hot car.
As an example, if I was buying a Porsche, I would get a nice 1999 or 2000 911 Carerra 2 with a full Aero kit. I've found great ones for sale on Ebay and Autotrader ranging from about $38k to $45k. These are hot cars. Of course, they primarily appeal just to other car guys, but no matter---they make you feel like a superstar. But what if you invested that money instead? Assuming a reasonable/conservative 8% rate of return on a 30 year investment in stocks, you could turn $40k into about $80K in 30 years. Despite inflation, you could probably live off of that investment alone for over a year, depending on how frugal you were. Go play around with the calculators at http://abcnews.go.com/Business/FinancialSecurity/story?id=133188
Having said all that, I have to admit that I recently bought a used Nissan 350Z. Now I can still get my kicks playing the role of the young bachelor in a hot car, even though I didn't have to break the bank to do it.