Author Topic: Co-worker just financed a $50K Audi  (Read 15079 times)

bittheory

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Co-worker just financed a $50K Audi
« on: August 21, 2015, 09:23:56 AM »
I'm not judging, or trying to feel like a know it all, but I just had to share this with like-minded people. Since everyone in my office thinks this is "SO AWESOME."

My coworker, who is an all-around awesome person, but I am now learning isn't very financially savvy, just financed a $50K brand new 2015 Audi. Her previous car, a Lexus sedan, was completely paid off, only about 7 years old and in perfect shape. She just "really wanted the Audi" and didn't mind paying $500 a month to get it.

I have no idea her salary, but there's no way it's even closer to 6 figures. If I had an extra $500 it'd go immediately into my mortgage/index funds. I am literally the only person in my office who feels that way.




EricP

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Re: Co-worker just financed a $50K Audi
« Reply #1 on: August 21, 2015, 09:25:38 AM »
I think Audis look pretty mediocre, too.  If you slapped a Ford tag on the front everyone would say they are ugly cars, it's just the name that makes them "sexy" cars or whatever those types of people say.

thek1d

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Re: Co-worker just financed a $50K Audi
« Reply #2 on: August 21, 2015, 09:26:35 AM »
Co-worker here bought a 2015 Chevy Tahoe last month when his Lexus died. He and his wife are in their late 20s with no kids. They both work downtown and live within a mile of their offices - and never even carpool.

It's a pretty sweet ride, but what a waste!

lostamonkey

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Re: Co-worker just financed a $50K Audi
« Reply #3 on: August 21, 2015, 09:27:14 AM »
I'm not judging, or trying to feel like a know it all, but I just had to share this with like-minded people. Since everyone in my office thinks this is "SO AWESOME."

My coworker, who is an all-around awesome person, but I am now learning isn't very financially savvy, just financed a $50K brand new 2015 Audi. Her previous car, a Lexus sedan, was completely paid off, only about 7 years old and in perfect shape. She just "really wanted the Audi" and didn't mind paying $500 a month to get it.

I have no idea her salary, but there's no way it's even closer to 6 figures. If I had an extra $500 it'd go immediately into my mortgage/index funds. I am literally the only person in my office who feels that way.

Honesty if someone buys a nice new car I just congradulate them and admire the car.  It does not fit with my values but I don't feel like I should judge them for having different values.

EricP

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Re: Co-worker just financed a $50K Audi
« Reply #4 on: August 21, 2015, 09:37:56 AM »
Honesty if someone buys a nice new car I just congradulate them and admire the car.  It does not fit with my values but I don't feel like I should judge them for having different values.

If it was a reasonable car sure, but one that is >50% of one's annual income is not a call for "congratulations."  It's a massive burden that could potentially cause massive financial problems down the line. 

bittheory

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Re: Co-worker just financed a $50K Audi
« Reply #5 on: August 21, 2015, 09:41:40 AM »
Honesty if someone buys a nice new car I just congradulate them and admire the car.  It does not fit with my values but I don't feel like I should judge them for having different values.

If it was a reasonable car sure, but one that is >50% of one's annual income is not a call for "congratulations."  It's a massive burden that could potentially cause massive financial problems down the line.

I'm with you Eric. Of course I congratulated her and did my oohing and aahhing, but I bit my tongue knowing what a bad and potentially devastating financial decision it was.

TheAnonOne

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Re: Co-worker just financed a $50K Audi
« Reply #6 on: August 21, 2015, 09:49:21 AM »
I want a new Corvette. I don't know if I will buy one, but we are more than financially set to own a toy. I would like to think that people wouldn't spat all over me for it.

There are differences between buying an expensive car and (what I assume this board is for) buying an expensive car on credit @4+% at a salary level pretty equal to your cars value.

bittheory

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Re: Co-worker just financed a $50K Audi
« Reply #7 on: August 21, 2015, 09:57:43 AM »
There are differences between buying an expensive car and (what I assume this board is for) buying an expensive car on credit @4+% at a salary level pretty equal to your cars value.

There are. Props if you have the cash to buy a brand new car. Buying an expensive car on credit, no matter how you slice it, just isn't the best financial decision. But hey, on the other hand, I think this will make her incredibly happy, which I'm all for. Some people just find different paths toward happiness. Sadly that path often involves debt.

TheAnonOne

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Re: Co-worker just financed a $50K Audi
« Reply #8 on: August 21, 2015, 10:08:15 AM »
There are differences between buying an expensive car and (what I assume this board is for) buying an expensive car on credit @4+% at a salary level pretty equal to your cars value.

There are. Props if you have the cash to buy a brand new car. Buying an expensive car on credit, no matter how you slice it, just isn't the best financial decision. But hey, on the other hand, I think this will make her incredibly happy, which I'm all for. Some people just find different paths toward happiness. Sadly that path often involves debt.

