does your choice in cars help to reach milestones
11-26-16, 05:37 AM
#1
Lexus Fanatic
Thread Starter
does your choice in cars help to reach milestones
I think mine did.....first new car as a young buck with newly minted MBA, 1998 Maxima SE. the car was problem free for 7.5 yrs., at which time I had to pay a whopping $420 for new cv axles (coworkers have DIY'd and said one side is easy, the other a pita). The next and first major repair came at 12 yrs, where the entire exhaust had to be replaced, cat back, painful $595. And at year 18.5, it's really imho needs too much, thanks to emissions and rust. This allowed me to buy a BMW when it was 8 y.o., and keep the miles low overall. Wife got a new SUV in late 2011 and at the time I pinched myself when we paid 42k discounted, that's crazy but what could I do. So once we donate the Maxima, we'll have 3 fully functioning cars, 2 in the low 50's for mileage, the LS in the low 80's (now 84).
This fall was a crossroads. Wanted a GTI, then a Golf R, then justified a M2, then a M3. Ended up with a 11 y.o. LS430 instead. I like to think that this was the right decision, as this was doable in cash, as opposed to borrowing 30k, and now we have to attack our next milestone, living in the so-called dream house (this I believe is totally elusive, the ordinary person usually does not accomplish that in the location they want). For whatever reason, the real estate prices have peaked once again.....other factors are a 3 y.o. toddler and the school system is fine. With no car payments, we need to attack what's left of the home loan (do not have a mortgage but have what's known as a first lien position heloc with 6 yrs. left--get ready to go back up to 30 yrs and buddy says that is a wrong decision).
My point in all of this is that is some strange way, I think one's choice in cars, being such big ticket purchases, affects one's milestones in life. One way to get around it is to have $0 savings, which I know some coworkers are doing....scary imho. But their goal is to leave nothing to heirs, cash out if you will, which I don't agree with....
This fall was a crossroads. Wanted a GTI, then a Golf R, then justified a M2, then a M3. Ended up with a 11 y.o. LS430 instead. I like to think that this was the right decision, as this was doable in cash, as opposed to borrowing 30k, and now we have to attack our next milestone, living in the so-called dream house (this I believe is totally elusive, the ordinary person usually does not accomplish that in the location they want). For whatever reason, the real estate prices have peaked once again.....other factors are a 3 y.o. toddler and the school system is fine. With no car payments, we need to attack what's left of the home loan (do not have a mortgage but have what's known as a first lien position heloc with 6 yrs. left--get ready to go back up to 30 yrs and buddy says that is a wrong decision).
My point in all of this is that is some strange way, I think one's choice in cars, being such big ticket purchases, affects one's milestones in life. One way to get around it is to have $0 savings, which I know some coworkers are doing....scary imho. But their goal is to leave nothing to heirs, cash out if you will, which I don't agree with....
11-26-16, 05:45 AM
#2
Lexus Test Driver
ABSOLUTLEY. ive had several Ls400s over the years. they've cost me next to nothing to maintain. bought them all cash, cheap, awesome reliable and very affordable transportation. my luck has been good owning them too. very little cost to keep up. plus I rarely get pulled over. low key low profile sleeper luxury cars. I drive with a lead foot and ive only got a handful of tickets in the 15 years ive driven them. other cars though? forget it! ive had a 1985 box chevy caprice, 92 buick roadmaster ans 91 mercury grand marquis. super cop magnets and always had a hard time on the road with them.
11-26-16, 06:16 AM
#3
Moderator
I bought the 01 with cash. The 05 we bought back in May was a loan, which I'm ok with. I'm planning on keeping both of them for a L O N G time.
