Do I have too much money tied up in my dream car?

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Topic Author
88turnip
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Do I have too much money tied up in my dream car?

Post by 88turnip »

Last year, I sort of FOMO'd into buying my dream car (Honda S2000) which I purchased for $40k cash. At the time, that was the majority of my cash in savings and while I cringed at the thought of rebuilding my emergency funds over the next 6-12 months, the pain was overshadowed by how happy and proud of myself that I was able to save up & finally own it.

Fast-forward to today, the car currently sits at my parent's garage where it only occasionally gets driven on nice weather days (last year, I only drove it 2k miles). I don't own a house at the moment and instead live in a 1 bedroom apartment with my s/o. For daily driving, I drive an old Camry with 150k+ miles on it 2 to 3 times a week as I have a hybrid WFH schedule.

My inner dilemma is: While the car still makes me happy whenever I do get the chance to drive it, the frugal part of me sometimes wishes I had bought a bit cheaper, less nice of an example so that I wouldn't feel so irresponsible/guity about having such a large amount tied up in what is essentially a 100% luxury purchase. Sometimes I end up laying in bed thinking about how I "should" have bought a house first before a nice car / could have saved that money for said down payment on a house (even though I have no intentions/thoughts of purchasing a home yet), or how much that sum would grow to in 30 years due to compound interest, etc., which if I'm being honest makes me have second thoughts about my ownership of the car even though I still love it.

I guess my question is: Should I take comfort in my current financial situation (details below) and just enjoy having my impractical dream car for a while, while I'm still relatively young (late twenties) and obligation-free? Or should I give some thought as to selling the car if I continue to not drive it that often over the next year and instead allocate the funds toward something more 'financially prudent'? (e.g. future house downpayment). I do often struggle with balancing between the save early, save aggressive to afford yourself more options in the future mentality vs. the "life is short, enjoy it/you only live once" mentality. Thanks in advance for all your perspectives.

Snapshot of my finances:

- Salary: 100k w/ year-end bonus of 10-15%

- Cash / Emergency Fund: 22k

- Retirement savings (401k/roth/hsa): 234k (I max out all 3 accts. each year)

- Brokerage account: $29k

- No debt

Monthly expenses:

- Rent/utilities: $1,000
- Parking (work): $100
- Groceries: $250
- Gas: $120
- Cell phone bill: $50
- Car Insurance (both cars): $150
- Car maintenance (sinking fund): $120
- Yearly contact lenses (sinking fund): $50
- Subscriptions: $13

Total: $1,840

Discretionary spending:
- Apart from spending on traveling a few times a year, the only other major discretionary spending i do is eating out which I haven't really been tracking too closely. My s/o & I enjoy checking out different restaurants/spots to eat and will often do this 2 to 3 times a week with me often paying the bill for both us (last month I spent ~$450, however this amount varies month to month. I should probably try to cut down some though.)

In term of goals, I really would like to be able to early retire someday (ideally somewhere between my late thirties to mid forties), or at least build up retirement savings enough up to a point where I can transition to a lower paying career that I'm passionate about (if I so choose).
Last edited by 88turnip on Mon Jun 27, 2022 6:28 pm, edited 4 times in total.
WhiteMaxima
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Re: Do I have too much money tied up in my dream car?

Post by WhiteMaxima »

$40k for a used s2000? Try a low mileage used Mazda MX5. Will cost you less than $15k and same much fun to drive.
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retired@50
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Re: Do I have too much money tied up in my dream car?

Post by retired@50 »

I think you should drive the S2000 all summer long, everyday, and have some fun with it. Then, garage it over the winter, and see how you feel next spring. If you don't want to drive it again next spring, sell it in the springtime, when convertibles will fetch the highest dollar.

For what it's worth, I owned a convertible (second car) for 11 years and I loved it for most of that time. When I got sick of it, I sold it.

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Silk McCue
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Re: Do I have too much money tied up in my dream car?

Post by Silk McCue »

WhiteMaxima wrote: Mon Jun 27, 2022 6:06 pm $40k for a used s2000? Try a low mileage used Mazda MX5. Will cost you less than $15k and same much fun to drive.
Why would they buy someone else’s dream car?

I’m the original owner of a 2005 Honda S2000. The Miata did nothing for me. Others loved it. The heart wants what the heart wants.

