It is normal to spend 50k-100k to buy a car?

nomekop on 03/02/2020 - 15:47

Hi all,

I am honestly surprised every time I see a post of people buying a car that expensive. However today the post mentioned buying a 70k car as a gift, so my questions are:

1) Do people really has that much cash running around?
2) Do they go into debt to pay for it?
3) How much do you need to earn to have that level of flexibility?

Today someone mention they are giving away a car like this for a family member, I presume they have the cash, so are they considered rich?

Sorry, maybe I can't just picture that much cash

Automotive

Comments

tazdevil76 on 05/02/2020 - 16:58

Alot of people obtain new car every 5 years through salary sacrifice. That is using pre tax income to pay for the car. It then helps the person to pay less tax. Also no GST is payable this way on the new car. Makes a 110k car down to 100k instantly.
- Tambani on 08/02/2020 - 15:38
  
  This is still a massive rip off if you have the ability to pay cash out of the equity from a mortgage. Mortgage payments can also be salary sacrificed (if you're eligible to salary sacrifice at all) and then you're paying a much lower interest rate.
Numlock on 05/02/2020 - 17:17

+1

Mate, in Sydney we have cars over $500K+ all over the place. Asians from mainly China love to spend big on cars.

All the mums and dads in my area drive $100K+ SUVs. All over Sydney (west, south, north, east) it's normal to see $100K+ cars all over the place.
- Kamsi on 05/02/2020 - 22:22
  
  That is the thing with Chinese from China if you can flaunted why not. It is a face issue which is very common so I've heard.
  - CalmLemons on 05/02/2020 - 22:54
    
    Yes but for every dollar we make here, a business in china makes 40 more. 40 more times the population.
    
    Lots of customers, lots of money goes into businesses down there.
    - [Deactivated] on 06/02/2020 - 09:09
      
      Because goods and services cost exactly the same in China as they do in Australia
dansblackcat on 05/02/2020 - 17:42

+5

Anyone here that's not able to use Lamborghini's as stuffing fillers isn't Ozbargaining right.
stealthpaw on 05/02/2020 - 19:08

+2

It is normal? Yes. Should it be normal? No.
CalmLemons on 05/02/2020 - 22:56

A lot of upper management level are all $120k+

A lot of nice cars you see on the road are lawyers, doctors, business owners.

Most are on debt. As a business where you pay 40% of you entire revenue back to the government, why would you not expense the car? That $100k car is essentially $60k, on a loan, at bare minimum interest, paid over 5 years. You are basically paying $12k a year for a luxury car + stress from running a business + 12-18 hour days.

A lot of that money is from LCT that the government also collects and wastes it on things like overblown construction projects to get private company to give employment to the construction sector at exorbitant fees.

Get rooted either way.
- michaelTito on 05/02/2020 - 23:29
  
  You got forgot depreciation. That sweet profit tax can get stuffed.
- netjock on 06/02/2020 - 23:57
  
  You need to understand how tax works. Everyone thinks put it on tax. If you were doing it by the book then most of these guys end up insolvent because they owe the tax office a lot more they are reporting.
  - michaelTito on 07/02/2020 - 22:17
    
    i think by not putting it on tax then you will owe ato alot of tax? lol
    
    actually nvm im not an accountant.
    - netjock on 07/02/2020 - 22:43
      
      Usually it is just bad planning. If you buy a car in Jun of the financial year you only get depreciation for one month not full 12. Most people just don't realise it unless you look at the detailed calculations.
      - michaelTito on 07/02/2020 - 22:53
        
        @netjock: why do people buy it in june? why cant they buy it in july? why cant they depreciate it again next year? again not an accountant so idk lol
        
        netjock on 08/02/2020 - 10:02
        
        @michaelTito: Accounting rules. You depreciate the asset over ATO determined rules. Say a car is 5 years (60 months). The year you bought it you can only depreciate from when you bought it. If you only had it for 1 month (June) then you claim 1/60th as depreciation. Then next year you have it for 12 months so you get 12/60th and all the last year you get 11/60th.
        
