Is it a sin for wanting to own a nice car?

[Mark2024]

All my life, I have been in the "financially challenged" situation. One thing I would love to have is to own an AMG SUV or a M sport SAV.

If one looks at this from pure financial prospective, it is really a bad idea. 100K sitting in a high yield account at 5% is making 5K a year. One 100K car sitting in the driveway will lose at least 10% every year, let alone needing insurance and maintenance costs. Currently, late model CPO does not offer much savings.

But if I don't get one now, I would probably never going to get one once I am retired. We only live once, is getting a nice car before retirement a really big sin?

 

[audreyh1]

I don’t consider such things a sin by any means. It’s all about priorities and whether you can afford it. If you aren’t yet retired then I guess you have to review your priorities and goals.

We spent almost that much on the car of our dreams last year. It was not a financial decision. We’re a lot older now, so if not now when was definitely a concern for us.

 

[pacergal]

If you can afford it and it fits your budget, I would not consider it a sin.

 

[Dreamer]

Definitely not a sin. If you are in a good financial position, I would say go for it.

My DH is a corvette person. He has owned 3. The first 2 cars, he bought used while he was still working. He bought a new corvette after he was retired. He worked hard and I thought that he deserved the corvettes. I would rather have the $100K sitting in an investment or go on a nice trip. We are all different with different likes and dislikes. That is a good thing.

I am not a "car" person. I want a vehicle that is safe, reliable and quiet.

I would take your time and decide if that is really what you want or not. Good luck making your decision.

 

[Midpack]

It’s just a decision, not a “sin.” We've had few expensive brand cars (BMW, Audi, Volvo), but we didn't really enjoy them more or less than the Toyotas & Hondas we've most often bought - especially when it came time to pay for routine or other maintenance. The attraction wears thin quickly then...

A 2022 study by Experian Automotive discovered that many wealthy individuals don't actually drive fancy cars. For those with a household income above $250,000, 61% choose to drive non-luxury brands like Toyotas, Fords, and Hondas.

From The Millionaire Next Door: Most millionaires surveyed drive used, American-made cars. Rarely do millionaires who are good with money lease new cars, nor buy luxury cars. In his research, Stanley found that "50% of the millionaires we surveyed never spent more than $29,000 [$54,269 in 2023 dollars] in their entire lives for a motor vehicle."

I thought about doing a poll on most expensive car you've ever bought, but that wouldn't mean anything unless it was somehow relative to (retirement) income/net worth. And while many here may be frugal with car choices, they may well spend lavishly on something else - e.g. boat, house, travel, dining, general spending.

 

[OldShooter]

... It’s all about priorities and whether you can afford it. ...

Yes. Our high spending is travel, which has no financial value after it is experienced. I think our high year spend was about $40K. Having raced sports cars for 15 years, high performance street cars are of little interest. But that's us and you're you. If that particular BTD works for you, go for it.

 

[Music Lover]

All my life I owned inexpensive cars. When I bought my current vehicle I was retired and comfortable so I decided to get something nicer. However, still being frugal I wasn't going to buy something new. So, for what it would have cost to buy a new "basic" car I bought a 3-year old Acura instead. It's not a high end sports car but it's definitely a step above basic.

I've never regretted it for a minute.

If this is your first time buying a higher end vehicle consider something 3 or 4 years old, you'll save up to 40% off list price.

 

[pb4uski]

If you can afford it and it fits your budget, I would not consider it a sin.

+1

 

[LateToFIRE]

Didn't you write this a few weeks ago: "Our net worth is moving toward 5 million plus we have pensions and will draw decent SS. Every calculators we run says 90 to 100%."

Sounds to me like you can afford it. Certainly not a sin at your level of NW and resources. You should try it. What you might not enjoy though is the amount of attention you might receive - or you might actually enjoy that depending on the personality.

Would add that I've tried on many of life's luxuries, glad I did, that way I know what I value and what I don't, and I don't feel like I'm missing out on anything.

 

[CaptTom]

Look at it this way: You need transportation. It's not an investment, it's just a cost of living. Don't compare it to leaving money in the bank (which is also, technically, a loss in real dollars.) Compare it to other transportation options. And amortize it over the life of the vehicle. It might not look like a sin any more.