My 2001 Sonoma I bought new in October 2001 and traded our gas guzzling 1994 Suburban in on it. I had no use for an 8 passenger vehicle any more, so it had to go. I'll tell you something about the S-10/Sonoma series of trucks from GM. That thing has been one of the best vehicles I've owned. In 15 years of ownership, I've installed 4 sets of tires (it's soon due for set #5) 2 alternators, 1 starter, plugs and wires, 3 sets of pads, 2 sets of rotors, 2 sets of shocks and 1 TPS. It's about to turn 140,000 miles and my son drives it now, but it has proved it's worth many, many times over. The downside is the body rust. The typical cab corner rust is bad as well as the wheel well arches on the bed. It's just too far gone to repair at this point. It's unfortunate that GM has never been able to get their hands around rust issues like so many other manufactures. My LS is the same age, and has 0 rust. AT some point the truck will become unsafe to drive, and we'll have to put it out to pasture.
Milestones.
My 2001 Sonoma I bought new in October 2001 and traded our gas guzzling 1994 Suburban in on it. I had no use for an 8 passenger vehicle any more, so it had to go. I'll tell you something about the S-10/Sonoma series of trucks from GM. That thing has been one of the best vehicles I've owned. In 15 years of ownership, I've installed 4 sets of tires (it's soon due for set #5) 2 alternators, 1 starter, plugs and wires, 3 sets of pads, 2 sets of rotors, 2 sets of shocks and 1 TPS. It's about to turn 140,000 miles and my son drives it now, but it has proved it's worth many, many times over. The downside is the body rust. The typical cab corner rust is bad as well as the wheel well arches on the bed. It's just too far gone to repair at this point. It's unfortunate that GM has never been able to get their hands around rust issues like so many other manufactures. My LS is the same age, and has 0 rust. AT some point the truck will become unsafe to drive, and we'll have to put it out to pasture.
Milestones.
11-27-16, 10:17 AM
#4
Absolutely. I have one income, one kid in private school, one wife in nursing school, a mortgage, her prior life student loans. I am very thankful I drive old cars with no payments that I can fix.
11-27-16, 04:26 PM
#5
Driver School Candidate
John,
I've seen some of your posts lately and thought I'd give chime in. As far as reaching life's different milestones, making right vehicle decisions can assist in reaching those goals. Here's my take. My girlfriends father had a 06 LS430, and a 98 Honda Accord when he passed and she did not want them. She also had a personal vehicle, and I had two other vehicles at the time, plus a company car. Needless to say, a surplus of heavy metal. We privately sold the Honda, and I sold one of my cars in the past months too. She traded in her old car for a new 16 VW GTI SE 6-speed at VW's year end event, got a great deal. She is completely in love, and I do take credit for pushing in her that direction. Only disappointment was that I could not convince her to go for the Golf R. Although for her needs, even I will say the Golf R is not needed. I am also about to transition into a new career path, and will need a reliable DD. Could have kept one of my cars, but, already sold it, and I am happy with that decision. My other vehicle is a track-focused M3, not great to daily drive. So, I took the 06 LS430, and have put in some money in it to get it into quality DD condition. It didn't take much which surprised me, seeing that it had been sitting for about a year, so plenty of excess cash in hand, and we each have vehicles that we are very happy with. Reaching milestones in life is all based on what your dreams and ambitions are. For us, having reliable vehicles that are driver focused are what we want. Side note, I have been looking at selling my M3 and trading up to a new M2. I have followed that car religiously, and IMHO believe that vehicle is the best M car to come out of Munich in recent years. I love the F80 M3 as well, but it has gotten away from what M means to me, and the M4 GTS is the one to have, too bad it's sold out. So there's that.
