Why Purchase an Expensive Car?

LSoapyWooder on 14/06/2018 - 16:27

Hi everyone,

For me, I only need a cheapest possible reliable car, with acceptable comfort, think Corolla. I sometimes wonder why people spend 30k+ for a car (and perhaps a bit more for a normal average reliable suv). I know of some of the reasons below, but if you let me know what other reasons that I don't know, that'll be awesome!

  • you're young (say 18-24?) and you buy the best car you can afford to impress people around you.
  • you're rich, you got everything, and a luxury car is the best spend for your unused money
  • you get extra money from nowhere (parents, lotto, etc) and quickly buy the car you've been wanting (without much thought)
  • you buy to get good impression from your clients
  • you just like the car (like anything else, really) the looks, how quick it goes, etc

I'm wondering if there's a reason where the benefit will weigh more than the cost? Please enlighten me!

Thanks!

Automotive

Comments

        • axlfan on 12/01/2022 - 23:27

          True

  • CyberMurning on 14/06/2018 - 17:12
    +10

    Q Why Purchase an Expensive Car?
    A because i can!

    • dbui8743 on 14/06/2018 - 17:57
      +1

      Best answer!!!

    • Quantumcat on 14/06/2018 - 18:48
      -4

      Q: Why throw my money into the toilet and flush?
      A: Because I can!

      • HighAndDry on 15/06/2018 - 12:07
        +11

        Do you go out to the movies at all? Why do that instead of stream on Netflix?

        Do you eat out at all? Why do that when you can buy and cook, or at worst buy $2 pies from 7-11?

        "Because I can (and I want to)" is a perfectly valid reason for a lot of things.

      • Scrooge McDuck on 15/06/2018 - 15:23
        +2

        Q: Why throw my money into the toilet and flush?
        A: Because I can!

        Fun fact: Due to hyperinflation, Zimbabwean Dollars were commonly used as toilet paper.

    • bad hombre on 15/06/2018 - 15:08

      Exactly. This is like one of those questions about any purchase in life. There will always be things that are cheaper and more expensive - computers, TVs, houses, cars, holidays, bikes, etc. Depends what you can afford and where your priorities are.

    • CocaKoala on 15/06/2018 - 23:15

      This is an answer I could accept. If you could afford a more expensive whatever, and would like it, then you should absolutely go for it.

  • cheapjunkie on 14/06/2018 - 17:17
    +13

    I am 29 as well and have spent about $60k on a car recently. I bought it because my passion is cars and something that I utilise everyday to go to work and puts a smile on my face. Each to their own.. some would rather save every penny and like looking at a fat bank balance that keeps growing but cheaping out on everything else. There is no defined benefit for whichever option you choose. Logic as well is subjective on what makes you happy, of course you have to be within what you can afford and not go down a debt spiral.

    • R-Man on 18/06/2018 - 12:57
      +1

      Nicely done mate! It's important to have a couple of things you spend more on than "necessary" on for the reason you mentioned:

      I utilise everyday to go to work and puts a smile on my face.

      and then you'd surely have other items you only buy cheap/bargain that other people might prefer to spend money on as well.

    • Oz8argain on 18/06/2018 - 14:20

      what car?

  • Diji1 on 14/06/2018 - 17:18
    +4

    Why wear clothes that make you look good?

    • Scrooge McDuck on 15/06/2018 - 15:40
      +16

      … when you can go nude and look fantastic!

    • outlander on 15/06/2018 - 15:58
      +1

      Thats a rhetorical question I know, but I struggled to find the answer to that question for years. Its amusing to me that people think its such an obvious question.

    • Yoo05 on 18/06/2018 - 14:13

      @ Diji1

      True, just need two banana leaf's, 1 on front and 1 on back…..

  • Godric on 14/06/2018 - 17:53
    +1

    Ego

    • kahn on 14/06/2018 - 18:55
      +6

      Is not a dirty word.

  • Menzoberranzan on 14/06/2018 - 18:06
    +2

    Why do people buy more expensive clothes/watches/shoes/PCparts/Hotels/FirstClassvsEconomy/FineDiningVSTakeaway/Earphones?

