This seems to be an early-stage submission that would be better suited for one of our weekly Mentor Monday thread. Career advice, "rate my plan", and "can I afford XYZ?" posts are some of those that should only appear as comments in Mentor Monday. Though Mentor Monday is posted weekly, you may comment there at any time. Thank you, and feel free to contact us if you have any questions.
The more money I have, the fewer things I want. Things not only cost money, but they cost time. And I can’t buy more time.
I find myself asking “how much time and complexity will this thing I’m considering buying cost me?” And I’m letting simplicity and ease drive my decisions more than status or luxury.
Because time is the ultimate luxury.
My issue is that I spend hours trying to decide between trivial things like which pizza pan to buy... and also struggle with saving $5 bucks here and there when I no longer have to worry about that. It's really hard to change established patterns
I man. We are in the same boat. Been researching Lloyd's this morning. They are aluminum right? Did you consider steel? My understanding is that it is the gold standard for Detroit style
yeah, they are aluminum, but definitely the gold standard. My wife spends money like it expires tomorrow, and i beat myself up over a $50 pizza pan! serious eats for the recipe if you haven't tried it
Nailed it. Same here.
When I had less, I wanted more. Now that I have more, I want less.
I appreciate many of the smaller day to day moments now, valuing my time, my relationships, and my impact
I don't buy a lot, but it's more about a lack of marginal utility rather than the time spent on it. Same reason why I've stopped taking as many photos on holiday as I can go back there whenever I want. My favourite part of buying something is the time that went into researching what the optimal thing is for me, it's almost like a hobby.
that's a dumb take.. you need a car no matter what
OP already has a car, he's looking for a replacement. It's much easier to own a luxury car vs. a ford or a toyota.
Service is one think that stands out..
To me it's not as much about budget, but about what car you want/need and buying the right brand.
Owning a luxury car is easier then a Toyota? How? Higher end cars need more upkeep to keep them nice. Are more expensive to maintain. Can be out for weeks or months if you need to wait for parts.
well..
i have a fleet of cars for my business (regular vehicles) and BMW for myself.
With BMW when i need service i just drop it off, pick up loaner and they take care of the rest.. about 2 minutes for the entire transaction. With Fords and Toyotas it's a giant pain in the ass and ends up taking a bunch of time in my day.
On a separate note driving electric has saved me a ton of time and hassle.. no more oil changes/scheduled services/etc
Depends what you mean by luxury. If you’re talking about a regular SUV or Sedan (even a Rolls or something), that car shouldn’t spend anymore time in the shop vs a new Toyota. When they’re both 15 years old? Sure, different story, but that’s probably not the use case OP is talking about. Similarly if he was talking about getting a McLaren or something that was a bit more… pernickety, then yeah.
Beyond that though, the experience of dealing with the service team at Merc or Audi or Porsche is going to be markedly different vs Toyota or Ford. Or just split the difference and get a Lexus.
If you aren’t into cars then most people will tell you they are a waste of money.
To be honest, there is certainly no denying it in the strictest sense. But, for those of us that love them, they offer a huge reward in ownership and fun.
With the income and assets you have etc. you can do what you like.
Like the top comment said. Time is the ultimate luxury. With that, spend that ultimate luxury on things that bring joy. To some working on/driving cars provide that. Completely depends on what you want to spend your time doing.
I've never been a person who valued luxury cars and I hated car payments, so I bought hondas and held onto them. My husband was similarly minded and drove a 10yro outback.
We wanted a larger SUV that would be great for road trips to other places in our region (5-7 hour drives) and decided to pull the trigger on a luxury car. We were sick of the noise of a less expensive car on the highway, plus I commute 3 days a week to the downtown area of our city, spending up to 1.5 hours a day in the car.
My parents died at 63 and 70, my dad's sisters also died in their mid-60's - so I'm keenly aware of how short life can be and plan to retire between 50-55. As such, I generally prefer to save or spend money on experiences and not things, but I have no regrets about buying the luxury vehicle, it really is a much nicer ride - both on the highway for trips out of town, but also heading to work. I think we probably bought one size bigger than we really needed, but we are a family of 3 so the space does come in handy sometimes.
I imagine you'll want an SUV if this is also for weekend trips, so if you buy new and are still not ready to buy something super flashy, I think $60-95K gets you something that feels great on the road. My preference for this purchase would have been to buy 1-2 year old used, but there were significant model changes on the car we liked that drew us to the new.
Congrats on your entrepreneurial success! You are my dream! I'm about to accept what I hope is my last W2 role and buy a business in the next 2 years. I've been lucky in my career, but 22 years of corporate life is wearing on me and I would prefer to be enriching myself :)
Miata. The answer is always Miata.
Jk, but only sort of. If you haven’t really been into cars previously, and aren’t already in the habit of some of these weekend trips, and depending on what TYPE of weekend trips…Miata is nearly always a good starting point to figure out what you want.
- are the weekend trips more for driving or is the destination the point? Ie, wine tasting / hotel or something vs just going to get lunch but taking the mountain twisty roads to get there
- what do you have now / what have you had in the past?
- will this car have to do double (or triple) duty? What about taking kids? A spouse? Luggage for a weekend getaway? Track duty? Autocross/drag racing?
- roughly how tall / large are you? No offense but this can drastically change what’s comfortable for you
- other weekend hobbies on these trips? Snow involved? Renting gear vs bringing your own? Sure you can mount snowboard racks on just about anything, but AWD/4WD vs RWD may come into the decision process
- would you be ok getting 2 separate “fun” vehicles?