        To maximise your tax deductions it is best to have a plan for the tax year starting July.
        
        Say if you are selling a property with a big capital gain, it is best to settle in Jul than June because then you have 11 months to find ways of investing all that money.
        
        michaelTito on 08/02/2020 - 11:00
        
        @netjock: So you're saying that by buying a car under a business, you will pay less tax? Providing that your business pays alot of tax to begin with?
        
        netjock on 08/02/2020 - 11:40
        
        @michaelTito: Company tax rate 30%.
        
        If you want to spend $1 to save 30c.
        
        It is still stupid to spend $100k on a car because the business is paying for it or save tax when a 50k car would do.
        
        Still $50k of additional cash out the door which which think will save you $15k tax.
        
        If you didn't send extra $50k out the door and paid $15k tax you will have $35k of retained profits that you can deploy to buy equipment that can earn more money.
        
        Cars are not an appreciating asset.
        
        michaelTito on 08/02/2020 - 12:04
        
        @netjock: So you think 50k car will worth $0 after 5 years? You can't sell the car to gain some money back?
        
        Can they claim gst of the car during the quarter they bought the car in?
        
        Can you claim gas and all other expenses on your business car?
        
        Are you a professional accountant by any chance?
        
        netjock on 08/02/2020 - 17:27
        
        -1
        
        @michaelTito: 100k car at 50% retention is $50k, tax saving $15k. Loss $35k
        50k car at 50% retention is $25k, tax saving $7.5k, loss $17.5k
        
        I don't know in which universe losing more real money is a saving but car industry really have some people over a barrel.
        
        GST. You get it back to offset against your other GST liabilities. But don't forget you have to pay an extra $50k to get $5k GST credits.
        
        Claim gas and etc. If it was for business use and you keep a log book. Most people don't and they are just flying under the radar. The ATO won't come looking at your tax expenses but they will usually come looking as a result of something else like tax avoidance.
        
        I am not a tax accountant because my advice you won't get for $69 incl GST.
        
        michaelTito on 08/02/2020 - 18:06
        
        @netjock: "I am not a tax accountant"
        
        Never mind lol
        
        netjock on 08/02/2020 - 20:54
        
        @michaelTito: Thanks. I just don't want to give people technical advice for free and then people voting it down / flame because it just doesn't fit in with their belief of how the world actually works.
        
        michaelTito on 09/02/2020 - 09:37
        
        @netjock: Actually I said nvm becsuse i rather have this discussion with a professional tax accountant. Thought I was wasting my time. Lol
djmm on 06/02/2020 - 08:50

+4

You gotta understand not everything in life is about getting maximum investments or spending it wisely, otherwise you're a just a robot
- netjock on 08/02/2020 - 10:04
  
  Or just spend all of it thinking it will make you happy and working like it is a forced labour camp until you are 75 or when your body gives up. Which ever comes first.
gezza90 on 06/02/2020 - 12:27

Rule of thumb is to not spend more that 10% of your gross salary on a car. If it's a high priority and an important thing in your life, go max. 20% of your gross salary. Which leaves me thinking someone driving a $60k merc must earn anywhere between $300k-$600k/year…
- CalmLemons on 06/02/2020 - 12:48
  
  a lot of people save up for a merc and drive it around for like 5-10 years.
  
  If people made good financial decisions we would not have needed the royal commission.
- djmm on 08/02/2020 - 08:53
  
  That's a dumb rule. By your logic majority of people are riding moped
  - netjock on 08/02/2020 - 10:05
    
    If they can afford mopeds, I see a lot of people riding pedal bikes or e-bikes. E-bikes are like the Mercs of bikes. The luxury of not having to sweat.
  - gezza90 on 08/02/2020 - 12:19
    
    +2
    
    According to the Australian Bureau of Statistics the avg. Weekly gross salary is $1,634 (or >$80k year). Which leaves a budget of $8k-$16k for a car. There are plenty of safe, reliable and relatively new cars that can be had at that price point. In fact the 5-8yrs old is the sweet spot for purchasing cars.
    