  • smuggler on 14/06/2018 - 18:38

    Cause my work gives me money every month to lease a Lexus.

    I just give it to my mum, because my corolla is much more fuel efficient.

    • Oz8argain on 18/06/2018 - 14:21

      lexus offers hybrids

  • HighAndDry on 14/06/2018 - 18:47
    +2

    Last reason on your list. To some people, myself included, a car is more than just an appliance or a tool. Enjoyment is a valid factor.

  • iforgotmysocks on 14/06/2018 - 19:29

    Why do anything, apakabar?

  • [Deactivated] on 14/06/2018 - 20:09

    Expensive things = :D

    Pretty much it.

  • [Deactivated] on 14/06/2018 - 20:12
    +4

    $30k is not an expensive car. It’s a very cheap car. $150k+ is where cars start getting expensive.

    • [Deactivated] on 15/06/2018 - 13:34
      +2

      Subjective. My car is worth about $1000. 30k is more than I would ever spend on something that serves as a tool to get me from one point to another

      • HighAndDry on 15/06/2018 - 13:37
        +3

        It's absolutely subjective - and especially to people who see cars as more than just a tool.

      • [Deactivated] on 15/06/2018 - 15:54

        But it’s not subjective, is it? It’s absolute. You know what an expensive car is when it drives by, and you don’t go ‘ohhh a Corolla, that’s an expensive car’ when it pulls up at the lights. You’re not the norm, you’re an outlier.

        • [Deactivated] on 15/06/2018 - 17:24

          Perhaps in the classless fantasy society that only exists in your head. I find this is often the mindset of oblivious bourgeois boomers

        • [Deactivated] on 15/06/2018 - 17:58
          -2

          @taylorn8r: It’s not normal for a grown man to drive a $1000 car. Believe what you want, but you’re the odd one out, not everyone else.

    • Scrooge McDuck on 15/06/2018 - 15:28

      $30k is not an expensive car. It’s a very cheap car. $150k+ is where cars start getting expensive.

      Ever heard of Dubai?

      Move your poverty spec AMG and make way for the Bugatti.

      • [Deactivated] on 15/06/2018 - 15:52
        -4

        No, I’ve never heard of Dubai because I’m a complete Moron. Is it
        A type of ice cream?

  • altomic on 14/06/2018 - 20:21
    +7

    if I didn't have kids then I would buy a cheapo car.

    because I do have kids then I bought a safe car. and it needed to be reliable. so I bought a 6 months old exlease car with 13,000kms for $33,000 ($15,000 less than what it would have cost new) .

    • Quantumcat on 14/06/2018 - 20:34
      +6

      Safety for your kids is a good justifiable reason for spending extra

    • Scrooge McDuck on 15/06/2018 - 15:30
      +2

      if I didn't have kids then I would buy a cheapo car.

      Because I don't have kids, I can buy an expensive car.

    • quog on 15/06/2018 - 18:41
      -1

      How much praying for contraceptive failure was there by you?

    • boostpak on 27/06/2018 - 09:18

      so according to your logic, if you don't have kids, you should buy an unreliable, unsafe, cheapo car to get to work and live in which you use pretty much every day of your life and only have one life to live… hmmmmmmmmm

  • foolsgold on 14/06/2018 - 20:45
    +10

    Next forum topic;

    Why Purchase an Expensive Phone?

    For me, I only need a cheapest possible phone, with acceptable battery life, think Nokia. I sometimes wonder why people spend $1700+ for an iPhone, sometimes more if they buy a reliable case…

    • HighAndDry on 15/06/2018 - 12:04
      +1

      My 2005 Nokia makes phone calls perfectly, has weeks of standby and doesn't need a case. Why buy a smart phone at all?