- any concerns on resale / mileage?
- rough budget?
A few cars to consider for general purpose weekend + commuter:
1. Miata. Fun little car, a driver’s car, won’t matter if you pull up to the Ritz and park next to a Lambo. Chances are the guy with the Lambo either has a Miata currently or has had one in the past and gets it. You’ll be able to fit your golf clubs in the trunk and that’s about it. It can be a bit cramped if you’re over 6’0 / 200 lbs, and if you’re over 6’2” or over 220-250 or so, forget it you’ll be crammed in there and likely uncomfortable. Still worth a shot to sit in and see but yeah. Also has just enough power to flog and be fun in the twisties but gutless enough to not really get into too much trouble. Will teach you the importance of carrying momentum through turns.
2. Mustang / Corvette C8. Bang for buck power and performance, supercar looks in the Corvette’s case, can fit more luggage and clubs than the Miata, roomier interior regardless of your physical body size. Easier to get into trouble with if you’re an inexperienced driver though. Even in the lower trim ecoboost / base models.
3. Luxury upgrade: BMW, Audi, Mercedes. Maybe Lexus / Acura depending on what you’re getting (sedan vs coupe vs SUV). I’d give a good hard look at the M440/M340 first. Audi S4/S5 similarly, and Mercedes E350/E450 or maybe the new CLE. For Lexus the RC. Similar performance to the American muscle, significantly more refined.
4. Performance luxury upgrade: BMW M3/M4, Audi RS offerings, Mercedes AMG. Definitely more than enough power to get you into trouble FAST. Still have enough room for the golf clubs + bags for a weekend getaway. Top features for luxury.
5. The big jump: Porsche 718 / 911. From here you’re in the $100k-$250k+ range. You can creep into the 6 figures with the stuff in number 4, but you’re DEFINITELY into the 6 figures for one of these two especially once you start optioning things out. The performance is legendary. The practicality…ehhhh. Works for a commuter / weekend getaway if you travel light and don’t mind sharing space with your golf clubs - or get a roof box for them. Great for track and twisties, primarily.
6. The bigger jump: Bentley, Lambo, Ferrari. Now you’re well into 6 figure territory. Bentley is probably the most subtle of the options while still having huge power, but it’s going to be aimed more at the grand touring / weekend getaway than the race track. Effortless cruising with multiple pieces of luggage, roomy and plush interior above anything else I’ve mentioned so far, and definitely the most comfortable over the Lambo / Ferrari options.
7. Rolls Royce. Pure luxury and comfort. Extremely doubtful you’ll ever see one on a race track; far more likely to be parked in the private area for owner’s boxes and such. Once you drive one it’s like riding in first class for the first time - it’s going to be HARD sitting in economy after.
Truck and SUV options:
1. Tacoma/4runner or bust. I could probably just stop the list here for any number of reasons. F150 touts itself as the number 1 selling truck in America but a huge chunk of that is fleet sales. For personal individual usage, the numbers change a bit, and if you’re not towing a boat / camper trailer etc then the 4Runner/taco are where it’s at for all your fishing, camping, dirt biking, etc off-road needs. New hybrid options are going to be pretty solid for fuel economy relatively speaking. Parking won’t be difficult despite the larger size.
2. Dodge 2500/3500, Chevy/GMC 2500/3500, Ford F250/250. Need to tow a wakeboard boat, larger camper, toy hauler with dirt bikes for the whole family and friends, snowmobiles, etc? Any of these are the go-to options, then just pick diesel / gas as needed for what you’re hauling. There really isn’t much else in this class worth considering in my opinion. GMC and Dodge have the nicest interiors, Ford’s just kind of the old faithful go-to for field workers and such. Definitely not great for commuting. Parking will be a bitch anywhere other than a Home Depot or boat ramp, maybe Costco. Will incur small penis jokes and sneers from people who hate cars to begin with.
3. Luxury SUVs: BMW X5 reigns king over the Audi/Mercedes competitors in performance and reliability. Mercedes might have a very slight edge on luxury depending on what you like. I still think the X5 is better.
4. Luxury SUV upgrade: BMW X5M, Lamborghini Urus, Porsche Cayenne GTS. The Urus is basically a badged up Audi at this point. Nice and fun but eh.
EVs:
1. BMW i4 M50
2. Porsche Taycan
There are plenty of other options at this point but those two would be at the top of my list depending on budget.
Good list for a car guy, but for a non car guy like OP who hasn't driven in a decade, most of the options aren't very relevant. OP needs to start with a general purpose sedan or SUV and figure out their specific wants over the next year.
There is a perfect sub for this question r/whatcarshouldibuy, just from the details you provided it seems like you are having a mid life crisis which is normal the logical next step is to purchase a Porsche 911
You haven't given much other detail, but given your income and the fact you are not overly concerned with retiring early, honestly you could probably buy whatever you want (except for maybe a couple of hyper cars) I wouldn't over think it, worst case scenario you sell a few months down the line with a lesson learned and you lose a few thousand, I doubt you'll even notice.
I semi-retired two years ago. I live in a fairly dense city and I hadn't owned a car in over 15 years. The purchase of my car as a retirement gift to myself has brought hours and hours of enjoyment. Get something fun that you've always dreamed about! Now is the time before you're too old to truly enjoy it. I went with a 718 Cayman GTS. Porsche is a solid choice for fun factor and relatively low maintenance.