    Now let's look at the bottom end of the spectrum and assume most are earning $50k a year. That leaves a budget of $5-$10k. There are still many safe, reliable and nice cars available in this price range like a 2009 Audi A4, 2011 Toyota corolla, 2009 Honda accord, 2013 Citroen C4, 2010+ Skoda Octavia and many more. Heck even at $3k-$4k you can buy some unwanted bargains albeit a little older. The point I'm trying to make is people tend to overlook the used car market and only consider anything less than 5yrs old. If reliability is an issue, Do your research on the type of car and maybe choose a manual rather than a complicated automatic.
Slugoid on 06/02/2020 - 14:12

Some people are properly rich, some people seem rich (spending/living on the edge, no savings), some people seem rich but are not (in high debt). I find that a majority are in the latter 2 groups. Those that are properly rich that can just gift $70K cars with no determent to their net wealth (practically loose change to them) are in the top 1-2% of the population. How one spends money is none of my business. I guess I've stopped asking how people can afford things when I started working in Hong Kong 10 years ago and saw Lambo's, Ferrari's, Bentley's on a daily basis and to keep me sane, I just assumed the "rich" are in the 3 categories I've mentioned, which seems to be mostly true considering all the personal loan calls I get every week telling me they can lend over $35KAUD with no income check, and ads on the TV for p.loans.

For me, I would never buy new cars (fast deprecating asset). I prefer to buy 2-3 year old cars that's take some deprecation hit and pay cash. The owner of my previous car, upon showing his leasing documents, paid $50K for the car, incurred around $7.5K of interest over 45 months. Calculating how much he paid for the car, the interest he paid, and the amount I paid to buy his car, he lost around $33K in 3.75 years. In the 1.5 years I've had his car, I've lost a whopping total of around $4K at most due to deprecation and average price on Carsales for my car with similar mileage. I image deprecation will less as it bottoms out. Yes, new car vs used, but is new car worth $33K good?
- techlead on 06/02/2020 - 16:08
  
  Taking out a loan on a depreciating asset is not a good idea.
  - netjock on 08/02/2020 - 10:05
    
    For the rich guy giving you a loan it is.
    - techlead on 08/02/2020 - 10:06
      
      Definitely, what's bad for one person is good for the other party haha.
    - jace88 on 08/02/2020 - 22:11
      
      I'd say it's not a great idea for them given the security/collateral is a declining asset (assuming it's secured) and hence they need to charge a higher interest rate.
      - netjock on 09/02/2020 - 00:27
        
        @jace88: Theory. Don't forget the risk is if they need to repossess the car sell it THEN go after you for the difference. Unless you take some drastic action like bankruptcy the loan companies is minting money from you.
thomalfa on 06/02/2020 - 14:14

Hey OP, i've seen a lot in Asian Country. Not sure about western but mostly sugar daddy type of middle age guys living dual life and spend millions of dollar for ladies.
blkcar on 06/02/2020 - 16:14

Don't judge a man by the car he doesn't own.
- pencilman on 08/02/2020 - 10:07
  
  LOL. Love it
porsche26c on 06/02/2020 - 17:03

yes its super normal to spend that much. i recently bought my 1st car at the age of 35 (wife worked for a car company for the yrs prior so never needed one), but it ended up an expensive exercise. however it was worth it, as the 2 cars we purchased were what we wanted and something we will keep for 5 + yrs easy.
- nomekop on 06/02/2020 - 20:56
  
  Would you like to share your experience? I'll be happy to learn whatever you suggest as I would plan to buy one in the next few years :)
  - porsche26c on 07/02/2020 - 07:44
    
    We were lucky. The Audi Q7 2018 models were on stop sale for a whole yr. So we bought it in sept 2019 once back on sale. We got it for 88k. RRP 130k. It's huge which we love as we have kids, drives really well.
    We looked at all SUVs on the market and most were smaller.
    We were lucky to get that price. If you want an suv, wait for the genius gv80. If it comes in at 85-90 it will be worth it. Especially if it comes with 7 yr warranty.
  - porsche26c on 07/02/2020 - 13:36
    
    we also paid the whole thing outright as it was cheaper to do so than the current loans for cars. our home loan was lower.
blackfrancis75 on 06/02/2020 - 18:10

