Broke an engine last weekend. - Page 14 - PeachParts Mercedes-Benz Forum

Skid Row Joe · #**196** 11-30-2010, 09:04 PM

quote: craig

BTW, we are not really talking about a huge amount of money; I don't really think most folks would have to will the lottery to put $15k into a car repair, but maybe I'm wrong.
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You would be wrong.

The facts speak for themselves:

50%+ American households have less than $5,000 in savings.

25%+ American households have less than $1,000 in savings.

"$15K" to most Americans, would be like winning the lottery....

#**197** 11-30-2010, 09:07 PM

Quote:

Originally Posted by Hatterasguy

Craig's car is fully depreciated so he can spend a ton on repairs and not have that huge depreciation nugget. Most people who buy new cars only look at the cost of repairs which isn't your largest expense, depreciation is.

I don't track my expenses exactly, but the round numbers support my $0.30 per mile estimate. Fuel is someplace around $0.15/mile; that leaves me another $0.15 to work with. If I drive 50k miles, that gives me a $7,500 per year to cover everything else. Routine maintenance includes oil (say $500), tires and brakes (say $500), transmission service (say $100), alignments (say $100), etc. If I allow $2000 for maintenance and a few hundred for depreciation, I still have over $5000 per year to cover any repairs; on average I spend less than half that amount.

Also, almost all my driving is for business and I bill my personal car travel at $0.50/mile (per current IRS rules), so the car earns an additional $0.20 per mile... you can do the math.

#**198** 11-30-2010, 09:09 PM

Quote:

Originally Posted by ah-kay

I just cashed out my company's Stock Option. The strike price was very low compare to the current price. I will get a massive W2 this year. What shall I buy?

Put as much as you can in a IRA and avoid the taxes, cars are not good investments.

TylerH860 · #**199** 11-30-2010, 09:09 PM

Quote:

Originally Posted by Craig

Actually, Tyler just gave me a very promising lead on a clean W211 E500 4matic in SLC. I talked to them today and asked some questions, if it's as good as it sounds I'm thinking about heading out there by the end of the week and (potentially) buying it. I promise to take photos if I pull the trigger.

The only problem is that a hate the idea of flying out there and the train schedule for DEN to SLC sorta sucks (but it is scenic). At some point (probably next week), I also have to go collect my 300D (in the opposite direction).

At the risk of getting more flack, I'll keep you posted.

I'm always the enabler for the addict.

TylerH860 · #**200** 11-30-2010, 09:11 PM

Quote:

Originally Posted by Craig

Put as much as you can in a IRA and avoid the taxes, cars are not good investments.

Speak for yourself!

#**201** 11-30-2010, 09:13 PM

Quote:

Originally Posted by Hatterasguy

Also don't forget if you own your own company you can write off the mileage and in Craig's case he charges for it too!

So his clients are paying him $25k a year to drive his car, and the feds are letting him write it all off.

Its one heck of a good bargain, now that I do it I see why people love older cars. I will have written off what I paid for my truck this April, so at that point its almost free.

Actually, you can't do both. You can charge up to $0.50 per mile (at the moment) for using your personal car (that money is not taxed); or you can have your business buy your car and write off the actual un-reimbursed expenses on you corporate taxes. Let's not get greedy.

#**202** 11-30-2010, 09:20 PM

Quote:

Originally Posted by TylerH860

Speak for yourself!

They are only a good investment if you eventually sell them for a profit.

#**203** 11-30-2010, 09:24 PM

Quote:

Originally Posted by TylerH860

I'm always the enabler for the addict.

That car does sound very nice, I spoke to the contact you gave me and asked him about a few nits I saw in the photos. He's going to verify the price and get back to me tomorrow. Based on the photos, my wife really likes it. If all goes well, I'm thinking about flying out there on Friday.

ah-kay · #**204** 11-30-2010, 09:26 PM

Quote:

Originally Posted by Craig

Put as much as you can in a IRA and avoid the taxes, cars are not good investments.

Not eligible for IRA as most big Corporations have 401K. I cannot claim my $0.50/miles unless I am on company travel using my own car. We fly most of the time and is on taxi or rental cars, so unfortunately, I cannot make any money from Uncle Sam on mileage allowance.

May be I need to have my own business working on reman engines.