I paid 32k or so brand new.

Cheers
poker27
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Re: Do I have too much money tied up in my dream car?

Post by poker27 »

Had a friend who purchased an s2k maybe 7-10 years ago, and maybe put 5k miles on it during all those years, majority of which were driving to a race track. He finally sold it last year when baby #2 came along.

You can obviously afford it. If you enjoy it, keep it, if it’s more of an annoyance, sell it and rent a fun car when needed
mikejuss
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Re: Do I have too much money tied up in my dream car?

Post by mikejuss »

I'm confused as to why you need 2 cars, OP. Sell one of them, and you'll likely appreciate whichever one you keep more.
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Silk McCue
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Re: Do I have too much money tied up in my dream car?

Post by Silk McCue »

mikejuss wrote: Mon Jun 27, 2022 6:21 pm I'm confused as to why you need 2 cars, OP. Sell one of them, and you'll likely appreciate whichever one you keep more.
They didn’t say they needed 2 cars. They don’t want the S2000 for commuting. That is clear from context.

Cheers
mikejuss
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Re: Do I have too much money tied up in my dream car?

Post by mikejuss »

Silk McCue wrote: Mon Jun 27, 2022 6:24 pm
mikejuss wrote: Mon Jun 27, 2022 6:21 pm I'm confused as to why you need 2 cars, OP. Sell one of them, and you'll likely appreciate whichever one you keep more.
They didn’t say they needed 2 cars. They don’t want the S2000 for commuting. That is clear from context.

Cheers
And I'm suggesting: use the S2000 for commuting or sell it.
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Watty
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Re: Do I have too much money tied up in my dream car?

Post by Watty »

Do I have too much money tied up in my dream car?
Yes. With a net worth of around $300K owning a $40K collector car is excessive.

It is that simple.
mega317
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Re: Do I have too much money tied up in my dream car?

Post by mega317 »

88turnip wrote: Mon Jun 27, 2022 6:00 pm feel so irresponsible/guity
laying in bed thinking


You want to feel bad and lose sleep? This is an easy call.
Apathizer
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Re: Do I have too much money tied up in my dream car?

Post by Apathizer »

I have a word for you: rent.

I haven't owned a car in more than a decade. I'm in a situation I don't need one regularly so it's more cost effective to just rent it when I need it.

Research shows spending money on experiences is more effective at generating happiness than buying things. Buying a consumer product only produces fleeting happiness. As humans after we become accustomed to something it's ability to produce happiness diminishes because it becomes just another condition of life.
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lws
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Re: Do I have too much money tied up in my dream car?

Post by lws »

OP:
You already bought the car.
If you really like it keep it.
If not sell the thing.
delamer
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Re: Do I have too much money tied up in my dream car?

Post by delamer »

mikejuss wrote: Mon Jun 27, 2022 6:29 pm
Silk McCue wrote: Mon Jun 27, 2022 6:24 pm
mikejuss wrote: Mon Jun 27, 2022 6:21 pm I'm confused as to why you need 2 cars, OP. Sell one of them, and you'll likely appreciate whichever one you keep more.
They didn’t say they needed 2 cars. They don’t want the S2000 for commuting. That is clear from context.

Cheers
And I'm suggesting: use the S2000 for commuting or sell it.
This is what I don’t get either.

Why can’t the S2000 be a commuter vehicle, at least some of the time? I take it that it isn’t a convertible?
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Big Dog
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Re: Do I have too much money tied up in my dream car?

Post by Big Dog »

In answer to your question, No. But to me, that's the wrong question. Why do you have two cars?
vxdx
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Re: Do I have too much money tied up in my dream car?

Post by vxdx »

You are maxing your advantaged retirement accounts and making a healthy wage and have a sufficient emergency account.

Your car will likely not depreciate too much (if at all) should you choose to sell it.

As long as you still look forward to driving it, you should keep it or it will be a regret in the future. People who don’t get the enjoyment of driving a sports car will tell you it’s not worth it, but you should spend your money on those things that bring you enjoyment.
Last edited by vxdx on Mon Jun 27, 2022 7:07 pm, edited 1 time in total.
Topic Author
88turnip
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Re: Do I have too much money tied up in my dream car?

