Lender · Los Angeles, CA · Member since 2012 · 147 posts · 76 votes
Ok, long weekend and a little lighthearted fare:
Real estate investors - what kind of car(s) do you drive? Do you prefer luxury cars? Modest cars? How many drive cars with many, many miles on them? And - if you drive a nice car - do you have a "property car" to drive when you go to meet contractors, workers or tenants at properties?
Question 2: How has the vehicle you drive compared to your net worth during the years?
I drove the nicest, most expensive vehicle when I had a much lower net worth.
Now, I drive a very modest vehicle with over 200k miles on it. I can more afford a luxury vehicle than I ever could, my net worth is higher than it ever was, but I keep thinking about that license plate frame that says, "My other car is......." and I want to get one that says, "My other car is an apartment building."
I do feel I've fallen prey to a different, more subtle type of status-seeking. That is the statement that some feel they're making by driving cheap, old cars, basically saying that they know you know they don't have to prove anything financially.
Before you write this off as silly, do note that you make faster progress acquiring wealth if you monthly vehicle expense is $600 (including gas, insurance, maintenance and vehicle acquisition costs) instead of closer to 1500 per month.
Ok, would love to hear your feedback on this. The cars? Oh yeah, they're great:
1999 Honda Civic with 200,600 miles on it.
1998 Ford Explorer Sport with 201,000 miles on it. (great for hauling stuff to the properties)
I have always bought slightly used Saabs and kept them to somewhere between 160-200K miles. I loved my Saabs and was distraught (exaggeration) when they shut down. Recently I had parts needed to pass inspection and they were on two month backorder. And after I got that solved, I still needed $4300 worth of work. And the Blue book value was $2800. (Saab values plummeted when they stopped making them) Considering the cost of putting more money into the car than it was worth, the inconvenience of driving to the Saab guy a half hour away, and the cost of a rental while it was in the shop, not to mention that I would still have a 10 year old car with more issues on the way, I decided to shop for a non-Saab. It was painful, and I was cranky, because nothing drove like a Saab.
I bought a new BMW X-1. Spent what I consider a ridiculously large amount of money for the car. (there are no used ones because it's the first year it's offered in the US) But I'm at the point in my life where I want more play and less work and want to enjoy what I worked so hard for.
It turned out to have come in with a defective cam shaft. I've now been driving their loaner for longer than I drove my new car. The part is on backorder from Germany, and they are trying to find me a new car already in the states that matches my feature set, without ordering me a whole new car from Germany.
So the only good news is that all the miles I put on it are on their loaner and not my car. Wish I didn't sell the old Saab.
and 2004 BMW 325 convertible.. paid 8k for it 76k miles.. I live in FL and always wanted to have a nice convertible, just a reward for working hard I only drive it when going out and such
Paid cash for both otherwise would have never bought the BMW
otherwise I use the civic for business and work, actually it is decorated in WE BUY HOUSES logos anyways lol so at least it is marketing when I drive always
hey Joffrey, I remember your TV commercials from the 80s. Great question. I am a bit of a car guy nut for 60s and 70s muscle and have had over 100 of those. But my current daily driver is a 2006 Prius 200k miles 5k cash.
2008 Toyota Prius - just hit 80k miles. Totally paid off. Use it for everything. I can even get my push mower in the hatch without rigging, ropes, etc. Love it. I'd consider a Ford Focus hybrid next time, but I feel that next time is far off yet.
Wifey's car:
2010 Chevy Malibu - only about 15k miles. Nothing much to say. It's what she wanted. Impala was actually cheaper at the time, but she's short and felt more comfortable in the Malibu. Family worked for GM, so other brands not considered. Still about $8k left on that one.
I had big dreams about cool cars when I was a kid, but the older I get the more mundane my car choice seems to get. I just don't have the passion for driving that some do ... And I DEFINITELY don't have the passion for the insurance payments that come with those cars! Wife has the same mindset. If we splurge, it's on a vacation, not a car.
I think one day I would like some sort of sporty luxury car, but I'm not too stuck on it happening or not happening. I enjoy the cars I have now.
2004 Nissan Sentra SE-R Spec V -- Over 160K miles -- I typically drive this to the rentals.
1998 Mitsubishi Eclipse GSX -- This is my fun turbo, AWD car that we are slowly modifying. RIght now, it's in our garage getting an entire new suspension. I would never drive this into Baltimore. Too many potholes and gets too many looks. I also have another Eclipse, but I'm parting it out.
2007 Dodge Ram 2400 turbo diesel -- We just got this recently and it's an awesome truck. Standard transmission even! We've been needing a truck to haul larger home items (flooring, wood, and such) and to tow our fun cars (we have a minor addiction to pre-year 2000 turbo-charged Eclipses) ;-)
All cars except the Dodge have been paid off for a long while.
1998 Mitsubishi Eclipse GSX -- This is my fun turbo, AWD car that we are slowly modifying. RIght now, it's in our garage getting an entire new suspension. I would never drive this into Baltimore. Too many potholes and gets too many looks. I also have another Eclipse, but I'm parting it out.