I've seen some of your posts lately and thought I'd give chime in. As far as reaching life's different milestones, making right vehicle decisions can assist in reaching those goals. Here's my take. My girlfriends father had a 06 LS430, and a 98 Honda Accord when he passed and she did not want them. She also had a personal vehicle, and I had two other vehicles at the time, plus a company car. Needless to say, a surplus of heavy metal. We privately sold the Honda, and I sold one of my cars in the past months too. She traded in her old car for a new 16 VW GTI SE 6-speed at VW's year end event, got a great deal. She is completely in love, and I do take credit for pushing in her that direction. Only disappointment was that I could not convince her to go for the Golf R. Although for her needs, even I will say the Golf R is not needed. I am also about to transition into a new career path, and will need a reliable DD. Could have kept one of my cars, but, already sold it, and I am happy with that decision. My other vehicle is a track-focused M3, not great to daily drive. So, I took the 06 LS430, and have put in some money in it to get it into quality DD condition. It didn't take much which surprised me, seeing that it had been sitting for about a year, so plenty of excess cash in hand, and we each have vehicles that we are very happy with. Reaching milestones in life is all based on what your dreams and ambitions are. For us, having reliable vehicles that are driver focused are what we want. Side note, I have been looking at selling my M3 and trading up to a new M2. I have followed that car religiously, and IMHO believe that vehicle is the best M car to come out of Munich in recent years. I love the F80 M3 as well, but it has gotten away from what M means to me, and the M4 GTS is the one to have, too bad it's sold out. So there's that.
11-27-16, 05:54 PM
#6
Pole Position
I am fortunate to own a 2004 LS with 242k miles (172k belonging to me) that has been effectively trouble-free and low maintenance. I'm a sales rep who drives somewhere between 20k-50k per year (depending on how much I fly in a given year) and I get reimbursed at the standard government rate ($.55/mile I think??). Considering I bought my LS in 2008 for $22k (with 70k on the odometer) and paid it off in 15 months, I have gone 6 1/2 years without a car payment and am making money each time I drive given the reimbursement, gas mileage and minimal maintenance. I have taken that extra cash from mileage reimbursement over the years to upgrade our SUV (from a 2004 GX to a 2010 LX) and also have a fun 3rd car (2010 Audi S5).
That being said, I get made fun of all the time for "driving a car with no navigation and a tape deck." I don't care- I enjoy driving the car, it's been good to me, and I honestly want to see how far it will go before something big needs to be done. I have also changed a lot in the last 10 years to where I value experiences & travel more than material things. There's no question that driving an old LS has helped me achieve milestones- both the LX and the S5 have been dream cars for me for quite some time (LX dating back to the late '90's). It has also allowed me the financial freedom to travel, live in a nice house, and create memories/experiences with my wife and kids that I would be more reluctant to do if I had a hefty car payment. I could afford to buy a new LS but am WAY too frugal for that. In fact, I am so jaded by paying $22k 8 years ago for my LS that I wouldn't even allow myself to spend $33k on a 2012 a few months ago. I'm waiting for the 2018 LS 500 to come out so the price of the '10-'12 body style will drop to the low $30k or sub-$30k range and I'll likely buy one with 50k-60k miles. My hope is to sell the S5 and the LS 430 and only come out of pocket $3k-$5k on an LS 460.
Nothing against the folks who buy brand new cars, lease new cars, etc. That's just not my style. I like being in something that's paid for, low maintenance, non-flashy, and having a sense of security that I have little/no debt and some money in the bank in case things go downhill. I feel like driving an older car helps me achieve all of those "milestones".
That being said, I get made fun of all the time for "driving a car with no navigation and a tape deck." I don't care- I enjoy driving the car, it's been good to me, and I honestly want to see how far it will go before something big needs to be done. I have also changed a lot in the last 10 years to where I value experiences & travel more than material things. There's no question that driving an old LS has helped me achieve milestones- both the LX and the S5 have been dream cars for me for quite some time (LX dating back to the late '90's). It has also allowed me the financial freedom to travel, live in a nice house, and create memories/experiences with my wife and kids that I would be more reluctant to do if I had a hefty car payment. I could afford to buy a new LS but am WAY too frugal for that. In fact, I am so jaded by paying $22k 8 years ago for my LS that I wouldn't even allow myself to spend $33k on a 2012 a few months ago. I'm waiting for the 2018 LS 500 to come out so the price of the '10-'12 body style will drop to the low $30k or sub-$30k range and I'll likely buy one with 50k-60k miles. My hope is to sell the S5 and the LS 430 and only come out of pocket $3k-$5k on an LS 460.