Indeed, the OP sounds like a bad set of choices. Buying any Audi/BMW brand new when your under 100k in salary, is probably a drag of literal YEARS off your FI date.

Though, most people never expect to retire, and wonder why it's so hard... while financing this stuff

MgoSam

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Re: Co-worker just financed a $50K Audi
« Reply #9 on: August 21, 2015, 10:11:32 AM »
That's one thing I like about my boss, maybe 10 years ago a guy working here (I wasn't here at the time) went and bought a car a few weeks after working here, a brand new one. The owner scolded him because of how much it will consume his pay and the high interest rate on it. I'm guessing that in his mind he was thinking, "Do you realize what will happen if I fire you?"

The guy was a putz, and was gone within 6 months.

EricP

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Re: Co-worker just financed a $50K Audi
« Reply #10 on: August 21, 2015, 10:18:17 AM »
There are differences between buying an expensive car and (what I assume this board is for) buying an expensive car on credit @4+% at a salary level pretty equal to your cars value.

There are. Props if you have the cash to buy a brand new car. Buying an expensive car on credit, no matter how you slice it, just isn't the best financial decision. But hey, on the other hand, I think this will make her incredibly happy, which I'm all for. Some people just find different paths toward happiness. Sadly that path often involves debt.

Well, except for if you can get 1% financing and then invest the difference and you planned on carrying full coverage anyways.  So, as long as you could pay cash for it, then it's a smart decision, but you don't have to.  Personally, I wouldn't do the 1% financing to invest thing, because I want flexibility in my insurance coverage, but I won't fault the person who gets the low interest loan on their affordable (relative term here) car.

Guses

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Re: Co-worker just financed a $50K Audi
« Reply #11 on: August 21, 2015, 11:16:28 AM »
There are differences between buying an expensive car and (what I assume this board is for) buying an expensive car on credit @4+% at a salary level pretty equal to your cars value.

There are. Props if you have the cash to buy a brand new car. Buying an expensive car on credit, no matter how you slice it, just isn't the best financial decision. But hey, on the other hand, I think this will make her incredibly happy, which I'm all for. Some people just find different paths toward happiness. Sadly that path often involves debt.

Well, except for if you can get 1% financing and then invest the difference and you planned on carrying full coverage anyways.  So, as long as you could pay cash for it, then it's a smart decision, but you don't have to.  Personally, I wouldn't do the 1% financing to invest thing, because I want flexibility in my insurance coverage, but I won't fault the person who gets the low interest loan on their affordable (relative term here) car.

You can usually negotiate a better price when paying cash. The dealer would not do the "invoice + 300$" deal we had negotiated if we also went with the 0% financing.

EricP

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Re: Co-worker just financed a $50K Audi
« Reply #12 on: August 21, 2015, 11:52:10 AM »
There are differences between buying an expensive car and (what I assume this board is for) buying an expensive car on credit @4+% at a salary level pretty equal to your cars value.

There are. Props if you have the cash to buy a brand new car. Buying an expensive car on credit, no matter how you slice it, just isn't the best financial decision. But hey, on the other hand, I think this will make her incredibly happy, which I'm all for. Some people just find different paths toward happiness. Sadly that path often involves debt.

Well, except for if you can get 1% financing and then invest the difference and you planned on carrying full coverage anyways.  So, as long as you could pay cash for it, then it's a smart decision, but you don't have to.  Personally, I wouldn't do the 1% financing to invest thing, because I want flexibility in my insurance coverage, but I won't fault the person who gets the low interest loan on their affordable (relative term here) car.

You can usually negotiate a better price when paying cash. The dealer would not do the "invoice + 300$" deal we had negotiated if we also went with the 0% financing.

It doesn't have to be 0% financing for it to make sense to borrow and invest.  I have also found that negotiating a better price with cash to be a myth.  Last time I went on a new car purchase with my MIL they gave $500 off for using the financing and there was no pre-payment penalty so she could have paid it off the very next day and gotten the $500. 

Sure, with 0% financing I bet you could get a better deal as obviously something has to be subsidizing the 0% financing, but at a normal interest rate (1.49% or something) you'll get the exact same price as with cash.

MgoSam

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Re: Co-worker just financed a $50K Audi
« Reply #13 on: August 21, 2015, 11:53:52 AM »
There are differences between buying an expensive car and (what I assume this board is for) buying an expensive car on credit @4+% at a salary level pretty equal to your cars value.

There are. Props if you have the cash to buy a brand new car. Buying an expensive car on credit, no matter how you slice it, just isn't the best financial decision. But hey, on the other hand, I think this will make her incredibly happy, which I'm all for. Some people just find different paths toward happiness. Sadly that path often involves debt.

