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

  • soaringphoenix on 15/06/2018 - 18:12
    +3

    To add on to a previous comment - recreation.

    For myself and many others, there is a huge amount of enjoyment to be found in the surge of acceleration as one is pressed back into the seat, the lively and (to some people's ears) wonderful sound of an engine soaring towards the redline, the sharp and precise steering and handling, that a performance car offers.

    Some people like to go out on a boat for the day, attend live music events, go out for a nice meal. I like to jump in my car and go for a drive with absolutely no destination in mind. Sure you can do this in a cheap econobox, but there's far more enjoyment to be found in a performance car.

    There's a hundred different reasons why people spend a lot on cars. While image is a common reason, it's far from the the only reason.

  • whooah1979 on 15/06/2018 - 18:15

    $30k is a base model Camry or mid spec corolla. Camry and corolla have never been considered to be expensive vehicles.

  • Ceilingcat on 15/06/2018 - 18:36

    I'm 29 employed and and in need of a car. I have only ever owned one cheap car (which stopped working) and currently have a scooter and a motorcycle (which i plan on selling soon as i'm tired of riding to and from work). Have always gone out of my way to avoid finance for anything including my vehicles. Never even had a credit card. I'm now thinking of taking of taking up finance on a 30k car. My reason is simply because with 7 days a week work I would like something nice to show for it.

    • boostpak on 16/06/2018 - 11:03

      live a little mate and just get something nice that puts a smile on your face every morning. 7 days a week and driving a shitbox around… we all go to the grave one day, enjoy life!

  • djmm on 15/06/2018 - 18:56

    What you wanna do with your money when you die?

  • quog on 15/06/2018 - 19:06
    +3

    You should work to live.

    Not live to work.

    Live is short, smell the roses.

    • djmm on 15/06/2018 - 20:51
      +1

      And take a dump on neighbour's lawn

  • SuperMid on 15/06/2018 - 19:39

    a toyota corolla wont be able to wrap you around a pole nicely

  • Tightpocket on 15/06/2018 - 20:04
    +5

    You must be having a midlife crisis to ask these sorts of questions…Really??
    Why buy a wedding ring when you know it's just a symbol, why having a bday party when you know you are getting a year closer to your death?
    Why buy a first class trip when you know when the plane goes down everyone will have the same outcome? or better yet why bother eating out when you'll know it'll become shit in the end anyway??

    It's life, enjoy it however you want. as long as you are not harming anyone, i'd say anything goes.

    • Buyme on 15/06/2018 - 20:46

      Enjoyed the chuckle. Thanks Tightpocket!

    • SoapyWooder on 16/06/2018 - 17:23

      I guess I am :(

      • boostpak on 24/07/2018 - 14:06

        live a little mate

  • djmm on 15/06/2018 - 20:53
    +3

    In 20, 30, 50, 60 or so years, you will die. No one will remember you. You'll be dust in this limitless universe. Nothingness. Enjoy what you can now. It's only a short time.

  • Brianqpr on 15/06/2018 - 21:03
    +3

    For a lot of people its simply seeking the approval of others, or insecurity for short. Even average cars perform very well these days so there isn't actually any need to break the bank.

    I would rather spend spare cash on seeing the world rather than an expensive, depreciating asset to drive around the same places I see all the time anyway. Looking out the window of an expensive car isn't going to give a better view.

  • 2ndeffort on 15/06/2018 - 21:32

    I dont drive a crazy expensive car but a couple of years ago, at the end of the financial year I bought a brand new Volvo S60. I could have bought a much cheaper car BUT the Volvo was the sasfest car I could buy and it felt really luxurious inside. I spend around 4+ hours a day commuting to and from work. I also obviously use the car on weekends as well. 20 hours per working week in the thing I thought it was worth it to be as comfortable as I could be.

  • HeWhoKnows on 15/06/2018 - 22:00

    Buying a car is a losing proposition.
    From the first day you buy a car its losing value and costing you money at the same time.
    Much worse if you take out a loan to buy a car - just doesnt not make sense at all.
    Most people do not recognise that depreciation is by far the biggest single cost in owning a car.
    Just because the money doesnt come out of your pocket each week doesnt mean its not costing you money.
    Hence the less you spend on a car the less you loose and so the less it costs.
    Simple maths!
    Hence Im with OP on this one

    • Exorcist on 15/06/2018 - 22:07
      +1

      Life is a losing proposition
      From the first day you were born, you life is getting shorter and shorter
      Hence the less you live, the less you lose
      Simple maths!
      Why do you even live?