Nothing against the folks who buy brand new cars, lease new cars, etc. That's just not my style. I like being in something that's paid for, low maintenance, non-flashy, and having a sense of security that I have little/no debt and some money in the bank in case things go downhill. I feel like driving an older car helps me achieve all of those "milestones".
11-28-16, 05:03 AM
#7
Lexus Fanatic
Thread Starter
Seems like a bunch of us are like-minded.....I may have to realistically give up my dream of an M car for a decade at least? With the M2, it's a serious car, 9" front and 10" rear forged rims. That doesn't get deployed on a wannabee car. But as I read about it, there were hints of cost cutting. Like the seat was off-center, because it's easier to relocate the seat, than to move the steering column. The motor has an N, not S, designation. Which is why I said ok, I've justified a used M3. However, these would not be cars I could drive freely without a care, like a Camry or Accord or LS.
The reason I like this forum is the open-mindedness with which nice cars are regarded! I guess 10 yrs from now I'll be thanking the LS for putting off another car loan and allowing us to move forward on other things.....maybe then a M3 will be $150k and we'll be able to get one! (prices of cars are escalating imho, sis in-law getting a 4 cyl loaded A4 for 50k out the door)
The reason I like this forum is the open-mindedness with which nice cars are regarded! I guess 10 yrs from now I'll be thanking the LS for putting off another car loan and allowing us to move forward on other things.....maybe then a M3 will be $150k and we'll be able to get one! (prices of cars are escalating imho, sis in-law getting a 4 cyl loaded A4 for 50k out the door)
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11-28-16, 01:59 PM
#8
I think your choice in car impacts when you can retire. Well, if you make less than $400K (before taxes) a year I think this is the case. A friend of the family owns office buildings, restaurants, a mortgage brokerage, and a few car repair shops so he went and bought a near $400K Rolls Royce Ghost that he let me test drive over the holiday weekend. That car is good motivation to get rich. It weighs over 5500 pounds and accelerates like crazy. You can not hear the tires or engine at all at any speed. It feels like the wind is pushing the car down the road. When I drove my 05 LS430 home after driving the Ghost the LS felt like an economy car that was loud. Anyway, he probably expenses the car and the insurance/maintenance so it is appropriate for his situation. I get kind of shocked by people who live in the suburbs and have a German car in their driveway think they are "rich". The thing is they don't usually own any of their stuff outright. The debt is just serviced and insane things like 7-8 year car notes are common these days.
I am of the mind as many of you in this thread. The rule of thumb I use is to never buy a car more expensive than 6 months of after tax income, always pay cash, and take good care of it to last a long time. I got my LS in July and spent about $200-300 to do small stuff like replace the alternator, battery, and some misc vac. lines. It will go in for a T-belt and service in the near future. Right now I am looking to buy a nicer house and would like to pay it off in 10-15 years. Whatever extra money I get from a bonus or just savings I plan to throw at the mortgage and get that monkey off of my back. My goal is to live in a paid for house and have only the taxes/insurance to take care of while doing repairs and maintenance as needed. Pretty much every car ends up worthless so I can't justify making interest payments on a depreciating asset. Everyone at my office drives a car that is under 3 years old and I am the odd one out but that's fine with me. What I do not want is to reach my mid 60s and be in a situation where I have to work to survive. How your body and cognition do later in life is many times a luck of the draw so it is like a nightmare situation to struggle with bills at that age. Well, you could just raise a kid that becomes a world famous doctor or CEO of a Fortune 100 then buys you a small island to retire on while giving you an allowance funded by an annuity. Just kidding...well not really since that is plan X. Plan A is to live below my means, save and put money into things that will go up in value, and have the freedom to stop working later in life.
Sadly, the LS430 is probably the last Toyota product that is old school and built to go 300K+ miles while being a good balance of "low tech" and modern. I don't think LS460 ownership will be as pain free and wallet friendly when those cars get to be 15 years old. There is no current car in production that I see myself wanting to buy 5+ years in the future to do what the LS does for me these days.
