I was watching A Current Affair https://www.youtube.com/watch?v=BLaE3T78ack
The owners of a $100,000 BMW which appeared to explode in flames all by itself say there is no other explanation - and now they are locked in a battle with the prestigious car maker over how it happened.
Why did you get a loan for a 100K vehicle?
They had 4 years of car usage. Which with a $100k car is quite likely to cost you $40k. If they’d sold it at that point they’d have the same problem.
They didn’t have a $100k asset inthe driveway it was a $50k liability with the loan amount they had owing.
I get that and obviously luxury cars aren't a great high yield investment but they did commit to purchase something and you do expect to have something by the end of its life cycle.
Versus if you did only plan to loan the car for 4 years, you're not expecting anything at the end of the cycle and that's what you're paying for.
Flip the script on any item / purchase, its still a shit scenario to be in
@Euphemistic: What’s the likelihood of a repair costing $66k though, you’d probably be dead if it happened at that extent.
@rambao9: The repair doesn’t necessarily need to cost $66k. The damage may be such that the vehicle is considered unsafe to repair. NSW at least has criteria around what is considered unsuitable to repair.
Spot on. Probably trying to weasel a full replacement.
High yield investment, of course!
Sometimes it's worth getting a loan over paying a lump sum of cash because you can make better use of the cash (ie, higher return than the cost of borrowing). It's often done with businesses to aid cashflow as well.
OPM is the best.
OPP 💯 profit
Love it when the mood gets to "I borrow so I can invest more" because returns are so far ahead of borrowing costs.
It means it isn't long until the "I had to sell to cover my losses" part of the market cycle when it is a great time to buy.
The market still has plenty of gains to give.
Are you a trillionaire yet with your 100% returns.
I'm not clicking that link, OP.
Tesla Model 3 $100k @3% over six years, halfway in. It's insane how much cheaper it is to run than my old BMW.
$110,114 to be left with a car worth: 30k after 6 years.
my old BMW.
Oh.
Should have mentioned; that BMW was purchased second hand for $21k. Don't think i'd do that again. Refer running costs.
Had my Tesla for a little over 3 years. Sold it for more than I paid
Sure
Yes, used car prices have gone through the roof
Convertible Tesla?
Yes, yes, yes. I'm quite sure
When a corolla and civic are nearly half that, 100k doesn't seem so much anymore
well people on here are happy to pay $50+ for a pen so it isnt as stupid to pay well over the odds for a car
https://www.ozbargain.com.au/node/705434#comment-12247388
There seems to be a constant hate on people who chose to buy euro badge cars on here… am I missing something?
Euro cars are poor value over here. Expensive parts, 3 yr warranty usually. People do it for badge envy and it’s just insane because hardly anyone is impressed.
But another post for a Model Y at 100K doesn't attract the same criticism? These days Euro is nothing more than a reference to a car's design heritage, the chances are, the cars are rolling off the production floor on factories next to the KIAs and Hondas with the employees trained by the same local institutions from that country. The warranties can be 3 5 7 years, just depends on how you negotiate on purchase, and parts costs aren't really that much different anymore on the newer vehicles… feels alot like badge bashing to me…
It’s badge bashing because it’s a waste of money. Korea do 7 years, Japan does 5 years, and BMW/Merc do 3 years, to my knowledge.
Extended warranties can be negotiated, but what are they really worth? It’s hard to know.
There’s a reason the resale on Euro cars out of warranty is so bad. The same can’t be said for Toyota. They have cheap parts even if you are stuck paying for it yourself.
Even if they did come from the same factory, the prices charged for parts are worlds apart ;)
As for Tesla, they are a bit unusual. At least the battery has a good warranty. Full Electrics have pretty low maintenance in general.
@idonteven: Indeed, from January this year:
BMW now the only Top 20 brand in Australia with three-year warranty after Audi steps up to five
Bmw and merc are hardly head turners unless uve bought something top of the line, M series or AMG (but not low tier models like a 1 series or A class)
They are imbedded with the same technology as, BMW's "Active Sound Design"
the life is short and some people don't want to realise by 80 that the life is almost gone and he/she has been driving corollas all his/her life. for the record, I selected the first answer.
it is similar with travels, for example, one of my former colleagues in her 30s has never been anywhere outside Western Australia, so probably she thinks it is a waste of money as a good family trip with children to Europe can easily cost ~$20K, instead of 5 trips and you can afford a $100K BMW without any loan.