      • whooah1979 on 15/06/2018 - 22:11

        Amayzingone is alive to work and collect 0 and 1s.

      • HeWhoKnows on 15/06/2018 - 22:27
        +2

        You poor thing.
        But this is about money.
        Not about life.
        The less you waste the more you have to spend on worthwhile things and of course in retirement.
        Yes life is limited and so is money so use both wisely

        • HighAndDry on 18/06/2018 - 11:58

          Who're you to say an enjoyable car isn't a "worthwhile thing"?

    • Ughhh on 16/06/2018 - 08:09

      At least your can sell the car, you can't sell your used underwear and socks (unless you find the right pervert). So, why but new underwear, wear one day and it has depreciated 100%. Buy second hand from gumtree.

    • boostpak on 16/06/2018 - 11:05

      you must live a totally sad life if you look at it simply in that narrow minded way. get a life bud

    • boostpak on 24/07/2018 - 14:06

      get a life and you wont see it as a losing proposition

  • Aerith-Waifu on 15/06/2018 - 22:45

    Why bother asking? Very pointless questions.

    Everyone is different, this is like why your friend likes curry and you enjoy pasta.

    Just live the life you want to live.

  • CalmLemons on 15/06/2018 - 23:36

    In life you are free to do whatever you want.

    For people who own businesses, you buy an expensive car as the business pays for it, otherwise you pay the 30% tax on the earnings and what, store it?

    There are other significant tax benefits for the business, deducting the interest, paying the loan off over 5 years etc.

    You make money to spend some of it, not to keep it all in the bank for a rainy way.

    • doheedo on 15/06/2018 - 23:50

      Or you could invest it sensibly and be able to retire early. What use are material goods if you spend all your time working?

  • Dreamcast on 16/06/2018 - 08:35
    +1

    Spend within your means.

  • Sammy901 on 16/06/2018 - 09:13
    +2

    I’m one of the idiots that has spent a considerable amount of money on cars from a young age. Theres really no justification for it other than I like cars and I can afford the ones i buy. After a certain price point it’s all diminishing returns, which is further compounded by LCT etc

    Way better things to put your money into in terms of investment potential but life’s for living

  • HKS on 16/06/2018 - 12:43
    +1

    What kind of moron would buy things to show off? you're digging a deep hole there if you do that.

    Buy a car you enjoy driving and don't worry about how much it costs. my daily is worth 10k and my weekend car i built for 35k including cost of buying the vehicle shell.

  • boostpak on 16/06/2018 - 15:15
    +1

    Maybe as you get older, you wan't to look a bit more refined and professional among society and your peers, instead of driving around in an old beat up Corolla at age 30 giving off the impression that you are still a struggling uni student.

    Work all those hard hours to put that many to use, whether it be cars, holidays etc. Not every single dime has to be used as an investment. If we lived with that mindset we would be very very sad people with very sad dull lives. But hey, each to their own.

    • inasero on 18/06/2018 - 13:45
      +1

      I'm 32 and a doctor earning comfortable money. I have an old Corolla, have no plans to upgrade, and feel no need to satisfy other people. If they judge me based on my car are they worth my time anyway?

    • [Deactivated] on 20/07/2018 - 22:34

      As long as the car doesnt look trashed, shouldn't be a problem. Be it a 10 yo corolla, dont see a problem with it.

  • rinco on 16/06/2018 - 15:43
    +1

    You buy an expensive car to make up for being too poor to live close to work. Or maybe you're a weekend race car driver. One or the other.

  • JUSTINO on 16/06/2018 - 15:53
    -1

    Nissan xtrail

  • djmm on 16/06/2018 - 16:03

    With great cars come great chicks.

  • supervigilante on 16/06/2018 - 16:48
    +3

    I am as tight as the next person, and I have a 2nd-hand 10yr old Japanese hatchback. It's reliable, cheap to run and maintain.

    Now I am running a business, seeing clients at their homes, or even bringing clients here and there. So I bought a better, more expensive, comfortable car to make them feel like they can trust me with their business. It's like why real estate agents or doctors drive luxury cars. If i'm so good at what I do, why am I driving a 2nd-hand 10yr old Japanese hatchback?