+1

Just my 2c:
I am 45 and have never, and would never consider buying a brand new car.
I can't fathom losing thousands of dollars in depreciation just to drive around in a "new" car for a few months.
Maybe I'm just lucky (though I do my homework) but generally all the cars I've bought 2nd hand have been fine mechanically and retained their resale value within reason for their age. Admittedly I did buy one car that didn't pan out well, but I figure I'm still ahead by $texas.
Don't forget a lot of people in AU buy new cars "through their company" and using other ways to minimise tax or loan interest.
Other people will tell you it makes sense economically to buy new because you get a warranty, you get "free" servicing at the Dealer, etc - but from the calculations I've done it doesn't add up.

No offence intended to people who:
a) like to drive new cars off the lot
b) have done their own calculations that return a different result
- nomekop on 06/02/2020 - 20:55
  
  Do you think buying through their company would make sense? Or you didn't have that chance?
  - blackfrancis75 on 06/02/2020 - 22:58
    
    My understanding is that abt 20 years ago it was a good old rort, but they've tightened it up especially in the last decade or so.
- [Deactivated] on 06/02/2020 - 23:02
  
  -1
  
  Not all cars lose $20k when you drive them off the lot. Try and buy a second hand Model 3 in Australia right now for anywhere near the RRP. You're going to be paying over. This applies to many cars if you pick them correctly.
  - netjock on 07/02/2020 - 00:06
    
    +1
    
    LoL okay. If you feel like you need to be the whale in the fishing expedition then you need to hand in your ozbargain membership
  - endolphin on 08/02/2020 - 23:54
    
    +1
    
    Ok, so you've given one example. Can you give another? You've got "many" examples apparently.
    - endolphin on 08/02/2020 - 23:54
      
      +1
      
      Comment directed at burnertoasty
    - [Deactivated] on 09/02/2020 - 10:17
      
      It’s supply and demand. So any car that is in limited supply is going to fit into this category. Currently the Mercedes G63 is in the same boat world wide. At least here dealers sell at RRP, in the US they make ‘market adjustments’ and currently that sits at $USD65k over RRP. Ridiculous. Every limited Ferrari is the same (so something like a 488 Pista), the old Land Rover Defenders shot up in value ridiculously when they announced an end to production. Bear in mind that they used to retail
      For $45k at one point and now you wouldn’t be able to get that exact car with 150,000km on it for $45k. Even Mk V Golf GTI has a brief period of no depreciation back in the day.
adgnetworks on 06/02/2020 - 20:30

I just bought a luxury SUV. Ex demo so i saved a packet as i told myself from owning several brand new cars; never again.

Turned 40 not long ago and thought why not if i can afford it.

You only live once and this was a good time to get into something without over thinking it.

I thought i thought of everything.. LCT, finance fees, interest/balloon, maintenance, insurance, etc. Imagine my surprise when i saw how much the car will cost to register when paying motor vehicle tax.. what a #$%^& rort.
- nomekop on 06/02/2020 - 20:53
  
  sorry to hear… Thank you for the reminder!
- [Deactivated] on 06/02/2020 - 23:01
  
  Why was the car not registered if it was an ex demo? The advertised price should be the driveaway price.
  - adgnetworks on 06/02/2020 - 23:03
    
    Was registered and has the balance of the 5yrs warranty left.
    
    But i received the rego transfer papers in the mail that shows how much it cost to register.
    
    No wonder the rrp and driveway price can be fairly significant on these lux cars.
    - [Deactivated] on 06/02/2020 - 23:06
      
      If it was registered already there should be no cost to you?
      - adgnetworks on 06/02/2020 - 23:11
        
        @[Deactivated]: When rego comes up next year its a lot higher than i anticipated; double the cost.
        
        [Deactivated] on 06/02/2020 - 23:19
        
        @adgnetworks: So you're whining about a cost next year? And how much are you whining about? I think the rego on the car I drive most days is like $800-1200 from memory. How much could it be?
wimphrel on 07/02/2020 - 00:28

+1

I would buy a 70K car, but not today - when I’m older.