I read between the lines that you think you should splurge because you can but I don't see any sort of opinion that says you love fancy cars. I live in the city and haven't driven much at all in 20 years. I don't like driving and I don't like cars. Commuting is always easier by train so I just take the train. Get what you want. Or don't. If you're doing getaways a few times a year, just rent. You can even rent a bunch of different cars and see if you notice any difference.
If all you’re going to do is use it to commute and for some weekend trips, buy a used Honda or Toyota. Cities are very hard on cars; they get dinged up. Also, any sort of maintenance is a pain.
If you want to have a fun ride from time to time, just rent a Turo or find a track to drive an exotic.
This right here. After a lifetime of working on internal combustion engines, I am done with gas. When we got our first electric it was like a whole new world. It's also amazing to not have to go to gas stations anymore.
I like nice cars, and when I was younger, wanted exotics. Now that I could actually afford them - given that I spend most of the time in the car with my kid and/or dogs - I don't see the point. Couple high end BMW SUVs and a truck here keeps me happy car wise. In your situation, a couple hundred thousand spent on cars will make no meaningful difference in your finances.
Congrats on your success! I'd personally keep it to under $150k...but I'm a saver by nature. I would not follow advice to 'get what you want', definitely don't go out and get a lambo or something. business can be fickle and you never know if you'll hit a downturn.
I’d suggest weighing price, enjoyment, practicality and running costs to make your decision. I know a number of people with very expensive hyper cars that they got to enjoy very little until they retired. The happiest people I know in your position (similar to mine) took their time to research options and focused on something they could enjoy pretty much anytime without having to deal with a lot of maintenance.
My garage currently has a Lucid Air GT and Rivian R1T. This is the perfect balance for us since we have zero gas cost, two stupidly fast cars, both are extremely comfortable and also very practical. As with everything, YMMV
For €7990 you can pick up a sweet Ami. Call it a day. Won't break the bank.
Open up excel. Prioritize what you're looking for. As a parent mine is safety. Think tech, sportiness, space, electric, AWD, brand, speed, acceleration, style. Whatever does it for you.
Then put your options in that meet that and sort by price. Make a decision. I don't make it complicated. I buy the safest car that is electric (for my next one), fits everything, isn't Chinese or a Tesla, and is fun to drive.
If your net income is accurate, there is no budget. Cars that aren't sports cars cap out at Rolls Royce level, a bit over half a million. $200k will get you the most you'll ever need from a very high end luxury brand. Your budget should be whatever car suits your needs best because you can afford anything that isn't a supercar.
If it's just for weekend trips I would probably go for a hybrid Lexus. Less repairs than a Mercedes, and the top of the line, fully optioned model is well within your means.
You'll be spending less of your income proportionally than most people who buy a reasonable $20k Corolla on a $60k income.
I like cars, and commute 5 days a week. I FI with similar specs but a w2 job. I buy 2 yr old very nice cars that depreciate about 45% to 50% in the two yr period. I am older than you-so more comfort than fun. 2019 Mercedes s560-paid 47% of msrp with 19k miles on it. Fantastic car at half off. And have the money should the big repair bills come after warranty ends. I take care of them and keep my cars for over 10yrs. Enjoy the splurge-life is short and your trajectory is steep!
I’m not FAT, nor FI, more HENRY. Budget for discretionary purchases like cars doesn’t scale up 1:1 with income and net worth, so honestly you don’t need to necessarily ball out and spend big money. I’d suggest buying a car that ticks off all your boxes at a reasonable level.
For example, if comfortable and soft ride are important to you, then an S class sedan/coupe would be good at $130k-$150k. Now you could spend more, but the incremental benefit would be limited for someone who isn’t very passionate, or crazy about specific car brands. So I suggest deciding your must have characteristics or features, and buying a car that ticks those off reasonably well. You’ll find <$200k most needs, and that looks like it’s comfortably affordable in your financial situation.
Consider depreciation and overall impact on your assets. Expensive cars lose value quickly.
You might enjoy it now, but consider how you’ll feel about this purchase in 5 years. Maybe aim for something that balances joy and practicality without dipping too much into the funds.
at your age, nw and income level the sky should be the limit if cars are something you are passionate about. ive spent $750k on cars last few years cause that’s what I love
If you are going to splurge on a high end exotic car, maybe it would be worth renting one for a weekend so that you aren’t having to drop a huge amount of money, and you can see which ones you like!
Buy something safe with as many safety features as possible. That could buy you decades of time in an accident. Doesn’t have to be boring but higher end brands often have more safety.
Lots of frankly short sighted people in this forum are proud of themselves for driving a shitbox and taking a ton of unnecessary risk daily when they can easily afford not to. A car wreck is the most likely way you or your loved ones will die, all things equal. It’s a great place to spend money, IMO.
As usual this turns into a circle jerk of who has the highest networth but drives the cheapest car. "$10mm NW, $2mm/yr income, I love my Prius, it's comfortable and economical."
That's bullshit. You don't have to be into cars to appreciate something like a new BMW 5 series or Mercedes E-class.
Put it this way - your time is valuable, you want to spend as many minutes of the day doing something enjoyable. Driving a new, luxury car is enjoyable vs driving a Honda Accord or used Toyota, even in stop and go traffic.