    • outlander on 15/06/2018 - 16:02

      Sure..if a new phone cost 3K a year… and thats was just to rent it :/

      • Gdsamp on 16/06/2018 - 10:21

        Soon that day will come…

    • easternculture on 20/06/2018 - 14:05

      Why not, here you go
      https://www.ozbargain.com.au/node/385884

  • dasher86 on 15/06/2018 - 07:08

    Chicks brah

    • Quantumcat on 15/06/2018 - 08:00
      +9

      You could get a lot of prostitutes for the price difference between a cheap and expensive car. This isn't a good reason.

      • dasher86 on 15/06/2018 - 08:31

        Pros are not a challenge…
        A bit of a gamble but you might get a better ROI on the car rather than the price gap.

      • HighAndDry on 15/06/2018 - 12:05
        -1

        This isn't a good reason in my opinion

        There's no 'objective' good or bad reason for this. Unless you spend only on necessities, I'm sure others can disagree with your spending decisions too.

        • Quantumcat on 15/06/2018 - 12:10
          +4

          "I'm going to buy a $10K laptop to earn money with bitcoin mining"

          An example of an objectively bad reason just like the above suggestion.

        • HighAndDry on 15/06/2018 - 14:55

          @Quantumcat: That's because the underlying logic is flawed because you're very unlikely to make $10k back with bitcoin mining. That's something objectively wrong - but because the logic (in terms of returns in bitcoins) can be objectively measured.

          The enjoyment someone might get cruising down the street in an expensive car? That can't be objectively measured.

          Now - the example that your analogy would be a good one for, would be if someone said they were going to buy a $100k car to make money off of driving for Uber. That would also be a bad decision, because objectively they will not make money that way (and that's their stated goal).

        • Quantumcat on 15/06/2018 - 17:53
          +2

          I was replying to a comment that the fancy car was to pick up girls, rather than the enjoyment of driving. But I just did a small amount of maths and realise, that if you wanted to sleep with one or two girls a week, and a car lasts at least ten years before it loses its girl-attracting power, it is probably cheaper to get the car (unless the car doesn't last long and you get a cheap rate on girls) as long as you're guaranteed to pick up every week, and you actually want to, for a number of years (ie you're not planning on settling down).

          So I admit I am objectively wrong here :-)

          But speaking as a girl, maybe I'm only representing a very small proportion of girls, a guy with a very fancy car would put me off completely - if you're ever planning to get married, who wants a husband that's going to throw away the family money on toys? Sound financial sense is much more attractive than extravagance.

  • jacross on 15/06/2018 - 08:38
    +5

    Because they have either a rational or irrational belief that the purchase passes a cost/benefit analysis.

    • outlander on 15/06/2018 - 16:05

      The broadest answer possible, but still far and away the most correct reply in this thread.

  • Ozpit on 15/06/2018 - 08:57

    I liked it so bought it because I had the money. Why did you have the money? Because I have a good paying job. Why do you have a good paying job? Because I got a good education. Why did you get a good education? Because I was brought up to think that was a good thing. Why did your parents think that was a good thing? Because they wanted me to be able to buy stuff that I liked. So, why do you like some things more than others? Just because.

  • Azrael169 on 15/06/2018 - 10:56

    I live in a regional town, 4 hours from a major city. I wanted something fun to drive up the long boring highway - a trip i make frequently. Also i'm lucky enough to have some disposable income so making repayments was never a issue

  • SlickMick on 15/06/2018 - 11:31

    If you've experienced a nicer car, you get used to everything finished nicely. Nothing comes loose or squeaks or falls off. You usually get better features too: heads up display, adaptive cruise control etc.

    It's the same with everything. I'm generally really frugal: eg I won't buy the chips I like, I buy the chips that are on sale.
    I think I could go back to a lesser car and live with all it's frustrations, by reminding myself of the money I'm saving.

    For some I guess it comes down to "you can't take it with you - might as well spend it on something nice". I personally think it's a bit selfish and could do something more worthwhile with spare cash.

    • Cluster on 15/06/2018 - 15:27

      'Nicer' car is a relative thing. My employer had a Mercedes M-Class (one of the early generation) that cost well over $100k but bits of interior trim would fall off. I witnessed myself another M-Class owner putting his vehicle in for a warranty service. The guy was livid and almost shouting at the poor service tech that the A-pillar trim would come loose and fall off. Employer's BMW 5 series had an annoying rattle from the dashboard, and the current Alfa Romeo squeaks.