Post by 88turnip »

delamer wrote: Mon Jun 27, 2022 6:59 pm
mikejuss wrote: Mon Jun 27, 2022 6:29 pm
Silk McCue wrote: Mon Jun 27, 2022 6:24 pm
mikejuss wrote: Mon Jun 27, 2022 6:21 pm I'm confused as to why you need 2 cars, OP. Sell one of them, and you'll likely appreciate whichever one you keep more.
They didn’t say they needed 2 cars. They don’t want the S2000 for commuting. That is clear from context.

Cheers
And I'm suggesting: use the S2000 for commuting or sell it.
This is what I don’t get either.

Why can’t the S2000 be a commuter vehicle, at least some of the time? I take it that it isn’t a convertible?
I'm only allowed to park one car at my apartment complex's parking deck. Seeing the way other renters drive in the parking garage, I'm not willing to risk any damages to the S2000 by parking there. Also, I bought the car with the intention to really only use it as a weekend/nice weather car as I appreciate it more that way when I'm not driving it all the time
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88turnip
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Re: Do I have too much money tied up in my dream car?

Post by 88turnip »

Big Dog wrote: Mon Jun 27, 2022 6:59 pm In answer to your question, No. But to me, that's the wrong question. Why do you have two cars?
I have no need for a second car, but I really wanted the S2000 as it is my dream car. :happy I enjoy cars and being able to take it out for drives on weekends/nice weather days when I'm able to is a pleasure for me
stoptothink
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Re: Do I have too much money tied up in my dream car?

Post by stoptothink »

Apathizer wrote: Mon Jun 27, 2022 6:54 pm I have a word for you: rent.

I haven't owned a car in more than a decade. I'm in a situation I don't need one regularly so it's more cost effective to just rent it when I need it.

Research shows spending money on experiences is more effective at generating happiness than buying things. Buying a consumer product only produces fleeting happiness. As humans after we become accustomed to something it's ability to produce happiness diminishes because it becomes just another condition of life.
Ohhh, this again. I wish people would actually examine the "research" before repeating this adage - it's hardly objective. Maybe the "experience" of driving the S2k on a mountain road is the thing that gives OP "real lasting happiness" - who are you to tell someone else what makes them fulfilled?

FWIW, I think OP does have too much :moneybag tied up in a summer fun car considering their financial situation.
mikejuss
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Re: Do I have too much money tied up in my dream car?

Post by mikejuss »

88turnip wrote: Mon Jun 27, 2022 7:03 pm
delamer wrote: Mon Jun 27, 2022 6:59 pm
mikejuss wrote: Mon Jun 27, 2022 6:29 pm
Silk McCue wrote: Mon Jun 27, 2022 6:24 pm
mikejuss wrote: Mon Jun 27, 2022 6:21 pm I'm confused as to why you need 2 cars, OP. Sell one of them, and you'll likely appreciate whichever one you keep more.
They didn’t say they needed 2 cars. They don’t want the S2000 for commuting. That is clear from context.

Cheers
And I'm suggesting: use the S2000 for commuting or sell it.
This is what I don’t get either.

Why can’t the S2000 be a commuter vehicle, at least some of the time? I take it that it isn’t a convertible?
I'm only allowed to park one car at my apartment complex's parking deck. Seeing the way other renters drive in the parking garage, I'm not willing to risk any damages to the S2000 by parking there. Also, I bought the car with the intention to really only use it as a weekend/nice weather car as I appreciate it more that way when I'm not driving it all the time
It sounds like you probably should sell it, if you don't plan on using it much.
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bradinsky
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Re: Do I have too much money tied up in my dream car?

Post by bradinsky »

The decision probably should be between you & your significant other. What the people here think is pretty much irrelevant. Personally, I’d try to use it as much as possible across this summer & into fall. If you want to sell after that, do as retired@50 suggested & sell it next spring.
Apathizer
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Re: Do I have too much money tied up in my dream car?

Post by Apathizer »

stoptothink wrote: Mon Jun 27, 2022 7:17 pm
Apathizer wrote: Mon Jun 27, 2022 6:54 pm I have a word for you: rent.

I haven't owned a car in more than a decade. I'm in a situation I don't need one regularly so it's more cost effective to just rent it when I need it.

