Author Topic: Close family member makes a surprise purchase!!  (Read 7166 times)

JT

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Close family member makes a surprise purchase!!
« on: March 12, 2013, 04:02:48 AM »
Hi fellow Mustachians

A biologically close family member has purchased a most expensive car - brand new!!

The shocker was the amount of money spent would make a decent deposit for a house, or could buy shares.

I can't believe this has happened or why someone would want to spend that much money on something that depreciates straight off the show room floor.


« Last Edit: March 12, 2013, 04:16:56 AM by JT »

Adventine

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Re: Close family member makes a surprise purchase!!
« Reply #1 on: March 12, 2013, 07:00:53 AM »
What kind of car was it, and how much did they pay for it, exactly?

Norman Johnson

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Re: Close family member makes a surprise purchase!!
« Reply #2 on: March 12, 2013, 07:13:00 AM »
Yes, I have a friend who has more owed in car loans than what I bought my house for. (Granted, I bought in 2003, so just as things were starting to go nuts.)

But still! You can't live in a car!!! (Well at least not year around where I am from...)

NumberJohnny5

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Re: Close family member makes a surprise purchase!!
« Reply #3 on: March 13, 2013, 12:57:30 AM »
Without more information I say...so?

Most people buying mid-range new cars have spent more than we have on our house.

Was the car financed or paid for in cash (and if it was financed...does the family member have enough to pay it off in full, but was simply taking advantage of a 0% kinda deal?)?

Is this person financially secure?

Perhaps most importantly...is this purchase going to somehow negatively affect your life (and no...getting a reduced inheritance does NOT count)? If not, then live and let live.

kolorado

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Re: Close family member makes a surprise purchase!!
« Reply #4 on: March 13, 2013, 09:59:30 AM »
How about when your FIL calls to tell you that he's "Spending your inheritance" by buying a new, Special Edition, Custom Camero convertible? It never would have occurred to me to feel bad about his purchase if he hadn't said that. It's a $50K car, he's 65 with increasingly poor eyesight plus he has no garage to put it in. :O Oh, this was also the same call to tell us that he and my MIL would be gone for a month on a Med cruise. Another $30K there. That one makes sense to me but the car not so much.

babysteps

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Re: Close family member makes a surprise purchase!!
« Reply #5 on: March 13, 2013, 01:30:05 PM »
How about when your FIL calls to tell you that he's "Spending your inheritance" by buying a new, Special Edition, Custom Camero convertible? It never would have occurred to me to feel bad about his purchase if he hadn't said that. It's a $50K car, he's 65 with increasingly poor eyesight plus he has no garage to put it in. :O Oh, this was also the same call to tell us that he and my MIL would be gone for a month on a Med cruise. Another $30K there. That one makes sense to me but the car not so much.

I feel your pain!! 

I love my FIL, so do his 3 kids, but we all pulled our hair a couple years ago - he traded in his not-yet-3-yr-old car for a brand new one. 
He still owed money on the trade-in. 
Remaining debt on that one was rolled into the price for the new car. 
He called each of his kids to run the idea past them, they all said it was a bad idea (so did my MIL). 
He did it anyway.
It could have been worse, he was going to take out HELOC to pay for this, until my MIL said she wouldn't sign the papers. 

At least this isn't putting them in the poorhouse, but it seemed like a dumb idea to us all.  And the car loan is the only debt they have.

plantingourpennies

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Re: Close family member makes a surprise purchase!!
« Reply #6 on: March 13, 2013, 05:14:28 PM »
My parents have a good sum of money in the bank, along with their (cushy) pensions.

I tell them to spend it all if they want-its not my money...or my decision.

Best,
Mr. PoP

Grigory

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Re: Close family member makes a surprise purchase!!
« Reply #7 on: March 25, 2013, 09:19:02 PM »
Buying a brand new car can be easily justified. Unless you're Amish or a dedicated bicyclist, you need a car. Buying a used car is a gamble. I used to be a devotee of the "buy used! new is evil!!" principle, but the used cars I've owned over the past few years cost me a lot more than I would have paid for a brand new one.

My main 2 reasons for buying a new car are these:
1) Peace of mind. I can take off and go on a 2,000-mile road trip without having to worry about the car breaking down in the middle of nowhere.
2) Warranty. Kia and Hyunday offer a 10-year engine warranty (as well as a 5-year warranty for everything else). Show me a used car that comes with that kind of warranty and you'll have my attention.

If you find a good deal (for example, a $15,000 car with a 10-year warranty and 0% interest), it makes sense to buy new.

JT

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Re: Close family member makes a surprise purchase!!
« Reply #8 on: March 27, 2013, 02:03:54 AM »
My sincere apologies for not replying sooner - I've had an assignment!

The car is a 2013 Jeep Grand Cherokee Ltd edition and it apparently cost over $60,000.

For this kind of dough, you could have a house deposit or buy shares.

Still shaking my head!!!

mobilisinmobili

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Re: Close family member makes a surprise purchase!!
« Reply #9 on: March 27, 2013, 09:21:59 AM »
Let them know that Nate Walsh is selling a used car. Who can resist this ad?

http://www.adweek.com/adfreak/most-stunning-ad-ever-made-used-car-128000-miles-thats-been-puked-twice-148174