At what salary point would you replace your car

[Kosmik]

Buying a car cash can be equally stupid sometimes.

Cars are a depreciating asset. Also quite often you lose more than you put in , in the case of writeoff/accident and there are insurance protections plans for debt etc.

 

[NarrowBandFtw]

Buying a car cash can be equally stupid sometimes.

Buying it cash implies that you have not overextended yourself, it is MUCH easier to purchase a car beyond your means if you use a loan.

It could still be a mistake, but it will be a cheaper mistake than a loan, guaranteed.

 

[JayM]

Buying it cash implies that you have not overextended yourself, it is MUCH easier to purchase a car beyond your means if you use a loan.

It could still be a mistake, but it will be a cheaper mistake than a loan, guaranteed.

Not guaranteed, no. I paid cash for my car just over 8 years ago when I could have gotten 7% interest rate - my investments have returned way more than that even after all tax has been taken into consideration.

 

[Other Pineapple Smurf]

Ok so what you're saying is you're wealthy...

Never said I was high net worth individual and I also don't pretend to be one.

Wealth is defined by the value of assets less debts. The outstanding debt on the car I drive still keeps me way in the black. I am a home owner, unlike the guy renting who drives the Jaguar XF (which I also know he does not own but pretends to).

But you make your wife drive a horrible piece of **** car with rather bad safety rating?

Please post claim to poor safety rating? Even driving my car she prefers not to test the NCAP safety rating claim. She actually enjoys her car and would rather invest money into her business and keep it debt free unlike her competitors who drive overpriced cars. Already some of her competitors have shut down this year and the year has not even started.

Why don't you car pool with your neighbours if you work at the same place?

I would if any of them worked for the same company. Time spent driving around Cape Town CBD picking/dropping off people would actually cost me more than what I could save. My time is money for my wife as she would have to cancel all her afternoon clients if I got home late to pick up the kids at school.

 

[Gtx Gaming]

Please post claim to poor safety rating? Even driving my car she prefers not to test the NCAP safety rating claim. She actually enjoys her car and would rather invest money into her business and keep it debt free unlike her competitors who drive overpriced cars. Already some of her competitors have shut down this year and the year has not even started.

https://www.euroncap.com/en/results/hyundai/atoz/15520

Not taking the other user's side, but if a taxi run's a red light and t-bone your wife, she probably be pretty badly injured in atoz. Where a modern cars would protect her better against accidents.

Don't skimp on safety rating, min 5 star EURO NCAP safety rating. I don't consider any car safe if it does not have 5 star EURO NCAP safety rating.

 

[SauRoNZA]

Cars are a depreciating asset. Also quite often you lose more than you put in , in the case of writeoff/accident and there are insurance protections plans for debt etc.

Exactly why buying it cash can often be a wasted effort over buying it on a loan term.

Buying it cash implies that you have not overextended yourself, it is MUCH easier to purchase a car beyond your means if you use a loan.

It could still be a mistake, but it will be a cheaper mistake than a loan, guaranteed.

Sure there is an element of that, but then there is also the nature of over saving money to buy said car cash when the money should/could have gone elsewhere with longer term benefits.

For instance I could buy a car cash now by taking the money out of my home loan and then having not taking a finance agreement, but that means I don't pay my house off within 10 years etc.

There are also more critical conditions where a reliable transport offers you the opportunity to make money whereas waiting to generate the cash could see you not making money to achieve that.

Ultimately you can overextend yourself on a car purchase even if paying cash for it.

If I saved for 20 years to buy a Lamborghini Huracan cash at the expense of all else it would still be an over extension.

The trick really isn't HOW you pay for the car, but just HOW MUCH in relation to your earnings.