Well, except for if you can get 1% financing and then invest the difference and you planned on carrying full coverage anyways.  So, as long as you could pay cash for it, then it's a smart decision, but you don't have to.  Personally, I wouldn't do the 1% financing to invest thing, because I want flexibility in my insurance coverage, but I won't fault the person who gets the low interest loan on their affordable (relative term here) car.

You can usually negotiate a better price when paying cash. The dealer would not do the "invoice + 300$" deal we had negotiated if we also went with the 0% financing.

It doesn't have to be 0% financing for it to make sense to borrow and invest.  I have also found that negotiating a better price with cash to be a myth.  Last time I went on a new car purchase with my MIL they gave $500 off for using the financing and there was no pre-payment penalty so she could have paid it off the very next day and gotten the $500. 

Sure, with 0% financing I bet you could get a better deal as obviously something has to be subsidizing the 0% financing, but at a normal interest rate (1.49% or something) you'll get the exact same price as with cash.

Is this generally the case? I've heard that most dealers make more money off the financing than they do with the sale, so wouldn't they be less likely to cut you a good deal if you are paying cash?

EricP

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Re: Co-worker just financed a $50K Audi
« Reply #14 on: August 21, 2015, 11:57:54 AM »
There are differences between buying an expensive car and (what I assume this board is for) buying an expensive car on credit @4+% at a salary level pretty equal to your cars value.

There are. Props if you have the cash to buy a brand new car. Buying an expensive car on credit, no matter how you slice it, just isn't the best financial decision. But hey, on the other hand, I think this will make her incredibly happy, which I'm all for. Some people just find different paths toward happiness. Sadly that path often involves debt.

Well, except for if you can get 1% financing and then invest the difference and you planned on carrying full coverage anyways.  So, as long as you could pay cash for it, then it's a smart decision, but you don't have to.  Personally, I wouldn't do the 1% financing to invest thing, because I want flexibility in my insurance coverage, but I won't fault the person who gets the low interest loan on their affordable (relative term here) car.

You can usually negotiate a better price when paying cash. The dealer would not do the "invoice + 300$" deal we had negotiated if we also went with the 0% financing.

It doesn't have to be 0% financing for it to make sense to borrow and invest.  I have also found that negotiating a better price with cash to be a myth.  Last time I went on a new car purchase with my MIL they gave $500 off for using the financing and there was no pre-payment penalty so she could have paid it off the very next day and gotten the $500. 

Sure, with 0% financing I bet you could get a better deal as obviously something has to be subsidizing the 0% financing, but at a normal interest rate (1.49% or something) you'll get the exact same price as with cash.

Is this generally the case? I've heard that most dealers make more money off the financing than they do with the sale, so wouldn't they be less likely to cut you a good deal if you are paying cash?

I have heard this as well but I don't know if it's true or not, and in my experience you get better deals with financing than with cash (as noted in previous post).

boyerbt

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Re: Co-worker just financed a $50K Audi
« Reply #15 on: August 21, 2015, 01:13:56 PM »
There are differences between buying an expensive car and (what I assume this board is for) buying an expensive car on credit @4+% at a salary level pretty equal to your cars value.

There are. Props if you have the cash to buy a brand new car. Buying an expensive car on credit, no matter how you slice it, just isn't the best financial decision. But hey, on the other hand, I think this will make her incredibly happy, which I'm all for. Some people just find different paths toward happiness. Sadly that path often involves debt.

Well, except for if you can get 1% financing and then invest the difference and you planned on carrying full coverage anyways.  So, as long as you could pay cash for it, then it's a smart decision, but you don't have to.  Personally, I wouldn't do the 1% financing to invest thing, because I want flexibility in my insurance coverage, but I won't fault the person who gets the low interest loan on their affordable (relative term here) car.

You can usually negotiate a better price when paying cash. The dealer would not do the "invoice + 300$" deal we had negotiated if we also went with the 0% financing.

It doesn't have to be 0% financing for it to make sense to borrow and invest.  I have also found that negotiating a better price with cash to be a myth.  Last time I went on a new car purchase with my MIL they gave $500 off for using the financing and there was no pre-payment penalty so she could have paid it off the very next day and gotten the $500. 

Sure, with 0% financing I bet you could get a better deal as obviously something has to be subsidizing the 0% financing, but at a normal interest rate (1.49% or something) you'll get the exact same price as with cash.

Is this generally the case? I've heard that most dealers make more money off the financing than they do with the sale, so wouldn't they be less likely to cut you a good deal if you are paying cash?

I have heard this as well but I don't know if it's true or not, and in my experience you get better deals with financing than with cash (as noted in previous post).

I had an experience dealing with this last year. My girlfriend was looking for a new car as her 2001 Chevy Cavalier (185k miles) was looking like it was on it's last leg without a large repair. She had done some research and was ready to start test driving and negotiations. A salesman at a dealership actually said that their company prefers financing to paying cash as they get additional kickbacks from the banks.

