Automobiles Archives - Page 7 of 7

Hoping For Something To Break In Order To Buy A New Car

Published: 01/17/2011 | Updated: 01/14/2021 by Financial Samurai 40 Comments

Ever hoped for something to break in order to buy a new car? Well I am! I want to buy a new car.

I have to admit, I’m having withdrawals from not driving a different car for over 3 years now. I used to get a new (used) car every year by wheeling and dealing on Craigslist, but I stopped once I found Moose. Moose is so handsome and adventurous, even the ladies love him.

I picked up a friend of mine one evening to go grab some grub, and she mentioned a week later that her stalking neighbor, who has a crush on her said he’s frustrated that guys who own “Moose-like” cars always gets the girl. Maybe buddy, it’s the creepy way you stare out the corner of your window to spy on women that makes you still single?!

A year ago, Moose’s passenger side electronics seat stopped working to my dismay. Luckily, the seat was in a comfortable, semi-reclined position so I let it be. I told myself then that it might be time to start looking for another car soon as fixing the thing might cost $500+ dollars.

And so, I made a decision that as soon as the driver’s seat electronics also stopped working, I’d go and buy me another car.

Each week that went by, I started secretly hoping my seat would stop working. I was hoping for something bad, but not too bad to happen, so I could justify buying something new! Screw it, I thought. I’m going to go visit the dealer and check out the new rides anyway. Moose ain’t ever gonna fail me!

Buy A New Car At The Dealer

As I was inhaling the wonderful rich smell of leather and glue, a service man came up to me and asked if I wanted to consider trading-in Moose for something new. I started feeling horrible since Moose and I had grown so attached.

But, I did tell the serviceman I’d consider it. I revealed the only problem with Moose was the non working passenger side seat, and he said not to worry. He came back 5 minutes later, opened up a compartment under the seat, and swapped out a fuse.

“Your car is as good as new!” the service man shouts.

“Sweet crap,” I think to myself as now I have no reason to exchange Moose for anything else. I also wondered why I didn’t go into the service department to buy a $1 fuse long ago. I told the serviceman that given my car was “as good as new“, I’m good to go and am not interested in spending $58,000 for a new Moose. Now I realize why car dealerships keep Service & Sales separate!

Buy A New Car? Nah

If Moose is a babe magnet, handsome, reliable, and inexpensive, why do I long for something new? Change is human nature and unavoidable so it seems. It’s just like asking why Tiger Woods can’t just be happy with Elin, his family, and his mega millions? The longing for something different is so hard to conquer. It’s almost like an addiction.

Changing cars frequently is one of the stupidest things you can do if you don’t have the financial capacity. You pay taxes with each purchase, often lose money with each sale, your auto insurance may go up, and you never quite know what you are going to get.

Cars are money pits, which is why I seriously recommend you never spend more than 1/10th your annual gross income on the purchase of a car. If you find a car that gives you little-to-no problems, cherish it completely and forever. Buy a new car if you need to. But only if you can afford to using my 1/10th rule for car buying.

RECOMMENDATIONS

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Updated for 2021 and beyond

My First Car Was A Heap Of Junk How About Yours?

Published: 10/01/2010 | Updated: 01/14/2021 by Financial Samurai 52 Comments

Joining Uber As A Driver With $50 Gas Promo — Rhino Joins Uber

My first car was pretty crappy. How about yours?

After getting my driver’s license at 17, I talked to my parents about finally getting a car. I don’t remember why I didn’t get my license at 16, but perhaps it was because I had such a spiffy bicycle the ladies loved. *Ring a ding a ling * was the sound of my bell every time I rode by a hot girl.

It always felt odd that I had to walk or ride my bike to school when other kids got to drive their new Ford Explorer SUVs, and VW Jettas. Even my parents drove an 8 year old car at the time. Oh well, I thought to myself. Perhaps one day.

