So this probably isn’t a very accepted practice throughout our frugal DG investment community. While I am frugal with some things, I also believe in rewarding yourself and having some immediate satisfaction. I do hope and plan to live to an old age but you really just never know. I had a good buddy of mine from high school that passed away suddenly at the age of 33 last year. It was completely unexpected and tragic. While I am still saving and investing the majority of my income I do splurge for nice dinners and a nice car every once in a while. My total car payments are still well under 10% of my monthly income so I don’t think this was too crazy of a move.
I drove my last car for 7 years and It had been paid off for 4. It also had close to 100k miles on it so I was getting concerned with it starting to have some mechanical issues. I decided that this year I would start to look for another luxury sports sedan. The reason I had paid it off early was because I had a terrible interest rate on it, over 14%!. My wife received the last fairly new vehicle so It was my turn for the next one.
There is an Audi dealership close to my office so I decided to stop by. I knew I already liked the look and performance on paper of the S4’s but hadn’t driven one. So they happened to have a 2013 that had about 3500 miles on it. It was driven by one of the managers as a demo car. I knew before driving the car that even if I liked it that I would have to get a price and rate on the car that made sense. I wasn’t desperate for a vehicle and really planned on waiting until the fall to look for another one unless I got a really good deal. So I took the car for a spin and fell in love with it. The handling, smooth ride, aggressive growl and the performance were like no car I’d ever driven. So I got back and started to work out a deal. After two days of negotiating I was able to work out a deal and got 15% off the sticker price. I also got a fair price on my trade-in and I also was approved with a low 1.9% interest rate. The car also came with an additional extended warranty that goes out to 2018 so I don’t have to worry about anything breaking down.
So needless to say I decided to pull the trigger and as of last weekend I am the proud owner of a 2013 Audi S4 in Phatom Black Pearl!
So what do you think? Was this an irrational purchase?
Congratulations on the new car!
I can’t even talk myself into buying a new laptop despite the fact that my existing one is hovering on death’s door and I’ve got about 70% of the price covered by credit card points. So I guess by my standards a new car is a bit irrational. But still nice.
Hi myfij,
It cerainly wasn’t a necessity and is hard to justify to most but a nice gift to myself.
Cheers
That’s awesome! Life is all about balance…neither extreme frugality nor extreme materialism seem appealing to me! I don’t spend much on cars, clothes, or fancy dinners, but I love to travel–so I generally go on one big international trip a year. It’s all about figuring out what brings you enjoyment, and then prioritizing your finances to make it possible…otherwise, what’s all the scrimping and saving for?
Hi kolpin,
I agree it is ok to splurge every once in a while. This was one of those times for sure. I was fortunate to do a lot of traveling last year but don’t expect as much this year. Life is about happiness and everyone has a different way to get there.
Take care!
Irrational? Absolutely! Gorgeous? Without a doubt!
You are pounding away some serious money into investments on a weekly basis so get out and enjoy your bad self! Black for the win, every time.
Hi w2r,
I suppose it would be much harder to justify this purchase if I wasn’t putting a lot of capital to work each month. It is a sweet ride that I plan to enjoy for a while. I have never owned a black car but I am diggin’ it!
Thanks for stopping by!
Sweet ride. It would be hard for me to chose between the S4 and the new Lexus GS350. I love cars too and I’m finding it difficult to stick with my 10 year old Impreza.
Thanks ADY! I was looking at these and the bmw m3’s. The s4 has a 0-60 time of 4.9s and 333 hp. The GS350 is more like 5.7s 0-60 and right at 300hp if I’m not mistaken. Still a nice car but not what I was wanting in the performance department for the price.
I am impressed you have had the same car for 10 years. I admit it is great not having a car payment. I made it 7 years myself.
Thanks for dropping by to comment!
Nice ride! You are saving an unbelievable amount for an early retirement, buying a car isn’t going to matter much. I say go ahead and buy a few toys if it makes you happy!
Cheers!
Thanks CI! I figure I am putting about 10 times the amount of my car payment to work each month so why not have a nicer car. It will certainly bring a lot of enjoyment now while not slowing my investment income too much.
Take care!
AAI,
Nice purchase. You can’t go wrong with an S4. I work with Audi, so I know the product quite well. I personally prefer the S5 simply due to the coupe lines, but the S4 is an amazing car. Reliable as well. It’s really the best in its class, in my opinion.
I think the car purchase needs to be quantified a bit. Your income is obviously high, and you have assets approaching the $1 million mark. So, a $40k car, while not a cheap car, will not have an overwhelming effect on your ability to build your wealth.
Like was said above, what’s the point of saving if you’re not able to enjoy it?
I don’t make nearly as much as you, so this would be akin to me buying a $15k car or so…which wouldn’t really be all that crazy. It’s all in perspective and scale.
I’m a car guy, so it does pain me at times to ride the bus. My first car was a 1971 Chevelle. I had a Corvette at one time, a Cobra, a Trans Am. I loved my cars. It sucks to work around great cars (I was in an RS5 today) and not be able to drive them home. On the other hand I get my fill a bit because I spend so much time around them.
Enjoy the bad ass ride!
Best wishes.
Hi DM,
I knew you worked at a dealership but had no idea it was Audi. The RS line is crazy, I’d love to drive one of those. You definitely get to drive some sweet rides! I like the S5 but I was looking specifically for a sedan to have the extra room. I’m glad I have your approval on the S4. I love the car so far.
Wow, you definitely drove some muscle cars. They do guzzle some gas though. The new performance vehicles are getting better gas mileage now though. The Audi isn’t much worse than my g35 was as far as gas is concerned.
The purchase doesn’t seem so bad when you compare it to my income so it’s all relative. Unfortunately, the car was more than 40k because it’s the prestige edition with the nav. , 19″ wheels, bang and olufsen speakers and backup camera. I could have lived without some of these addons but I still feel that I got a pretty good deal.
Thanks again for stopping by!
Grats on the new car AAi. I have a feeling im going to need a new one in the future. I have a habit of saying my honda civic is semi-new but the car is now 13 years old lol. I haven’t really needed to look into new vehicles but should I get one I’d prefer the audi over other luxury makes.
Thanks Investing Early! Honda makes great reliable cars. My wife had a Honda that was handed down to her and it was a good car for about 10 years. I probably could have driven my infiniti for a few more years but I decided to splurge for something newer. Hopefully it won’t hinder my investment progress too much.
Take care!
I just came across this post. It is a nice little yummy baby out there! I do not think this is a crazy purchase if it made you happy and you were planning it. If it was part of your plan then why not to make yourself happy and reward yourself with some candies right? If you save money your whole life and then die, what’s the purpose then? I am totally for it and I am saving for my goals and dreams as well. The retirement isn’t the only goal I have.