When is it Okay to Buy a Luxury Car?

When is it Okay to Buy a Luxury Car?

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[slmunney]

Good video and funny. My thoughts are that in general any car costing over $50k new falls within the "luxury" category. It doesn't matter if it is a rugged, bare bones Jeep designed to crawl up a mountain or bears a prestigious brand and has stitched leather seats. The bottom line is that $50k is more than you need to spend for reliable transportation or reasonably practical utility even in today's ridiculous new vehicle market.

[dipaknadkarni]

My luxury car at the age of 62 is a new 4 door hardtop Minicooper.
Bought it with cash about 18 months ago.
For me it is a means of transportation.
I have a sun/moon roof, heated seats (in Florida no less), and it is sports model with good gas mileage.
Next car maybe in 10 years.

[jimv]

I have always loved cars since being a teenager....I can finally afford a very nice car based on our net worth....but I work from home and stay at home Mon-Fri with the practical side of me...the car would probably sit in the garage most of the time and that would be a big waste to be honest.

[Gel]

Key variable for me, after meeting the criteria to buy luxury, is interest rates. Much prefer to buy under 0% or very low interest financing, rather than pull from investments to dump into a fast-depreciating asset. Can’t bring myself to make that tradeoff. Obviously with rates being what they are, might be months/years before my next car.😅

[kateoliver]

I'm 48 years old single mother living in Hamburg. I'm hoping to retire at 50 if things keep going well for me. Bought my first house last month and I can't be more proud than I am right now. I'm so glad made great decisions about my finances that changed me forever.

[Asstronauts]

When you have 10x the luxury car purchase price in your retirement accounts and you pay cash

[Boodess]

A rule I've heard is if the car is 10% of your net worth it's probably ok.

[CROengineer]

would you say its okay to have 1600 $ car payment if my savings equal to my monthly expenses ? so i spend 4100$ but i also save 4100$

[andersstengaardjensen]

Why do you focus on 25% of GROSS income - I would feel it’s much more natural to focus on a % of NET income

[osmondhagby]

Great show, B & B! I have a question as someone who has a (bad) habit of going for luxury cars time after time. I'm 41 years old and I have 250k in index funds and dividend ETFs - and I'm currently adding around 2k per month into my investments. I'm about to pull the trigger on financing a new car to replace my (Model year 2023 😁) car - and it'd mean I'd invest 1500 dollars monthly instead of the 2k. 

I'm justifying this by thinking I have enough invested already (to build a big enough portfolio in 10-15 years) and that investing 500 dollars more per month at this point doesn't really matter that much. Would you say I'm being stupid - and if so, what would you consider "enough" in investments at my age and monthly contributions to justify spending money on an expensive toy?

[TheFirstRealChewy]

If your investments can pay for your lifestyle, then yes, you can afford it.

[tstanley]

If you can't tow a horse trailer with it, it is any vehicle over 45k...

[saulgoodman]

$1 at 10% will be $72.89 in 45 years.
How do they get $88?

[NickVetter]

When is it okay to buy 10 acres of land and lots of machinery to build a house?

[SuperKenndog]

Anybody that lacks the emotional IQ to know that maintenance on a luxury vehicle is not going to be the same as maintenance on a non luxury vehicle, doesn’t need to buy a luxury car. Those expenses hit different

[rockyruane]

All the money in the world isn't gonna save you in the end boys. You're going in the ground.

[AgentX]

Luxury cars represents your economic status to others and is critical in finding romantic relationships! That why I alway buy a brand new top line RRS or brand new cheap Ferrari every 4-5 years. If you drive a Honda or Toyota, you do not get much respect from anyone even if it is brand new!😮 Women always ask what your ride is!😮 What year and model too!😂 They know luxury cars better than men do now!😢