THE HIDDEN GEM THAT WAS NOT A GEM

The day I got my driver’s license was one of the most memorable days. One, because I failed the written test the first time, and my mom wasn’t too happy. Two, because my parents took me to “Fresh Choice”, an all you can eat buffet restaurant to celebrate. I had dreams of rumbling in a 5.0 liter Mustang for my first car. Nothing sounds so beautiful. In fact, I actually test drove one of my classmates because he was selling it to buy an Acura NSX! “$9,000 and it’s yours Sam!” Yeah right. All I have is like $900 bucks, but I sure am glad I got to test drive!

My parents gave me a $2,000 budget, so I searched the Auto For Sale section of the papers gleefully to find my dream vehicle. Damn, even in those days $2,000 wasn’t too much money. There was no internet at the time mind you so all I could do was base my impression on some text in a paper. I finally stumbled upon one ad that just sung to me, “Excellent condition 1987 Nissan Sentra with only 135,000! Seller is running for District Supervisor. Only $1,699!” $1,699 was $500 cheaper than all the other comparables and I thought I had a deal.

We drove out to the aspiring District Supervisor’s shoddy apartment and took a look. What a junker! The car had a faded yellowish color, with a newly painted driver’s door, because obviously someone bashed into it. Even still, we took it for a ride, and I just loved it. We paid cash on the spot and drove it home.

With all the scrubbers and cleaning chemicals I bought from the auto store, I got to work detailing every single inch of my new baby. I even got one of those scented pine cone car fresheners to hang from my rear view mirror. It was a dream come true. My very first car to drive to school in!

FIZZLE POP

Too bad only a month had past when * boom * my clutch broke down and my car no longer could shift gears and move. No wonder it was $500 cheaper than all the other cars in the paper.

I had to replace all of the CV boots as well. $1,100 later, the car was as good as new. Curses to you District Supervisor! Now I remember why I don’t trust politicians. It all started at age 17. I’m glad I started with a piece of crap, because nothing could have been worse!

RECOMMENDATION

Updated for 2021 and beyond

Let “Freement” Reign! Spending Paralysis, Material Lust And Obsession

Published: 01/02/2010 | Updated: 01/14/2021 by Financial Samurai 40 Comments

Freement is great! But what is freemen? For those of you who don’t know, I’m a recovering car fanatic.

Funny enough, the way I deal with my addiction is to go to the BMW dealer! I also go to the Audi, Mercedes, Honda, Land Rover and Porsche dealers too, but only the BMW dealer is on my way home and has an easy parking lot to leave Moose unattended. I wonder if they cut out the free popcorn and diet cokes because of me. Hmmm.

Over the past 3 years, I must have visited the BMW dealer at least 65 times to the dismay of the sales people. They must have a code word for my type, “cheap bastard” or “stop wasting my time you poor SOB” maybe, but I don’t care. Nothing thrills me more than sitting in a brand new, over-priced automobile and inhaling that unbeatable new car smell! After every experience, I deftly try and avoid the salespeople and pick up a new brochure so I can extend the enjoyment at home.

In fact, as a joke I wrapped up the latest Land Rover LR4 brochure for Christmas and gave it to my wife. I told her she should expect a nice shiny black on black beast when we get back to San Francisco. She was kinda amused, not really.

If the salespeople insist on going for a test drive, who am I to argue? But, I make it a point to only waste the time of the most eager of sales people beavers. The fun of gunning a $80,000 BMW M3 every other month is such a thrill! Besides, I hear they get a little commission for every test drive anyway.

Feement New Obsession

Ever since I spent $1,450 on an impulse buy at The Apple store this September, and subsequently returned the darn thing weeks later, I’ve been obsessed. If we’re in the mall, or some general shopping area, I must pay a visit, or 30+ visits since Sept more accurately!

The Genius Bar is wonderful, and all the shiny toys for us to play with for free is such a joy. Like “Moose”, my current iBook G4 is old and slow, but that’s what makes each visit to that much more exciting!

Did you know that over 80% of the computers sold over $1,000 are from Apple? It’s not a surprise to me because their products and customer service rock. Too bad they are just too smart for the US consumer.

The current Macbook Pro is getting dated after the the latest Macbook edition. I’m patiently waiting until the latest MBP comes out next year. Until then, more fun visits!

