I really want a car but don't need one: Please help

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kurious
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I really want a car but don't need one: Please help

Post by kurious »

Hello Bogleheads,

Thank you in advance for your inputs.

DW and I are new drivers in our mid 30s. I really want to buy a newish Civic or Corolla but have no need for it (DW is hesitant to use that big an amount for a want). I need your help to decide whether to suppress my want or fulfill it and how.

- We live in Boston close to a train station and can use Uber/Lyft when needed. Anywhere we want to get to in the city is easily covered with these options.
- We have never owned a car previously. I really enjoy driving.
- A car will help me drive for pleasure on long rides. That is the only use we will have for it.
- I tried using ZipCar and it easily costs ~150/day for a long trip. It's easy to spend 300-500/month with only 3-4 days of driving. At that price point, I am curious why owning a car isn't a better option.
- We rent and have access to street parking only. So snow shoveling and moving the car during street cleaning days will be overheads
- Our NW is 500k+, no debts except credit cards that we pay in full every month, and we rent with no intentions of buying at this time
- Finally, I cannot bring myself to spend 15k-20k on a newish Civic or Corolla and miss out on the gains (or losses) of simply VTIing that amount.

Questions:

1. Should we buy a car?
2. If we buy, should we pay all cash? We can afford to but I have behavioral issue with spending that kind of money on a luxury at one go. Should we look for cheap financing instead and make monthly payments? We are foreign nationals and will likely leave the country in the next 2-3 years. The intent is to sell the car when we leave.
3. Does leasing make any sense at all?
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sapphire96
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Re: I really want a car but don't need one: Please help

Post by sapphire96 »

It sounds like you are in good shape financially. If you do decide to get a newish vehicle (3 or 4 years old, when the biggest year-over-year depreciation has past), a good rule of thumb is 20/3/8 (from the Money Guy show)...

20% downpayment.
No more than 3 year financing term.
Monthly payment no more than 8% of your monthly income.
Your monthly investment contributions (IRAs, 401(k)s, etc.) is more than your car payment.
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RickBoglehead
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Re: I really want a car but don't need one: Please help

Post by RickBoglehead »

1) Yes
2) No. Get a low rate.
3) No
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Da5id
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Re: I really want a car but don't need one: Please help

Post by Da5id »

I'd listen to DW. Cars are a pain in the city. Winter parking in Boston is still often difficult, and people get very possessive about "their" spot on the street. And the expense of a car is really quite high, between purchase cost (and cost of that money), depreciation, maintenance, gas, and insurance. I'd wait until it is an obvious win over Uber/ZipCar/T/trains. I lived in the Boston suburbs near the red line for years without a car, even after I could easily afford one, seemed like a good choice to me.

If you decide you want one, maybe waiting a bit is a good choice anyway. The chip shortage has caused new and used cars to be harder/more expensive to source. So maybe hold out a year?
Topic Author
kurious
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Re: I really want a car but don't need one: Please help

Post by kurious »

a good rule of thumb is 20/3/8 (from the Money Guy show)
This is a very useful metric! Thank you.
So maybe hold out a year?
Yeah, that'd be the right thing to do. It's just that I am very tempted to give in to my temptation on this one having held myself back for a long time. It is also entirely possible that I will regret buying it given all the hassles and once the novelty wears off. I know what the right thing to do is but don't want to do it for this instance :twisted: . Having said that, I will keep looking until I find something acceptable in my price range.
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Watty
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Re: I really want a car but don't need one: Please help

Post by Watty »

kurious wrote: Mon Aug 02, 2021 9:53 pm - Finally, I cannot bring myself to spend 15k-20k on a newish Civic or Corolla and miss out on the gains (or losses) of simply VTIing that amount.
Used car prices are crazy now, I sold a three year old Corolla a few months ago for more than I paid for it when it was new. Even in normal times many people buy now Hondas and Toyotas instead of late model used Hondas and Toyotas. If you are thinking about buying something like that then it would likely make sense to buy a new one.