We were less than pleased with the salesman's answer and left that day...fast forward and the Cavvy is still running with only minor repairs so far.

mathy

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Re: Co-worker just financed a $50K Audi
« Reply #16 on: August 21, 2015, 01:59:02 PM »
I don't understand why people expect congratulations for buying a car, especially on credit.  One of my friends (in her 20s, student debt) sent me a picture of her new, financed car the other day, I'm sure expecting congratulations.  I wanted to say, "Are you crazyyyy?!!!" Buy instead I just said I liked the color.

vivophoenix

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Re: Co-worker just financed a $50K Audi
« Reply #17 on: August 21, 2015, 02:04:42 PM »
because a car in our society represents a step towards adulthood, responsibility, and independence. also people really like cars.

sometimes it feels like peopleon this board are more concerned about expressing their financial beliefs than being a good friend.

how much does it hurt to be like: oh cool that's a nice car.

we congratulate people for getting older, getting married, reproducing, getting a new job, starting and finishing school, hell for getting a new hair cut. would it really hurt us to be happy when our friends are happy?



mathy

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Re: Co-worker just financed a $50K Audi
« Reply #18 on: August 21, 2015, 02:42:02 PM »
because a car in our society represents a step towards adulthood, responsibility, and independence. also people really like cars.

sometimes it feels like peopleon this board are more concerned about expressing their financial beliefs than being a good friend.

how much does it hurt to be like: oh cool that's a nice car.

we congratulate people for getting older, getting married, reproducing, getting a new job, starting and finishing school, hell for getting a new hair cut. would it really hurt us to be happy when our friends are happy?

Because this is also a friend who has $100K+ in student loans and complains about money and that she still has to live with family. I am genuinely happy when someone has an achievement, but not when someone takes on a car loan, which pretty much anyone who is breathing has the ability to do.

EricP

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Re: Co-worker just financed a $50K Audi
« Reply #19 on: August 21, 2015, 02:51:29 PM »
Because this is also a friend who has $100K+ in student loans and complains about money and that she still has to live with family. I am genuinely happy when someone has an achievement, but not when someone takes on a car loan, which pretty much anyone who is breathing has the ability to do.

Yet we still congratulate people on having kids which has roughly the same qualifications...

cloudsail

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Re: Co-worker just financed a $50K Audi
« Reply #20 on: August 21, 2015, 02:58:58 PM »
Because this is also a friend who has $100K+ in student loans and complains about money and that she still has to live with family. I am genuinely happy when someone has an achievement, but not when someone takes on a car loan, which pretty much anyone who is breathing has the ability to do.

Yet we still congratulate people on having kids which has roughly the same qualifications...

Are you seriously equating having a child to buying a car?

EricP

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Re: Co-worker just financed a $50K Audi
« Reply #21 on: August 21, 2015, 03:10:35 PM »
Because this is also a friend who has $100K+ in student loans and complains about money and that she still has to live with family. I am genuinely happy when someone has an achievement, but not when someone takes on a car loan, which pretty much anyone who is breathing has the ability to do.

Yet we still congratulate people on having kids which has roughly the same qualifications...

Are you seriously equating having a child to buying a car?

Yes, both of them have roughly the same qualifications (breathing).  Mind you having a child requires the participation of a second person, but I fail to see how having a child is anymore of an "achievement" than getting a car loan.  I say this while my wife is pregnant.

Edit: My main point is that I agree with vivophoenix.  We congratulate people on all sorts of arbitrary things that symbolize "adulthood", and getting a new car is just another one of them.
« Last Edit: August 21, 2015, 03:12:08 PM by EricP »

Logic_Lady

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Re: Co-worker just financed a $50K Audi
« Reply #22 on: August 21, 2015, 03:40:23 PM »
Because this is also a friend who has $100K+ in student loans and complains about money and that she still has to live with family. I am genuinely happy when someone has an achievement, but not when someone takes on a car loan, which pretty much anyone who is breathing has the ability to do.

Yet we still congratulate people on having kids which has roughly the same qualifications...

Are you seriously equating having a child to buying a car?

Yes, both of them have roughly the same qualifications (breathing).  Mind you having a child requires the participation of a second person, but I fail to see how having a child is anymore of an "achievement" than getting a car loan.  I say this while my wife is pregnant.

Edit: My main point is that I agree with vivophoenix.  We congratulate people on all sorts of arbitrary things that symbolize "adulthood", and getting a new car is just another one of them.

I don't think having a kid is equivalent to buying a brand new car-it's not like you can get a cheaper used child. Maybe the expensive new car is analogous to having a kid and buying all the most expensive stuff, classes, private school, etc for them.