Research shows spending money on experiences is more effective at generating happiness than buying things. Buying a consumer product only produces fleeting happiness. As humans after we become accustomed to something it's ability to produce happiness diminishes because it becomes just another condition of life.
Ohhh, this again. I wish people would actually examine the "research" before repeating this adage - it's hardly objective. Maybe the "experience" of driving the S2k on a mountain road is the thing that gives OP "real lasting happiness" - who are you to tell someone else what makes them fulfilled?

FWIW, I think OP does have too much :moneybag tied up in a summer fun car considering their financial situation.
But the driving is what produces happiness. The car is just a vessel. In most cases if you don't use something regularly it's much more cost-effective to rent than own. That's mainly the point I'm making.

The more routine a behavior becomes the less pleasurable it becomes. While driving an expensive luxury car might be initially more pleasurable, you're still just driving and we get used to whatever we drive regularly so the vehicle itself isn't that significant even though advertisers try to convince you it is.
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mikejuss
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Re: Do I have too much money tied up in my dream car?

Post by mikejuss »

Apathizer wrote: Mon Jun 27, 2022 7:37 pm The more routine a behavior becomes the less pleasurable it becomes.
Or the more useful the purchase seems to the OP, thus reducing his sense of guilt.
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Johny Fever
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Re: Do I have too much money tied up in my dream car?

Post by Johny Fever »

Personally I have owned one of these cars and they are really a fun, simple to repair car to drive and enjoy. I think properly cared for this car will actually appreciate in the long term. Be VERY careful of ever overheating the engine. Other than that drive it like ya stole it and have fun. Life it WAY too hard to drive a boring car.
MMiroir
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Re: Do I have too much money tied up in my dream car?

Post by MMiroir »

OP - Your first mistake was posting a car enthusiast question on Boogleheads. Like others have said, the heart wants what the heart wants, and there are much worse ways to spend car money than on a mint S2000.

If the S2000 is what rocks your boat, keep the car, and work on your financial situation until you can buy a home with a nice, safe place to park it. Your 45 year old self will thank you.
regularguy455
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Re: Do I have too much money tied up in my dream car?

Post by regularguy455 »

Miata Is Always The Answer.
Dump the S2K and buy the Miata.
Parkinglotracer
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Re: Do I have too much money tied up in my dream car?

Post by Parkinglotracer »

Can you review your early retirement goals and your planning savings path to get there ?

I do not see the basis or path for you to retire early. I think the BH community could help you with that. It may involve earning a lot more money than an extra 40K from selling a car.
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Re: Do I have too much money tied up in my dream car?

Post by Jack FFR1846 »

Ok, although I'm a car guy, I am a "buy it and drive it" car guy. I want to give you a story about what happened recently. Stay with me because it involves my son, his AP2 and my garage.

So I have a 4 post lift and the 04 S2k spends most of its time raised up and my son's other car, a 20 STi under it. So one day, we're in the garage doing something and he notices a baby mouse at the bottom of the back window. I won't go into how that was taken care of but I'll say that again, this happened. Then while he was at work, I noticed one on the floor where the STi was. So yes, a mouse nest somewhere in the undercarriage of the S2000. Leave the car long enough and mice and other animals will make their way into it. Between the vacuum, the leave blower, the air blower from my compressor and several VTEC usage drives around the twisty roads near my house, the nest was cleared. Now, he or I take it out once in a while to help prevent this.

I've had another couple cars (and Jeep) where wires were chewed on one and the washer hose on another.

I do understand having more than one car (non car people don't understand, but I do) but you really should drive and enjoy it, otherwise, you're keeping it nice for someone you sell it to in the future. Values are great right now so if you aren't driving it.....sell it.
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jjj_22
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Re: Do I have too much money tied up in my dream car?

Post by jjj_22 »

s2000 is a great car and you can afford it.

That said it sounds like you’re getting more stress than enjoyment from it.

So I guess I’d say, give it the summer to try to actually enjoy it, and if you can’t enjoy it/get used to owning it, then sell it.
z06ray
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Re: Do I have too much money tied up in my dream car?

Post by z06ray »

I don't think I would keep it if I couldn't sleep at night over it. However, I don't think you are that unreasonable having that car given your background. But I am biased to anything car related.

I agree that you should prioritize driving it. Even if it means parking it in your apartment deck. But I also hear your point that it is too nice and you don't want to do anything bad to it. Sounds like you need a "beater" s2000. But will you love that one too? I've had cream puffs and also nice drivers, and I always look back and miss the drivers most. But everyone is different. Some people like car shows and low miles.