One thing to look into is how much car insurance will cost. Since you are new drivers that could be very expensive. Be sure to get high limits since you have significant assets.

After seeing how much the car insurance will cost renting may look a lot better if that includes good insurance too.
kurious wrote: Mon Aug 02, 2021 9:53 pm I tried using ZipCar and it easily costs ~150/day for a long trip. It's easy to spend 300-500/month with only 3-4 days of driving. At that price point, I am curious why owning a car isn't a better option.
When you look at long trips look at normal rental car companies.
sailaway
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Re: I really want a car but don't need one: Please help

Post by sailaway »

I think you are underestimating how much of a PITA the street parking will be.

I think I would wait a while to see if the rental market returns to the old normal.
student
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Re: I really want a car but don't need one: Please help

Post by student »

If it is not for the street parking, I would say yes. Financially, here is my rule of thumb, spend no more than 1/3 of one's salary.
tibbitts
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Re: I really want a car but don't need one: Please help

Post by tibbitts »

The street parking might tip this in favor of not getting a car.
123
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Re: I really want a car but don't need one: Please help

Post by 123 »

tibbitts wrote: Mon Aug 02, 2021 11:23 pm The street parking might tip this in favor of not getting a car.
+ 1 And street parking situations inevitably involve a certain amount of vandalism or hit-and-run bumps in the middle of the night.

I was in a similar situation some years back after I did a relocation and car rental rates were more normal. For a number of months we just rented a car for short periods when we planned to go out of town.
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celia
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Re: I really want a car but don't need one: Please help

Post by celia »

What’s the back story behind you and your wife leaning how to drive? Do you both have driver licenses now?

Do you have kids to drop off at day care or school?

Have you been buying large bulky items that you can’t take on public transportation?
Topic Author
kurious
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Re: I really want a car but don't need one: Please help

Post by kurious »

What’s the back story behind you and your wife leaning how to drive? Do you both have driver licenses now?
We have wanted to do it for several years but it did not make it high enough to our priority list until last year. Then two things happened:

- When COVID struck andd we got locked in for a year, we realized life is uncertain and it is important to live our desired experiences.
- Our job and financial situation veered towards a semblance of stability.
Do you have kids to drop off at day care or school?
\
Not yet. We're hoping to have a child in the next year or two.
Have you been buying large bulky items that you can’t take on public transportation?
No. We almost never buy anything that can't be transported via uber/lyft/public transport.
Williams57
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Re: I really want a car but don't need one: Please help

Post by Williams57 »

Not really answering your question here, but have you considered an electric vehicle? You may be able to get a nice discount/tax credit. May be a good choice for urban living. Fast charging is pretty commonplace now in major cities.
Hamberders
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Re: I really want a car but don't need one: Please help

Post by Hamberders »

You should consider leasing a car to minimize the opportunity cost of paying a huge sum of cash for a car purchase instead of VTIing it
Doctor Rhythm
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Re: I really want a car but don't need one: Please help

Post by Doctor Rhythm »

Normally, I would be very much against a lease, but the salient point of your post is:
We are foreign nationals and will likely leave the country in the next 2-3 years. The intent is to sell the car when we leave.
In this case, whether you buy with cash, finance, or lease, you’re paying for the large, early depreciation costs without getting the benefit of amortizing the vehicle’s price over many years of ownership. A lightly used car is generally a better financial choice, though I’m not sure that applies in the current market.
grok87
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Re: I really want a car but don't need one: Please help

Post by grok87 »

i would get the car. get out of boston. explore new england.
think ahead a couple of years when you have left the USA. you are probably going to wish you had explored more.

cheers,
grok
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Armani
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Re: I really want a car but don't need one: Please help

Post by Armani »

Get a Bentley.
bloom2708
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Re: I really want a car but don't need one: Please help

Post by bloom2708 »

People buy starter homes.