      • outlander on 15/06/2018 - 16:09

        I love that. One of life's little pleasures that the people who get rich by screwing everyone over through overagressive cost cutting get screwed themselves. All because the company decided to go with a cheaper adhesive, saving something like $5 per car.

        Lmao

        • SlickMick on 17/06/2018 - 19:51

          honestly. If you're going to ask a premium price you'd better be offering a quality product.

      • SlickMick on 17/06/2018 - 19:49

        I'd be asking for my money back. I've had a BMW 3 series and first fault took 10 years (rain guard over door came off. Was simply glued back on and should last another 10 years). Never had a rattle, anything come loose or unglued. I think it's reasonable to expect that when paying that kind of money.

    • Levathian on 16/06/2018 - 10:13
      -3

      Adaptive cruise, rear cross traffic alert, blind spot monitors and lane change monitors are all essential features IMHO. I drove my parents car which had adaptive cruise for the last year and I don't think I could drive a car which doesn't have it.

      Also why the f**k would anyone buy a car in 2018 that doesn't have a reversing camera or AEB?

  • crazygamer on 15/06/2018 - 11:46

    Expensive cars come with better mechanic and quality. And more expensive cars will come some hand made parts.
    I'm comparing Porsche to Toyota and Bently to Toyota. When you driving those cars, life feels totally difference.

    • quog on 15/06/2018 - 18:45
      -2

      Mmm

      So comparing Volkswagens to Toyotas. Okay.

      Porsche today differ differentially to say 15 years ago.

  • andyhui01 on 15/06/2018 - 11:54
    +11

    Why do people spend the same amount on financing a 30k car every Saturday night when they go out. Because they want to.

    There are many businesses that rely on the fact that people buy stuff they don't need (Myself included). I make decent money selling stuff people don't actually need and in turn I spent it on a luxury full size SUV which I don't need.

    Judging by your post, I'm assuming you are still studying or just started working. You will realise in life everything is just material and a large portion of businesses can just close tomorrow and none of the customers would die or starve. However, the employees are the ones that will be affected. But this is how the economy works, everyone would be in trouble if all of a sudden we all just bought food from markets and stopped spending money.

    Also think about this, if no one buys the $30k car new and everyone was waiting for the 3 year old one at $18k. Guess what, used ones won't be $18k, they will be $28k.

    • berger on 15/06/2018 - 20:44

      I’m in a similar position, sell things people don’t need. I make decent money and will buy myself a second car I don’t need, it’s because I can.

      My clients splurge so why not myself!

  • NightVision on 15/06/2018 - 12:02
    +4

    The big boss wifey said "We worked hard all our life now it's time to reap our reward" so bought her the the luxury car she wanted and picking it up tomorrow.
    As for me I would be happy with a new Rav4 but the boss said no :(.

  • THICKnSLOW on 15/06/2018 - 12:07

    Is this a troll thread?

  • meong on 15/06/2018 - 12:28

    Baik…

  • Tiredman on 15/06/2018 - 12:55

    I try to buy cars under 3% of my total networth. Works pretty well.

    • ranadom on 15/06/2018 - 13:09
      +1

      so if your net worth is $1 million, you can only have a car that is 30k or under?

      • [Deactivated] on 15/06/2018 - 13:15
        +1

        That’s seems logical. Net worth $1mill isn’t much. But extrapolating that, most people with $10m+ net worth don’t drive $300k cars.

        • HighAndDry on 15/06/2018 - 13:18
          +3

          It's a bad metric all-round. Younger professionals but with uni debt might have very low networth but comparatively high discretionary income and possibly even savings since Uni debt is a fixed expense.

          More established people, as you say, with multi-million dollar networth aren't driving around $100k+ cars because even a few investment properties would put you in that category but certainly not give you the discretionary income you'd need to maintain a lifestyle like that.

          So… networth is just a bad metric to base car buying decisions around.

