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?