Ridiculous MBCA S550 Seller - Page 3 - PeachParts Mercedes-Benz Forum

Fulcrum525 · #31 11-02-2009, 07:46 PM

Quote:

Originally Posted by Craig

Hopefully true for most people, but a couple of observations;

Someone with a low six-figure income ($100-300K) in not going to accumulate wealth by buying $100K cars, the numbers just don't work. A $40K car is more appropriate.

Someone with that level of income has no excuse not to pay cash for their cars, and writing a check that large for a car will make you think twice.

The general train of thought is this. They don't plunk down a check for $100,000 on a new car, they make payments like everyone else. The difference is that they invest what they would have spent at a rate that can potentially pay them back more then the interest on a loan would cost. So you set aside say 8% of your yearly income to making car payments. $24,000 on a yearly car payment will still get you a lot of car and what you have left over is enough to make you more money in the long run.

(Of course that's very simplified and doesn't factor in living costs but you get the idea)

#32 11-02-2009, 08:10 PM

Quote:

Originally Posted by Fulcrum525

The general train of thought is this. They don't plunk down a check for $100,000 on a new car, you make payments like everyone else. The difference is that they invest what they would have spent at a rate that can potentially pay them back more then the interest on a loan would cost. So you set aside say 8% of your yearly income to making car payments. $24,000 on a yearly car payment will still get you a lot of car and what you have left over is enough to make you more money in the long run

(Of course that's very simplified and doesn't factor in living costs but you get the idea)

Yup, I understand the concept. That's a great way to stay in debt forever and never haver the freedom to leave your $300K job and go accumulate some real wealth.

The guy who uses this logic has also borrowed $800K for his house, $400K for his vacation home, and is paying $40K per year to his country club. He spent $25K redoing his kitchen last month, and owns 25% or a small plane that he doesn't have time to fly. He has two kids in Ivy League schools at $40K/year each, and his wife just booked a $15K vacation for the holidays. Now he's worried because he doesn't know if he will get the usual annual bonus check, and he doesn't want to cash out any stock while the market is in the dumps. He's pushing 55 and would like to quit his job and start a new business, but he's not liquid enough. He's looking at spending $75K on his daughters wedding, but he doesn't have the cash available. He brings home $15-20K per month and still has to pay attention to his spending.

Does anyone want to be this guy, with or without the nice shinny new car?

I would rather live in a modest house, drive an older car, and be able to sleep at night. Just saying.

Fulcrum525 · #33 11-02-2009, 08:43 PM

Quote:

Originally Posted by Craig

Does anyone want to be this guy, with or without the nice shinny new car?

I would rather live in a modest house, drive an older car, and be able to sleep at night. Just saying.

Exactly.

Just another reason why I will always buy used

Thankfully there are still people out there with 6 figure incomes who know how not to go completely nuts on spending as you've described. I've been 'lucky' enough in my time to see both sides of that coin.

TylerH860 · #34 11-02-2009, 09:13 PM

For those of you who don't get the Star here are a few laugh out loud prices typical of the sellers who list there. All of them have very high brow descriptions, talking of concourse quality, maintained with money as no object, etc.

1990 420SEL 185k: $9000

1991 350SD 178k: $10,000

1990 300CE 208k. new motor in 09 and transmission in '02: $12,777

1987 560SEC convertible conversion: $35,000

1991 300CE 131k: $8900

1983 300TD 264k, falsely claims 32MPG, $10,000

1983 380SL 38k, $24,500

MTI · #35 11-02-2009, 09:16 PM

Was the ad in the Sept/Oct issue or Nov/Dec?

Fulcrum525 · #36 11-02-2009, 09:21 PM

Quote:

Originally Posted by TylerH860

1991 350SD 178k: $10,000

1987 560SEC convertible conversion: $35,000

Uh oh, we have a tie.

TylerH860 · #37 11-02-2009, 09:33 PM

There are alot more. Of the 40 non SLs spanning 1973 to 1995 20 of them are ridiculously overpriced, 6 have no prices listed, and the remaining are still pretty darn high.

TylerH860 · #38 11-02-2009, 09:34 PM

Quote:

Originally Posted by MTI

Was the ad in the Sept/Oct issue or Nov/Dec?

NOV-DEC... The very last one before the wanted section.

Fulcrum525 · #39 11-02-2009, 09:40 PM

Quote:

Originally Posted by TylerH860

There are alot more. Of the 40 non SLs spanning 1973 to 1995 20 of them are ridiculously overpriced, 6 have no prices listed, and the remaining are still pretty darn high.

Yes if there is one model that always has huge price gaps its the R107s. Also, speaking of generally overpriced.....

http://www.hemmings.com/classifieds/carsforsale/mercedes_benz/

MTI · #40 11-02-2009, 09:46 PM

Quote:

Originally Posted by TylerH860

NOV-DEC... The very last one before the wanted section.

Thanks, that explains it. Way out here, I'll be lucky if I get the issue delivered before Veteran's Day.

TylerH860 · #41 11-02-2009, 09:51 PM

Quote:

Originally Posted by Fulcrum525

Yes if there is one model that always has huge price gaps its the R107s. Also, speaking of generally overpriced.....

http://www.hemmings.com/classifieds/carsforsale/mercedes_benz/

Yes, I've been following SLs for years and can't even begin to understand the pricing.

C280 Sport · #42 11-02-2009, 09:51 PM

Quote:

Originally Posted by POS

And that's the problem with making $300k a year; if you're smart enough to do that then your smart enough not to buy new $100k cars.

Exactly. I know tons of friends who make millions. They even say themselves they dont buy brand new cars. I have a cousin who is into NYC real estate worth God knows how many millions. Loves Jaguar. Never buys them brand new.

Hatterasguy · #43 11-02-2009, 09:59 PM

Quote:

Originally Posted by Craig

Hopefully true for most people, but a couple of observations;

Someone with a low six-figure income ($100-300K) in not going to accumulate wealth by buying $100K cars, the numbers just don't work. A $40K car is more appropriate.

Someone with that level of income has no excuse not to pay cash for their cars, and writing a check that large for a car will make you think twice.

My rule is you can and should buy whatever toy you want, as long as you pay cash.

The flipside of the rule is writing the check on big toys is hard so this has a limiting affect on spending.

$100k for a car is a lot, but half that is pretty reasonable. Nothing wrong with a nice new E class or used S. If you can afford it.

Skippy · #44 11-02-2009, 10:17 PM

What I paid for mine:

1977 240D, 218k and a leaky slave cylinder in 2006-$480

1971 250, unknown miles and flaring trans in 2008-$696

1983 300D, 293,000 miles and no major issues in 2005-$800

I'd say I paid too much for the '71. The diesels, not so much.

#45 11-03-2009, 02:14 AM

Quote:

Originally Posted by Hatterasguy

My rule is you can and should buy whatever toy you want, as long as you pay cash.

The flipside of the rule is writing the check on big toys is hard so this has a limiting affect on spending.

$100k for a car is a lot, but half that is pretty reasonable. Nothing wrong with a nice new E class or used S. If you can afford it.

I agree it's OK, but I'm personally not willing to write a $60K check for any car. If I wanted a "new" E-class, I would find a good low mileage one for $30K and pay cash. OTOH, I would have no problem paying $15K for a good old car.

I also know folks with serious money who refuse to buy new cars because they are not good values (which is why they now have serious money).