If you are hesitant on your s2000 now, I think you will lose more and more interest. If you have children, 2 seater isn't the most fun. Now (or a couple months ago) is a good time to get some good money out of it.

In the scheme of things, even at 40k, I don't think it will change much in your life if you continue with your trajectory. Of course if you are losing sleep over it, then you may find yourself always going online to find out what that 40k would be worth on 20xx if you had invested it instead.

I bought a c5 z06 when I was living at home and finishing my mba. I am glad I did. I still have it today. Mine was half the price though but at the time it basically was half my net worth. Now with two kids under 2, it doesn't get driven much.
newyorker
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Re: Do I have too much money tied up in my dream car?

Post by newyorker »

88turnip wrote: Mon Jun 27, 2022 6:00 pm Last year, I sort of FOMO'd into buying my dream car (Honda S2000) which I purchased for $40k cash. At the time, that was the majority of my cash in savings and while I cringed at the thought of rebuilding my emergency funds over the next 6-12 months, the pain was overshadowed by how happy and proud of myself that I was able to save up & finally own it.

Fast-forward to today, the car currently sits at my parent's garage where it only occasionally gets driven on nice weather days (last year, I only drove it 2k miles). I don't own a house at the moment and instead live in a 1 bedroom apartment with my s/o. For daily driving, I drive an old Camry with 150k+ miles on it 2 to 3 times a week as I have a hybrid WFH schedule.

My inner dilemma is: While the car still makes me happy whenever I do get the chance to drive it, the frugal part of me sometimes wishes I had bought a bit cheaper, less nice of an example so that I wouldn't feel so irresponsible/guity about having such a large amount tied up in what is essentially a 100% luxury purchase. Sometimes I end up laying in bed thinking about how I "should" have bought a house first before a nice car / could have saved that money for said down payment on a house (even though I have no intentions/thoughts of purchasing a home yet), or how much that sum would grow to in 30 years due to compound interest, etc., which if I'm being honest makes me have second thoughts about my ownership of the car even though I still love it.

I guess my question is: Should I take comfort in my current financial situation (details below) and just enjoy having my impractical dream car for a while, while I'm still relatively young (late twenties) and obligation-free? Or should I give some thought as to selling the car if I continue to not drive it that often over the next year and instead allocate the funds toward something more 'financially prudent'? (e.g. future house downpayment). I do often struggle with balancing between the save early, save aggressive to afford yourself more options in the future mentality vs. the "life is short, enjoy it/you only live once" mentality. Thanks in advance for all your perspectives.

Snapshot of my finances:

- Salary: 100k w/ year-end bonus of 10-15%

- Cash / Emergency Fund: 22k

- Retirement savings (401k/roth/hsa): 234k (I max out all 3 accts. each year)

- Brokerage account: $29k

- No debt

Monthly expenses:

- Rent/utilities: $1,000
- Parking (work): $100
- Groceries: $250
- Gas: $120
- Cell phone bill: $50
- Car Insurance (both cars): $150
- Car maintenance (sinking fund): $120
- Yearly contact lenses (sinking fund): $50
- Subscriptions: $13

Total: $1,840

Discretionary spending:
- Apart from spending on traveling a few times a year, the only other major discretionary spending i do is eating out which I haven't really been tracking too closely. My s/o & I enjoy checking out different restaurants/spots to eat and will often do this 2 to 3 times a week with me often paying the bill for both us (last month I spent ~$450, however this amount varies month to month. I should probably try to cut down some though.)

In term of goals, I really would like to be able to early retire someday (ideally somewhere between my late thirties to mid forties), or at least build up retirement savings enough up to a point where I can transition to a lower paying career that I'm passionate about (if I so choose).
No brainer. Keep s2000. It will make you happy and parting with it will make you miss it so much.

Also s2k will keep its value. My only complaint with s2k is that i cant get top up or down while driving.
wander
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Re: Do I have too much money tied up in my dream car?

Post by wander »

OP, when I was at your age. I didn't have $100,000 invested. You are fine financially and can afford your dream car.
Wanderingwheelz
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Re: Do I have too much money tied up in my dream car?

Post by Wanderingwheelz »

stoptothink wrote: Mon Jun 27, 2022 7:17 pm
Apathizer wrote: Mon Jun 27, 2022 6:54 pm I have a word for you: rent.