I am of the mind as many of you in this thread. The rule of thumb I use is to never buy a car more expensive than 6 months of after tax income, always pay cash, and take good care of it to last a long time. I got my LS in July and spent about $200-300 to do small stuff like replace the alternator, battery, and some misc vac. lines. It will go in for a T-belt and service in the near future. Right now I am looking to buy a nicer house and would like to pay it off in 10-15 years. Whatever extra money I get from a bonus or just savings I plan to throw at the mortgage and get that monkey off of my back. My goal is to live in a paid for house and have only the taxes/insurance to take care of while doing repairs and maintenance as needed. Pretty much every car ends up worthless so I can't justify making interest payments on a depreciating asset. Everyone at my office drives a car that is under 3 years old and I am the odd one out but that's fine with me. What I do not want is to reach my mid 60s and be in a situation where I have to work to survive. How your body and cognition do later in life is many times a luck of the draw so it is like a nightmare situation to struggle with bills at that age. Well, you could just raise a kid that becomes a world famous doctor or CEO of a Fortune 100 then buys you a small island to retire on while giving you an allowance funded by an annuity. Just kidding...well not really since that is plan X. Plan A is to live below my means, save and put money into things that will go up in value, and have the freedom to stop working later in life.
Sadly, the LS430 is probably the last Toyota product that is old school and built to go 300K+ miles while being a good balance of "low tech" and modern. I don't think LS460 ownership will be as pain free and wallet friendly when those cars get to be 15 years old. There is no current car in production that I see myself wanting to buy 5+ years in the future to do what the LS does for me these days.
11-28-16, 09:29 PM
#9
I think mine did.....first new car as a young buck with newly minted MBA, 1998 Maxima SE. the car was problem free for 7.5 yrs., at which time I had to pay a whopping $420 for new cv axles (coworkers have DIY'd and said one side is easy, the other a pita). The next and first major repair came at 12 yrs, where the entire exhaust had to be replaced, cat back, painful $595. And at year 18.5, it's really imho needs too much, thanks to emissions and rust. This allowed me to buy a BMW when it was 8 y.o., and keep the miles low overall. Wife got a new SUV in late 2011 and at the time I pinched myself when we paid 42k discounted, that's crazy but what could I do. So once we donate the Maxima, we'll have 3 fully functioning cars, 2 in the low 50's for mileage, the LS in the low 80's (now 84).
This fall was a crossroads. Wanted a GTI, then a Golf R, then justified a M2, then a M3. Ended up with a 11 y.o. LS430 instead. I like to think that this was the right decision, as this was doable in cash, as opposed to borrowing 30k, and now we have to attack our next milestone, living in the so-called dream house (this I believe is totally elusive, the ordinary person usually does not accomplish that in the location they want). For whatever reason, the real estate prices have peaked once again.....other factors are a 3 y.o. toddler and the school system is fine. With no car payments, we need to attack what's left of the home loan (do not have a mortgage but have what's known as a first lien position heloc with 6 yrs. left--get ready to go back up to 30 yrs and buddy says that is a wrong decision).
My point in all of this is that is some strange way, I think one's choice in cars, being such big ticket purchases, affects one's milestones in life. One way to get around it is to have $0 savings, which I know some coworkers are doing....scary imho. But their goal is to leave nothing to heirs, cash out if you will, which I don't agree with....
This fall was a crossroads. Wanted a GTI, then a Golf R, then justified a M2, then a M3. Ended up with a 11 y.o. LS430 instead. I like to think that this was the right decision, as this was doable in cash, as opposed to borrowing 30k, and now we have to attack our next milestone, living in the so-called dream house (this I believe is totally elusive, the ordinary person usually does not accomplish that in the location they want). For whatever reason, the real estate prices have peaked once again.....other factors are a 3 y.o. toddler and the school system is fine. With no car payments, we need to attack what's left of the home loan (do not have a mortgage but have what's known as a first lien position heloc with 6 yrs. left--get ready to go back up to 30 yrs and buddy says that is a wrong decision).
