Author Topic: Bought a Mercedes kind of impulsively  (Read 4047 times)

apoorva

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Bought a Mercedes kind of impulsively
« on: January 02, 2018, 05:26:49 AM »
I'm new to Mr. Money Mustache community and this forum. I'm a Software Engineer working in San Francisco. I try to be economical, but I've not been systematic with budgeting or set clear financial goals. Recently things were going bad career wise and personally. I was just frustrated and I felt like I needed to do something to make myself feel better. So I took out a loan and bought a Mercedes car. I don't have enough saving to pay down the loan but I can manage to pay the monthly installments. I've been thinking if I should keep the car for a year and then sell or if I should consider the drop in value as a sunk cost and sell it now. What would you do as a Mustachian?

itchyfeet

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Re: Bought a Mercedes kind of impulsively
« Reply #1 on: January 02, 2018, 07:33:22 AM »
Whoops 😬

If you really regret buying the car, then best sell straight away. Why wait a year and incur further depreciation.

If you really like the car then pay off the loan as fast as you can, and enjoy the drive. Look after the car and keep it 15+ years to minimise the depreciation cost.

Sibley

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Re: Bought a Mercedes kind of impulsively
« Reply #2 on: January 02, 2018, 08:26:38 AM »
Sell it now. Either go without a car, or you can buy a used one in CASH. And you need to work on your discipline. Buying a Mercedes because you felt bad about your career?!? If you're having work problems, you need to be saving money in case you lose your job! Buying shit is NOT a healthy way to handle your emotions, and really not good for your long term financial stability.

That was an incredibly stupid thing to do. I get that you're new here, but you have some SERIOUS work to do. Start reading the blog from the beginning. Start tracking your spending and implementing a budget system. Even if you decide not to go hard core (I'm not), you need to be a hell of a lot more intelligent in how you manage your money. If buying shit is the way you deal with you feel bad, you also need therapy to fix that. It is NOT healthy.

ketchup

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Re: Bought a Mercedes kind of impulsively
« Reply #3 on: January 02, 2018, 10:09:49 AM »
Agree with others on this.  Sell the car as soon as you possibly can, and find a more constructive way to channel that kind of professional frustration, like cooking, art, or a part time job destroying buildings.

apoorva

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Re: Bought a Mercedes kind of impulsively
« Reply #4 on: January 02, 2018, 11:23:36 AM »
Sell it now. Either go without a car, or you can buy a used one in CASH. And you need to work on your discipline. Buying a Mercedes because you felt bad about your career?!? If you're having work problems, you need to be saving money in case you lose your job! Buying shit is NOT a healthy way to handle your emotions, and really not good for your long term financial stability.

That was an incredibly stupid thing to do. I get that you're new here, but you have some SERIOUS work to do. Start reading the blog from the beginning. Start tracking your spending and implementing a budget system. Even if you decide not to go hard core (I'm not), you need to be a hell of a lot more intelligent in how you manage your money. If buying shit is the way you deal with you feel bad, you also need therapy to fix that. It is NOT healthy.

@Sibley While I appreciate the input, I hope the rest of the MMM community is friendlier. I don't find it constructive when you say my decision was "incredibly stupid" or "need to be a lot more intelligent". I just want some opinions on what MMM members would do if they're in a similar situation.

apoorva

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Re: Bought a Mercedes kind of impulsively
« Reply #5 on: January 02, 2018, 11:24:45 AM »

LifeHappens

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Re: Bought a Mercedes kind of impulsively
« Reply #6 on: January 02, 2018, 11:25:40 AM »
If this really happened, yes, sell the car. Don't wait a year. Sell it now.

ketchup

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Re: Bought a Mercedes kind of impulsively
« Reply #7 on: January 02, 2018, 11:31:57 AM »
Sell it now. Either go without a car, or you can buy a used one in CASH. And you need to work on your discipline. Buying a Mercedes because you felt bad about your career?!? If you're having work problems, you need to be saving money in case you lose your job! Buying shit is NOT a healthy way to handle your emotions, and really not good for your long term financial stability.

That was an incredibly stupid thing to do. I get that you're new here, but you have some SERIOUS work to do. Start reading the blog from the beginning. Start tracking your spending and implementing a budget system. Even if you decide not to go hard core (I'm not), you need to be a hell of a lot more intelligent in how you manage your money. If buying shit is the way you deal with you feel bad, you also need therapy to fix that. It is NOT healthy.

@Sibley While I appreciate the input, I hope the rest of the MMM community is friendlier. I don't find it constructive when you say my decision was "incredibly stupid" or "need to be a lot more intelligent". I just want some opinions on what MMM members would do if they're in a similar situation.
There's friendly and there's helpful.  I agree 100% with Sibley (I'm not usually so brash, but I'll defend it).  If I was in a "similar situation" I'd probably first have a panic attack that I did something so moronic.  We all do stupid things.  First step is acknowledging it was a dumb move, and second is figuring out a path forward to undo the fuck-up.  Both steps are important.

