Here is the answer why this country is such bad economic crisis, why we are having so many foreclosures and car/boats/RV repossessions.
I know it is fun to buy new and fancy when you can really afford it. But do you have your house paid off? Do you have a retirement/ payment plan in case you loose your job or get badly hurt tomorrow?
I bought new Mercedes years ago simply because I could afford it. Again with my skills I can buy $300 car and have it running for years. So even I could afford the new MB years ago, now I could really use the cash for more important projects, that in present economy are stalled.
I have two houses that are fully paid for (no mortgage), I pay property taxes and maintenance. One of the houses I rent out for extra income. I have a strong portfolio that includes a full retirement plan. I have no debt load (plus my MC/VISA and AMEX is paid off monthly and is used as a convenience device, which is really what a cc or a charge card is designed to be.) I could quit my work tomorrow and everything would be fine (but the work itself is what keeps me working, not the income.) I'm so far from any "foreclosure" or "repossession" that the words aren't even part of my lexicon. I don't understand the relevance here
You claim my buying new cars is "bad economics" and so I replied that you no doubt purchase things that I personally might find useless and frivolous, yet they have meaning to you. However, I would never demean you for doing so. And that was my point. And now you're implying that I'm part of why this country is in such bad economic shape? Who are you to suggest that?
I'm not quite sure what your point is? That I can't buy a new car? That it's wrong for me to buy a new car? That's it's stupid to buy a new car? That I'm part of the 'current economic issue' because I spend my money the way I see fit? (btw, the 'economic issue' that you refer to is much more complex than you'll ever know at the surface; and major corporations happen to be doing quite well right now, cash flow is good.) And then of course there's this problem: if I stopped buying new cars then I may put somebody out of a job.
And I never, ever finance my car purchases. It's cash only. And the dealerships hate it (credit is a big part of the economy, we all know that.)
You may make sense to yourself, and in respect to your own personal situation and world view, but please don't give me a "holier-than-thou" attitude about my own personal choices. That is the same sort of snobbery that you profess to disdain.
My original post was to respond to an individual's post which claimed 'it is never smart to buy a new car.' Yet they didn't quite qualify what 'smart' meant. Benznoob26, I do understand the context in which you made your post. However, I simply wanted to point out that a blanket statement such as that is not always correct. It has to do with each individual's specific position. We all clearly understand
that an automobile is a depreciating asset (asset is an incorrect term.) We understand about depreciation. And yet how can Daimler stay in business if people aren't buying new cars? It couldn't. And buying new does 'make sense' depending on the particulars. I think we know that, too.
A colleague of mine just bought his 5th new car this year. Some people have to spend money for tax and other financial reasons. And if they didn't spend money the economy would be further depressed. Purchasing high ticket items (and spending money in general) helps create an economy. Don't call him a fool. Don't gloat about the great deals you made on used cars at the expense of those who choose to do otherwise. He's not a snob about his money (he gives away much to charity) and so don't be a snob about your frugality.