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If you're into jets and airplanes then you're probably my long lost twin lol. I've been into DSM's for awhile too. Had a 96 GST and a 97 GSX that got me in alot of trouble.
@Chris K. That is so cool! I didn't think I'd find another DSMer on here, let alone also in my area. So, no more DSMs for you? You know, once the weather finally warms up, you might see me cruising around in this grey one.
Don't mind those other two in the background...we're *trying* to rid of them. The white one is a 420a motor. We also have a black '97 GST that you can see a corner of in the photo.
Had to chime in on this one. (Maybe I already did, lol, but can't scroll all the way through on the phone to see and remember )
I love cars and think of them as just like I think of things like food and season sports tickets. Money spent on enjoyment that I will never get back.
What's the sense of working hard to make it if you're not going to enjoy spending it?
2011 Honda Civic that I bought new after my 1998 civic need a third set of $1500 repairs. It's almost paid for (borrowed at 0.9%), and I hope to keep it for a while. I lust for a Tesla Model S P85, and I could probably swing it, but I've got other goals.
I'm rolling my 06 Frontier. I bought it new, and it's paid off with almost 100k on it. I bought it in college with USAA's "Lieutenant Loan." Now I'm looking for more of a "big boy car." I plan on keeping the truck and always having a truck. I've been putting the payment into savings since I paid it off.
The issue is the credit report. I'm getting ready to close on my 3rd property, including my residence. This will be my first true investment, and once it's rented I'll be cash flowing about $400/month. I obviously don't want to have a brand new car loan just before I close on a mortgage. So the new car is waiting for this deal to close, at the earliest.
I'm looking at a new Trail Premium or Limited Edition Toyota 4Runner. It will be the most expensive vehicle I've ever owned, by about $20k.
I just bought my first 'new car' - I'm 42. We bought 2 minivans new for the wife, but I could never bring myself to do it. Its a leftover 2013 F150 FX4 with all the goodies. I could have paid cash, but one of the rebates required financing with Ford and had no alternate cash back, so I'm taking the leverage at 3.99%.
We have a 2013 Chrysler T&C we bought last Fall when we decided 110k miles on the old van was too much for long trips with the kids.
Also, another mustang here: 2003 GT convertible, wife won that in a slot machine in Atlantic City for 50 cents. Best deal ever, we can never get rid of it. That's still under 50,000 miles, maybe even still under 40,000.
I shopped recently used low-miles F150's but there is such a small discount, I could not bring myself to buy one used. Of course, now cars.com ads come up on every web page with deals on recently used F150's and its driving me a bit nuts.
Another Saab lover! Several years back I purchased a 08 Saab 9-5 Aero and fell in love with it. They lose value so quickly (even before shutting the doors) so you can pick up a really nice used one for a great deal. Like you mentioned the maintenance cost can add up and it can be difficult to get parts. I am in love with the last year (2011) 9-5's and will probably trade up this year. The issue is the parts though. One of my good friends is an excellent mechanic and has a lift in his garage where he does side work. He handles most of my work on it. However he is advising me against trading up to the 2011. I drive so much it might just be worth it to upgrade to a hybrid or a Volt. Or maybe an Audi diesel...we will see!
I am frugal in everything else in life except cars. I drive a 2013 Camaro ZL1 beast at the moment which I bought new and paid cash for.
I've switched cars every year for the past 4 years. The other 3 were a 2012 Challenger, a 2006 Corvette Z06 and 2006 Mustang Saleen.
The missus drives a 2011 Chevy Equinox that we own free and clear.
I am loyal to two car brands and will only own these two brands.
Toyota & Mercedes
"I am frugal in everything else in life except cars" - Me Too!
Originally posted by @Robert Steele:
I am frugal in everything else in life except cars. I drive a 2013 Camaro ZL1 beast at the moment which I bought new and paid cash for.
I've switched cars every year for the past 4 years. The other 3 were a 2012 Challenger, a 2006 Corvette Z06 and 2006 Mustang Saleen.
The missus drives a 2011 Chevy Equinox that we own free and clear.
Good Morning.... I have been buying foreign cars since day one... I enjoy a nice vehicle.. so here's my story..
First car I bought was a 2004 Jaguar X-Type 3.0 with low miles for roughly $20,000 cash..... About a 2 months later, I got into an unfortunate accident in which the car incurred a total of $13,000 worth of damage. I paid my $500 deductible and waiting 1 month for the car to get repaired... About after 3-4 months of driving the car after repair, I knew the car wasn't driving as it use to. Ever since being in a wreck, the car just wasn't the same.... I then tried to sell it via newspapers... Got a few calls and drove the car to all the potential buyers... They all "tire-kicked" my car even though it looked brand new (they didn't pull a car fax considering they were doing there preliminary work)..basically I was acting as a used car salesman and they were being the typical bargainer trying to get a deal... After a few more months of people just low balling me and or showing NO interest... I decided to get rid of it at an auction.. Keep in mind, for the price I paid, I bought it right...So the auction brought a measly $13,000..... so I drove it for less than a year, lost $7000.00. Remember, the car is never the same after an accident...just doesn't align right.