Skid Row Joe · #**205** 11-30-2010, 09:29 PM

Quote:

Originally Posted by ah-kay

Not eligible for IRA as most big Corporations have 401K. I cannot claim my $0.50/miles unless I am on company travel using my own car. We fly most of the time and is on taxi or rental cars, so unfortunately, I cannot make any money from Uncle Sam on mileage allowance.

May be I need to have my own business working on reman engines.

Not true.

You can open and fund annually a self-directed IRA, independent your "most big Corporations have 401K."

vstech · #**206** 11-30-2010, 09:32 PM

wahhh. everybody skipped over my post #195...

greedy has it's limits, but they can be worked around!

TylerH860 · #**207** 11-30-2010, 09:32 PM

Quote:

Originally Posted by Craig

That car does sound very nice, I spoke to the contact you gave me and asked him about a few nits I saw in the photos. He's going to verify the price and get back to me tomorrow. Based on the photos, my wife really likes it. If all goes well, I'm thinking about flying out there on Friday.

The things that stuck out to me, on the negative side, is the back bumper had some scratches, someone painted the calipers, the rotors are looking tired, and the tires look like a cheap brand. They may be good quality, who knows. They look so new that maybe the dealers slapped them on?

Its certainly the best deal, if they honor that price. Those lower mile ones are worth looking at too.

Bio300TDTdriver · #**208** 11-30-2010, 09:36 PM

Quote:

Originally Posted by ah-kay

I drive old cars but sensibly in $$ terms.

It was your decision and good luck with that.

I honest do NOT concur. Even a jumbo jet has a limited working life.

There is Every FW that one can lease a 2011 E350 for 60 months as of NOW and would come at less than $0.30 cents a mile for doing 50K a year.

http://www.leasecompare.com/quick_lease_quotes.php?ModelYear=2011&MakeID=500&ModelID=220&StyleID=135&vehicle=2011+Mercedes-Benz+E350

$688/month lease + tax at 8% = $8916. I add 8% tax just to be realistic.
50K/yr @ 30mpg, ( official hwy mpg is 33mpg ) #2 diesel at $3.2/g = $5333

Total costs/mi = $8916 + $5333 / 50K = $0.285/miles.

45K/year would be $0.3048/mile
40K/year would be $0.3295/mile

If one averages 40-50K a year then $0.30/mi give or take is really doable for driving a 2011 BRAND NEW MBZ E350 Bluetec off the dealer lot. Why settle with a 28 years old car? One would be way ahead to lease a 3 years old lease returned car.

That is for 12,000 miles a year. Try it with 60,000 miles a year.

pawoSD · #**209** 11-30-2010, 09:41 PM

The real savings in keeping an old car going are if you skip the labor costs. 1.5 years ago my car's trans began a death spiral....I located a used one with 160k on it through this forum, drove to get it, brought it home and installed it. Total cost of trans, trip, other things I replaced while doing it, about $670. Car was only actually down for about 2.5 days. I work real fast when a major failure occurs. Overnight shipping makes a lot of things possible.

I have since put nearly 30k on the car.....and have not had any additional major repairs at all. Of course at this point I've replaced a vast majority of parts that can fail, so I am fairly immune to sudden failure. I am a firm believer in the maintain it like an aircraft approach. It has worked well for me so far.....I've spent probably 12k on my W126 in the past 7.5 years including purchase price....and its given me over 100k of worry free driving, and more yet to come....I've never been stranded, its never been towed. Not too bad IMHO. Very very very few sub 20k cars would do 100k miles reliably without at least a small li$t of repairs. And even then, the car is still 20k, its a new piece of plastic in comparison, feels cheap, rides cheap, sounds cheap. And along the way, insurance will be considerably more, etc.

Old cars win, they are ALWAYS cheaper as long as you have a decent idea of what you are doing.

Very few people take into account ALL of the price factors of a newer car:
-Still has maintenance
-Can still break
-Much higher insurance
-Higher annual registration
-The depreciation after purchase

I pay about $36 a year to register my W126 and barely $600 to insure it......even a newer C-class would be in the $140-150 range just for registration....an S-class....much much more.

When I see what people spend every month on their stupid SUV's and such, it blows my mind. $400+ for the payment, another $250+ for insurance, maintenance, and another few hundred in gas. What is wrong with people?