- Platinum Member
- Posts: 93
- Joined: Thu Nov 06, 2014 11:53 am
- Location: United States
(in an old goat croaky cranky voice...)
When I was 22, I had to have a sports car. It had to be fast, turbo charged, targa topped, rear wheel drive, 6 cylinders, 6 speeds (I tthink), Z rated tires, triple digit speeds, yada yada yada.
I had to have this car so much, I took out a car loan to buy it. The only time I ever borrowed money to buy a car. And, I was still paying off my college loan too. Now, nothing bad happened as far as my credit. I still made every payment on time, and paid ahead on principle when I could.
But what I didn't realize when I was 22, but quickly learned when I was 23, was that this ruthless, roofless sports car I had to have was getting in the way of something else that I REALLY had to have... which was a roof over my head. My own roof. Not someone else's roof that I was paying rent for. I realized that If I kept paying rent until I was 30, and then looked for a house to buy... that I would loose seven years of an opportunity to let time (not my interest payments) build equity.
So a year later, I sold my sports car, at a five figure loss (which was a LOT of dough a few decades ago) just so I could pay off that car note in full, and stage myself to get what I really wanted... which was financial freedom in the future.
If I had to do it again, I'd have skipped over the sports car step... and gone straight for the first house. The sports car merely accrued speeding tickets. The house, on the other hand, has accrued 30 years of appreciation... surviving not just the recent housing bubble burst in 2007, but the one prior to that, when you were born, in 1992. The longer one owns property, the more insulated they are from the downturns, which have cycled, in my experience, about every 14 years . Seven years of feast. Seven years of famine.
That's what I think about BMW, Porsche, Mercedes, and the like.
Owning the garage to park it in comes first.
(grumpy old voice turned off)
If I had to have a sedan, I'd go for the M5, but I really like that new all electric 8 series BMW coupe... have you seen pictures of it? That thing is bad*ss.
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