Yup its all relative. Some people choose to go on expensive holidays every year, some do 2 coffees, breakfast and lunch at work every day, others like to party and dinner out at fancy restaurants every weekend. Each to their own.
Why did you get a loan for a 100K vehicle?
Debt is(was) cheap!…
Don't even have a 100K vehicle!
Interesting comments above. I'm a little unsure if that $100k car will drive me or the shops better than a second hand $10k car so haven't made that switch (or financed a depreciating asset).
On the other hand, why are you building up so much wealth if you're just driving around in a beat up old car until you die? You have to spend it at some point. If you don't spend it before you die then your next of kin sure will.
Only reason I would is if I had some other investment going on that could pay me even more profits than the interest on the car loan was going to cost me. Rich people borrow because their cash is caught up elsewhere. If you can get a car loan that costs you 7% interest and put all your cash into an investment property that will probably pay you 30% profit after some amount of years, then it makes sense to borrow for the car and invest in the house. It also helps lower your taxable income in the meantime and you only pay the tax on it after your investment has been finally realised and you have so much more cash in your pocket.
Bingo, the right answer right here. Even better tax benefits for those having their own business and then taking the car loan on the business (which is what most with wealthy looking cars owners are doing).
It's on "A Current Affair" it must be true ….
As I roll around the floor laughing at the thought of that :)
Most likely got a plastic bag stuck underneath the car or the oil in the oil pan caught on fire somehow.
Option D. Because it’s my life and I can do what I want.
I don’t have a $100k vehicle. But if I did or someone else did, who gives a crap.
I just tee it up to jealousy lmao
Jealousy is a big part.
People these days give too much thought into other people’s decisions that have literally no impact on their own life.
I would hate to be thinking about other peoples lives like most of the people in here do.
Do what makes you happy! If a $100k car makes you happy so be it. God damn people are stupid.
People would be much more happy if they stopped comparing their life to everyone else.
Couldn't say it better myself!
I think social media doesn't help in the slightest
So I could boast about it on the Whirlpool forums.
If its not a camry, well its not a camry and therefore means squat on ozb
Who cares. It's their money, let them be.
It seems like more of a Sydneysider trait to show off money and status, even on borrowed terms.
Kind of like that British ex pat in Sydney that found everyone there wore North Face gear because the stuff was expensive and showed you were classy and stylish and awesome in winter.
Who watches A current affair is the real question.
Op does
Which explains a lot.
Been driving a 14.5K Nissan Dualis for 6+ years. No loans actually I bought it using two "no interest on purchases" credit cards (plus some 5K cash upfront) and paid if off over 16 months without paying any interest.
Why did you get a loan for a 100K vehicle?
You can ask similar questions about anything. It's just about perspective and what people can afford.
Why did you get a $100K vehicle, when a $20K Hyundai i30 does the same thing? Why did you buy a $2M house when you could just as well live in a $500K apartment? Why did you spend $200 to eat out when you could just cook at home?
Why go to a hooker when you can pull your own?
Why be a vegan when you can eat a pig?
Why be sober when you can snort a line?
People need to mind their own business.
I don’t understand the point of this storey. Car caught on fire and insurance paid it out at market value. What’s the grievance or misjustice? BMW hasn’t investigated it but it also sounds like they haven’t responded to BMW either?
Because I felt like it, and Ozbargain had saved me so much money
BMW = Big Money Waster
The only logical reason I can think of for buying a BMW on finance is to write off tax for businesses. u can add in depreciation too.
LOL I don’t even get a new car on finance.
If you can’t afford the car in cash, then you can’t afford it.
Of course there are outliers, ie, car work lease, car work allowance, etc
Tax and quality of life, there's no showing off in a 3 series or x5. I mean the comments talking about waste, I bet 60k goes a long way at the scrap yard, those Subaru parts are a steal, when you're not fazed about paint matching. Your right, all those fugal investors rocking cammrys, next warren buffet, dont worry about that tesla, BMW driving idiots. bet they cry in their double garage and heated seats.
If you can afford it and if you feel good about it then should do it; YOLO.
I did it since finance was cheap so why not.
To be completely fair, they are out-of-pocket around 40k+ with nothing to show for it.
In normal circumstances, in a 4 year life span, you'd still expect to have a Car.