Buy a starter car.

5-10 years old. 75k miles. With city street parking a new car or lease will take a beating.

Boston rain. Snow.

Spend less and see how you use it. Yes. Cars are high right now but there are private party deals out there.
invest4
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Re: I really want a car but don't need one: Please help

Post by invest4 »

[/quote]
sailaway wrote: Mon Aug 02, 2021 10:18 pm I think you are underestimating how much of a PITA the street parking will be.

I think I would wait a while to see if the rental market returns to the old normal.
Agreed.

If you still decide to buy...reliable used car all the way.
4nursebee
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Re: I really want a car but don't need one: Please help

Post by 4nursebee »

kurious wrote: Mon Aug 02, 2021 9:53 pm Hello Bogleheads,

Thank you in advance for your inputs.

DW and I are new drivers in our mid 30s. I really want to buy a newish Civic or Corolla but have no need for it (DW is hesitant to use that big an amount for a want). I need your help to decide whether to suppress my want or fulfill it and how.

- We live in Boston close to a train station and can use Uber/Lyft when needed. Anywhere we want to get to in the city is easily covered with these options.
- We have never owned a car previously. I really enjoy driving.
- A car will help me drive for pleasure on long rides. That is the only use we will have for it.

If you enjoy driving for pleasure, and pleasure is why you are considering buying a car, then think outside the box. Clearly money is an issue for you, as evidenced by bringing this topic here. Perhaps get a job driving a cab or a greyhound bus. You will get to drive a lot, even long distances, and you will get paid. Pleasure for a profit!
- I tried using ZipCar and it easily costs ~150/day for a long trip. It's easy to spend 300-500/month with only 3-4 days of driving. At that price point, I am curious why owning a car isn't a better option.
- We rent and have access to street parking only. So snow shoveling and moving the car during street cleaning days will be overheads

If someone else owns the pleasurable vehicle you get paid to drive, they have to deal with parking and snow shovelling! SOLVED!
- Our NW is 500k+, no debts except credit cards that we pay in full every month, and we rent with no intentions of buying at this time
- Finally, I cannot bring myself to spend 15k-20k on a newish Civic or Corolla and miss out on the gains (or losses) of simply VTIing that amount.

This idea allows you to grow your net worth by VTIing more.

Questions:

1. Should we buy a car?
2. If we buy, should we pay all cash? We can afford to but I have behavioral issue with spending that kind of money on a luxury at one go. Should we look for cheap financing instead and make monthly payments? We are foreign nationals and will likely leave the country in the next 2-3 years. The intent is to sell the car when we leave.
3. Does leasing make any sense at all?
How have you solved such massive decisions in the past? What do you currently rent vs own now? How much is your rent, could you not go live in a tent and save a lot more money, shower at the health club?

If I were to only live in this great country a few more years, I'd get a better car than a Civic/Corolla and go hit the road big time. But that is my value judgement.
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Re: I really want a car but don't need one: Please help

Post by Jack FFR1846 »

You really don't want a car. I know Boston. I'll tell you why.

You're complaining about $500 a month with Zip Car. Owning even a Civic will cost you more than this, all in every month.

A fraternity will decide that one night is "break all the mirrors night" and you'll come out to a broken mirror on your car. (happened to me, just visiting)

In the winter, you will need snow tires. Do you have storage area to keep the summer tires?

In the winter, after 4 days of 8 inches a night, your car will have mysterious new body work that curiously looks like snow plow damage.

In the winter, after deciding that a weekend skiing in Vermont sounds nice, you return home and find that if there are any parking spaces, you will have to shovel 8 feet high snow banks because all the surrounding parkers have thrown the snow there.

Have you priced everything out? You'll pay sales tax once, but exise tax every year and a Boston on street parking pass every year.

Did you know that Boston designates a day either every week or every other week to street sweep and you have to find another place for your car? Forget and they tow your car. Another $300 cost for you.