My main priority is to make sure I can retire as early as possible. Learning how to use excel to calculate monthly repayments and assess impact of lump sum purchases can really give you good insight. You’ll scare the shit out of yourself seeing the impact of a $70k redraw on your retirement strategy. The later you buy that luxury car, the Impact will be less and you’ll almost be dead anyway so you’d care less.

There’s no point hoarding money and assets until the day you die. At some point people will have enough wealth that splurging 70k on a car is worth trying. I probably could go for the $120k car when I retire - but probably will just settle on the $70k car and put the $50k towards some philanthropic cause.
- Hangryuman on 07/02/2020 - 07:46
  
  +2
  
  spending on self - especially money you can't easily afford - tends to give a momentary blip of happiness - followed by a much longer process of pain and regret - like buying a convertible (or yacht) they say has two happy days - the day you buy it - and the day you sell it (having just lived through the reality of maintenance PITA expenses and actual inconvenience)
  
  helping others is found to be the longest lasting source of human happiness - volunteering in retirement with afterschool childcare gives me transcendent joy.
  
  money is like manure - piled up it stinks - spread around it encourages wonderful new growth.
  
  and there's nothing like the schadenfreude of those youtube videos of young idiots putting the foot down in their shiny new Ferrari or Lamborghini, promptly spinning out, crashing into a side barrier and writing off their $X'00,000 new ex-toy - what a hero (of losers) !
- blackfrancis75 on 07/02/2020 - 08:29
  
  https://www.youtube.com/watch?v=fx-rqxBpa2o
  
  All the guys
  That really have the money
  
  Are too old
  To have a good time with it
  
  Too old to turn the women on
  Too old to have a fast car and drive it
frostman on 07/02/2020 - 08:56

(my) rule of thumb…

Your car value must not exceed 25-30% of your total annual income.

So someone on 80K wage can get a car worth appx $24,000
Someone on 100K wage, car at $30K, you get the drift..

If you have a business with net income less expense, GST, TAX of $400,000, then you can get yourself a $120,000 Mercedes or BMW.

Anyone else exceeding these values are placing themselves in a large debt for showing off.
- isthisreallife22 on 07/02/2020 - 11:56
  
  Your car value must not exceed 25-30% of your total annual income.
  
  Interesting I like it. How did you arrive at that figure?
  - frostman on 08/02/2020 - 09:52
    
    Long experience.
    
    I found 25-30% of your total net income allows you to drive a car with financial comfort.
- imurgod on 07/02/2020 - 16:37
  
  -1
  
  Excellent rule of thumb!
  
  I use my car upgrade as a goal setter every few years. I set myself a target for my business nett income and if I reach or exceed, I allow myself the purchase.
  
  Problem is, it's ridiculous now. I've been trying to convince myself that it's semi-practical / a good idea to get a Porsche 911 next year, but I still thoroughly enjoy driving my AMG and I'm not ready to let it go just yet.
  
  Not going to make the jump having 3 mortgages and 2 small kids, but the chase keeps me motivated and I just like cars.
- michaelTito on 08/02/2020 - 11:17
  
  You're pretty spot on with the business figure..
  
  For some reason everyone in this thread just assume that if you buy an expensive car, you're automatically become stupid.
saltypete on 07/02/2020 - 09:10

+1

I like to hang on to cars as long as possible If I could go back 8 years to when I bought my "sensible" Commodore wagon I would have bought the $80K Landcruiser I really wanted. I thought about it but dismissed the idea as crazy because I could spend cash on the Commode, but would have taken a loan for half of the Glandbruiser. I had enough cash flow to get rid of a loan pretty quickly, but still… I am now looking at a large 4WD anyway. If I bought what I really wanted back then I would have the car I really wanted and would be happy to keep it for another 20 years. I know this is not what most people want and some like to change cars every few years. Just saying that for car keepers like me, spending more and keeping the car longer would have been a bit more satisfying and not really cost more in the long run.
- fersea on 07/02/2020 - 09:46
  
  presumably you could sell your Commodore and purchase an 8 year old Landcruiser now if you really want it.
  - Slugoid on 07/02/2020 - 13:18
    