        • Tiredman on 15/06/2018 - 13:32

          @HighAndDry:

          I don't know. Works alright for me. I used take public transport when i started out working for a few years. When my networth was $100k, i had a 3k shitbox.

          Maybe i'm just not that much of a car person.

        • HighAndDry on 15/06/2018 - 13:35
          +2

          @nsfx84: Possibly. But I admire your financial responsibility. I bought my first car when I had negative networth (HECS counts right?) but I both like cars and just driving, and enjoy the independence it affords me.

        • kingmw on 15/06/2018 - 14:50
          +2

          He said "under 3%", you don't have to spend to that limit. So people with 10+ mil can buy any car up to 300K.

          I don't think it is a bad metric at all, your car should be less than your net worth. If it is all your net worth then you should learn how to save.

        • HighAndDry on 15/06/2018 - 14:58
          +2

          @kingmw: People are kind of like start-ups. You start off with low to negative networth and equity, but (hopefully) have potential. I mean - unless your family's fairly well off, most younger people will have a HECS debt, and have effectively negative networth for the first few years at least of their working careers. It depends on what the liabilities are though - HECS is fine - it's fixed and low interest. Using money on almost anything else makes more objective sense, and if the discretionary income is there, using the money on luxuries is also not unreasonable. In my view.

          I think a lot of people are missing the bigger picture. The point of life is to enjoy it. Financial responsibility is good, only because it usually helps you enjoy life more in the long term. Financial responsibility - and a positive networth - are not the ultimate goals in and of themselves.

        • [Deactivated] on 15/06/2018 - 15:17
          +2

          @kingmw: Sure, but I’m saying anecdotally, most people with a $10m net worth wouldn’t dream of dropping $300k on a car. $10m net worth isn’t really considered wealthy these days, just well to do.

        • kingmw on 15/06/2018 - 22:46

          @HighAndDry: However following your metaphor, startups shouldn't make expensive purchases (cars) until they have some reasonable and consistent cashflow or invest in capital that will make them more money.

          For people beginning a new career, I think they should first use their money to focus on education, developing new skills, or buying the right tools before going with a 80k high yield investment.

  • [Deactivated] on 15/06/2018 - 13:48

    Simple, they can afford it and arent cheap

  • Cheemeister on 15/06/2018 - 14:00
    +1

    I think the reasons you listed cover most of it.

    Another reason for buying a particular car is the intended purpose - a larger family or someone who regularly drives lots of people around may want something bigger than a Corolla, someone who carries lots of tools and building materials may want a ute / truck, someone who wants to tour lots of unsealed roads may want a 4wd.

    Also, people may (correctly or incorrectly) think that paying more will give them longer trouble-free motoring. They want to spend big up-front because they believe it's an investment, and they won't break down so often.

    • kingmw on 15/06/2018 - 14:54

      Better to buy a reliable brand than rely on cost alone. i.e. Toyota or Lexus vs European cars

    • SoapyWooder on 16/06/2018 - 17:16

      Thanks!

  • OzzyOzbourne on 15/06/2018 - 14:22

    Why does anyone do anything?

    • Ozpit on 17/06/2018 - 03:57

      Why does a tree grow?

  • mgsydney on 15/06/2018 - 14:36

    I'll throw another question into the mix, who actually buys a $30k+ car or is paying one off?

    I know more people who buy on finance and thus don't feel that significant chunk of change leave their fingers than people who spend the cash outright.

    Maybe psychology behind this means that people feel they can commit to a more expensive car if they are paying it off over 3, 5 or 7 years.

    • kingmw on 15/06/2018 - 14:58
      +1

      I'll be interested in the answer to this question too.

      Also that 30k car on finance is more likely 40+k by the end of your repayments. There is definitely psychology involved which is why the more expensive the car the more likely they will say only cost $x per day instead of $y per month.

    • gromit on 15/06/2018 - 22:00

      because I get an annual car allowance paid monthly that nicely covers the repayments and the repayments are tax deductible and if you buy at the right time of year/right brand of car you will get finance deals that no bank would ever meet for an investment loan so it is cheap money to use elsewhere.

