Advice on car

Discussion in 'Chit Chat' started by nitro, Nov 21, 2005.

Which Car?

  1. New PT Cruiser

    3 vote(s)
    4.8%
  2. Jeep Liberty

    7 vote(s)
    11.3%
  3. Both suck - suggest car

    52 vote(s)
    83.9%
  1. FredBloggs

    FredBloggs Guest


    fuck off those are crap.

    whenever i see one, i drag my key down the side to teach the dumb fuck that bought one a lesson.

    bmw's arent bad motors though
     
    #51     Dec 7, 2005
  2. It all depends on how you run your life I suppose. If you choose run your life like a corporation (i.e. to maximize shareholder value) then paying cash for anything with the cost of capital as low as it is ....is simply foolish.

    1) Never buy an expense. Expenses depreciate. Car or Boat = expense. There is a reason that corporate cars and/or Jets, live on the right side of the Balance Sheet with the other expenses. You'd never catch a competent CFO of a corporation buying an expense.

    2) Buy assets. Assets generally appreciate. Let the cash flow from your assets pay for your expenses.

    3) Even buying an asset like a house with cash is not wise either. All you make is the forgone interest. And again with the cost of capital so low that makes no sense at all, in most cases.

    Say you’re gonna pay $1mil for a new house. You get a mortgage for 5.5%. Mortgage interest deduction reduces that by 35-40% so your net effective interest rate is about 3.5%.

    So the pivotal question is can you as an Asset Manager or as a Trader make more than 3.5% on your $1mil? If you can then you get a mortgage. (i.e letting your assets (cash) pay for your expense (mortgage interest)).

    If you can't then you probably shouldn't be trading.


    They didn’t teach this in CPA school? :)


    But you're right...to each his own.



     
    #52     Dec 7, 2005
  3. That's a good way to get yourself shot.


     
    #53     Dec 7, 2005
  4. FredBloggs

    FredBloggs Guest


    lol - typical bmw drivers response :D

    happy dayz
     
    #54     Dec 7, 2005
  5. nitro

    nitro

    Thanks for the advice.

    I looked at the PT Cruiser (Chrysler) and I was impressed. Still in the running...

    nitro
     
    #55     Dec 8, 2005
  6. nitro

    nitro

    Thanks for the reply.

    I like the car. But:

    1) It is close to $30k. That is too much unless I get it used, but

    2) Even if it were used and I could get one for say $17K, I hate the gas mileage.

    nitro
     
    #56     Dec 8, 2005
  7. nitro

    nitro

    Thanks for the reply. Nice car. Gas mileage is an issue...

    nitro
     
    #57     Dec 8, 2005
  8. Jaguar X - noble, stylish, efficient, not too expensive.
     
    #58     Dec 8, 2005
  9. Jaguar = Ford = Bleah
     
    #59     Dec 8, 2005
  10. Is this based on your experience with the Big Cats or just a prejudice?
     
    #60     Dec 8, 2005