Why are you paying for a zip car for long trips when you could have Enterprise pick you up and then rent one from them (in normal times) for $29 a day?

What about Turo? Rent a car from an owner when you want to go on a longer trip and get a much cooler car than zip car provides. Want a Camaro convertible or even a Maserati without the headache of owning a car? Just do a Turo rental. Boston is the center in New England for tons of cars.

If you had offstreet, in garage, safe parking, I'd say go ahead and buy a cool, fun car (Miata Is Always The Answer). It could be a starter car on the way to a Porsche or Ferrari. But your thoughts that on street parking is easy or no big deal are wrong. You will be very unhappy with all the surprises and hassles a car in town provide.


When you have much more money and decide to move to Sudbury, go ahead and peruse the cars at the Land Rover dealer and the BMW across the street (peak in the windows at the Lamborghini dealer). Herb will smile and wave. Until then....no.
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michaeljc70
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Re: I really want a car but don't need one: Please help

Post by michaeljc70 »

I don't know if you should buy a car, but for your use case I don't see why you would by one right now which seems the worst possible time pricewise. We bought a used car 6 weeks ago and probably paid 20-30% more than we would have a year prior, but we needed to replace a car and couldn't wait.

Although we frequently used Lyft/Uber pre-Covid, in the last year in our big city the prices have been crazy so we are glad we have a car. I expect they will stabilize in the next few months though.
carolc
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Re: I really want a car but don't need one: Please help

Post by carolc »

Get the car! Take day trips. Get a storage unit (or garage spot) for the snowiest of the winter months. Life is short; get out and see the sights.

carolc
chiliagon
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Re: I really want a car but don't need one: Please help

Post by chiliagon »

If you have over 500 k, you can absolutely buy a new car for your wife and you. And, in my opinion, you shouldn't feel an ounce of guilt over it. Some things are worth doing because they make your life better, even if they are a financial loss. This strikes me as one of those things. Having a car brings a certain degree of freedom that is nice.

I don't know the street parking situation in Boston, but I've done street parking for 20 years in DC and Philly and never had a problem with it. Yes, you have to be patient sometimes with driving around until you find a spot. Also, my car was broken into once a few years ago. But, then again, it's not like the people with driveways were any better off on that occasion: over 100 cars in my neighborhood were broken into that night, with some cars in driveways and some on the streets. You will have to shovel snow sometimes, and yes, you will almost always lose the spot that you shoveled out to someone else while you have been out driving. But guess what? There will be spots open that other people have shoveled out, and you can take one of those. It's not wrong to do so. It's just part of city living.
Afty
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Re: I really want a car but don't need one: Please help

Post by Afty »

I used to live in Boston (well, Somerville), and had a car. It was a pain in the butt for many of the reasons mentioned here. I’ll throw out a few more:

* Driving in Boston is just the worst. The drivers are aggressive and rude, there’s traffic at all hours of the day, and the roads are falling apart because of the winters. If your goal is to own a car for fun, this isn’t the place to do that.
* The salt from the winters plus damage from street parking will ruin a car fast. When people parallel park, they treat it like bumper cars where you’re supposed to bump the cars in front of and behind you. Then there’s random hit-and-run damage; my car was hit while parked and had several thousands of dollars worth of damage. I would never own a nice car while living in Boston.
* You’ll get parking tickets. Many of the surrounding towns collect a large fraction of their revenue from parking tickets, so they’re not exactly incentivized to make the rules easy to follow.
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cchrissyy
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Re: I really want a car but don't need one: Please help

Post by cchrissyy »

You can easily afford it if you want to.

But I agree that renting fits your needs and minimizes stress. Instead of all this talk of snow, damage, taxes, and parking, you could focus on the fun part, just occasionally having a car for the weekend. And you can try different ones each time!