    Image and impression are important in the business world. It's sad but it's true. =)

  • curryblender on 16/06/2018 - 17:36

    I bought an BMW X6 last year. Been in Australia since 2006 and have literally worked from day one. Opened businesses and failed and repeat, finally I got the right mix. After getting home and other investments. This was a pat on the back to celebrate the 12 years I have worked.
    I'm 30 years old.

    Other reason is also my clients, they are all deep Pocket people and this also leave a good impression that I work good that's how I afford it.

  • endolphin on 16/06/2018 - 17:44

    I'd consider anything over $35k to be a "want", not a "need". Any examples to challenge this?

  • djmm on 16/06/2018 - 17:54

    As shallow as it sounds like, I surely wouldn't wanna do business with someone driving 10 year old beater.

  • dreamscene on 16/06/2018 - 21:08

    Asian.

    • Marcsie on 17/06/2018 - 10:21

      Oh, so you are Asian ?

  • Chewiebacca on 16/06/2018 - 21:10
    +2

    Cars are more than simply a means of transport for some people, and attribute other values to them as such (status, enjoyment, technology etc). Tunnel vision would make any other approach besides your own seem foreign.

    I personally value a sporty and involving drive, something which no Corolla has sufficed for me, whilst also enjoying practicality. Hence I drive a MK7 VW Golf R. I enjoy spirited drives on weekends away, and having AWD, good power, and a great chassis lets me get the most out of my drive. All that comes at a cost, one I’m subsequently happy to bear in the value I get in enjoyment. For somebody that simply wants A->B, there’s almost no reason to purchase the same car.

  • TheMindsetTraveller on 16/06/2018 - 23:08
    +1

    99% of cars are poor financial choices - yes there's a handful of cars that actually go up in value purely because they are so rare and that the owners just park/store it in the climate controlled garages and keep it there for years.

    Now skipping the poor financial side of things - you live once, you might as well enjoy it. Go buy a nice house, then buy a matching nice car that suits your lifestyle.

    Work hard, make $$$ - then get Drunk On The Good Life.

  • boopaloop on 17/06/2018 - 01:04

    I am not a car person. I want my car to take me from a to b. But I want my car to take me to a to b every single time I get in it, to get me there in one piece, and sometimes I want to take a lot of stuff from a to b, when the distance between a to be is a day long journey. The cost of my own convenience, comfort and safety (and that of my family) is why I pay more for cars, and I pay it because I can afford it. I cant imagine any intelligent person who could afford to be safer and less inconvenienced be willing to save ten grand at the cost of their time or life. Each 10k after 30k gets you a whole lot of extra convenience, comfort and safety till about 80k. 200k is what I'd call extravagant, and while I wouldn't do it myself (even if I could afford it) it doesn't mean I don't understand why someone else would choose to….

  • Lumens on 17/06/2018 - 01:15

    One major point is the tech in high end cars is amazing (read up on the new S class). Usually safety, performance, and very cool features. This gets trickled down to lower cars years later.

  • [Deactivated] on 17/06/2018 - 07:19
    +1

    Because when I finish a 14 hour shift and I walk out to my car to drive home, I like that after 5 years of owning, it's still a joy to drive. I still enjoy just taking it out for a spin and listening to some music. I didn't get the same feeling from my old cheap hatchback.

    When the time comes for me to ditch the sports car for something that can carry some kids, I will be getting something that still gives me joy.

  • MrBillions on 17/06/2018 - 09:19

    The best thing i did in tax year 2017-2018 is NOT buy an expensive car.

    • HighAndDry on 18/06/2018 - 11:57

      If that's the best thing you did… uh…

  • ro0sta on 17/06/2018 - 12:10
    +1

    I spent around $30K a decade ago on a Lancer brand new. I don't consider that a "rich" persons car/investment… I also didn't buy it for thje benefits of the image it might give to friends/family. I bought it after doing my research on saferty, comfort, numerous test drives..>AND the fact i didn't want to get stuck in one of those sh*tty little hatchbacks that have lawnmower motors that sound like they are about to explode when driven on highways going 100km…it was about the experience, safety, look and feel for me.

  • netsurfer on 17/06/2018 - 13:37

    Better design, greater attention to details, more comfortable to drive and sit in and showing off. My mate drove me around on his Mercedes AMG few years ago (sorry, not good with cars, forget about the model). He was doing 160-180 on Sydney Harbour Bridge (obviously would have got an expensive ticket if he got caught).