 

[Car-Guy]

All my life, I have been in the "financially challenged" situation. One thing I would love to have is to own an AMG SUV or a M sport SAV.

If one looks at this from pure financial prospective, it is really a bad idea. 100K sitting in a high yield account at 5% is making 5K a year. One 100K car sitting in the driveway will lose at least 10% every year, let alone needing insurance and maintenance costs. Currently, late model CPO does not offer much savings.

But if I don't get one now, I would probably never going to get one once I am retired. We only live once, is getting a nice car before retirement a really big sin?

Not necessarily these days. I buy higher end sports cars (not Bugatti's) but still ~$100k cars. I haven't lost a dime (inflation aside) on the last 4 or 5 I have bought. When I trade in "last years model", I've been getting about what I paid for them on the trade. (due to financial appreciation). Most only had 15 or 20k miles but one had over 40k miles on it. Didn't seem to matter. Things sure have changed on the higher end car market.

 

[LateToFIRE]

FYI, you also might not love the cost of maintenance and insurance. I've found that with many high-end purchases, the extra cost of ownership is often a surprise.

 

[Sanstar]

Only you can decide what matters most; more $ or a dream car. My story: I extended a business trip in N. CA, rented a mustang convertible and drove up the coastal Highway.

Was in my 50’s, returned to work and had such fond memories of that solo trip, I thought about buying a Mustang convertible. DH was encouraging but I thought at my age, who does that? I’m not some middle aged oldie having a midlife crisis, what would people think, ect….

Woke up one morning and realized while all the above was true to some degree, it would only be more true as the days and years passed. If I wanted to own this particular car in this lifetime, now was better than tomorrow.

Stopped in at dealer that afternoon and drove home in my all time fave car and never regretted it!

Nice to have these types of problems to solve.

 

[jazz4cash]

It’s not a sin if you can afford it. If it is a challenge just to buy, maintenance could be a problem.

I love cars and I am drawn to well maintained older cars. They are more unique but of course maintenance can still be a concern. Collector car insurance is a bargain. There are bargains on off-lease luxury cars also but still pricey. I enjoy window shopping on sites like cars and quotes, bring a trailer, etc.

If you have a really exotic ride, you’ll probably also need a place to store, a daily driver and other expenses.

Edit: I have also considered using TURO to scratch the itch with someone else’s fancy ride. I am amazed that owners let strangers drive their expensive cars.

 

[Flyfish1]

Life is short , if you want a nice car go for it.

 

[Andre1969]

It's definitely not a sin, but if you've been accustomed to driving modest, inexpensive cars all your life, making the splurge can definitely take some getting used to.

I'm not ready for the $100K league yet, but about a week and a half ago I splurged on a 2023 Charger R/T Plus, pretty well-equipped, that with tax, tags, an extended warranty they talked me into, etc, came out to around $54,100. The car that it replaced was a 2003 Buick Regal LS that I inherited when my Dad died, so a free car, basically (although when you factor in maintenance/repairs, even a "free" car can be expensive!)

I've only bought two brand-new vehicles in my life. The first was a 2000 Dodge Intrepid, back in November 1999, that was $22,389 out the door. The second was a 2012 Dodge Ram, in September 2012, that was around $20,750 out the door. So in comparison to those two, the Charger feels like it's way out of their league, cost-wise. Although adjusting for inflation, that old Intrepid comes to around $41,260. So looking at it that way, considering how much more car the Charger is, suddenly that $54K doesn't seem too expensive. At least, that's the mental gymnastics I go through to justify it.

Another thing...once you actually DO it, make the transaction, and get past it, it probably won't seem so bad. Just like most other things, like getting a shot at the doctor or something. The anticipation of going through it is worse than the actual event.

 

[ShokWaveRider]

Life is short , if you want a nice car go for it.

+10

"Sin" is a Religious invention and not really relevant. Indulgence is more appropriate. If one wants it, can afford it without doing harm to others or themselves, then it is perfectly acceptable.

 

[Sunset]

If you can afford it (and the higher maintenance/ins/repair costs) then do it if you want it.