AnswerIs42

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Re: Bought a Mercedes kind of impulsively
« Reply #8 on: January 02, 2018, 11:36:08 AM »
@Sibley While I appreciate the input, I hope the rest of the MMM community is friendlier. I don't find it constructive when you say my decision was "incredibly stupid" or "need to be a lot more intelligent". I just want some opinions on what MMM members would do if they're in a similar situation.
There's friendly and there's helpful.  I agree 100% with Sibley (I'm not usually so brash, but I'll defend it).  If I was in a "similar situation" I'd probably first have a panic attack that I did something so moronic.  We all do stupid things.  First step is acknowledging it was a dumb move, and second is figuring out a path forward to undo the fuck-up.  Both steps are important.

Yes, this. It's known as a "facepunch" round here, and it's not done to have a go at you, it's to try and get you to wake up. If you don't accept that it was an "incredibly stupid" thing to do, you might end up something similar in future. Tough love.

FiveSigmas

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Re: Bought a Mercedes kind of impulsively
« Reply #9 on: January 02, 2018, 11:39:48 AM »
@Sibley While I appreciate the input, I hope the rest of the MMM community is friendlier. I don't find it constructive when you say my decision was "incredibly stupid" or "need to be a lot more intelligent". I just want some opinions on what MMM members would do if they're in a similar situation.

Hi apoorva. The MMM forum, like the MMM blog, has a culture of being brutally frank -- the style of Sibley's comment is pretty common (and a lot of MMM'ers are a lot more direct). The title of your post is very likely to bring out similar or stronger opinions. Please keep in mind, though, that these are opinions about your decision, not about you.

BTW: Have you read http://www.mrmoneymustache.com/2015/07/02/if-you-wouldnt-buy-it-you-should-probably-sell-it/ ?

Edit: Uh, I mean decision singular.
« Last Edit: January 02, 2018, 11:50:46 AM by FiveSigmas »

scantee

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Re: Bought a Mercedes kind of impulsively
« Reply #10 on: January 02, 2018, 11:41:34 AM »
Soooo...what kind of Mercedes are we talking about here? A used sedan for $25k or a brand new roadster for $100k? I think this will determine your path forward. If you bought a cheaper and/or used model, it might make sense to keep it until you break even or long-term if you can ensure that you will drive it for a decade or more. If you bought something super expensive, then I advise that you sell it as soon as possible. You'll need to do some research to figure out the best approach for doing that, namely, how much do you owe, how much is it worth, if you're underwater how you'll pay for that, can you get around without a car for awhile, when you do get a new car what is a reasonable replacement, etc.

More generally, what's done is done. You know this wasn't a good financial move. Instead of perseverating on that fact, make an actionable plan to improve the situation and think through what you'll do in the future to avoid another situation like this.

apoorva

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Re: Bought a Mercedes kind of impulsively
« Reply #11 on: January 02, 2018, 11:53:21 AM »
Soooo...what kind of Mercedes are we talking about here? A used sedan for $25k or a brand new roadster for $100k? I think this will determine your path forward. If you bought a cheaper and/or used model, it might make sense to keep it until you break even or long-term if you can ensure that you will drive it for a decade or more. If you bought something super expensive, then I advise that you sell it as soon as possible. You'll need to do some research to figure out the best approach for doing that, namely, how much do you owe, how much is it worth, if you're underwater how you'll pay for that, can you get around without a car for awhile, when you do get a new car what is a reasonable replacement, etc.

More generally, what's done is done. You know this wasn't a good financial move. Instead of perseverating on that fact, make an actionable plan to improve the situation and think through what you'll do in the future to avoid another situation like this.

@scantee Thanks, I appreciate your opinion.

Sibley

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Re: Bought a Mercedes kind of impulsively
« Reply #12 on: January 02, 2018, 12:14:18 PM »
Apoorva, that was friendly. If I was unfriendly, I'd let you continue down that path that will get you into trouble. Decisions like buying a new car to sooth yourself will lead you to financial ruin. If you can't handle direct, honest, blunt feedback when you make bad decisions, then this probably isn't the forum for you. And that was a a really bad decision. My entire post stands, and I really hope you're able to take it heart.

On a side note - thanks for using the at feature. It's new (at least new to me), and I wasn't sure how it worked. Now I know.

apoorva

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Re: Bought a Mercedes kind of impulsively
« Reply #13 on: January 02, 2018, 03:06:19 PM »
@Sibley I guess I wasn't prepared for a brutally honest feedback. Now I understand. I do appreciate your feedback and I'll expect it in the future :)

wenchsenior

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Re: Bought a Mercedes kind of impulsively
« Reply #14 on: January 02, 2018, 03:12:05 PM »
@Sibley I guess I wasn't prepared for a brutally honest feedback. Now I understand. I do appreciate your feedback and I'll expect it in the future :)

There is actually a thread somewhere around here called "FACEPUNCH ME," where we can go to confess our financial stupidity and be metaphorically beaten to a pulp.  Thankfully, I haven't had to go there in a while.  I learn slowly, but I am teachable.

