You know it’s hard not to notice a nice car, at least it is for me. It sticks out, it’s shiny, it’s sporty, it doesn’t have a roof, perhaps it’s absolutely enormous (think Hummer), whatever the reason for it sticking out – it does. I’m not sure about you, but as soon as I notice a nice car, I try to take a look at who’s driving it. What am I thinking?
Hmm… honestly, I guess it all depends on the day. Today, for example I was on my way to work and I shared a four-way stop with a brand new Cadillac CTS driven by an elderly lady of about 80 years old I’d venture to guess. I didn’t really ‘judge’ her (as she was actually one of the few drivers that didn’t make an idiotic mistake on while we drove up the one way Fitzroy Street), but I did start to wonder how the transaction must have transpired that got her into that $75K vehicle (I’m guessing).
I then read an article today at one of my favorite sites “The Financial Blogger” whom wrote and asked “Do Big Cars Equal Big Money?”. The article was great, but one part of it actually struck a cord and got me to write what you’re reading. The following article:
…people severely question the choice yet they don’t really have an issue with couples who blow $3,000 – $4,000 each winter for a week down south every year. They don’t talk about the guy who renovated his kitchen and sunk $25,000 on it, including granite counters. And they certainly won’t argue with the $5,000 home theatre system with a giant screen during the Superbowl!
How true! So I decided to take the $3000 that many people likely spend on vacations in the run of a year and upgrade my car to see what I could be driving.. I’ll do this with the help of leasebusters.com which can give me a good estimate as to what people are generally leasing cars for. (This is just for a quick reference, I realize pricing is different for purchases, etc.).
I currently pay $375 for my Vibe per month, if we take that $3000 and instead put that towards a car – that’s a new budget of $250 more a month or $625.
The Results:
 2009 Mercedes-Benz C-Class 230 4Matic Sport/Premium package
$454.29 |
 2008 BMW 3 Series 323i w/Sport & Premium Package
$548.00 |
 2005 Jaguar X-TYPE VDP AWD
$660.74 |
 2007 Lexus IS 250 Premium Luxury package
$595.49 |
 2008 Lexus ES 350
$680.00 |
 2008 BMW Z4 3.0 si Premium, Comfort, Sport and Premium Sound Packages
$684.37 |
Yeah I’m not making this up – click on any of the links above for the details on the offers. So all you folks whom crave the yearly trip or two and spend $3000 (or more!) on vacations – the alternatives for some is to not go on vacations but have a really nice ride like this. I suppose the amount of gas and the amount of increase of car insurance, ha, and life insurance rates would go up quite a bit as well.
Now I’m sure that a lot of folks get the opportunity to do both (nice cars and nice vacations)– but for those of us whom don’t, I guess I shouldn’t judge the little old lady anymore when she drives around in her brand new Cadillac – perhaps she just doesn’t spend the extra money going to Florida or Cuba for the all week drinking binges 
I'd prefer to travel. However to vent a little, I'm annoyed by the parents with 3 kids that complain how much money I must have to be able to travel once or twice a year. I'd be willing to bet I spend less then they do raising a family.
It's all about priorities, life style and where we spend money and more importantly, where we do not spend it. A quote I'll never forget was one saying that those that look rich, are probably in debt and those that don't look rich, could very well be.
All those new expensive designs look like old Toyotas and Datsuns. … Just saying, …
Hey Len,
I like this post and I think you're right that it all depends on your priorities. I am not that into the kind of car I drive and am comfortable with an older model that is well-maintained. I'm one of those parents with 3 kids, however I put $100 off of each pay into a savings bond which allows my wife & I to have our “adult trip” each year time permitting. I might be driving an older car, but I have visited most Carribean countries and have great memories and photos and adventures because of it.
There is no right or wrong here, just a different ordering of priorities.
Tim
PS – love the blog. I lurk here quite frequently and have used some of your tips. I now have 30 cans of tomato paste
Hey Tim!
Your idea is awesome.. although.. hmm.. $1200 a year for the both of you to go to the Carribean.. who the hell is your travel broker??
Your idea for an 'adult trip' is also a great one I think, but seeing that I don't have kids I guess I have nothing to compare it to.
The car debate is one which a lot of people feel strongly about, but I know that it certainly is likely the first thing people think when they see a nice one ..”they must have money or a great job”, and it's not always the case… I want to upgrade to that Mercedez!!
Yeah, I don't know what I'm going to do with all that tomato paste, I actually went back and got another 30 and they were very greatful at the Upper Room when I dropped it off.
I put $100/pay * 26 pays per year = $2600. Covers most of a trip for two. Sometimes more if we get a good last minute deal.
Good call on the upper room.
Aha!! That makes sense.. stupid me for some reason thought it was once a month.. yeah $2600 is dandy for a nice trip.. great idea Tim.
she was 80 years old. she probably used her pension money hahaha
Love it!
$684 for a 2008 BMW?? Dang!! I was driving a brand new 2006 Lincoln Zephyr for a few years and people LOVED the car. The amount of male attention I got in that car was phenomenal! Monthly cost though was $600+ insurance + gas + maintenance – too much to be wasted on a car, even a luxury one.
My new mode of transportation – the bus! Saves me over $500/month and I walk a lot more now.
loving the blog!
Cheers!
Hey Nelley.. thanks for posting!!
that Zephyr sounds AWESOME!! I certainly hear you about the costs though.. if we had a better bus system I'd be tempted, but unfortunately I don't think it's in the cards as of yet, especially since I go home every day for lunch.
Good on you for saving that much money though.. impressive! How much does it cost you monthly for the bus you figure?