The $70,000 car with 4 door question . . .
06-02-17, 11:13 PM
#31
Lexus Fanatic
I would take an X5 before a GLE, perhaps even a Q7.
06-03-17, 07:24 AM
#32
Lexus Fanatic
06-03-17, 10:01 AM
#33
Interesting topic. I always buy CPO'd or used with a Route 66 warranty...you end up with 'more' car and someone else has taken the big depreciation hit...and let my wife get the new stuff. The inflation calculator is DEFINITELY an eye opener. I complain all the time about Accords and Maximas costing $50k but now I see that they are right in line with the cost of everything else. Of course, I still remember when they were $18k but that was 30 years ago. I really have become my father!!!!
We have some decisions to make in the next year because I told my wife that her M4 has to go after 3 years. Luckily, the value has help pretty solid so it won't hurt when we sell it or trade it in. I doubt she is going to want to go 'backwards' but the next 'logical' step forward is something like a 911. And I'm not sure if I'm ready to make a $20k step up. Hopefully, we can start a family so she can ditch this incessant need for a 2 door car. Hahahaha
We have some decisions to make in the next year because I told my wife that her M4 has to go after 3 years. Luckily, the value has help pretty solid so it won't hurt when we sell it or trade it in. I doubt she is going to want to go 'backwards' but the next 'logical' step forward is something like a 911. And I'm not sure if I'm ready to make a $20k step up. Hopefully, we can start a family so she can ditch this incessant need for a 2 door car. Hahahaha
06-03-17, 10:16 AM
#34
Lexus Fanatic
iTrader: (20)
06-03-17, 10:46 AM
#35
Lexus Fanatic
......(although Apple i-phones generally have a good reputation). Many people replace their cell-phones every couple of years.
Last edited by mmarshall; 06-03-17 at 10:50 AM.
06-03-17, 11:26 AM
#37
Lexus Fanatic
Consumer Reports now considers Audi the top automaker when you figure in reliability, safety, and high scores in road-testing combined.
06-03-17, 12:34 PM
#38
Lexus Champion
Interesting topic. I always buy CPO'd or used with a Route 66 warranty...you end up with 'more' car and someone else has taken the big depreciation hit...and let my wife get the new stuff. The inflation calculator is DEFINITELY an eye opener. I complain all the time about Accords and Maximas costing $50k but now I see that they are right in line with the cost of everything else. Of course, I still remember when they were $18k but that was 30 years ago. I really have become my father!!!!
We have some decisions to make in the next year because I told my wife that her M4 has to go after 3 years. Luckily, the value has help pretty solid so it won't hurt when we sell it or trade it in. I doubt she is going to want to go 'backwards' but the next 'logical' step forward is something like a 911. And I'm not sure if I'm ready to make a $20k step up. Hopefully, we can start a family so she can ditch this incessant need for a 2 door car. Hahahaha
We have some decisions to make in the next year because I told my wife that her M4 has to go after 3 years. Luckily, the value has help pretty solid so it won't hurt when we sell it or trade it in. I doubt she is going to want to go 'backwards' but the next 'logical' step forward is something like a 911. And I'm not sure if I'm ready to make a $20k step up. Hopefully, we can start a family so she can ditch this incessant need for a 2 door car. Hahahaha
It all depends who makes more $$$. If she makes more than you, then you have no say. But if you are the major bread winner, I feel bad for you when she upgrades from the 911
06-03-17, 04:45 PM
#39
Super Moderator
Great plan for the past few years, but perhaps not quite as good for the next few. With forward P/E ratios as high as they've become, expected returns over the next few years are pretty low, and we're likely due for a correction sometime within the next five years (typical lifetime of a car loan). Given that inflation is expected to be in the 2.1% range for the next few years, and a 2% typical finance rate on a 5-year loan, that means a portfolio held in lieu of a loan needs a CAGR of 4.1% just to break even. Since 10-year returns on equity are expected to be in the 4% range, the likelyhood of a diversified portfolio returning better than 4.1% over the next 5 years is at best a coin flip.
Our plan has always been to keep our "slush fund" invested and fund any future car payment by diverting new investments into it. But where the market sits today has me thinking that at least some portion of the future flows are more valuable than what I have invested now. So if I had to buy a car today (we're going to hold off a few more years), I'd reverse course and pay cash, and then replenish our holdings going forward. The inherent assumption here is that there will be a market drop at some point over the course of a typical auto loan, so I'll be buying more securities "on sale".