AZDude

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Re: Co-worker just financed a $50K Audi
« Reply #23 on: August 21, 2015, 04:24:24 PM »
Reminds of when my former co-worker talked about buying a new house, but that he was still underwater in his old one, so he was going to rent it out and lose a couple hundred each month until he could sell it and pay off the mortgage. Worse, he was borrowing from his 401(k) to pay the down payment on the new home, during a time when the group we worked in was on shaky ground. It was horrifying to me listening to a guy I liked and respected talking about his plan to bring about his ultimate financial demise, but not much I could do other than nod.


NoraLenderbee

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Re: Co-worker just financed a $50K Audi
« Reply #24 on: August 21, 2015, 05:24:35 PM »

how much does it hurt to be like: oh cool that's a nice car.

we congratulate people for getting older, getting married, reproducing, getting a new job, starting and finishing school, hell for getting a new hair cut. would it really hurt us to be happy when our friends are happy?

The OP *did* congratulate her and say nice things.

Quote
Of course I congratulated her and did my oohing and aahhing

and then came here to say what he/she was really thinking. Let's not chastise people for things they didn't do.

LiveLean

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Re: Co-worker just financed a $50K Audi
« Reply #25 on: August 22, 2015, 03:33:25 PM »
For about a year I was taking a yoga class where wife and I (both mid-40s) were among the oldest people in a room full of mostly 20-somethings. We were stunned at the parking lot full of $50K vehicles, including a few Audis. Where we live is not a place with a lot of high-paying jobs for anyone, let alone millennials. (They say you get paid in sunshine around here.)

Then it dawned on me -- the same people who would blow $50K on cars they can't afford are the same folks who would spend $80 a month on freakin' yoga! Wife still goes, but I do yoga on my own with other cheap-to-free workout options.

Left

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Re: Co-worker just financed a $50K Audi
« Reply #26 on: August 23, 2015, 12:38:42 AM »
Quote
Then it dawned on me -- the same people who would blow $50K on cars they can't afford are the same folks who would spend $80 a month on freakin' yoga! Wife still goes, but I do yoga on my own with other cheap-to-free workout options.
also the same ones that say the middle class is shrinking... because they can't afford to buy more things

nobodyspecial

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Re: Co-worker just financed a $50K Audi
« Reply #27 on: August 23, 2015, 11:33:40 AM »
Then it dawned on me -- the same people who would blow $50K on cars they can't afford are the same folks who would spend $80 a month on freakin' yoga! Wife still goes,
If the Yoga relaxes her so much she doesn't feel the need for a $50K Audi then it's a good deal ;-)

bagap

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Re: Co-worker just financed a $50K Audi
« Reply #28 on: August 23, 2015, 05:11:26 PM »
I'm not judging, or trying to feel like a know it all, but I just had to share this with like-minded people. Since everyone in my office thinks this is "SO AWESOME."

My coworker, who is an all-around awesome person, but I am now learning isn't very financially savvy, just financed a $50K brand new 2015 Audi. Her previous car, a Lexus sedan, was completely paid off, only about 7 years old and in perfect shape. She just "really wanted the Audi" and didn't mind paying $500 a month to get it.

I have no idea her salary, but there's no way it's even closer to 6 figures. If I had an extra $500 it'd go immediately into my mortgage/index funds. I am literally the only person in my office who feels that way.

Yipes! I consider a 7 y/o Lexus a "new" car.  My response might of been "...wait, why??"

Bearded Man

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Re: Co-worker just financed a $50K Audi
« Reply #29 on: August 23, 2015, 05:35:19 PM »
I think Audis look pretty mediocre, too.  If you slapped a Ford tag on the front everyone would say they are ugly cars, it's just the name that makes them "sexy" cars or whatever those types of people say.

I agree. My douche of a neighbor has two Audis, and every other flashy thing you can imagine. His buddy down the street drives a Hummer H3 15 houses down to this guys house to hang out. Large boat, every gadget you can imagine they have it. Guaranteed they are living paycheck to paycheck.

MgoSam

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Re: Co-worker just financed a $50K Audi
« Reply #30 on: August 23, 2015, 06:06:04 PM »
I'm not judging, or trying to feel like a know it all, but I just had to share this with like-minded people. Since everyone in my office thinks this is "SO AWESOME."

My coworker, who is an all-around awesome person, but I am now learning isn't very financially savvy, just financed a $50K brand new 2015 Audi. Her previous car, a Lexus sedan, was completely paid off, only about 7 years old and in perfect shape. She just "really wanted the Audi" and didn't mind paying $500 a month to get it.

I have no idea her salary, but there's no way it's even closer to 6 figures. If I had an extra $500 it'd go immediately into my mortgage/index funds. I am literally the only person in my office who feels that way.

Yipes! I consider a 7 y/o Lexus a "new" car.  My response might of been "...wait, why??"