My big splurge 8 yrs ago was ~30K for a new Sienna !!

I still like it.

 

[skyking1]

It is a personal choice. I choose not to because I don't worry about where I park my car or if it got a new door ding at the store, or if I was a bit behind on washing it I would not be compelled to wash/wax it. They will always be transportation first and foremost.
I have had some fun American Muscle in my youth. Nowadays I get my grins from diesel torque.
If I were to indulge in something nice I would gravitate to something a few years old, something not perfect with the initial depreciation done.
The measure of "nice" for me is comfort first, and ironically my pickup is very hard to beat in that regard. It is old but I retrofitted newer seats in it.
So many of the nice cars take my head off as I try to get in and out, and tilt me back too far with the seat bottom too low for long term comfort. I enjoy long road trips and if I crawl out after the first two hours and have to walk it off for a while, it is no fun.

 

[Mark2024]

I had my first S class 20 years ago and fully aware of the insurance and maintenance cost.

There are so many YouTube video about not to buy any expensive car just before retirement. But I see many cases here that people actually do.

Will continue to do my research and more than likely will do the BTD deal. Thanks!!!

 

[Gumby]

Of course it's a sin, and a big one at that. You should be on your knees begging forgiveness for your evil ways.

Nah, just kidding. You should do what will make you happy, unless it results in harm to someone else.

 

[Car-Guy]

So many of the nice cars take my head off as I try to get in and out, and tilt me back too far with the seat bottom too low for long term comfort. I enjoy long road trips and if I crawl out after the first two hours and have to walk it off for a while, it is no fun.

Yep, that's the main reason I quit buying Corvettes. There are some super high performance SUV's and Trucks these days that are much more comfortable and easy to get in and out. Although not nearly as cool looking.

 

[Sojourner]

Lots of comments so far have said something along the lines of "If you can afford it, then why not?" I have a slightly different take on that, FWIW.

There are lots of things that are, strictly speaking, affordable given our monetary resources, yet we don't purchase them. For example, I can absolutely afford to fly first/business class on every single flight I take. I can also afford to stay in $500/night hotel rooms at every place I visit. (Not humble-bragging here, just trying to make a point.) The reason I don't usually spend the money on these "luxury" experiences is that they don't feel like a good value for me. And I also find myself thinking, what else could I be spending those dollars on that would be of higher value to me and would truly enrich my life in a meaningful way. IMHO, unless you have nearly unlimited discretionary funds, then you always have to look at any given expensive, luxury purchase as a tradeoff. What will you be giving up in order to partake in this pricey indulgence? And, in the case of folks who are still working towards early retirement, you have to ask how many more months/years of grinding away in the salt mines will this purchase delay my FIRE goals?

 

[latexman]

Is it a sin for wanting to own a nice car?

No. I lusted after a ‘69 Mach 1 ever since my brother had one in the ‘70’s. Then, in 2004 I bought:


I escaped the depreciation by buying it when it was a classic car. I paid $30k, enjoyed it 5 years, and sold it for $35k.

 

[Music Lover]

Lots of comments so far have said something along the lines of "If you can afford it, then why not?" I have a slightly different take on that, FWIW.

There are lots of things that are, strictly speaking, affordable given our monetary resources, yet we don't purchase them. For example, I can absolutely afford to fly first/business class on every single flight I take. I can also afford to stay in $500/night hotel rooms at every place I visit. (Not humble-bragging here, just trying to make a point.) The reason I don't usually spend the money on these "luxury" experiences is that they don't feel like a good value for me. And I also find myself thinking, what else could I be spending those dollars on that would be of higher value to me and would truly enrich my life in a meaningful way. IMHO, unless you have nearly unlimited discretionary funds, then you always have to look at any given expensive, luxury purchase as a tradeoff. What will you be giving up in order to partake in this pricey indulgence? And, in the case of folks who are still working towards early retirement, you have to ask how many more months/years of grinding away in the salt mines will this purchase delay my FIRE goals?

I suppose some people can die with $5 million in the bank and not splurge even once.

You don't need unlimited discretionary funds to buy a sports car. Even me with my very modest income can easily afford one if I wanted.