I haven't owned a car in more than a decade. I'm in a situation I don't need one regularly so it's more cost effective to just rent it when I need it.

Research shows spending money on experiences is more effective at generating happiness than buying things. Buying a consumer product only produces fleeting happiness. As humans after we become accustomed to something it's ability to produce happiness diminishes because it becomes just another condition of life.
Ohhh, this again. I wish people would actually examine the "research" before repeating this adage - it's hardly objective. Maybe the "experience" of driving the S2k on a mountain road is the thing that gives OP "real lasting happiness" - who are you to tell someone else what makes them fulfilled?

FWIW, I think OP does have too much :moneybag tied up in a summer fun car considering their financial situation.
I agree with both points.

One I’ll add is the price paid for something like a fun car is important if you want to retire early. Not only paying the right price- it also helps to really know the market and buy the right car in the first place. If you buy right and sell right it’s very possible to have fun “expensive” things like that and still retire early.
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khangaroo
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Re: Do I have too much money tied up in my dream car?

Post by khangaroo »

Are you me?? The S2000 is also my dream car and I bought it back in 2014 in my mid 20’s for $22k and it’s also a garage queen but I wouldn’t sell it for $40k right now.

You are fine financially, enjoy the car!! It’s a classic beauty and I still do a double take every time I see one in the wild.
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ClevrChico
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Re: Do I have too much money tied up in my dream car?

Post by ClevrChico »

Enjoy the car and keep it as long as it's not a burden. It's hard to go wrong with an s2k, which is a classic. You're only young once, and this is a nice car.

Now, if you had bought something like a Challenger...
chassis
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Re: Do I have too much money tied up in my dream car?

Post by chassis »

88turnip wrote: Mon Jun 27, 2022 6:00 pm Last year, I sort of FOMO'd into buying my dream car (Honda S2000) which I purchased for $40k cash. At the time, that was the majority of my cash in savings and while I cringed at the thought of rebuilding my emergency funds over the next 6-12 months, the pain was overshadowed by how happy and proud of myself that I was able to save up & finally own it.

Fast-forward to today, the car currently sits at my parent's garage where it only occasionally gets driven on nice weather days (last year, I only drove it 2k miles). I don't own a house at the moment and instead live in a 1 bedroom apartment with my s/o. For daily driving, I drive an old Camry with 150k+ miles on it 2 to 3 times a week as I have a hybrid WFH schedule.

My inner dilemma is: While the car still makes me happy whenever I do get the chance to drive it, the frugal part of me sometimes wishes I had bought a bit cheaper, less nice of an example so that I wouldn't feel so irresponsible/guity about having such a large amount tied up in what is essentially a 100% luxury purchase. Sometimes I end up laying in bed thinking about how I "should" have bought a house first before a nice car / could have saved that money for said down payment on a house (even though I have no intentions/thoughts of purchasing a home yet), or how much that sum would grow to in 30 years due to compound interest, etc., which if I'm being honest makes me have second thoughts about my ownership of the car even though I still love it.

I guess my question is: Should I take comfort in my current financial situation (details below) and just enjoy having my impractical dream car for a while, while I'm still relatively young (late twenties) and obligation-free? Or should I give some thought as to selling the car if I continue to not drive it that often over the next year and instead allocate the funds toward something more 'financially prudent'? (e.g. future house downpayment). I do often struggle with balancing between the save early, save aggressive to afford yourself more options in the future mentality vs. the "life is short, enjoy it/you only live once" mentality. Thanks in advance for all your perspectives.

Snapshot of my finances:

- Salary: 100k w/ year-end bonus of 10-15%

- Cash / Emergency Fund: 22k

- Retirement savings (401k/roth/hsa): 234k (I max out all 3 accts. each year)

- Brokerage account: $29k

- No debt

Monthly expenses:

- Rent/utilities: $1,000
- Parking (work): $100
- Groceries: $250
- Gas: $120
- Cell phone bill: $50
- Car Insurance (both cars): $150
- Car maintenance (sinking fund): $120
- Yearly contact lenses (sinking fund): $50
- Subscriptions: $13

Total: $1,840

Discretionary spending:
- Apart from spending on traveling a few times a year, the only other major discretionary spending i do is eating out which I haven't really been tracking too closely. My s/o & I enjoy checking out different restaurants/spots to eat and will often do this 2 to 3 times a week with me often paying the bill for both us (last month I spent ~$450, however this amount varies month to month. I should probably try to cut down some though.)