    Lol! Seen the price of 2nd hand Commodore? Unless it's a V8 it's worth nothing now. On the other hand the Landcruiser has retained its value and still cost at least $40K 2nd hand.
    - BartholemewH on 08/02/2020 - 03:40
      
      Who would've bought a recent non V8 Commodore with their own money? Everyone could tell that with the close of manufacturing the V8's were going to be the ones to hold onto.
    - netjock on 08/02/2020 - 10:08
      
      +1
      
      Thinking losing 40k and calling it retaining value. That is a new one.
      - ribbonsofnight on 08/02/2020 - 10:48
        
        @netjock: Many cars halve in value faster than that. Still feels a bit like grasping at straws for anyone who bought a new landcruiser though.
        
        djmm on 08/02/2020 - 17:19
        
        @ribbonsofnight: People still buy LandCruiser?
- JimB on 07/02/2020 - 14:39
  
  +1
  
  Landcruisers have ridiculously high resale value, to the point that I think crazy to buy a 1 or 2yo one.
fersea on 07/02/2020 - 09:49

+4

Best comment I ever heard about buying cars -

"Purchase the cheapest car your ego can afford"
whosyourbuddha on 07/02/2020 - 09:51

If you have the money why not? but 70k insurance would be a lot. Not just that but mongrels key your car, or trolley ding it so is it worth having anything nice these days
[Deactivated] on 07/02/2020 - 11:03

+1

I feel like most here is thinking too conservative financially, but forgetting sometimes you have to live a little.
My parents are 60+ now so this is probably one of the last car they will enjoy. Yes buying them a luxury car will hit my long term retirement goal a little, but there is no point buying a luxury car when you are too old too drive.

We will be selling my parents current car, so the gap between the new car and old one is around 30-40k.
Again it is not a wise financial decision, but one that is a good life decision.

This is my case anyway, not applicable to most.
isthisreallife22 on 07/02/2020 - 11:57

I always tried to spend < $35k but newer cars that are more suitable for my evolving needs are creeping more into the $45k category, and it's frustrating me no end.
- nomekop on 08/02/2020 - 00:03
  
  Do you mind giving a few examples of why 45k is the minimum ?
Soluble on 07/02/2020 - 15:15

+1

After reading this thread for a few days, I just purchased a $65k car, AMA.
- nomekop on 08/02/2020 - 00:03
  
  Why did you decided to do so?
  - Soluble on 08/02/2020 - 07:29
    
    Tax advantages for a business. $65k, chattel mortgage so GST claim next BAS 30% ballon. Car costs $190pw. Then there's depreciation and my tax bracket of 37c minimum if I take the money as income.
    
    Maximum car claim for depreciation is just under $58k, but the extra will have bugger all impact overall.
    - michaelTito on 08/02/2020 - 11:09
      
      The extra on top of the 58k threshold you can do salary sacrify. Speak to you accountant. Instead of paying the ato, pay it to your super.
rappy68 on 07/02/2020 - 21:12

Who owns Wheels magazines all - Bauer Media Group, a German company - enough said
- netjock on 08/02/2020 - 10:09
  
  -1
  
  It is owned by Jack Bauer off 24? Damn!
  - [Deactivated] on 09/02/2020 - 10:18
    
    Did that sound funny in your head?
    - netjock on 09/02/2020 - 22:18
      
      It was funny seeing who it would wind up.
DiscoJango on 08/02/2020 - 09:33

The news and media has made it "normal" for people to go way into debt for a car they could never afford upfront, as well as "keeping up with the jones's" where everyone has to have a nice shiny car and outdo each other.
- michaelTito on 08/02/2020 - 11:23
  
  Jones's? Did the kadasian change their name?
kylarstern on 08/02/2020 - 13:08

+2

1). Yes. It's call having a goal in life, being frugal and saving up for it.
2). No and its called getting it on lease. My father owned a BMW 5 series (he's a doctor but retired now) and he had the money to pay for it but preferred to get it on lease as it kept more cash in his own pocket. I drive a fairly new 3 series and its on lease which I'd decided to pay it out in full only recently. I always have the money on hand to pay it off in full anytime but I'd prefer to keep the cash in the bank.
3). I make close to six digits annually but I also work hard, live frugally, have goals and aren't married/dont have kids (THIS is a big one lol).