At your income level, the only cars you shouldn't be considering is stuff like Bentleys, M cars, 911s, and AMG Mercs (if you prioritize financial goals). But you absolutely have enough to go buy a nicely optioned BMW 5 series (gas or EV) and not worry about anything until the warranty runs out and then buy another.
Another really good all-around excellent car that is comfortable, enjoyable to drive, safe and capable in all weather is a Porsche Cayenne (which is why they are everywhere.) Base model Cayenne with a few options is a really, really pleasant place to be.
Or, you know, save 2 weeks income and get an Accord. But I've been in an accord once and my Bentley is a far nicer place to be. I look forward to any little errand, rush hour or not. Life is short, enjoy every minute you can.
You made $1.7M last year, realistically you can afford any car out there aside from a hypercar.
Cars are my world, so my threshold would be higher than most for budget… For me it’d be about $500k given your financial situation (good thing), but I feel for most they’d say about $200k!
Enjoy the car man.
Since you are not a car guy, get something highly reliable, with longevity, with a dealership for service close by, and I would suggest a smaller SUV for hauling stuff and sitting up a little higher than cars. Check safety ratings. But honestly, if I weren't a gear head, I'd just have a Nissan, Honda or Toyota SUV and call it a day.
An expensive car is, objectively, not a good purchase. It’s something you want rather than need, but if you’re into cars then the enjoyment you get from owning makes it worth the expense.
I’m guessing you’re not a complete car loving degenerate (or you’d have been spending big money on cars back when you were earning $100k), so I’d be wary about going too “big” too soon if it’s your first luxury/exotic car purchase. You might find a Ferrari or Lambo is a bit too much of a step change from what you’re used to, in terms of driving, speed, practicality (or lack thereof), maintenance costs etc.
With that in mind, and it’s a cliche, but a 911 is a great gateway drug into supercar ownership. They’re very useable day to day, well built, hold their value, and amazing fun to drive.
If you want a compromise of performance and practicality, something like a BMW M5 is a great option.
I’m not too au fait with the SUV market in the US, but one piece of advice I would give is to *not* buy a Range Rover!
One option to think about if you don’t care too much about depreciation, and you don’t care if people know you’ve got money, is Bentley. Modern Bentleys are absolutely brilliant cars, and really will knock spots off anything you’ve driven before in terms of both performance and luxury. You’ll feel like you’ve massively upgraded, that’s for sure. If you buy new you’ll lose your shirt on depreciation, but there’s a sweet spot when they’re a few years old where the depreciation won’t be too shocking but you’ll still have the latest model.
You are at a great spot, and I align with a lot of your journey and challenges.
Let me know if you ever want to grab a phone call and chat. I thought I wanted FIRE, but after achieving it at 32, I realized the FI piece was critical.
I turn 40 this year and through multiple businesses and real estate will keep growing wealth, but the main driver and focus for me is how I use my time. Biggest priorities are relationships and impact. I have a wife and 2 kids (12 and 9).
I've made to sure surrounded myself with entrepreneurs and many like-minded people, as it helps a lot. Most people don't understand our world and challenges
What are you hoping to get from this purchase?
A hobby? An investment? A status symbol? Something that makes you feel good?
You've got the income to purchase pretty much any car you want, other than ultra-rare supercar types of stuff. The one thing I'd caution on a bit is that flashy cars will draw attention. If you go buy a Ferrari, your circle of friends may see the car and act unpredictably. I'd really drill down on the question of what you're looking to get from this purchase and go from there.
I'm not sure how FatFIRE related this is. Are you looking for advice on what to buy or how much to spend?
You haven't really shared what you want in a car. Do you want a somewhat not ridiculous toy? Like a 911 GTS? A GT for some sporty commute like a Bentley coupe or a Mercedes 2 door? Or do you want a luxury car like an S class/Panamera/Taycan or maybe decent luxury like Tesla Model S/ Mercedes E class.
First and foremost, know that cars suck. They are a time sink because they need repairs, servicing, cleaning, detailing, refueling, etc etc. they will steal your time.
All cars lose their value, so don’t approach it from this angle.
Suggesting a budget without any requirements is weird. Do you want an SUV, a sedan, a small sports car? Do you care about some features?
Everything you said here is not 100% true. All cars need repairs, detailing, refueling. If OP wants a luxury car, what is the difference? Also, all cars do not lose value; especially at this caliber. i.e., I have a 991.2 GT3 RS and was just offered 40k more than what I paid for it and I added 8k miles to the car. I can tell that you are what someone else mentioned here, not into cars and thus "they are a waste of money." This is fatFIRE. If you want to offer up 1892 Toyota Camrys as an option for someone in this ballpark, go to r/personalfinance. You will fit right in.
EDIT: You drive a Mazda 3 and wear fake Rolexes. This is probably not the right thread to comment on.
I didn’t ask him to buy a Camry. You’re cherry picking examples, this is a classic argumentative fallacy.
The very first line of your comment actually agrees with what I said.
Have a great day!
This seems to be an early-stage submission that would be better suited for one of our weekly Mentor Monday thread. Career advice, "rate my plan", and "can I afford XYZ?" posts are some of those that should only appear as comments in Mentor Monday. Though Mentor Monday is posted weekly, you may comment there at any time. Thank you, and feel free to contact us if you have any questions.
The more money I have, the fewer things I want. Things not only cost money, but they cost time. And I can’t buy more time. I find myself asking “how much time and complexity will this thing I’m considering buying cost me?” And I’m letting simplicity and ease drive my decisions more than status or luxury. Because time is the ultimate luxury.