So give yourself permission to spend as much on renting as you would have on buying. You can afford that too! And it fits your 2-3 years timeframe better.
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02nz
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Re: I really want a car but don't need one: Please help

Post by 02nz »

500K in net worth for a couple in their mid-30s is very good - but not so good that you can start making big purchases you don't need without taking a significant hit to your finances. And in this case there's clearly no need for a car, more hassle than it's worth even aside from the finances. This one is a no-brainer to me.
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galawdawg
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Re: I really want a car but don't need one: Please help

Post by galawdawg »

No real need for one.
Would generally use it very infrequently for long pleasure trips.
No off-street parking unless in an expensive long-term garage.
Street parking is very limited and difficult in winter weather (which you have a lot of).
Most transportation needs are easily met by Uber/Lyft/Transit and other options.
Foreign nationals leaving the US in two to three years.
Wife doesn't really want one.

So my recommendation is a firm "no". Use ZipCar for those rare instances that you might need a car locally. For long multi-day trips, rent a car. Even if you rent a car six times a year for a week, you'll come out way ahead on all of the monthly ownership costs or leasing costs if you get your own vehicle, plus you don't have the street parking hassle/damage factors. The annual cost of car insurance alone that you won't need to buy will pay for a few, if not all, of those road trip rentals.
JackoC
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Re: I really want a car but don't need one: Please help

Post by JackoC »

I live in a dense urban area, denser than Boston. It's NY area so also snow though less, one of my kids lived in Boston with a car so I have some basis for comparison: fairly similar. It's a truism AFAIK that a decent car will cost you more than not having one but renting as you need it, in places where you can walk/public transit to the vast majority of places you actually need to (as oppose to want to) go. However, part of that will be that you don't take that marginal trip because it's costing marginal $'s for the rental/Uber, not justifying $'s already sunk into own car. And your time to deal with rentals (though diminished, in addition to Enterprise picking you up there are rental cars parked on street in our neighborhood, you do a phone app thing to unlock them).

We 'need' zero cars but have two, one of which we pay to garage indoors, other is on street. Some people would find street parking here an intense hassle but we're used to it. Vandalism was mentioned and more true in my kids' old neighborhood in Boston than ours in NJ right next to NYC, but could also be different in OP's particular neighborhood. But car will get dinged and scratched in the normal course of parallel parking in front/behind, traffic squeezing past doubled parked car opposite, etc. We used to have hair trigger towing here even for leaving the car during street cleaning hour but they've backed off in recent years, now you'll get a $50 ticket every once in a while for that (I'm pretty detail oriented and can't achieve 100% avoidance of those tickets), towing still possible if they put up a temporary no parking sign *after* you park legally (though they'll try to call first if you're a resident in the permit system). But I think that whole aspect has to be a experienced in a particular place to be evaluated. If the person is not thinking of the hassle factor whatsoever, the list above would be a useful introduction.

The financial aspect is more standard with the standard opinions on the forum I don't have any strong opinion about. Neither of our cars are strictly 'necessary' but not significant to us financially either.
N.Y.Cab
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Re: I really want a car but don't need one: Please help

Post by N.Y.Cab »

I’ll vote on buying a car. Living 4 blocks from a train station that is 5 minutes to downtown, we too don’t need a car but enjoy driving cross town on weekends. We do skimp a bit by parking 2 blocks away instead of renting the basement space at twice the monthly rate. With only a couple of years from retiring to a farm, we try to cram as much experience of the city as possible. The extra expense did not prevent us from reaching our number.
esqu1re
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Re: I really want a car but don't need one: Please help

Post by esqu1re »

If you enjoy driving, I'm not sure a corolla is the best choice. It is a safe choice though as it will be reliable.

I dont think this will put it over to the "need" category, but having a car fueled up on standby allows you to escape the city in the unlikely event you need to without being reliant on public, commercial or ride share.