People can do whatever the hell they want with their money. Some people splash it all on long holidays, some people buy clothes, some like cars (like myself) and others are reckless and spend it on anything without a plan/goal. Who are we to judge?
ALTBrokers on 08/02/2020 - 15:21

1) Do people really has that much cash running around?

Everyones situation is unique - there is a lot of money out there and also a lot of debt out there so toss a coin as to whether someone driving a 100k car can actually afford it

2) Do they go into debt to pay for it?

in most situations yes, whether indirectly or directly. Indrectly via using a redraw or offset out of their mortgage, or directly via a lease or loan of some kind
On the flip side, we have clients that pay for their cars in excess cash

3) How much do you need to earn to have that level of flexibility?

Having worked extensively with financial advisers they recommend spending up to 50% of your net annual income (or houshold income) on a car max (and that is after subsequent years of having that income, not year 1).

as a car and finance broker we see a lot of things but on the whole you there is just no way to class buyers of cars above 50-100k into one category or another…
jltantrum on 08/02/2020 - 16:50

1) Do people really has that much cash running around?

Obviously some people do but the truth is the majority of them don't.

2) Do they go into debt to pay for it?

Yes the vast majority do.

3) How much do you need to earn to have that level of flexibility?

Not much. You just need to be stupid/impulsive enough to spend way above your means and emotionally justify the decision to yourself every day.
Financed new car purchases are the most commonly regretted big ticket items that people buy.
Unless you can actually afford it, Toyota's "still feeling it" slogan would quickly move from positive feelings about the car, to negative feelings about the big repayments you'll be making for years to come.
bjinco on 09/02/2020 - 04:27

that is cheap for my friend who earned minimum 500K per month.
and i will say it's very expensive if you just earned 60K per year.
- cala90 on 09/02/2020 - 09:49
  
  +3
  
  Aus Post CEO?
Cave Fire on 09/02/2020 - 11:50

Had a friend that did panel work. Flipped a couple of Toyota Echos and eventually bought an okay used Mercedes for 12k. He drove me to a car show in inner city Brisbane. I noticed that every so often, the pedestrians would turn and look at the car. That kind of attention might be addictive. Also, the ride and comfort features of the car are a step above 30 - 40k new cars. The car companies are very smart and have hundreds of little features that you get for each price increment.
- weee on 09/02/2020 - 14:25
  
  just be curious, what sort of ride and comfort features a 12k Mercedes provides while a 30-40k brand new plebeian's car wouldn't otherwise?
  - Cave Fire on 09/02/2020 - 15:25
    
    Yeah my friend bought and sold cars, so he got a good deal for the Mercedes, think it was a 2002 clk compressor 200 or an e class in maybe 2007? It had a unique shape, can't find pics of it. It was very quiet almost like being in a bubble of silence. The interior was more toward the luxury spectrum while those other cars are more industrial usually.
    - brendanm on 15/02/2020 - 19:58
      
      +1
      
      Lol I don't think anyone ever took a second glance at a 2002 clk 200, or an E class.
      - Cave Fire on 15/02/2020 - 20:04
        
        @brendanm: can't remember what it was, but it was a distinctive model for them. My friend used to rally so he was probably driving it a bit hard too.
        
        brendanm on 15/02/2020 - 20:54
        
        @Cave Fire: They may have just been bemused that someone was trying to drive a 200 Kompressor hard then.
- Hangryuman on 10/02/2020 - 09:54
  
  'hundreds of little features that you get for each price increment'
  
  and Scotty on YouTube told me that each of those little features costs hundreds to fix when they stop working

It is normal to spend 50k-100k to buy a car?

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