I’d lease/buy a Tesla Model Y, great family car and easily lasts for 10 years. I used to have a BMW and they are ancient compared to Teslas
Tesla would be nice yes but I wouldn’t know where to charge it. I don’t own a house and in our garage there aren’t any EV chargers. I heard charging it always at the express chargers for example in the shopping centres would destroy the battery too fast. And I would like if Tesla would launch a real SUV style model like Porsche Cayenne / Macan or BMW X3/5.
Ermmm like the Model X? Regarding charging, have you considered just asking your landlord/management company to install power sockets in the parking area?
It doesn’t look like a typical SUV, it looks more like a BMW X6 (which also doesn’t look like a typical SUV but rather like a bigger limousine).
A neighbour asked and they would agree to it but you would have to cover a large part of the installation costs by yourself. The neighbour estimated costs of around 5-10k CHF. That’s not an option because I’m planning to move within the next 2-3 years and then I paid it for nothing and potentially have to pay everything again at the new place (if possible at all).
I can relate to your inner battle as I am also passionate about cars. My worst frugal decision ever was to buy a Porsche 911. And at the same time, one of my best spending ever was to buy this Porsche ! This car allowed me to meet people that are now my friends. I usually take part once a year to caritative days where we do “taxi rounds” to collect money while giving people goosebumps and sharing passion. I value cars, and social interactions, so I think I made an honest purchase respecting my values.
Everything is not white or black and I definitely did not buy this car to show off, or for status. I bought it because it was a dream of mine since I was a kid. It motivated me to learn in school, to stay focused during my studies, with the hope to be able one day to own one. This car is expensive of course, but what if without it I wouldn’t have had this drive to make it one day ? Maybe compared to beeing a young unmotivated kid the idea of owning this car actually allowed me to make a decent salary, save and invest today ? Would be a bargain in this case !
I can understand people considering cars just as a way to go from A to B, but to each its own story. And I guess that once we have good financial habits and a decent amount invested, then it also gives us some room to enjoy life as long as we stand true to our values.
→ If you value this BMW, go for it !
Nice reply Loic…I’m with you on this one.
Of course you can’t follow every whim and purchase…but being able to fulfil lifetime goals is surely what financial freedom/independance is about?
There is compromise in every decision, by purchasing a more expensive car, there are other things you choose to miss out on (investment, other purchases…) but if you’ve weighed these up and you accept that choice, then hell yes, go for it.
Also because people might only admire the car, not the driver.
Ford Focus 2019 worth ~29k, 15k km a year for 3 years, no downpayment and only 324.- /month (saving rate 55%).
The key in the negotiation for me was to increase the residual value of the car because I know I don’t want to buy one and I will just continue to lease another car every 3 years. I also purchased it in July, which is often a good time to make a purchase.
It was easily twice cheaper than a similar Golf or Audi A3, and the best is that I don’t need to pay the CO2 tax as it is below the 130g /km and consumes only 5.4L/100km.
This! It’s seems it is your dream, so why not fulfilling it, especially that it may not be the same in a few years (electric, auto pilots) and you seem to be able to afford it without borrowing the money, etc.
FYI - I have an (entry-level) AMG (bought brand new with 28% discount). I don’t regret the decision of buying it, on the contrary, every time I get in the car there is a smile on my face .
Everyone values something else in life. Even in cars - for some it will be acceleration, for others driving super-modern computer on wheels or sporty cornering. For me it’s the sound…and I’m not an asshole waking up all my neighbours ;). Even though while on Switzerland the only moment I can really push the car is while joining the highway (and only when nobody is in front of me), the feeling of driving it is just great. Ask yourself if it may work the same for you or you will rather be more happy knowing that the amount you would spend on it is invested and (hopefully) growing.
2015 BMW 650iX Gran Coupe, bought in 2019 for 46k, 6k downpayment and financed 40k over 24 months at 4.7% p.a., 1’736.- /month. Completely paid off since a couple months now, and plan to own it for another 5+ years.
I am very much a car enthusiast and bought a high-end BMW for personal enjoyment. It was not a frugal move nor was it a sound financial decission, but I love driving the bloody thing. Plus, luxury cars heavily depreciate in the first 2-3 years, so I made the somewhat sensible decision to buy a second-hand car after the inital owner burned trough >120k depreciation in 4 years…
If it’s a conscious decision and adds enjoyment to your life - go for it. I would just recommend to:
- buy a slightly used model with warranty (2-3 y/o, <50k km), as these models are often still in almost-new condition and heavly depreciated
- if you can get cheap financing (<2-3% p.a.), use this facility and invest the capital instead.
