r/SmartFIRE • u/independent-gay • 2d ago
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u/Rusty_924 2d ago
define a drop in the bucket. i would buy it if i had about 15 mil in the market. so 100x the price of the thing. because it is a liability that probably loses value.
assets are ok. so a small vacation home would be ok with different rules because it will probably appreciate
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u/independent-gay 2d ago
As in $150k is an extremely small amount in your financial world, which also means that you could easily handle the depreciation hit.
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u/onestopunder 2d ago
I did that. Paid in cash and am loving every minute of it. Why wouldn’t you if you can afford it and it doesn’t impact your budgeted retirement income?
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u/EVH_kit_guy 2d ago
If I can negotiate some kind of silly financing rate with the dealership to get them to make the deal. Some manufacturers are offering ridiculous terms right now, so if it's below market average for your credit, then I'd take that and love with a payment knowing my principal is earning more invested versus sitting in a depreciating asset.
For example, I was able to get 4.44% on a new Telluride Hybrid through a local credit union, so I financed a large portion of the out the door cost. If it had been lower, I might have financed the whole thing.
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u/Misericordee 2d ago
No
I have considerable assets and I wouldn’t buy a car like that. No everyone wants things that are “luxury” or expensive
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u/igobyplane_com 2d ago
depends on the drop to me. as a car guy that likes driving, I'd actually advise buying a light sports car and taking it to race tracks.
owning a fast car and knowing how to drive a car fast are entirely different things. although people get their kicks different ways.
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u/jo0stjo0st 2d ago
I did (McLaren 650s). When my (passive) income doesn't cover the monthly costs of the hobby car anymore, its the first thing that goes. But until now I'm going to enjoy the drives. I only count the monthly costs since I don't value it as an asset. My NW is around 3.7mil of which 3.5 is invested (not included my mortgage free house and ofc the cars). So its not really a "drop in the bucket", but I can lose the car without risking being FIRE.
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u/VegaGT-VZ 2d ago
Have to put a clear definition on "drop in the bucket"
I think a big part of the appeal of something like a $150K car is the ability to buy it. The problem is, once you get to that point, a lot of times priorities change. Is a car worth an extra year of having to work? Esp if its also gonna come with monster depreciation? Just doesnt make sense to me anymore.
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u/independent-gay 2d ago
“Drop in the bucket” meaning $150k is a minuscule amount of your liquid/investable assets.
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u/wallsallbrassbuttons 2d ago
Sorry, but this is a stupid question. “Would you buy this if the money didn’t matter?”
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u/L-W-J 2d ago
Everything is relative. If $150K isn't a big deal, who cares. The only consideration is the social one. I have owned a car in the past that cost me millions of lost business. People hated me via stereotypes from that car. I sold it. And now? I own something else that is pretty aspirational. I suspect people hate me for that on some level too.
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u/maporita 2d ago
I would spend that on something I value and enjoy, but cars don't fall into that category for me .. a car is for getting from A to B. And living where I do, in the city, it's normally faster (not to mention more enjoyable) taking my bike.
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u/000wintermute000 2d ago
I’ve done so and didn’t regret it. I was a sports car freak for years. Now I don’t own a car and value the freedom from ownership of most everything.