In term of goals, I really would like to be able to early retire someday (ideally somewhere between my late thirties to mid forties), or at least build up retirement savings enough up to a point where I can transition to a lower paying career that I'm passionate about (if I so choose).
If you have to ask, the answer is yes.

On the other hand, enjoy the fruits of your labor. Everything is a chase after the wind.
blastoff
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Re: Do I have too much money tied up in my dream car?

Post by blastoff »

It's fine. Enjoy it.

Keep saving a lot.

Don't buy another dream car.
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whodidntante
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Re: Do I have too much money tied up in my dream car?

Post by whodidntante »

I think the only mistake is buying a car that you don't actually drive much. I would sell it for that reason.

I bought my dream car at a similar price 6-7 years ago, but I drive it year-round just as I intended to do. I also track it. Yes, I'm destroying the value. But what a ride! Life is too short to spend it polishing some garage queen.

There's a good chance it will make it to 10 years before I miss a shift and grenade the engine, get tired of it, or decide that rot has become an issue. Then I'll sell it for whatever it happens to be worth and buy something Boglehead approved. Hahaha. Just kidding. I hate most of the recommended vehicles here.
vfinx
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Re: Do I have too much money tied up in my dream car?

Post by vfinx »

88turnip wrote: Mon Jun 27, 2022 7:03 pm I'm only allowed to park one car at my apartment complex's parking deck. Seeing the way other renters drive in the parking garage, I'm not willing to risk any damages to the S2000 by parking there.
Is it door dings that you are worried about? Those usually aren’t so expensive to repair, especially if it can be done through a mobile PDR. But perhaps another point - I would say you either need to get to a point where you can stop agonizing over potential dings because the car is so “precious”, or you should just get rid of it because it has too much hold on you, regardless of the financial angle.
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JoeRetire
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Re: Do I have too much money tied up in my dream car?

Post by JoeRetire »

88turnip wrote: Mon Jun 27, 2022 6:00 pm Last year, I sort of FOMO'd into buying my dream car (Honda S2000) which I purchased for $40k cash.

I do often struggle with balancing between the save early, save aggressive to afford yourself more options in the future mentality vs. the "life is short, enjoy it/you only live once" mentality.

In term of goals, I really would like to be able to early retire someday (ideally somewhere between my late thirties to mid forties)
Seems like you need to figure out what you really want in life.

It's hard to retire very early while still FOMOing and YOLOing your way through life.
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Tellurius
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Re: Do I have too much money tied up in my dream car?

Post by Tellurius »

I’d drive a mid-60s Alfa Romeo Giulia Spider every day if I could. Why limit it to a weekend car?
“And how shall I think of you?' He considered a moment and then laughed. 'Think of me with my nose in a book!” | ― Susanna Clarke, Jonathan Strange & Mr Norrell
59Gibson
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Re: Do I have too much money tied up in my dream car?

Post by 59Gibson »

JoeRetire wrote: Tue Jun 28, 2022 5:49 am
88turnip wrote: Mon Jun 27, 2022 6:00 pm Last year, I sort of FOMO'd into buying my dream car (Honda S2000) which I purchased for $40k cash.

I do often struggle with balancing between the save early, save aggressive to afford yourself more options in the future mentality vs. the "life is short, enjoy it/you only live once" mentality.

In term of goals, I really would like to be able to early retire someday (ideally somewhere between my late thirties to mid forties)
Seems like you need to figure out what you really want in life.

It's hard to retire very early while still FOMOing and YOLOing your way through life.
Right! The vehicle % is not a huge problem, but it may be if you want to retire in your 30s/mid 40s
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burritoLover
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Re: Do I have too much money tied up in my dream car?

Post by burritoLover »

You bought high during a boom time for used cars in general and for Japanese cars of that era. If you wait a year from now, you might lose quite a bit - the first thing that is going to crash will be "collectible" cars.
smitcat
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Re: Do I have too much money tied up in my dream car?

Post by smitcat »

Apathizer wrote: Mon Jun 27, 2022 7:37 pm
stoptothink wrote: Mon Jun 27, 2022 7:17 pm
Apathizer wrote: Mon Jun 27, 2022 6:54 pm I have a word for you: rent.