Bicycle_B

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Re: Bought a Mercedes kind of impulsively
« Reply #15 on: January 02, 2018, 03:16:45 PM »
Hi, @apoorva.  I too once bought a fancy car while in uncertain times.  It cost me a lot more than I expected and overall I wish I hadn't done it...but I did.

I don't have a definite piece of advice, other than to step with care and do as well as you can at your job.  One advantage of a carefully selected car replacement, though, is that it helps make the transition to a lower cost of living smoother than would occur if you got fired/laid off.  That's what I experienced after buying the car.  So I guess my thought is to imagine what would happen if your job was gone, and figure out how to get a paid for thriftier vehicle (maybe well kept Civic, or Prius or Leaf; a used car from a private seller) while you still have good options.  The good news is that each time you face an issue and move towards resolution, you get stronger and smarter.  Good luck to you.

PS.  You didn't buy the car in the last 72 hours, did you?  Because if you're still within the "right of rescission" period, you could just return the car and the keys and not buy it!
« Last Edit: January 02, 2018, 03:20:51 PM by Bicycle_B »

AccidentalMiser

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Re: Bought a Mercedes kind of impulsively
« Reply #16 on: January 02, 2018, 03:42:49 PM »
@Sibley I guess I wasn't prepared for a brutally honest feedback. Now I understand. I do appreciate your feedback and I'll expect it in the future :)

Yea, it's a money melee around here.  Welcome to fight club!  Sell your car, buy a cheaper one.  Buying things because you're bored is a really bad habit.  But you already know that.

jamesbond007

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Re: Bought a Mercedes kind of impulsively
« Reply #17 on: January 03, 2018, 11:53:11 AM »
Sell it now. Either go without a car, or you can buy a used one in CASH. And you need to work on your discipline. Buying a Mercedes because you felt bad about your career?!? If you're having work problems, you need to be saving money in case you lose your job! Buying shit is NOT a healthy way to handle your emotions, and really not good for your long term financial stability.

That was an incredibly stupid thing to do. I get that you're new here, but you have some SERIOUS work to do. Start reading the blog from the beginning. Start tracking your spending and implementing a budget system. Even if you decide not to go hard core (I'm not), you need to be a hell of a lot more intelligent in how you manage your money. If buying shit is the way you deal with you feel bad, you also need therapy to fix that. It is NOT healthy.

@Sibley While I appreciate the input, I hope the rest of the MMM community is friendlier. I don't find it constructive when you say my decision was "incredibly stupid" or "need to be a lot more intelligent". I just want some opinions on what MMM members would do if they're in a similar situation.

I don't find any issue with it and I doubt any long term members here would find it as insensitive. You got to be ready for face punches. That's what builds the character. I used to feel offended like you but, trust me, it's for your own good.

Coming to your car, sell it ASAP if you regret the purchase. Do you live in SF or somewhere near SF? If in SF, why do you even need a car? I will go ahead and question why even SF, as a matter of fact?

Abe

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Re: Bought a Mercedes kind of impulsively
« Reply #18 on: January 03, 2018, 10:39:50 PM »
You already lost a bunch of money after driving the car off the car lot. You will only lose more in egregious maintenance fees if you wait a year, in addition to the additional decline in value. On a side note, it seems you are trying to find happiness in the wrong places. I'd advise going to one of the many beautiful parks for a day to get away from our consumerist culture and figuring out what would really make you happy. I was in a similar boat to you just a few months ago, and live in the LA area. A trip out the parks really re-arranged my feelings on career path, etc.

undercover

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Re: Bought a Mercedes kind of impulsively
« Reply #19 on: January 04, 2018, 06:53:21 AM »
It would probably be far more helpful for you to post a case study than to receive individual advice over a handful of your decisions. Purchasing a new car is only a symptom of a larger systemic issue.

On the brashness: I'm not really a fan of it either, but it is what it is. You may have consciously come here for a pat on the back, but you already knew subconsciously that making an extremely expensive and wasteful purchase as a form of retail therapy was a bad idea. It was purely an emotional decision and wasn't rational (that's what Sibley meant by "not intelligent", they weren't calling you stupid).

On selling the car: after discovering new information and knowing what you know now, you have to ask yourself if you'd buy the car today. If not, it needs to go. You need to run the numbers of keeping it vs not keeping it. Whatever you paid or have lost is irrelevant as it's a sunk cost. I think the numbers will convince you to sell.

Keep in mind that no one here is focused on deprivation. It's just that unless you're FI, making crazy (irrational) decisions with your money when it could be working very hard for you and ultimately relieve you of much of the stress you've been through in the past is unwise.