IMO, that and the fact you enjoy driving is justification enough.
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MJS
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Re: I really want a car but don't need one: Please help

Post by MJS »

Play weekly with rental cars until spring. Try different makes & models - you may fall in love with a Kia hatchback or Ford truck; right now you don't know what fits you. Rent on a Thursday night, and really see what street parking is like. In winter, take transit out to the suburbs, and practice winter driving where it's not downtown Boston or week day traffic until you have snow expertise. Spend time finding fun places to go.

This lets car prices go down, avoid snow tires, try out different vehicles, get experience with driving that may reduce your insurance, and avoid having a nearly-useless car over a Boston winter.

Enjoy your trips to see the seashore, skiing, Ikea or Costco, fall leaves, Niagra, wineries, hiking & camping, NYC & DC, and everywhere!
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Katietsu
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Re: I really want a car but don't need one: Please help

Post by Katietsu »

A lease seems like a horrible idea. My experience in a northeastern city with street parking would lead me to believe that you could end up with a large charge for damage upon ending the lease. And insurance for someone with a short driver’s record would be huge. I would get a car where dents and bumps would not change the value by a lot.
chiliagon
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Re: I really want a car but don't need one: Please help

Post by chiliagon »

When I wrote my earlier post, I hadn’t seen that the OP was planning on leaving the US in 2-3 years and selling the car then. Once that info is taken into account, I lean “no” on buying a new car or even a used one that is newish. A used one that is old would be fine, but of course at that point it might make more sense just to stick with zip car 3-4 times a month. In any case, good luck to the OP.
econalex
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Re: I really want a car but don't need one: Please help

Post by econalex »

As a "foreign national" (well I prefer the much more nuanced "resident alien" moniker) living in Boson metro, I want to say I can fully appreciate both sides on car ownership. In fact GF and I are moving closer to downtown and will be selling one car. Still I'd say enjoy it while it lasts and get a reasonably used fun car, say BMW 3 series or so.

One thing the domestic bogleheads are missing is: cars are much more expensive in other countries. And by cars I mean gas cars with the decent number of ponies under the hood. So why not get a fun car now to enjoy while he's stateside? And if I assume correctly, OP may not be able to drive the same way in US when he goes back to home country.
njdealguy
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Re: I really want a car but don't need one: Please help

Post by njdealguy »

Given the current used car market with inflated values that can even exceed the normal new car prices, and also given that your looking to only keep the car for 3 years or so, I'd look into LeaseHackr forums for the best deals available now for car leases. I think the only decent deals to be had now are on electric cars (like chevy bolt, nissan leaf, etc) if you have abillity to charge it easily where you are.

I'm only suggesting looking into leasing because of the current climate where the costs might end up being similar or cost even more between buying a used car to resell 3 years later with its depreciation/repair/maintenance costs. Before turning in the lease your car might be worth even more than the end of lease payoff amount in which case you can sell it to a car buying service like Carvana/Vroom.

For reference I took a lease for an Audi Etron back in March with MSRP of 76k for which the discounts and incentives brought the purchase price for which the lease is based on down to 52k. The residual or payoff amount after 3 years based on 12k miles per year is 34k, and my monthly payment is $500. Just to see I did have an offer just a few days after I started the lease from Carvana for 57k so if I wanted to could have made an immediate profit in this super crazy market!

Finally am not saying that leasing is necessarily the way to go, but to at least look into all options and weigh the cost differences before deciding rather than automatically ruling out leasing.
MathWizard
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Re: I really want a car but don't need one: Please help

Post by MathWizard »

Don't buy a new/newish car and park it on the street.
In the winter, after 4 days of 8 inches a night, your car will have mysterious new body work that curiously looks like snow plow damage.

In the winter, after deciding that a weekend skiing in Vermont sounds nice, you return home and find that if there are any parking spaces, you will have to shovel 8 feet high snow banks because all the surrounding parkers have thrown the snow there.
Glad I wasn't drinking coffee when I read this. :thumbsup
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quantAndHold
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Re: I really want a car but don't need one: Please help

Post by quantAndHold »

If you don't need the car to get to work, financially, it's unlikely you'll come out anywhere except behind by owning. But that doesn't mean you shouldn't do it. If your financial house is in order, which it sounds like it is, and you want a car, I see no reason not to do it.