THE PROBLEM With Freement

It’s not like I can’t afford a new computer, it’s just that I have spending paralysis on things I don’t absolutely need. I also have spending paralysis on myself. If the gift is for my wife or my parents I’m all for it! I often tease my wife that she always gets the new stuff, and I get her hand me downs, which I get for her in the first place. It makes me happy though, and isn’t that all that matters?

The question I’ve been thinking over and over is whether or not my frugality is being taken too far? Why shouldn’t I drive a nicer car that have car seat controls that actually work and brakes that aren’t so squishee? Why not produce prose on a speedier machine with a more eye-friendly monitor? A $1,000 Macbook Pro just consumes 1% of the “Freedom Fund” but still, I cannot let them swipe my card.

Not Sure Of I Can Change My Freement Ways

The thrill of material things lies in the anticipation of buying, but not actually going through with the purchase. I’m the type of person who is sometimes more excited a week before the vacation, than during the vacation because every day spent on the vacation is one less day of relaxation! Buying material goods brings down my utility, because the brief feeling of happiness gets consumed by the permanent loss of money.

Sometimes I must have something, and go ahead and buy the darn thing, but return it before the return policy runs out (“Controlling The Urge To Splurge”). Some say it’s malicious to buy something with no intention of purchase. Hak-fooey! Why is there a return policy in the first place? It’s so the consumer can try before they buy or give us consumers a financial self-destruction insurance policy!

I never thought I’d be obsessed with another “freement” (free + enjoyment) store like the BMW dealer. But, thanks to Apple I guess there is. A special shout out to Brookstone for all those wonderful chair massages you’ve given, as well as props to Barnes & Nobles for the magazine experiences. Let freement reign!

Readers, what are your material obsessions and how do you deal with your obsessions to prevent financial ruin? Freement reigns!

Why do women go crazy over shoes, clothing, and hand bags, while men tend to splurge on cars and electronics? Is a $5,000 Hermes handbag more ridiculous than a $50,000 BMW?

Do you have spending paralysis on yourself? How do you get out of it and return to center?

Keiju,

Financial Samurai – “Slicing Through Money’s Mysteries”

My SUV Will Beat Up Your Hybrid & Save The World!

Published: 11/18/2009 | Updated: 01/14/2021 by Financial Samurai 51 Comments

Range Rover Evoque Black — RR Evoque Black Edition ~$68,000

My SUV is sweet. Why is it that some hybrid vehicle drivers eventually start looking down at non hybrid-owning drivers in disdain?

Is the “holier-than-thou” complex too hard to contain during flights of fuel sipping passion? It’s natural to feel that whatever you purchase is the right purchase.

After all, if I overpaid for a hybrid vehicle (zing!) in hopes of saving the environment when a similar non-hybrid vehicle will do, I’d defend my decision and look down on others as well! Don’t be mad, let me explain.

THE FINANCIAL SAMURAI VEHICLE

For those of you who have been following this site for a while, you’ll know that I’ve had plenty of cars over the past 10 years, and I now drive a 9 year older beater SUV which is MAYBE worth $6,000.

I love “Moose,” my SUV, as I affectionately call him, because he adeptly takes us up the snowy mountains during the winter with its 4-wheel-drive capabilities.

Moose can conveniently carry up to 5 people with plenty of storage space, which is especially helpful when our parents visit. Too bad Moose only gets 15mpg in the City, and 19mpg on the highway. I can hear the hissing and booing now!

I bought my SUV for $8,000 three years ago, from a woman who was in a hurry to dump her car before relocating to Amsterdam. Special brownies anyone? The hybrid craze at the time was dizzying, where seemingly rational people would spend $25,000 for a Prius vs. $15,000 for a comparable Toyota Corolla.

If people did the calculations, they’d realize the premium price paid for the car is much greater than the gas savings over an average 7 year ownership period.

Consumers weren’t adhering to our “1/10th” rule either, as I knew plenty of sub $100,000/yr income earners spending $25,000 for these hybrids. I must repeat here again that it is absolutely financial destruction if you are spending more than 1/10th your annual gross income on a car. Multi-millionaires follow this rule, why shouldn’t the rest of us? Don’t give into your weak desires!