A 7 year old Lexus might still last longer than a brand new car from most other makers. I love my 11 year old Camry, and will likely get another Toyota next time around...but I may look at a Lexus instead. Probably not due to the price difference, but who knows.

cavewoman

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Re: Co-worker just financed a $50K Audi
« Reply #31 on: August 23, 2015, 06:16:07 PM »
If someone can't come to this section of the forum to post such a thing, then life is no longer worth living.  C'mon people, this is my judgey, shamey, guilty pleasure.  Let it be!

libertarian4321

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Re: Co-worker just financed a $50K Audi
« Reply #32 on: August 23, 2015, 10:33:00 PM »
Because this is also a friend who has $100K+ in student loans and complains about money and that she still has to live with family. I am genuinely happy when someone has an achievement, but not when someone takes on a car loan, which pretty much anyone who is breathing has the ability to do.

Yet we still congratulate people on having kids which has roughly the same qualifications...

Are you seriously equating having a child to buying a car?

He shouldn't.

You pay off that $50K on a car, and it's over.

That kid will suck you dry for at least 18 years, probably a lot longer, draining hundreds of thousands of dollars from you, to say nothing of your time.

Giro

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Re: Co-worker just financed a $50K Audi
« Reply #33 on: August 24, 2015, 07:19:46 AM »
Because this is also a friend who has $100K+ in student loans and complains about money and that she still has to live with family. I am genuinely happy when someone has an achievement, but not when someone takes on a car loan, which pretty much anyone who is breathing has the ability to do.

Yet we still congratulate people on having kids which has roughly the same qualifications...

Are you seriously equating having a child to buying a car?

He shouldn't.

You pay off that $50K on a car, and it's over.

That kid will suck you dry for at least 18 years, probably a lot longer, draining hundreds of thousands of dollars from you, to say nothing of your time.

+1

The Audi purchase is WAY better than a child!  So, the congratulations could've been...."at least it isn't a kid!"

:)

I actually love the look of Audis.  I think they are one of the prettiest makes out there.  I guess I'm in the minority.  I've never owned one tho.

Also, if her payment is only $500 that isn't really that bad for a $50k car.  She obviously had a large down payment - assuming her paid off Lexus.  I've seen so much worse.  :/

HairyUpperLip

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Re: Co-worker just financed a $50K Audi
« Reply #34 on: August 24, 2015, 09:07:34 AM »
I'm not judging, or trying to feel like a know it all, but I just had to share this with like-minded people. Since everyone in my office thinks this is "SO AWESOME."

My coworker, who is an all-around awesome person, but I am now learning isn't very financially savvy, just financed a $50K brand new 2015 Audi. Her previous car, a Lexus sedan, was completely paid off, only about 7 years old and in perfect shape. She just "really wanted the Audi" and didn't mind paying $500 a month to get it.

I have no idea her salary, but there's no way it's even closer to 6 figures. If I had an extra $500 it'd go immediately into my mortgage/index funds. I am literally the only person in my office who feels that way.

Yipes! I consider a 7 y/o Lexus a "new" car.  My response might of been "...wait, why??"

A 7 year old Lexus might still last longer than a brand new car from most other makers. I love my 11 year old Camry, and will likely get another Toyota next time around...but I may look at a Lexus instead. Probably not due to the price difference, but who knows.


My family took 2 Lexus ES300's to over 230k miles with only major repair - a transmission rebuild. Which was totally fair in my opinion for 2 cars and 400k miles.

The cars are essentially Camry's with a few extra frills.  I truly think Lexus is the best choice when it comes to Luxury brands for cars.

That said, our RX350 is currently at 138k miles and is still going strong.

nobodyspecial

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Re: Co-worker just financed a $50K Audi
« Reply #35 on: August 24, 2015, 09:27:36 AM »
The Audi purchase is WAY better than a child!  So, the congratulations could've been...."at least it isn't a kid!"
That's just ridiculous.
Now a Porsche .....


I'm a red panda

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Re: Co-worker just financed a $50K Audi
« Reply #36 on: August 24, 2015, 10:15:41 AM »
Honesty if someone buys a nice new car I just congradulate them and admire the car.  It does not fit with my values but I don't feel like I should judge them for having different values.

If it was a reasonable car sure, but one that is >50% of one's annual income is not a call for "congratulations."  It's a massive burden that could potentially cause massive financial problems down the line.

I would imagine A LOT of people buy cars that are 50%+ their annual income.

The median income in the US is like $50k. There are tons of relatively modest cars that cost $25k. Anyone who buys one of those is buying at half their annual (household) income. If we are looking at individual income, well the car price drops even further- just financing an Elantra or Civic could be half your salary.