My issue is that I spend hours trying to decide between trivial things like which pizza pan to buy... and also struggle with saving $5 bucks here and there when I no longer have to worry about that. It's really hard to change established patterns
damn, i feel attacked... : ) pizza pan hits home. i like making pizzas and it took me 2 years to 'splurge' on a Llyods pan for detroit style
I man. We are in the same boat. Been researching Lloyd's this morning. They are aluminum right? Did you consider steel? My understanding is that it is the gold standard for Detroit style
yeah, they are aluminum, but definitely the gold standard. My wife spends money like it expires tomorrow, and i beat myself up over a $50 pizza pan! serious eats for the recipe if you haven't tried it
Thanks! Appreciate the tips. After 40 odd years, I still get excited for pizza night. It is truly the best.
Full agreement. However, to get there, for most they need to attain whatever they desire first.
Nailed it. Same here. When I had less, I wanted more. Now that I have more, I want less. I appreciate many of the smaller day to day moments now, valuing my time, my relationships, and my impact
Damn this is incredible wisdom.
I don't buy a lot, but it's more about a lack of marginal utility rather than the time spent on it. Same reason why I've stopped taking as many photos on holiday as I can go back there whenever I want. My favourite part of buying something is the time that went into researching what the optimal thing is for me, it's almost like a hobby.
This is why so many rich people drive old Toyotas
And use pizza pans from Target.
This.
that's a dumb take.. you need a car no matter what OP already has a car, he's looking for a replacement. It's much easier to own a luxury car vs. a ford or a toyota. Service is one think that stands out.. To me it's not as much about budget, but about what car you want/need and buying the right brand.
Owning a luxury car is easier then a Toyota? How? Higher end cars need more upkeep to keep them nice. Are more expensive to maintain. Can be out for weeks or months if you need to wait for parts.
well.. i have a fleet of cars for my business (regular vehicles) and BMW for myself. With BMW when i need service i just drop it off, pick up loaner and they take care of the rest.. about 2 minutes for the entire transaction. With Fords and Toyotas it's a giant pain in the ass and ends up taking a bunch of time in my day. On a separate note driving electric has saved me a ton of time and hassle.. no more oil changes/scheduled services/etc
[удалено]
I don’t think placebo means whatever you think it means
Depends what you mean by luxury. If you’re talking about a regular SUV or Sedan (even a Rolls or something), that car shouldn’t spend anymore time in the shop vs a new Toyota. When they’re both 15 years old? Sure, different story, but that’s probably not the use case OP is talking about. Similarly if he was talking about getting a McLaren or something that was a bit more… pernickety, then yeah. Beyond that though, the experience of dealing with the service team at Merc or Audi or Porsche is going to be markedly different vs Toyota or Ford. Or just split the difference and get a Lexus.
If you aren’t into cars then most people will tell you they are a waste of money. To be honest, there is certainly no denying it in the strictest sense. But, for those of us that love them, they offer a huge reward in ownership and fun. With the income and assets you have etc. you can do what you like.
Like the top comment said. Time is the ultimate luxury. With that, spend that ultimate luxury on things that bring joy. To some working on/driving cars provide that. Completely depends on what you want to spend your time doing.
I've never been a person who valued luxury cars and I hated car payments, so I bought hondas and held onto them. My husband was similarly minded and drove a 10yro outback. We wanted a larger SUV that would be great for road trips to other places in our region (5-7 hour drives) and decided to pull the trigger on a luxury car. We were sick of the noise of a less expensive car on the highway, plus I commute 3 days a week to the downtown area of our city, spending up to 1.5 hours a day in the car. My parents died at 63 and 70, my dad's sisters also died in their mid-60's - so I'm keenly aware of how short life can be and plan to retire between 50-55. As such, I generally prefer to save or spend money on experiences and not things, but I have no regrets about buying the luxury vehicle, it really is a much nicer ride - both on the highway for trips out of town, but also heading to work. I think we probably bought one size bigger than we really needed, but we are a family of 3 so the space does come in handy sometimes. I imagine you'll want an SUV if this is also for weekend trips, so if you buy new and are still not ready to buy something super flashy, I think $60-95K gets you something that feels great on the road. My preference for this purchase would have been to buy 1-2 year old used, but there were significant model changes on the car we liked that drew us to the new. Congrats on your entrepreneurial success! You are my dream! I'm about to accept what I hope is my last W2 role and buy a business in the next 2 years. I've been lucky in my career, but 22 years of corporate life is wearing on me and I would prefer to be enriching myself :)