I haven't owned a car in more than a decade. I'm in a situation I don't need one regularly so it's more cost effective to just rent it when I need it.

Research shows spending money on experiences is more effective at generating happiness than buying things. Buying a consumer product only produces fleeting happiness. As humans after we become accustomed to something it's ability to produce happiness diminishes because it becomes just another condition of life.
Ohhh, this again. I wish people would actually examine the "research" before repeating this adage - it's hardly objective. Maybe the "experience" of driving the S2k on a mountain road is the thing that gives OP "real lasting happiness" - who are you to tell someone else what makes them fulfilled?

FWIW, I think OP does have too much :moneybag tied up in a summer fun car considering their financial situation.
But the driving is what produces happiness. The car is just a vessel. In most cases if you don't use something regularly it's much more cost-effective to rent than own. That's mainly the point I'm making.

The more routine a behavior becomes the less pleasurable it becomes. While driving an expensive luxury car might be initially more pleasurable, you're still just driving and we get used to whatever we drive regularly so the vehicle itself isn't that significant even though advertisers try to convince you it is.
I agree with Stoptothink - perhaps your version of happiness is not a car but there are others who are very different.
Shallowpockets
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Re: Do I have too much money tied up in my dream car?

Post by Shallowpockets »

I have never understood the premise of a dream car. OP, you can afford what you are doing. But, why? The premise of a car at all is to drive. And you don’t do it more than 2k a year.
So perhaps you are financially able to afford your car. But if not driven and enjoyed, where is the dream? Especially this car which is a driving car and not one of those old restored show cars that simply is a looker and nothing more.
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JoeRetire
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Re: Do I have too much money tied up in my dream car?

Post by JoeRetire »

59Gibson wrote: Tue Jun 28, 2022 6:46 am
JoeRetire wrote: Tue Jun 28, 2022 5:49 am
88turnip wrote: Mon Jun 27, 2022 6:00 pm Last year, I sort of FOMO'd into buying my dream car (Honda S2000) which I purchased for $40k cash.

I do often struggle with balancing between the save early, save aggressive to afford yourself more options in the future mentality vs. the "life is short, enjoy it/you only live once" mentality.

In term of goals, I really would like to be able to early retire someday (ideally somewhere between my late thirties to mid forties)
Seems like you need to figure out what you really want in life.

It's hard to retire very early while still FOMOing and YOLOing your way through life.
Right! The vehicle % is not a huge problem, but it may be if you want to retire in your 30s/mid 40s
You usually don't fund a 50 year retirement by FOMOing and YOLOing when younger.
This isn't just my wallet. It's an organizer, a memory and an old friend.
Californiastate
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Re: Do I have too much money tied up in my dream car?

Post by Californiastate »

blank post
Last edited by Californiastate on Tue Jun 28, 2022 8:58 am, edited 1 time in total.
Californiastate
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Re: Do I have too much money tied up in my dream car?

Post by Californiastate »

The OP states that he graduated with a degree in finance in his first post. How is this not a bait thread?
02nz
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Re: Do I have too much money tied up in my dream car?

Post by 02nz »

Watty wrote: Mon Jun 27, 2022 6:45 pm
Do I have too much money tied up in my dream car?
Yes. With a net worth of around $300K owning a $40K collector car is excessive.

It is that simple.
I agree. OP, why not sell the S2000 while the market is crazy, and perhaps look for a car to replace the old Camry that would be more comfortable and fun to drive? You'll still have cash left over, spend less on insurance, and fewer hassles with parking, maintenance, registration, etc.
Johndoefire65
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Re: Do I have too much money tied up in my dream car?

Post by Johndoefire65 »

Yes. On top of that insurance, repairs, tabs, depreciation, maintenance, and opportunity costs.
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Kenkat
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Re: Do I have too much money tied up in my dream car?

Post by Kenkat »

The nice thing about an S2000 is that you can pretty easily get your money back out of it if you want to sell someday, There’s strong demand for these cars. There are basic carrying costs such as insurance and maintenance of a second car, but that’s reasonably small.

If you still enjoy the car, keep it. This is one of those “small rock” things that is not worth the angst it is causing. You are unsure on this, so I would not make a change you may regret.
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