How much does garage parking cost? You should figure that into your cost. You will be frustrated by street parking really quickly, especially in the winter. So much nicer to just know where you're going to park when you get home late. And to not have to clean the snow and ice off the car in the morning.
Dilbydog
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Re: I really want a car but don't need one: Please help

Post by Dilbydog »

If you’re just looking to scratch the driving itch, and looking at some longer trips, why not just rent? Lease Trader maybe another option with your shorter timeline. Be prepared for the “fun” of driving to wear off, while I enjoy track days, daily driving has become a chore.
Minty
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Re: I really want a car but don't need one: Please help

Post by Minty »

I had a car in Boston, even had a (tandem) parking spot, hated it.
Core Four w/ nominal bonds & TIPS. Refi Rampage: Purchase: 3.875% 30 -> R1 3% 20 -> R2 2.375% 15 -> R3 1.99% 15 -> R4 1.875% 15
Big Heart
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Re: I really want a car but don't need one: Please help

Post by Big Heart »

This could be another hard year, what with delta and now this lamda variant. Mental health during a pandemic is worth a lot.

I definitely wouldn't buy a newish car and park it on an urban street though. I'd get a 10-year old car that's super reliable (honda, mazda, toyota etc.)
Last edited by Big Heart on Tue Oct 05, 2021 11:00 am, edited 1 time in total.
Neus
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Re: I really want a car but don't need one: Please help

Post by Neus »

Many people buy a car just to show them in their yard

So why not if you can afford it

Currently interest rate is low, so it’s better to get a 3 years car loan
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lthenderson
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Re: I really want a car but don't need one: Please help

Post by lthenderson »

chiliagon wrote: Tue Aug 03, 2021 9:42 am If you have over 500 k, you can absolutely buy a new car for your wife and you.
The OP didn't say but what happens if the 500k in net worth is the result of a 400k of property in upstate New York that they inherited and 100k in an IRA and their annual salary is only 40k barely covering rent and utilities in Boston? Can they afford it then? Hard to say without more detailed financials which the OP hasn't provided.

OP

How vain are you about vehicles?
Do dents bother you?
Does bird poop bother you?
Does a nice coat of green pollen bother you?
Does splashed on mud/slush bother you?
You can usually tell which street parked cars don't get used often just by how they look.
reln
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Re: I really want a car but don't need one: Please help

Post by reln »

Da5id wrote: Mon Aug 02, 2021 10:10 pm I'd listen to DW.
+1 listen to your DW.
fasteddie911
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Re: I really want a car but don't need one: Please help

Post by fasteddie911 »

Street parking, street cleaning and snow plowing/removal are a pain, plus the car just being exposed to the elements. Also you may not drive it much during the winter months anyway. I'd continue renting, zipcar or turo to scratch that itch. Either the itch will fade or you may eventually move to a different living situation that works better for car ownership and you can even get a fun car.
jharkin
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Re: I really want a car but don't need one: Please help

Post by jharkin »

500k NW at 30???

Yes, you can absolutely afford a Honda Civic. You can afford an Accord. Heck you can afford a Lexus if you wanted it.

Given the cost of zipcars I agree that buying makes sense, my only hesitation in your shows would be the headache of finding parking when it snows. I wouldn't worry about the sunk cost, the way Honda's and Toyota's hold their value these days you will buy it and then get 80% back when you sell in 3 years....
Lars_2013
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Re: I really want a car but don't need one: Please help

Post by Lars_2013 »

I wouldn't deal with the hassle of ownership, but I would explore using Turo or other peer-to-peer car rental options for day trips / weekend trips. I've used Turo and it's somewhere between zipcar and traditional car rental in terms of hassle (you have to take a bunch of photos of the car when you're done, but there's no going to the rental office and signing mounds of papers). Zipcar isn't an option in my area, but even if it was, I think Turo is likely cheaper than zipcar (and you can pick the particular type of car that you want to drive).