EricP

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Re: Co-worker just financed a $50K Audi
« Reply #37 on: August 24, 2015, 10:44:52 AM »
Honesty if someone buys a nice new car I just congradulate them and admire the car.  It does not fit with my values but I don't feel like I should judge them for having different values.

If it was a reasonable car sure, but one that is >50% of one's annual income is not a call for "congratulations."  It's a massive burden that could potentially cause massive financial problems down the line.

I would imagine A LOT of people buy cars that are 50%+ their annual income.

The median income in the US is like $50k. There are tons of relatively modest cars that cost $25k. Anyone who buys one of those is buying at half their annual (household) income. If we are looking at individual income, well the car price drops even further- just financing an Elantra or Civic could be half your salary.

A lot of people do it, sure, but that doesn't make it smart.  I'm not going to congratulate someone who weighs themselves down with a ridiculously expensive car for their given salary. (And since I'm in the military, I know how much everyone is making) Depending on how well I knew them, I'd probably talk to them about how they won't be able to afford that car.  Fortunately, I know very few morons like this and thus don't have to be put in the somewhat awkward position of not congratulating someone on buying an overpriced car.

I'm a red panda

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Re: Co-worker just financed a $50K Audi
« Reply #38 on: August 24, 2015, 10:48:17 AM »
I didn't say it was smart.

Other people's financial choices are just none of my business.  "Nice car..." and move on.

EricP

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Re: Co-worker just financed a $50K Audi
« Reply #39 on: August 24, 2015, 10:58:12 AM »
I didn't say it was smart.

Other people's financial choices are just none of my business.  "Nice car..." and move on.

I take the position that I should be helping my friends, not encouraging bad decisions.

Easye418

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Re: Co-worker just financed a $50K Audi
« Reply #40 on: August 24, 2015, 11:03:00 AM »
I didn't say it was smart.

Other people's financial choices are just none of my business.  "Nice car..." and move on.

I imagine every Mustachian's expression to look like the attached below.

However, I agree with this post exactly.

I care about two people in this world:  my wife and myself.  (the 3 dogs too).

vivophoenix

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Re: Co-worker just financed a $50K Audi
« Reply #41 on: August 24, 2015, 11:03:32 AM »
I didn't say it was smart.

Other people's financial choices are just none of my business.  "Nice car..." and move on.

I take the position that I should be helping my friends, not encouraging bad decisions.

that's fine, but there becomes a line when you become a busy body.

did they ask for help?
how often are you offering unsolicited advice?
etc..

EricP

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Re: Co-worker just financed a $50K Audi
« Reply #42 on: August 24, 2015, 11:14:37 AM »
I didn't say it was smart.

Other people's financial choices are just none of my business.  "Nice car..." and move on.

I take the position that I should be helping my friends, not encouraging bad decisions.

that's fine, but there becomes a line when you become a busy body.

did they ask for help?
how often are you offering unsolicited advice?
etc..

Keep in mind I'm in the military and unsolicited advice is a whole lot easier to push because having large amounts of debt has very real implications on their ability to get security clearances and thus do their work, get promotions, keep their career, etc..  I'm not pushing MMM-stuff on them, more Dave Ramsey and /r/PF type advice.

bittheory

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Re: Co-worker just financed a $50K Audi
« Reply #43 on: August 24, 2015, 11:22:21 AM »
Hey guys, this is the OP here.

This thread has really gotten out of control. I can see why some people felt this post was judgmental. That was never the intention. I guess my intention was more about a tangible, real-life example of the mindset between a mustachian type and a non-mustachian. Simple as that.

My thoughts on the discussion here:
  • Audis look awesome, are fast and luxurious, but I'd still never buy one. 
  • Equating a car to a child is a bit ridiculous.
  • Other people's financial decisions should not be my business, but sometimes it's OKAY to think how you'd do it differently.



Chris22

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Re: Co-worker just financed a $50K Audi
« Reply #44 on: August 24, 2015, 11:34:48 AM »
Honesty if someone buys a nice new car I just congradulate them and admire the car.  It does not fit with my values but I don't feel like I should judge them for having different values.

If it was a reasonable car sure, but one that is >50% of one's annual income is not a call for "congratulations."  It's a massive burden that could potentially cause massive financial problems down the line.

I would imagine A LOT of people buy cars that are 50%+ their annual income.

The median income in the US is like $50k. There are tons of relatively modest cars that cost $25k. Anyone who buys one of those is buying at half their annual (household) income. If we are looking at individual income, well the car price drops even further- just financing an Elantra or Civic could be half your salary.

A lot of people do it, sure, but that doesn't make it smart.  I'm not going to congratulate someone who weighs themselves down with a ridiculously expensive car for their given salary. (And since I'm in the military, I know how much everyone is making) Depending on how well I knew them, I'd probably talk to them about how they won't be able to afford that car.  Fortunately, I know very few morons like this and thus don't have to be put in the somewhat awkward position of not congratulating someone on buying an overpriced car.

