S4 owners: unscientific poll
12-29-1999, 09:20 AM
#21
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Work gives me a car allowance that covers the lease. NO COST TO ME!!!
Car allowances are not taxable income if you can show you are using the car for business. And it is deductable by the company. This is especially nice of you own your own business.
12-29-1999, 09:23 AM
#22
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Why would anyone pay cash when the stock market is raging and interest rates are so l
One of my friends asked me how I could justified spending 40K on a rangerover 9 year ago. I told him I just chalk it up to being stupid, and went did it anyway.
I think one should try to pay cash for a car. To pay interest on something that decreases in value as quick as an auto, does not make a lot of sense to me. Now I know that investments in the last 7 years or so have returned 30% or better, but I always plan for the worse. If my investments return a -30%, at least I am not saddled with a large car payment. Plus I can always sell the car and get some hard cash. With a loan, sometimes the sales price will not cover the loan.
When I did take out loans for autos, I really would have been better off with a lot less car.
I think one should try to pay cash for a car. To pay interest on something that decreases in value as quick as an auto, does not make a lot of sense to me. Now I know that investments in the last 7 years or so have returned 30% or better, but I always plan for the worse. If my investments return a -30%, at least I am not saddled with a large car payment. Plus I can always sell the car and get some hard cash. With a loan, sometimes the sales price will not cover the loan.
When I did take out loans for autos, I really would have been better off with a lot less car.
12-29-1999, 09:25 AM
#23
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Posts: n/a
Hard to believe
I find it hard to believe the number of people who claim that the cost of the S4 is less than 1/4 of their salary. We are talking $160,000 a year, certainly thats the top couple of percent of people in all but a few occupations. Especially hard to believe given the age of most people here is under 35. Even harder to believe, considering the that many of the car pictures posted here are set against a backdrop of sardine-can population density $100k condos.
12-29-1999, 09:58 AM
#28
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Posts: n/a
it's all a matter of risk (more)
Indeed, if you assume the market is continuing up (as it well may) you should borrow for all your purchases. Use a margin on your portfolio if you don't have a house etc. On the other hand, the market may go down and then you are stuck with a bunch of devalued paper and a car payment (or worse, a margin call).
About 5 years ago I sold $17000 worth of VRTS. I think that would be worth $20000 or even more today. Sucks, right? What I chose to do was split the risk. Half down, half loan. Every now and then it's OK IMO to lock in some profit. If the market falls my downpayment in my house is pretty safe. My car will hold it's value long enough for the market to recover (hopefully :-)
It's all a matter of how much risk you are willing to take. Also, enjoy what you have now and don't worry too much about what you _may_ have next year.
I plan on putting about half down on my S4.
Later,
Sander
About 5 years ago I sold $17000 worth of VRTS. I think that would be worth $20000 or even more today. Sucks, right? What I chose to do was split the risk. Half down, half loan. Every now and then it's OK IMO to lock in some profit. If the market falls my downpayment in my house is pretty safe. My car will hold it's value long enough for the market to recover (hopefully :-)
It's all a matter of how much risk you are willing to take. Also, enjoy what you have now and don't worry too much about what you _may_ have next year.
I plan on putting about half down on my S4.
Later,
Sander