    It's not actually that big of a deal. I was working for a bank before and there were traders in the same training session I was in. They all lived in very nice houses (I doubt I can ever afford one in my lifetime), have several cars. Some people are just rich, and they can buy much better cars.

    When AUD was stronger a few years ago, one of my colleagues decided to get a Mercedes. It was basically just 10K-20K more than a standard car and he was able to salary sacrifice the car.

    I haven't even mentioned my family friends who are doctors…

    • [Deactivated] on 14/01/2022 - 00:21

      Thought traders earn more on a good year. 500k+ is not uncommon.

      A specialist in the public system is merely earning 200k, private will see that amount double for some unforgiving hours/schedule.

  • This Guy on 17/06/2018 - 19:39

    Depreciation on a $30k car is often lower than maintenance an a $15k second hand car (due to capped price servicing, no pink slips for first five years and the industry's push to 5+ year warranties). If your changing cars every few years, warranty hopping can be cheaper than bomb hopping.

    Safety. While you can buy a brand new car with AEB for ~$15k it only has a 4 star safety rating due to it's actual crash performance. A 2012 5 star car has poorer occupant performance than a 2018 5 star car (or even some 3 star 2018 cars…).

    Comfort. Most $30k cars are far more comfortable than a $15k car.

    Capabilities. A full sized people mover starts at $45,000. A one tone ute starts late $20's. A duel cab starts late 30's. A large 4x4 wagon starts mid $40's. Every family and their load is different.

    I have focused on $30k vs $15k as that was your question.

  • Bluberry on 18/06/2018 - 01:13

    F#ck Trump!!
    Oh wait…

  • geoffs87 on 18/06/2018 - 08:53
    +1

    30, bought a $35k near new beamer. Recently sold a couple of properties to consolidate and made some nice $. Always loved cars, but never justified spending the money on one, so i thought i would treat my wife and I. It's an X1, and has a bit more space for us when we go for road trips, taking the dog, eventually have a baby etc, than the old focus had

    At the end of the day, the $35k is a pretty small proportion of our yearly salaries too… so it barely moved the needle

  • MementoMori on 18/06/2018 - 10:08
    +5

    Personally, it's because I enjoy the car (appreciation of a quality build, and driving pleasure). It's like flying business class everywhere.

    Second to that would be the safety features (ABS, airbags - which you'll get on just about any car these days now, so this is less of a consideration). Maybe auto-braking on something nicer.

    I agree though - a car is an absolute waste of money, only to buy after you've got a house etc. Much wiser to get a Camry or something.

    • boostpak on 27/06/2018 - 11:23

      again with the camry. There's thousands of cars out there, why does someone have to get a sh*t boring old camry

  • Oz8argain on 18/06/2018 - 14:36
    +3

    Some see cars as an appliance, like a toaster on wheels, a transport from A to B.
    Some see cars as a symbol, it represents the success of their business to potential customers.
    Some see cars as a hobby and loves the experience, like going to the cinema vs watching a low res movie on your old laptop.
    Some see cars as a tool to help them get girls, only to realise that they attract more men than women.
    They all have a different perspectives, which one are you?

  • 2ndeffort on 24/07/2018 - 17:43

    I drive a Volvo. Leased it brand new. I could have bought a much cheaper car and I know Volvo has a reputation for being both boring and terrible for retaining value. One of the main reasons i bought a volvo (aside from getting a great deal which, as an OzB was a big priority) is that, if i am ever in a serious crash there wont be time for me to add in extra safety features in the fractions of a secong before impact. I either set out in the safest car i can afford or I accept a higher degree of personal risk. I could have bought a more expensive or a cheaper car but my research was that the Volvo was the safest i could afford. It seemed like poor logic to me if i drove a cheap car and didnt get the safety features that could save my life or prevent injury.

  • [Deactivated] on 14/01/2022 - 00:15

    Just is. Expensive is a relative term to income and asset.

    Similarly why people pay alot for a high end watch compare to a few hundred $ seiko.

    Spending 100k on a car can be alot for some… but can also be a very insignificant amount too.

    • coffeeinmyveins on 17/01/2022 - 11:02

      Had to do a double take. You've replied to a 4 year old thread? Lol

      • [Deactivated] on 17/01/2022 - 11:17

        Sleep walking.

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