Military can be a little bit different, you know everyone's pay but you don't know their spending.  I knew a lot of guys in the service when I was in who would come off of deployment and run out and buy a fancy toy, but they hadn't spent a dime over the last 6++ months while they were deployed.  Not necessarily "smart" but who am I to say if some dude wants to put his stuff in storage, save up $20-30-40k+ over a deployment, and then blow a lot of that wad when he gets home?

snappytom

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Re: Co-worker just financed a $50K Audi
« Reply #45 on: August 24, 2015, 02:29:30 PM »
Hey guys, this is the OP here.

This thread has really gotten out of control. I can see why some people felt this post was judgmental. That was never the intention. I guess my intention was more about a tangible, real-life example of the mindset between a mustachian type and a non-mustachian. Simple as that.

My thoughts on the discussion here:
  • Audis look awesome, are fast and luxurious, but I'd still never buy one. 
  • Equating a car to a child is a bit ridiculous.
  • Other people's financial decisions should not be my business, but sometimes it's OKAY to think how you'd do it differently.

Audi's are awesome .... well built and timeless styling.  But there is no way I am spending $50k on any car.
I would buy that $50k Audi in about 6-8 years when it is worth $10k .... that is when you get the best value on high end vehicles.  I am thankful there are people who will buy them new so I can take it off their hands years later.  Recently bought a well maintained 2008 Audi A4 from a private party that I call my "four figure beater", still looks and runs great. 


cautiouspessimist

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Re: Co-worker just financed a $50K Audi
« Reply #46 on: August 24, 2015, 03:48:29 PM »
Hey guys, this is the OP here.

This thread has really gotten out of control. I can see why some people felt this post was judgmental. That was never the intention. I guess my intention was more about a tangible, real-life example of the mindset between a mustachian type and a non-mustachian. Simple as that.

My thoughts on the discussion here:
  • Audis look awesome, are fast and luxurious, but I'd still never buy one. 
  • Equating a car to a child is a bit ridiculous.
  • Other people's financial decisions should not be my business, but sometimes it's OKAY to think how you'd do it differently.

Audi's are awesome .... well built and timeless styling.  But there is no way I am spending $50k on any car.
I would buy that $50k Audi in about 6-8 years when it is worth $10k .... that is when you get the best value on high end vehicles.  I am thankful there are people who will buy them new so I can take it off their hands years later.  Recently bought a well maintained 2008 Audi A4 from a private party that I call my "four figure beater", still looks and runs great.

Well, I guess that's my cue to confess. I almost bought a used A3 this weekend. Well, this is to say I found a car, talked to my bank, and was about to go get my current car washed and swing by the dealership the next day. Now, I have my reasons for wanting an A3, and this one was actually a pretty good deal (15K for a 2009 3.2 quattro with fewer than 65000 miles on it). But then I realized that I really can't afford it, since I a) still have car payments at the moment and b) get a lot better gas mileage now.

I guess you could say I managed to face punch my desire for an Audi right out of me. For now.

regulator

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Re: Co-worker just financed a $50K Audi
« Reply #47 on: August 24, 2015, 06:47:07 PM »
Foolish question: aren't older luxury cars ruinously expensive to maintain compared with non-luxury brands?  Never owned anything with a swankier name plate than a Ford, so I have no idea.

Kris

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Re: Co-worker just financed a $50K Audi
« Reply #48 on: August 24, 2015, 08:09:08 PM »
I bought me a 2008 Audi A4 convertible in 2011.  $25,000 cash. Barely used.

I fucking love this car. Gorgeous, sweet ride. Also, probably the last car I'll ever own.

Totally worth it for me. Lovely, timeless style, great torque. First and last splurge car I've ever owned.

Of course, this is no one's decision but my own.  Still, the fact that it didn't affect my retirement savings, and still gives me a hell of a lot of pleasure... Makes me feel it was a damn good one-time purchase.

snappytom

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Re: Co-worker just financed a $50K Audi
« Reply #49 on: August 24, 2015, 08:24:09 PM »
Foolish question: aren't older luxury cars ruinously expensive to maintain compared with non-luxury brands?  Never owned anything with a swankier name plate than a Ford, so I have no idea.

They can be, it largely depends on how they have been maintained and if you turn your own wrenches.  A documented service history is gold for a German car that is out of warranty, but the same applies to any car.  Maintaining my cars is one of my hobbies and while the parts for Audi's may be more expensive I enjoy doing the work and will only take it to the shop for things out of my comfort/skill zone.

As Kris said, Audi's are sweet.  They do a real nice interior and the overall detail of features is comprehensive.  Turbo 4 that can get 30+ MPG, 6 speed, and all wheel drive in a compact luxury package ..... great car.