  • outlander on 15/06/2018 - 16:12

    I know, but the answer would take a long time to type out and probably wouldn't make any sense to you anyway.

  • [Deactivated] on 15/06/2018 - 16:17
    +1

    The biggest expense in owning a new car is depreciation. We recently sold a 6 year old car for $10k, that we bought for $37. So that cost us over $5k/year. I would like to keep our cars for at least 10 years.

    There is no real good reason to buy an expensive new car except to show off you have money. I was driving a nicer new car a while ago and I was surprised at the response I got from people who were quite impressed with such a nice car.

    • nickj on 15/06/2018 - 16:41

      Depreciation is exactly what puts me off new cars. I prefer to buy used cars that are just over 2 years old because ~ 50% of a car's lifetime depreciation happens in the first 2 years. Plus you still get most of the safety + features of brand new cars, and they usually still have warranty remaining. And because I'm utilitarian about cars I like bog standard Toyota/Hyundai mass-market models for their bang for buck and reliability and warranty and because you can get them serviced everywhere. Do this, and use the car for 6 years then flog it, you'd probably pay $2k/year (just in depreciation) or just under.

    • Buyme on 15/06/2018 - 19:27

      I feel this is quite a blanket statement.

      We need to update our car and I’m tossing up a few options. I’d like to spend less, but I still want particular specs in the car I’m going to be driving for 25,000 kms each year, for the next 6 or more years. It’s not to show we have money, it’s because I like driving, and want certain features that cheaper cars simply don’t have. I’m not talking a euro (current VW depreciation has turned me off euros).

  • cinnamink on 15/06/2018 - 17:36
    +1

    The rich: I can afford it.
    The wannabe rich: (I want to give the impression that) I can afford it.

    Jokes aside op's question can really apply to everything: food, clothes, our smartphone… Personally I think it has a lot to do with their perceived values aka marketing strategy. Heard of dress to impress, or dress for success? Also to many people, car is not just for transportation (just like food, clothes, our smartphone…).

  • sillyguy on 15/06/2018 - 17:57
    +2

    I bought a brand new SUV top model under 45K, no car loan.

    Why? Been working and saving so got extra money. After owning a 19 years old car for 7+ years and getting burnt by dodgy mechanics and Groupon car service deal, I’ve had enough.

    Besides, missus decided that she wanted the car, so I just had to get the cheque LOL.

    Why SUV not sedan? I’d like to sit high and comfy.

  • FunkyHoratio on 15/06/2018 - 18:09
    +5

    So I live in the country. There are a lot of kangaroos where I live. I used to own a Camry and had to repair it every 6 months after a few roo strikes made it undrivable. The rough roads where I live also wreaked havoc with the suspension. The obvious choice was a 4wd. We ended up going with a 2nd hand 4yo Toyota Prado Kakadu at $60k (it was 90k new, latest model is ridiculous at $110k!), which i novated through work then bought outright. It's been safe, reliable and comfortable for the many hours we spend driving it in a day. It also had lots of cool features - TV in the back for kids, fridge compartment, satnav, radar cruise etc.
    TL;DR we bought an expensive car for many reasons.

    • whooah1979 on 15/06/2018 - 18:27

      Kakadu

      Good choice. The craftsmanship used to build these are superior to anything else in the same price range.

      • FunkyHoratio on 21/06/2018 - 08:34

        It'd be nicer without the fake wood interior, but mechanically it's been A1

    • quog on 15/06/2018 - 19:04

      Good choice.

      These are brilliant machines.

    • Ozpit on 17/06/2018 - 04:00

      Would have saved a lot if you just slowed down, maybe avoided driving at dawn and dusk, and invested in a good set of driving lights.

      • FunkyHoratio on 21/06/2018 - 08:33

        I do this as well. Sometimes you have no choice but to drive at night, kids need picking up etc
        The bullbar on the 4wd makes the most difference but sometimes even traveling at 60-70 you cannot avoid hitting a roo or wombat. They will literally jump out of the Bush right into the car.

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