Forgive me PDITF loyalists, for I have sinned. It is way to late for me to really think of anything worth writing about, so on this glorious Friday morning, I ask a simple, but thought provoking question.
How much money would you have to be given tomorrow to go out and buy a new car?
I asked this question to the roomy and he said if he was given $200,000 tomorrow he would consider going out and buying a $50,000 car. He then turned the question around to me. I think I would have to be given a million bones before I would consider upgrading to a $30K to $40K car. My roommate and I had two very different answers, so I’m wondering how it would work for you.
I think this question is interesting for a few reasons. First, playing the hypothetical game is always fun. Second, good/reliable cars are a necessity for most of us as we spend a good chunk of time behind the wheel. But I think the most interesting piece of this question lies in the fact that cars are a depriciating asset. Wise investing says “D0n’t buy things that depreciate” but the materialist in us says “It would be so nice to have heated seats, gps, a microwave, and a wireless headset in my new car.” Cars are interesting because they are so important, yet counterproductive to our financial well being.
So here’s what I want to know…
1) What kind of car do you currently drive. (Year, Model, Street Value)
2) How much money would you have to win/inherit/steal before you would even consider changing vehicles? (Would you upgrade right away, or have to be given over $100K, $300k, etc?)
3) From that ideal amount, how much would you spend on a car? (i.e. would need to be given $500K in which I would spend $20K on a car, or would need to receive $200K in which $80K would be put towards a car, etc)
Drop your details in the section below. I suspect there will be a huge fluctuation in answers.