- if you lease, be mindful about leasing contracts where they want to screw you over (e.g. have the right to buy the car at the end of the contract, max km per year, penalty payments for normal wear and tear when returning the car, etc.)
Yes I think that having a charging facility somewhere in your surroundings (being at home or at work) is as of now nearly a “must” in order to avoid regretting the choice. I have a charger at home but for work related reasons I have to use a lot of express charging (DC).
Moreover I have to charge once a week at a “slow” (AC, 11 kW) public charger which takes approx 4h and is at ca. 300m walking distance (but I take it as an opportunity to walk a few mins, which I wouldn’t probably do If I wouldn’t be “forced” by the car).
So all in all good choice for me (having duly considered the pros and cons before making the step); might not be the same for someone else.
I’m probably going to sound like a boomer, but anyhow…
Kind of like buying the car on margin?
In my opinion, that’s a crazy concept.
Isn’t leasing borrowing?
“affording it” used to mean paying it in cash, I feel.
These days it has become “being able to pay the monthly installments”, heck, for some it isn’t even borrowing any more.
Maybe this could also just be semantics, what does one mean exactly.
I wouldn’t bat an eyelid, if this were on a Car-Forum, but to read such comments on a Mustachian Forum, it surprises me.
And it worries me, about what will happen in the next crash, from which markets may(nobody knows) take years to recover.
To everyone his own, really!! His own car, his own definitions, etc I’m just sharing my definitions & principles (which may be way outdated )
Sure, it is (mine was bought with cash). I kind of assumed he has enough funds to buy it, but he just prefers to go with leasing to have the rest invested. I should rather have written: if you are able to afford it without borrowing money and by using small percentage of your funds…
well, it’s about opportunity cost (and your personal risk tolerence). Assuming you have the cash, and your expected return investing this capital in the stock market is higher than the interest rate on a loan, it makes sense to invest the capital instead. Of course there is always the risk of a recession for the time frame in question, but on average, one would expect a net positive outcome. It’s similar to the rent vs. buy real estate discussion, just with less capital.
In my personal scenario, I did not lease but took out an unsecured loan, as I wanted to own the car afterwards, and didn’t like the implications that come with leasing.
Technically not or at least not from a legal perspective. It’s more like renting a car.
One point that may be relevant for folks making decisions: Last time I checked margin loan interest and personal loan interest are deductible from taxes. Interest on car leasing is not.
We are actually thinking about that… currently own a BWX X1, leasing ends in 6 months… now that leasing is available for the Model Y it is interesting for us… we do not have a chraging station yet, but my father has one and he is about 10mins drive away from us… still dont know if its worth… i was test driving one and wow, it is a fantastic car…
Even if you have to install a charging socket (I’d still recommend a CEE16 socket instead of a wall charger) it’s unlikely that you’d ever go back to a gasoline car after a Tesla.
I am not super frugal but I think new cars are really the worst decision you can make. 68k? get out of here!
Buy second hand directly from the owner. This way at least you can have an idea of the usage it was given before. In my case I bought 6 years ago a diesel BMW X3 2.0 from 2009, 90k km for 14k CHF with Winter tires. The car was in pretty good shape and still is. We changed a light, the battery and the break pads so far. The car was from the wife of a man in his 60’s, went his home check it out, and it was done.
It’s not the most convenient of course but I think is well worth the effort to save many 1000’s of CHF.
And don’t hesitate to negotiate of course.
In any case I think you need a middle term. Right now you are at 8 (Mazda 2 with a family, really? ) and now you want to go to 80 (brand new medium high tier).
Yeah i guess once an electric car, alway an electric car…
Still doing some calculations to see if its worth…
Currently: BMW X1, Leasing, 5 Months to go and then payed 48 months / 450.-
Buying price is 25’900.- (it has only 34’000 KM). I guess the best would be if we buy it and then sell it, because i think its worh more than 25’900.- (more towards 30-35’000).
This money could then be used for the downpayment for a Tesla Model Y. Still, the monthly rate would then be 628.- instead of 450.- now… don’t know if it would be worth though…
Problem is: I already had a testdrive with the Tesla and WOW - the car makes such fun