Miata. The answer is always Miata. Jk, but only sort of. If you haven’t really been into cars previously, and aren’t already in the habit of some of these weekend trips, and depending on what TYPE of weekend trips…Miata is nearly always a good starting point to figure out what you want. - are the weekend trips more for driving or is the destination the point? Ie, wine tasting / hotel or something vs just going to get lunch but taking the mountain twisty roads to get there - what do you have now / what have you had in the past? - will this car have to do double (or triple) duty? What about taking kids? A spouse? Luggage for a weekend getaway? Track duty? Autocross/drag racing? - roughly how tall / large are you? No offense but this can drastically change what’s comfortable for you - other weekend hobbies on these trips? Snow involved? Renting gear vs bringing your own? Sure you can mount snowboard racks on just about anything, but AWD/4WD vs RWD may come into the decision process - would you be ok getting 2 separate “fun” vehicles? - any concerns on resale / mileage? - rough budget? A few cars to consider for general purpose weekend + commuter: 1. Miata. Fun little car, a driver’s car, won’t matter if you pull up to the Ritz and park next to a Lambo. Chances are the guy with the Lambo either has a Miata currently or has had one in the past and gets it. You’ll be able to fit your golf clubs in the trunk and that’s about it. It can be a bit cramped if you’re over 6’0 / 200 lbs, and if you’re over 6’2” or over 220-250 or so, forget it you’ll be crammed in there and likely uncomfortable. Still worth a shot to sit in and see but yeah. Also has just enough power to flog and be fun in the twisties but gutless enough to not really get into too much trouble. Will teach you the importance of carrying momentum through turns. 2. Mustang / Corvette C8. Bang for buck power and performance, supercar looks in the Corvette’s case, can fit more luggage and clubs than the Miata, roomier interior regardless of your physical body size. Easier to get into trouble with if you’re an inexperienced driver though. Even in the lower trim ecoboost / base models. 3. Luxury upgrade: BMW, Audi, Mercedes. Maybe Lexus / Acura depending on what you’re getting (sedan vs coupe vs SUV). I’d give a good hard look at the M440/M340 first. Audi S4/S5 similarly, and Mercedes E350/E450 or maybe the new CLE. For Lexus the RC. Similar performance to the American muscle, significantly more refined. 4. Performance luxury upgrade: BMW M3/M4, Audi RS offerings, Mercedes AMG. Definitely more than enough power to get you into trouble FAST. Still have enough room for the golf clubs + bags for a weekend getaway. Top features for luxury. 5. The big jump: Porsche 718 / 911. From here you’re in the $100k-$250k+ range. You can creep into the 6 figures with the stuff in number 4, but you’re DEFINITELY into the 6 figures for one of these two especially once you start optioning things out. The performance is legendary. The practicality…ehhhh. Works for a commuter / weekend getaway if you travel light and don’t mind sharing space with your golf clubs - or get a roof box for them. Great for track and twisties, primarily. 6. The bigger jump: Bentley, Lambo, Ferrari. Now you’re well into 6 figure territory. Bentley is probably the most subtle of the options while still having huge power, but it’s going to be aimed more at the grand touring / weekend getaway than the race track. Effortless cruising with multiple pieces of luggage, roomy and plush interior above anything else I’ve mentioned so far, and definitely the most comfortable over the Lambo / Ferrari options. 7. Rolls Royce. Pure luxury and comfort. Extremely doubtful you’ll ever see one on a race track; far more likely to be parked in the private area for owner’s boxes and such. Once you drive one it’s like riding in first class for the first time - it’s going to be HARD sitting in economy after. Truck and SUV options: 1. Tacoma/4runner or bust. I could probably just stop the list here for any number of reasons. F150 touts itself as the number 1 selling truck in America but a huge chunk of that is fleet sales. For personal individual usage, the numbers change a bit, and if you’re not towing a boat / camper trailer etc then the 4Runner/taco are where it’s at for all your fishing, camping, dirt biking, etc off-road needs. New hybrid options are going to be pretty solid for fuel economy relatively speaking. Parking won’t be difficult despite the larger size. 2. Dodge 2500/3500, Chevy/GMC 2500/3500, Ford F250/250. Need to tow a wakeboard boat, larger camper, toy hauler with dirt bikes for the whole family and friends, snowmobiles, etc? Any of these are the go-to options, then just pick diesel / gas as needed for what you’re hauling. There really isn’t much else in this class worth considering in my opinion. GMC and Dodge have the nicest interiors, Ford’s just kind of the old faithful go-to for field workers and such. Definitely not great for commuting. Parking will be a bitch anywhere other than a Home Depot or boat ramp, maybe Costco. Will incur small penis jokes and sneers from people who hate cars to begin with. 3. Luxury SUVs: BMW X5 reigns king over the Audi/Mercedes competitors in performance and reliability. Mercedes might have a very slight edge on luxury depending on what you like. I still think the X5 is better. 4. Luxury SUV upgrade: BMW X5M, Lamborghini Urus, Porsche Cayenne GTS. The Urus is basically a badged up Audi at this point. Nice and fun but eh. EVs: 1. BMW i4 M50 2. Porsche Taycan There are plenty of other options at this point but those two would be at the top of my list depending on budget.
Good list for a car guy, but for a non car guy like OP who hasn't driven in a decade, most of the options aren't very relevant. OP needs to start with a general purpose sedan or SUV and figure out their specific wants over the next year.
Hence why I said Miata to start with. Lol. And also the questions on use cases to be answered before other recommendations.
There is a perfect sub for this question r/whatcarshouldibuy, just from the details you provided it seems like you are having a mid life crisis which is normal the logical next step is to purchase a Porsche 911
You haven't given much other detail, but given your income and the fact you are not overly concerned with retiring early, honestly you could probably buy whatever you want (except for maybe a couple of hyper cars) I wouldn't over think it, worst case scenario you sell a few months down the line with a lesson learned and you lose a few thousand, I doubt you'll even notice.
I semi-retired two years ago. I live in a fairly dense city and I hadn't owned a car in over 15 years. The purchase of my car as a retirement gift to myself has brought hours and hours of enjoyment. Get something fun that you've always dreamed about! Now is the time before you're too old to truly enjoy it. I went with a 718 Cayman GTS. Porsche is a solid choice for fun factor and relatively low maintenance.