Our plan has always been to keep our "slush fund" invested and fund any future car payment by diverting new investments into it. But where the market sits today has me thinking that at least some portion of the future flows are more valuable than what I have invested now. So if I had to buy a car today (we're going to hold off a few more years), I'd reverse course and pay cash, and then replenish our holdings going forward. The inherent assumption here is that there will be a market drop at some point over the course of a typical auto loan, so I'll be buying more securities "on sale".
06-03-17, 07:01 PM
#40
Lexus Champion
Cars are so good these days that I will probably never see the need to spend $70k on one in the near future, but if I did... agree with PBM, Audi S5 Sportback. 10 years from now, $70k will probably be the median price.
06-03-17, 07:25 PM
#41
Lexus Fanatic
iTrader: (20)
but why does it have to go?Great plan for the past few years, but perhaps not quite as good for the next few. With forward P/E ratios as high as they've become, expected returns over the next few years are pretty low, and we're likely due for a correction sometime within the next five years (typical lifetime of a car loan). Given that inflation is expected to be in the 2.1% range for the next few years, and a 2% typical finance rate on a 5-year loan, that means a portfolio held in lieu of a loan needs a CAGR of 4.1% just to break even. Since 10-year returns on equity are expected to be in the 4% range, the likelyhood of a diversified portfolio returning better than 4.1% over the next 5 years is at best a coin flip.
Our plan has always been to keep our "slush fund" invested and fund any future car payment by diverting new investments into it. But where the market sits today has me thinking that at least some portion of the future flows are more valuable than what I have invested now. So if I had to buy a car today (we're going to hold off a few more years), I'd reverse course and pay cash, and then replenish our holdings going forward. The inherent assumption here is that there will be a market drop at some point over the course of a typical auto loan, so I'll be buying more securities "on sale".
Our plan has always been to keep our "slush fund" invested and fund any future car payment by diverting new investments into it. But where the market sits today has me thinking that at least some portion of the future flows are more valuable than what I have invested now. So if I had to buy a car today (we're going to hold off a few more years), I'd reverse course and pay cash, and then replenish our holdings going forward. The inherent assumption here is that there will be a market drop at some point over the course of a typical auto loan, so I'll be buying more securities "on sale".
but the interest rate on my jeep is 1.84 and despite me itching to pay it off i know it makes no sense. or does it? 
06-03-17, 07:38 PM
#42
The M4 is not holding value that great, there are many 2015s with 12-15k miles going for 55k asking on dealer lots and collecting dust. With that being said, it fetches around 47-48k on tradein and 52-53k private. It depreciates a little better than the Lexus counterpart, RCF, but for a mid 70s msrp new car, there are too much supply on the market.
It all depends who makes more $$$. If she makes more than you, then you have no say. But if you are the major bread winner, I feel bad for you when she upgrades from the 911
It all depends who makes more $$$. If she makes more than you, then you have no say. But if you are the major bread winner, I feel bad for you when she upgrades from the 911
06-03-17, 09:44 PM
#43
The M4 is not holding value that great, there are many 2015s with 12-15k miles going for 55k asking on dealer lots and collecting dust. With that being said, it fetches around 47-48k on tradein and 52-53k private. It depreciates a little better than the Lexus counterpart, RCF, but for a mid 70s msrp new car, there are too much supply on the market.
It all depends who makes more $$$. If she makes more than you, then you have no say. But if you are the major bread winner, I feel bad for you when she upgrades from the 911
It all depends who makes more $$$. If she makes more than you, then you have no say. But if you are the major bread winner, I feel bad for you when she upgrades from the 911
btw...we happened to stop by the Lexus dealership in Marietta on our way to an event, tonite. they were about to close and i just wanted to see if they had an LC, there. they did. whoa....
06-03-17, 09:48 PM
#44
because...like i told her...BMW's arent really cars that you 'marry'. they are more like summer flings or rebound relationships. thinking youre gonna have a nice, stable long term relationship with the instagram 'model' with daddy issues is a recipe for disaster...
06-03-17, 10:17 PM
#45
Lexus Fanatic
iTrader: (20)
^^^ lol... 
sounds to me like you've given her a green light to get the 911.
sounds to me like you've given her a green light to get the 911.