Since it sounds like you enjoy driving, Turo has the additional advantage that you can have fun trying out driving a bunch of different types of cars. For example, looking at my local area for cars available for next Saturday, I'm not a car person, so I'd rent the Kia Rio for $31, but you could pick the Mustang convertible for $95 or the Tesla for $130. Or the Polaris Slingshot (is that even a car?) for $218 (plus $15/helmet rental fee).
hudson
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Re: I really want a car but don't need one: Please help

Post by hudson »

kurious wrote: Mon Aug 02, 2021 9:53 pm Hello Bogleheads,

Thank you in advance for your inputs.

DW and I are new drivers in our mid 30s. I really want to buy a newish Civic or Corolla but have no need for it (DW is hesitant to use that big an amount for a want). I need your help to decide whether to suppress my want or fulfill it and how.

- We live in Boston close to a train station and can use Uber/Lyft when needed. Anywhere we want to get to in the city is easily covered with these options.
- We have never owned a car previously. I really enjoy driving.
- A car will help me drive for pleasure on long rides. That is the only use we will have for it.
- I tried using ZipCar and it easily costs ~150/day for a long trip. It's easy to spend 300-500/month with only 3-4 days of driving. At that price point, I am curious why owning a car isn't a better option.
- We rent and have access to street parking only. So snow shoveling and moving the car during street cleaning days will be overheads
- Our NW is 500k+, no debts except credit cards that we pay in full every month, and we rent with no intentions of buying at this time
- Finally, I cannot bring myself to spend 15k-20k on a newish Civic or Corolla and miss out on the gains (or losses) of simply VTIing that amount.

Questions:

1. Should we buy a car?
2. If we buy, should we pay all cash? We can afford to but I have behavioral issue with spending that kind of money on a luxury at one go. Should we look for cheap financing instead and make monthly payments? We are foreign nationals and will likely leave the country in the next 2-3 years. The intent is to sell the car when we leave.
3. Does leasing make any sense at all?
If I was in your shoes, I would get a car. I don't understand city street parking as I live in a rural area. I also shy away from city driving in ice and snow...but not out in the backcountry.
I can only guess what a ZipCar is, but that would likely be cheaper than buying. I wouldn't let that stop me.
Leasing could makes sense if you know how to do the math and negotiate...maybe look at James Bragg's Fighting Chance website. I use Bragg's coaching/auto information service whenever I buy a new car. He also coaches folks are interested in leasing.

Pay Cash? I always do because I hate monthly payments; paying interest gives me heartburn.
conservativeinvestor
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Re: I really want a car but don't need one: Please help

Post by conservativeinvestor »

I also love to drive and can understand how it would be enjoyable to own your own car, plus the seemingly additional freedom you would get from it.

But I also had to temporarily deal with street parking and hated it. When they would sweep the street each week they would close one side one day and the other side was closed another day it felt like a constant battle trying to find a spot and moving your car from one side to the other side. Shoveling snow out of a spot and having to block it off so someone wouldn't take the spot you worked so hard to clear out was also a huge pain and technically wasn't allowed but i'm not about shoveling snow for the whole street.

One of the requirements when we moved was offstreet parking. I'm not sure street parking for just a "fun" car would be worth the hassle.
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galawdawg
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Re: I really want a car but don't need one: Please help

Post by galawdawg »

One of the pluses of renting a car for out of the city travel when the OP needs to "scratch that itch" is that OP can use some of that money he saved from NOT owning a car to splurge on an exotic or luxury car. Nothing like renting a Lamborghini, Ferrari, Bentley or similar vehicle for that long weekend in the country! Even a supercharged Corvette Stingray Z06 would be great fun for the OP and his wife!
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