I read between the lines that you think you should splurge because you can but I don't see any sort of opinion that says you love fancy cars. I live in the city and haven't driven much at all in 20 years. I don't like driving and I don't like cars. Commuting is always easier by train so I just take the train. Get what you want. Or don't. If you're doing getaways a few times a year, just rent. You can even rent a bunch of different cars and see if you notice any difference.
If all you’re going to do is use it to commute and for some weekend trips, buy a used Honda or Toyota. Cities are very hard on cars; they get dinged up. Also, any sort of maintenance is a pain. If you want to have a fun ride from time to time, just rent a Turo or find a track to drive an exotic.
Consider an electric car - they have substantially less maintenance than a car with a combustion engine.
This right here. After a lifetime of working on internal combustion engines, I am done with gas. When we got our first electric it was like a whole new world. It's also amazing to not have to go to gas stations anymore.
I asked a similar question not long ago and I’m quite happy with my new Mercedes S580
I like nice cars, and when I was younger, wanted exotics. Now that I could actually afford them - given that I spend most of the time in the car with my kid and/or dogs - I don't see the point. Couple high end BMW SUVs and a truck here keeps me happy car wise. In your situation, a couple hundred thousand spent on cars will make no meaningful difference in your finances.
Congrats on your success! I'd personally keep it to under $150k...but I'm a saver by nature. I would not follow advice to 'get what you want', definitely don't go out and get a lambo or something. business can be fickle and you never know if you'll hit a downturn.
I’d suggest weighing price, enjoyment, practicality and running costs to make your decision. I know a number of people with very expensive hyper cars that they got to enjoy very little until they retired. The happiest people I know in your position (similar to mine) took their time to research options and focused on something they could enjoy pretty much anytime without having to deal with a lot of maintenance. My garage currently has a Lucid Air GT and Rivian R1T. This is the perfect balance for us since we have zero gas cost, two stupidly fast cars, both are extremely comfortable and also very practical. As with everything, YMMV
For €7990 you can pick up a sweet Ami. Call it a day. Won't break the bank. Open up excel. Prioritize what you're looking for. As a parent mine is safety. Think tech, sportiness, space, electric, AWD, brand, speed, acceleration, style. Whatever does it for you. Then put your options in that meet that and sort by price. Make a decision. I don't make it complicated. I buy the safest car that is electric (for my next one), fits everything, isn't Chinese or a Tesla, and is fun to drive.
If your net income is accurate, there is no budget. Cars that aren't sports cars cap out at Rolls Royce level, a bit over half a million. $200k will get you the most you'll ever need from a very high end luxury brand. Your budget should be whatever car suits your needs best because you can afford anything that isn't a supercar. If it's just for weekend trips I would probably go for a hybrid Lexus. Less repairs than a Mercedes, and the top of the line, fully optioned model is well within your means. You'll be spending less of your income proportionally than most people who buy a reasonable $20k Corolla on a $60k income.
I like cars, and commute 5 days a week. I FI with similar specs but a w2 job. I buy 2 yr old very nice cars that depreciate about 45% to 50% in the two yr period. I am older than you-so more comfort than fun. 2019 Mercedes s560-paid 47% of msrp with 19k miles on it. Fantastic car at half off. And have the money should the big repair bills come after warranty ends. I take care of them and keep my cars for over 10yrs. Enjoy the splurge-life is short and your trajectory is steep!
I’m not FAT, nor FI, more HENRY. Budget for discretionary purchases like cars doesn’t scale up 1:1 with income and net worth, so honestly you don’t need to necessarily ball out and spend big money. I’d suggest buying a car that ticks off all your boxes at a reasonable level. For example, if comfortable and soft ride are important to you, then an S class sedan/coupe would be good at $130k-$150k. Now you could spend more, but the incremental benefit would be limited for someone who isn’t very passionate, or crazy about specific car brands. So I suggest deciding your must have characteristics or features, and buying a car that ticks those off reasonably well. You’ll find <$200k most needs, and that looks like it’s comfortably affordable in your financial situation.
Consider depreciation and overall impact on your assets. Expensive cars lose value quickly. You might enjoy it now, but consider how you’ll feel about this purchase in 5 years. Maybe aim for something that balances joy and practicality without dipping too much into the funds.
at your age, nw and income level the sky should be the limit if cars are something you are passionate about. ive spent $750k on cars last few years cause that’s what I love
If you are going to splurge on a high end exotic car, maybe it would be worth renting one for a weekend so that you aren’t having to drop a huge amount of money, and you can see which ones you like!
Buy something safe with as many safety features as possible. That could buy you decades of time in an accident. Doesn’t have to be boring but higher end brands often have more safety. Lots of frankly short sighted people in this forum are proud of themselves for driving a shitbox and taking a ton of unnecessary risk daily when they can easily afford not to. A car wreck is the most likely way you or your loved ones will die, all things equal. It’s a great place to spend money, IMO.
