03-31-2005, 10:36 PM
Join Date: Aug 2002
Location: West Palm Beach, Florida
My Ride: '06 325XiT & '04 GT3
Originally Posted by akhbhaat
It's fairly obvious that "ownership" is an awfully skewed concept around here. Perhaps I should throw something out, here:
If your name is not on the title... (I guess that rules out 95% of the 16 year olds here.)
If you are leasing the car...
Then, quite simply, you do not OWN the car. Period!
And also, if you're making finance payments, then the bank technically owns the car (as collateral) until you've paid off the loan, even if your name is on the title.
Learn to distinguish between assets - something you possess on which you owe nothing or owe less than what it is physically worth - and liabilities/debt - something you possess on which you owe more for than it is actually worth (your true worth is measured by your assets minus your liabilities). The guy with the ASSET actually has more than the guy with the LIABILITY, even if the "asset" in this case is a 1999 323i and the "liability" is a 2005 M3. Personally, if I can't pay cash for something that depreciates (like a car), I consider it to be beyond my means...because technically, it is.
Once you see things like this, it shouldn't be surprising that most of the older guys around here are driving "cheaper" cars - 325's, 330's - instead of brand new M3's. I know how easy and tempting it is for some guy fresh out of college with his first real job, maybe making as much as 60k (or even more) - to go out and start making payments on an M3 or 997 or something else (even just a 330 or some such) and then get a fake E46Fanatics "baller" label. But all you're REALLY doing is incurring considerable debt on a rapidly depreciating asset. Not very smart from a long term perspective.
Sorry to be so blunt, but having something on credit or loan is NOT the same as owning it in full as an actual legitimate asset.
Words of wisdom!
I'm one of the "young guys" out of college. (well, 5 years ago)
And I'm definately not planning on working with this sub-100k salary for the rest of my life.
As I get more and more experience in my field of business, soon enough I can stop working as a "slave" and start my own business.
I dont' have any kids, I have a wife-to-be who makes decent money as well, I don't drink too much or smoke, so 1500/month for a car payment is really a peace of cake.
What comes to financing, I have made such a good profit on my house that I could easily pay cash for a new Turbo Porsche. However, there's no sense in doing that since I can finance the car with home equity and put my money towards something that yeilds more than the interest I'm paying on the car. i.e. sell the house and buy a bigger one.
My point is that your way of thinking is a little bit oldfashioned.
Sure if my life didn't change a bit during the next 30 years, your way of thinking would be the only way for me to gather assets. But that's not my plan...
2007 535d touring M-sport
2009 330i touring M-sport
1987 327 Mtech2
1996 E36 race car (endurance saloon)
1996 911 Track duty
Last edited by Juha 323Ci; 03-31-2005 at 10:42 PM.