Next vehicle.... 2001 BMW 330XI with 70,000 miles... Bought it for $17,500...Again, at the time it was a great price..... To make a long story short, this car gave me nothing but trouble... I paid over $10-12k dollars in maintenance... Not regular maintenance, but you name it, it went wrong...... I swore to myself, I'll never get stranded on the road again just to drive a "nice" car.. I'll never want to deal with auto mechanics and dreading the phone calls that ALWAYS ended up being $1000 or more..... So I finally came to the conclusion that after college I will NEVER buy another car again.....Oh by the way, 4 years later I sold the BMW for $1000.00.. I called "1-800-junk my car".... and they picked up the car in my driveway and mailed me a check later for yes, $1000.00.. I did not care whatsoever, I was fed up with making this huge mistake... (They sold the car in auction for $4000.00) still, I had NO remorse given how many problems and how much $ the car cost me...
Which now brings me to the basis of my decision... In 2010, I leased a brand new BMW 328i Coupe..I put down $4000 and paid $466 per month with roughly 15k miles annually. Within my lease price, BMW covered oil changes, brakes etc.....
Coincidently, I wrecked the car about 2 years later...got my car back after repair...drove it for another 6 months and turned it in.. I wasn't stuck with having to try to sell a car let alone a car that was involved with an accident. I didn't pay a PENNY out of pocket towards (transmission, belts, breaks, tires, oil changes, electronically issues).... simply nothing... I paid my $466 a month and that was it.
2 Years later, I have leased (2) Mercedes Benz E350 Coupe 4-Matics... and haven't put a dollar into repairs and or tires... nothing more than simply my lease payment.. Sure both cars payments were $599 & $665... Cars MSRP's were $57,000 & $64,000.... So all I knew was, what I could and was willing to afford I saw the numbers in front of me....There were NO unexpected dollars needed simply because the car was fully under warranty, my maintenance was include in my payments.
Buying a pre-owned vehicle leaves room for the never-ending surprise repairs and or maintenance.... Leasing cars for 2-3 years, gives a much higher probability of everything staying in tune the way it arrived brand new.. You never know how the previous owner drove the vehicle you are paying for... As far as depreciation.. in leasing your better of leasing a better car that has a higher residually because ultimately that means your payment will be lower....
There's no such thing as a car being an asset, its simply a liability....Owners pride?...who cares....I feel proud to say I lease because I get to drive a new car every few years... I know how much money it will cost me to drive what I want.....I don't have to get involved with hassling with auto mechanics....
More time for me to focus on my business & look good doing! Nothing wrong with a nice car..... And the choice is yours!!! Expected finances are always better than the unexpected....
Currently driving a 2014 Mercedes Benz E350 Coupe - Diamond White Metallic on black leather interior. Amg Wheels...
Getting in this car everyone morning makes me want to work HARDER to achieve more in life..It reminds me of why I like to work hard and get it done..!! To Each his own!!!
A car does not justify success or prestige..it's all personal preference... My father could care less about a nice car... He was leasing Prius after Prius.. I finanlly got him into a more "luxury" hybrid small car.. The Lexus CT200h.... He enjoys the car a lot more...Regardless if he says it or not :-)
Hey Nik, thanks for sharing your European cars with us. Definitely some nice ones. What real estate investments do you have? Does your new Mercedes help or hurt your investing? Or not matter at all?
I'd say a car is an asset when it makes you money. I've put 110K miles on my Toyota Tundra since I got it 4 years ago, and most of those miles were real estate investing; property management, looking at property, bunch of trips to Austin to buy/manage there. It's been a tool to help me make some money.
First off, I'm a race car driver. IMSA has a couple of great series for people like me. Currently I'm driving in the Continental Tire series, but have options available in the Tudor series.
That's why I always drive a nice car. The contacts you make with the motorsports division of the various car companies make it easier to afford a nicer car.
I have as my daily driver, a 2013 BMW 135i. I love the car. It has everything on it. I wish I could tell you what I paid for it, but I have an agreement with BMW to not disclose. Since I raced a BMW last year, they took very good care of me. They also took great care of my girlfriend's purchase of a 2014 X3.
A new car, as mentioned before, is a nice thing to do for yourself to help you feel like you're doing something right. Going out to a property and hopping in the car, I know I get a boost of confidence that I'll do it right.
Other vehicles in the stable, 2000 Boxster (insanely modified and barely street legal), 1999 Honda VFR800, 2002 Toyota MR2 Spyder (girlfriend's fun car), and my baby - a 1978 Porsche 911 European spec wide body.
Yes, as you can probably guess, I'm a car nut. Having a nice car is something that's good for my psyche. I love driving. Duh...It's what I do when I'm not investing in real estate.
Back in 2003 I had a new black Corvette, with removable hardtop. Everytime I got in that car I LOVED it! The way it handled, how fast it went, it was a blast! I kept it for about 4 years, and sold it. I got back every penny I paid for it. Someone bought it and had it shipped to Florida from northern California. However; everything isn't about making money, sometimes things are just FUN! Oh I'd love to have that car down here in southern California!