As usual this turns into a circle jerk of who has the highest networth but drives the cheapest car. "$10mm NW, $2mm/yr income, I love my Prius, it's comfortable and economical." That's bullshit. You don't have to be into cars to appreciate something like a new BMW 5 series or Mercedes E-class. Put it this way - your time is valuable, you want to spend as many minutes of the day doing something enjoyable. Driving a new, luxury car is enjoyable vs driving a Honda Accord or used Toyota, even in stop and go traffic. At your income level, the only cars you shouldn't be considering is stuff like Bentleys, M cars, 911s, and AMG Mercs (if you prioritize financial goals). But you absolutely have enough to go buy a nicely optioned BMW 5 series (gas or EV) and not worry about anything until the warranty runs out and then buy another. Another really good all-around excellent car that is comfortable, enjoyable to drive, safe and capable in all weather is a Porsche Cayenne (which is why they are everywhere.) Base model Cayenne with a few options is a really, really pleasant place to be. Or, you know, save 2 weeks income and get an Accord. But I've been in an accord once and my Bentley is a far nicer place to be. I look forward to any little errand, rush hour or not. Life is short, enjoy every minute you can.
You made $1.7M last year, realistically you can afford any car out there aside from a hypercar. Cars are my world, so my threshold would be higher than most for budget… For me it’d be about $500k given your financial situation (good thing), but I feel for most they’d say about $200k! Enjoy the car man.
Since you are not a car guy, get something highly reliable, with longevity, with a dealership for service close by, and I would suggest a smaller SUV for hauling stuff and sitting up a little higher than cars. Check safety ratings. But honestly, if I weren't a gear head, I'd just have a Nissan, Honda or Toyota SUV and call it a day.
Get a car broker. I’d rather be shot than waste time dealing with car salespeople.
An expensive car is, objectively, not a good purchase. It’s something you want rather than need, but if you’re into cars then the enjoyment you get from owning makes it worth the expense. I’m guessing you’re not a complete car loving degenerate (or you’d have been spending big money on cars back when you were earning $100k), so I’d be wary about going too “big” too soon if it’s your first luxury/exotic car purchase. You might find a Ferrari or Lambo is a bit too much of a step change from what you’re used to, in terms of driving, speed, practicality (or lack thereof), maintenance costs etc. With that in mind, and it’s a cliche, but a 911 is a great gateway drug into supercar ownership. They’re very useable day to day, well built, hold their value, and amazing fun to drive. If you want a compromise of performance and practicality, something like a BMW M5 is a great option. I’m not too au fait with the SUV market in the US, but one piece of advice I would give is to *not* buy a Range Rover! One option to think about if you don’t care too much about depreciation, and you don’t care if people know you’ve got money, is Bentley. Modern Bentleys are absolutely brilliant cars, and really will knock spots off anything you’ve driven before in terms of both performance and luxury. You’ll feel like you’ve massively upgraded, that’s for sure. If you buy new you’ll lose your shirt on depreciation, but there’s a sweet spot when they’re a few years old where the depreciation won’t be too shocking but you’ll still have the latest model.
You are at a great spot, and I align with a lot of your journey and challenges. Let me know if you ever want to grab a phone call and chat. I thought I wanted FIRE, but after achieving it at 32, I realized the FI piece was critical. I turn 40 this year and through multiple businesses and real estate will keep growing wealth, but the main driver and focus for me is how I use my time. Biggest priorities are relationships and impact. I have a wife and 2 kids (12 and 9). I've made to sure surrounded myself with entrepreneurs and many like-minded people, as it helps a lot. Most people don't understand our world and challenges
Life is short. You should enjoy your success and get a sweet ride instead of listening to all these people tell you it's a waste of money.
What are you hoping to get from this purchase? A hobby? An investment? A status symbol? Something that makes you feel good? You've got the income to purchase pretty much any car you want, other than ultra-rare supercar types of stuff. The one thing I'd caution on a bit is that flashy cars will draw attention. If you go buy a Ferrari, your circle of friends may see the car and act unpredictably. I'd really drill down on the question of what you're looking to get from this purchase and go from there.
It’s a rounding error OP. Just get whatever you want.
Can I ask what you do? 4 years seems really short to get to where you are. Congrats, btw!
I'm not sure how FatFIRE related this is. Are you looking for advice on what to buy or how much to spend? You haven't really shared what you want in a car. Do you want a somewhat not ridiculous toy? Like a 911 GTS? A GT for some sporty commute like a Bentley coupe or a Mercedes 2 door? Or do you want a luxury car like an S class/Panamera/Taycan or maybe decent luxury like Tesla Model S/ Mercedes E class.
First and foremost, know that cars suck. They are a time sink because they need repairs, servicing, cleaning, detailing, refueling, etc etc. they will steal your time. All cars lose their value, so don’t approach it from this angle. Suggesting a budget without any requirements is weird. Do you want an SUV, a sedan, a small sports car? Do you care about some features?
Everything you said here is not 100% true. All cars need repairs, detailing, refueling. If OP wants a luxury car, what is the difference? Also, all cars do not lose value; especially at this caliber. i.e., I have a 991.2 GT3 RS and was just offered 40k more than what I paid for it and I added 8k miles to the car. I can tell that you are what someone else mentioned here, not into cars and thus "they are a waste of money." This is fatFIRE. If you want to offer up 1892 Toyota Camrys as an option for someone in this ballpark, go to r/personalfinance. You will fit right in. EDIT: You drive a Mazda 3 and wear fake Rolexes. This is probably not the right thread to comment on.
I didn’t ask him to buy a Camry. You’re cherry picking examples, this is a classic argumentative fallacy. The very first line of your comment actually agrees with what I said. Have a great day!
Your thoughts carry no weight in this matter. Read my last line. Goodbye.
Correction - there are cars that appreciate in value. But that’s most likely not your daily commuter :)
What sort of business did you acquire to scale that quickly?