My point in all of this is that is some strange way, I think one's choice in cars, being such big ticket purchases, affects one's milestones in life. One way to get around it is to have $0 savings, which I know some coworkers are doing....scary imho. But their goal is to leave nothing to heirs, cash out if you will, which I don't agree with....
11-29-16, 03:52 AM
#10
Lexus Fanatic
Thread Starter
HELOC is a line of credit. Monthly payments only cover interest and can vary. After 10 years, you have to refi the the original loan amount. If you're going to keep the house long term, a mortgage makes more sense. Payments will be higher so that's a factor. Good luck with it
Edit this is the only link I can find, it is under home equity loan first lien position. Bad rate right now, 3.88. It is a rare product because of the 120 mo. Plus most bankers convince people to roll closing costs into the principal for zero out of pocket. This is zero cost, except the $67.50 county recording fee when paying off
https://www.citizensbank.com/loans/home-disclosure.aspx
Last edited by Johnhav430; 11-29-16 at 03:59 AM.
11-30-16, 12:49 PM
#11
If you have a fixed rate loan that will be fully paid off (principal and interest) in 10 years and you can afford to do that, more power to you. Just remember to budget for at least one more LS.
11-30-16, 01:21 PM
#12
Absolutely. You can really impact your financial well-being later in life if you wise up to the fact that you don't need a fancy any car, if you have to buy it on credit, when you're young. I made a few mistakes in my 20's and 30's buying new cars that I should never have touched based on where I was in life. They weren't super expensive but I had to take out loans and THAT is what will hurt you. New cars bought: 1983 Toyota Celica, 1987 Thunderbird Turbo Coupe, 1995 Nissan Maxima SE. All good cars that I kept but had to take out 4 year loans on. Never mind buying stuff like BMW's, Mercedes, Porshes etc on 7,8 or 9 year loans like some of my cohorts do/did - good Gawd almighty! How badly CAN you screw yourself over?!
11-30-16, 08:44 PM
#13
Moderator
I paid $33k for my 2006 LS430 in 2009. It was CPO in mint condition with 13k miles. I have bought used cars for cash for many years, driven each for min of 10 years, and still managed to drive really nice cars for very low long term costs. Owning cars that make sense, and buying them for cash makes a huge difference in your long term financial independence.
12-01-16, 05:12 AM
#14
Lexus Fanatic
Thread Starter
Even prior to the LS, I briefly contemplated a second 2007-2011 BMW, even a 328 vs. 335. My buddy said don't do that. If you want to do that, drive your 335 into the ground, do not buy another. Some may beg to differ, but I think one does not feel fully "free" with German cars. There's always something looming. You'll always have the 1/10 who has a lift at their house and can fix anything, but they are the exception. The LS got me what the Maxima did, freedom to rack up miles without too much concern....I have extra parts in my basement and kind of wish I did have a 2nd BMW to use them on (filters, synth oil [considered just using it on my wife's car and the LS, but it's 0W40 Euro], other stuff). With the BMW I put 50% down and financed 50% over 36 mos. Back in 12/06, I felt that was a good move, and when stocks crashed 2 yrs. later, I really felt it was a good move. In reality, sure, one should have put every penny in the stock market, indexed it, and never spent a dime, but we all know that is not realistic. Some has to come off the table when times are good....I have a good friend who went 100% cash prior to the election, of course huge mistake costing a lot of paper gains. All we can hope I guess is that we keep learning. Since we want a bigger house, we're gonna have to borrow again, and likely 30 yrs. This unfortunately is driven by wants. Imagine if we could be satisfied with what we have, if that were the case, then, in 6 yrs., no more house payment except taxes and insurance....
12-01-16, 05:17 AM
#15
Lexus Fanatic
Thread Starter
I paid $33k for my 2006 LS430 in 2009. It was CPO in mint condition with 13k miles. I have bought used cars for cash for many years, driven each for min of 10 years, and still managed to drive really nice cars for very low long term costs. Owning cars that make sense, and buying them for cash makes a huge difference in your long term financial independence.