MOOSE GETS DISRESPECTED, I FIGHT BACK

Moose and I lived in harmony with the hybrids for a couple years until we encountered an evil man on a bike one day. The bicyclist rides up to Moose, gives him a “thumbs down”, and rides away. After five minutes, we see the same bicycllist in a parking lot loading up his bike onto his Prius! Annoyed by the encounter, I drive up to him and explain his hypocrisy.

“Hey you, with the spandex, and shaved girly legs. You got a problem with us?” I ask.

“Uhhh, no problem. How can I help?” he answers in shock.

“You dishonor Moose here,” I say as I pat the dashboard. “Let me tell you why your hybrid is worse for the environment than Moose. You think you’re all enviro friendly and cool just because you have a Prius, but you’re wrong.”

“Uhhhh?”

“By buying a new hybrid, you do more damage to the world than any second hand purchase car can do. You see, unless you destroyed your old vehicle, you ADD to the world’s pollution when you buy new. You encourage car manufacturers to pump up their production volume, emitting an incredible amount of waste in the process. Your Hybrid has higher emissions than zero, compared to zero incremental emissions from my second hand car!”

“Hmmmm, I see. Please don’t hurt me.”

“So quit with your superiority complex Steve, and hand me a beer!”

“Ok, Sam, you win. I was just fooling with you!”

We hug it out and go for a ride together. We’re actually not strangers, but buddies!

My SUV Is Great For My Family

Good for you for owning a hybrid, just don’t look down on us who don’t. We may not be able to afford a $30,000 level 4 Prius because we don’t make $300,000 a year like you.

More scientifically, now you know that if you don’t lead your old car to the slaughter house, hybrid owners are doing more damage to the world than us poor second hand vehicle user folks. If you’re considering a car to save the world, then ALWAYS buy second hand, and preferably make it a hybrid if you really care!

Don’t be a vegan who wears leather shoes. It’s just not right. Let us all continue to co-exist peacefully. Ahhh, I feel better now.

The 1/10th Rule For Car Buying Everyone Must Follow

Safety First: Finally Bought A New Family Car

RECOMMENDATIONS

Updated for 2021 and beyond. My SUV is now a Range Rover Sport HSE and I love it!

Cash For Clunkers = Personal Finance BOMB!

Published: 08/04/2009 | Updated: 01/14/2021 by Financial Samurai 10 Comments

Cash for clunkers was a failure. Let’s discuss the cash for clunkers program in more detail.

The latest development in the “Cash For Clunkers” legislation is that it may be extended for one more month until labor day. Under the program, buyers of new cars and trucks can get rebates of $3,500 to $4,500 by trading in older models that are then scrapped.

Seriously though, is this multi-billion dollar government works program just money spent to appease the car lobbyists? Or is the goal really to get old cars off the streets and save the environment? The good thing is that these old cars are getting scrapped.

Otherwise, if you trade in your gas guzzling SUV for a Honda Civic, you’ve NET ADDED to the world’s pollution because someone is still driving your old car, and the new Civic still emits waste!

This is what I’ve never understood about the “holier than thou” crowd who buys hybrids like the Prius. It’s great that you are driving an environmentally friendly car, but if you start looking down on non hybrid drivers with disdain, that’s hypocritical. Buying a new Toyota Prius simply adds to pollution if you don’t scrap your old car.

Cash For Clunkers Was No Good

The only way you’re going to really make a difference is if you scrap your old car and just take public transportation and ride a bike! Again, I’m absolutely for driving a nice low emissions car, but the fact of the matter is that these cars are expensive. I’m not spending $30,000, and if you look down on someone who can’t afford the $7-10,000 premium for hybrids then shame on you!

The real problem with this legislation is that it’s giving money to people who don’t need it. If you are driving a car valued at $4,500 or less, it’s probably unlikely you can afford to buy America’s average car price of $25,000! I strongly suggest you stick with my 1/10th rule, which states that you should spend no more than 1/10th your gross income on cars.

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