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A place for Get Rich Slowly readers to ask questions
and exchange ideas
It is currently Wed Apr 23, 2014 2:53 pm




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 Post subject: Re: Poor Car decision: Need to Eat the costs?
PostPosted: Tue Oct 02, 2012 7:06 pm 

Joined: Sat Feb 25, 2012 9:59 pm
Posts: 9
stannius wrote:
Why are you so busy? Do you see it letting up any time soon? Is there anything you can defer, delegate, hire out, or just not do? You'll lose a pretty big chunk of dough by selling it to a dealer, especially selling it directly rather than trading it in for another car. I have a friend who sold his car in a few hours on craigslist, by pricing it below market.


I work a lot, have a newborn, and my wife is in full-time nursing school. My job includes being on call answering phone calls and emails 24/7 365, I wake up and work 2-3 times a night, 5/7 nights. This isn't a pitty party, I like my job. With fall here I closed our pool (another lesson learned) and the grass is slowing down so there is less to do around the house for several months, which should free up some time around. My travel time at work is almost over so that will help as well.

I took the car to the dealership tonight just for a laugh. The sales manager was very helpful and gave me some good tips for selling the car on my own (maybe I'll visit him again later in life :rofl: ) It was good incentive to get the car cleaned up and photographed so I can put an add online and sit and wait a little while I'm traveling for work this week.

kombat wrote:
Now, if you had gone to your job instead, you'd have made $2,000. But by taking unpaid time off, you improved your situation by $5,000, for a net "win" of $3,000.

Isn't this a no-brainer?


Funny, I could take a 2-week paid "staycation" and get a $5,000 bonus with all the time off I haven't been able to use this year.

If I can find the usb cable for my camera, I'll get this thing posted tonight!


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 Post subject: Re: Poor Car decision: Need to Eat the costs?
PostPosted: Tue Oct 02, 2012 7:34 pm 

Joined: Sat Feb 25, 2012 9:59 pm
Posts: 9
dontgopoor wrote:
kagraham wrote:
Last December I convinced my wife of a poor financial decision (obvious now) and bought a used BMW for about $30K ($400 monthly pmt). I have always been a huge car fanatic and I really enjoy this vehicle still every time I drive it.


I don't want to put you on the spot, so please pass on this if it's uncomfortable, but would you mind adding a little more about what led you to buy the BMW and then what later led you to realize the mistake?

I'm going to guess that the initial decision was quite emotionally driven, likely caused by marketing that really touched you.

In hindsight, do you think the car purchase was a poor financial decision (i.e., the value or cost of the car was different than what you originally projected) or a poor buying decision that was created by marketing or advertising?

I have done a fair amount of research and it seems that what most consumers call poor financial decisions are really poor consumer / shopping / buying decisions that end up as a financial burden. As opposed to a financial investment (stocks, real estate, business ventures) where the research was sound but that that went bad anyway due to market gyrations contrary to the forecast.


I'm glad you asked, I've been thinking about this a lot lately to help prevent it in the future. I started reating "Millionair Next Door" this weekend and I think it has helped me learn a lot about myself (the non-millionaire type :( )

I do not believe I was largely influenced by marketing or advertising, the vehicle I bought was 3 years used and not regularly advertised to begin with. I contemplated the decision for 5-6 months so it was not impulsive. I bought a RWD powerful car during a snowstorm in Colorado and traded in a 4WD jeep for more than I could have sold it privately here in Oklahoma. I was very aware of the financial implications of my decision at the time. I was unaware of my wife's nursing school enrollment that would happen 10 months later. Basically, I've been obssed with cars since I was 13 years old. I graduated college making 6 figures and held off buying a vehicle for 2 years and basically gave in to my desires.

From what I've read this week, I was likely affected by my proffesion and realized income more than direct commercial marketing (I don't watch TV or listen to the radio anyways). Several of my co-workers have vehicles that I admired and take them to a local road-race track as a hobby and we talked about cars often for fun.

In hindsight, I think it was both a poor financial decision and poor buying decision. The value or cost of the car was as expected and reasonable. However, the cost of not investing those same $$$ is likely great. I would say I made an "unenlightened" buying decision. I didn't understand how committed in all aspects of buying and finances we must be as a family to reach the financial independance (wealth) that we desire. At the time, I had no debt except our home (we owe about 75% on a 15 yr note). I didn't know what it fealt like to have debt on a depreciating asset. I hadn't realized the opportunity costs of making car payments before. I think I saw it as a reasonable "investment" in my own happiness or comfort.

That's a wordy way of answering your inquiry.


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 Post subject: Re: Poor Car decision: Need to Eat the costs?
PostPosted: Wed Oct 03, 2012 4:34 am 

Joined: Tue Mar 11, 2008 12:19 pm
Posts: 1687
Location: Ottawa, Canada
kagraham wrote:
I work a lot, have a newborn, and my wife is in full-time nursing school. My job includes being on call answering phone calls and emails 24/7 365, I wake up and work 2-3 times a night, 5/7 nights.


I don't mean to be rude, but if your wife was still in school full-time, and you're swamped with work, why did you have a baby? Who did you think was going to take care of it?


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 Post subject: Re: Poor Car decision: Need to Eat the costs?
PostPosted: Fri Oct 05, 2012 6:27 pm 

Joined: Sat Feb 25, 2012 9:59 pm
Posts: 9
We had a baby because my wife got pregnant. It was best thing that ever happened to us.

When that happened, she wasn't in school, and my job was not as demanding. My entire family lives in town and her mother stays at the house often to help watch Paul. The thinking was more along, "well I'll try nursing school now, but if it's too much I'll quit, no big deal". We're in the process of hiring for a new role at work that will replace my "on-call" duties at work which will be a game changer.


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 Post subject: Re: Poor Car decision: Need to Eat the costs?
PostPosted: Mon Oct 08, 2012 7:31 am 

Joined: Mon Jul 30, 2012 3:59 pm
Posts: 29
I shared a link on my G+ page on advice and inside info on how to buy a car - it's here:

https://plus.google.com/u/0/b/113845064648789465859/113845064648789465859/posts


Great advice on how to buy a car. Follow the money.

_________________
www.dontgopoor.com
SOLD: Don't Go Poor and Miserable Being Sold Happiness - teaching consumers how to buy


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