Topic: Benzee, Ahhdee, Beemer,...

[ovr50]

Good for you, samej, it's great to have a car that you enjoy. You did your "time", now you can do stuff just for you and your missus. 

The only problem is that old saying, something like: "we get too soon old, and too late smart". 

After 19 months, my car still puts that big sh1t-eatin' grin on my face. 

[random006]

Good for you, samej, it's great to have a car that you enjoy. You did your "time", now you can do stuff just for you and your missus. 

The only problem is that old saying, something like: "we get too soon old, and too late smart". 

After 19 months, my car still puts that big sh1t-eatin' grin on my face. 

Ditto samej,

Cracks about who drives a BMW aside, I'm glad you got a chance to own and drive one.  I would like to as well but I still enjoy - and have need for - my current ride.   On top of which, finances are such that the phrase "It's paid for" is worth more than anything else right now.

[carsncars]

Regarding the original topic... yeah, I've wondered this myself.

I'm guessing that while some people do truly have the means to purchase high-end cars, many just have different priorities--who knows, they may not have as much in the way of retirement savings, or college funds for the kids. I know for my parents, while they were paying for the mortgage on their first house (back in the late 80s, with ridiculously high interest rates), they poured every spare penny into paying off the mortgage... our furniture consisted of mattresses, a couch, a TV, a coffee table, and a hand-me-down kitchen table set. In contrast, some people are perfectly happy carrying a 40-year mortgage.

Then there's the leasing possibility, which puts you in a nice, new car for an "affordable" monthly rate (but in actuality is rather expensive). Or the could have financed it.

And there are many, many people who live on the edge--almost from paycheque to paycheque.

Bottom line? Priorities, mainly. Sense of entitlement has a lot to do with it too--we live in an age where everyone thinks they deserve a big-screen TV, 4,500 sq. ft. home, Escalade and a 5-series. Which is a lot of the reason why we're in the pickle we're in now.

[tpl]

Priorities, mainly. Sense of entitlement has a lot to do with it too--we live in an age where everyone thinks they deserve a big-screen TV, 4,500 sq. ft. home, Escalade and a 5-series. Which is a lot of the reason why we're in the pickle we're in now.

I always thought that the whole point of moving to North America was so one could have everything one wanted now and (hopefully) have someone else pay for it later.
Oh well, another illusion shattered!   

[kevlar]

there are a lot of people in toronto living well above their income levels.  they buy condos with 5 percent or less down, and lease their cars.   i commented to my banker about the price of housing here and he just laughed and said it isn't unusual for people to have mortgages that are 1500 in interest a month with 300 in principle and 700 bucks in lease payments for their car.   they have 35-40 year mortgages!!    people like this are buying all the expensive cars and pushing the price of real estate way beyond what it should be. 

[tpl]

Those people are providing many  3 yr old  cpo cars for others to buy used tho'.

As for the real estate.   Every few weeks the National Post Homes section has an article about a "fixer upper", usually in a nice part of TO.   These houses that they feature often cost $500,000 to $750,000 as is and then in the article they suggest between $100,000 and $200,000+ worth of renos.
That to me is mind blowing that not only could you spend, say, $600,000 on a house but then to live in the middle of a reno for several months or weeks and spend another $100,000. 

[initial_D]

Very normal for people to max out their credit on housing & vehicle.

To finance a $25,000 vehicle @ 4.9% annual interest rate, over 36 months, $0 down, the monthly payment is about $750.00.

So, with an extra $100 or a month extra in lease payment, a little down payment, and people can drive a much nicer car than one with a selling price of $25,000. And lease payment is a lot easier for tax deduction.

[safristi]

..GLAD i took Grade 5 ARITHMETIC.........................

[carsncars]

I used to work doing income taxes at H&R Block (don't judge... seasonal job). My manager just got transferred there after doing debt consolidation work for a couple years... she said you wouldn't believe the number of people who pay their car/house payments with a credit card, which they pay with another credit card, which is paid by another credit card, which is paid with a line-of-credit. I can understand if you absolutely need the car and you don't have the means otherwise (so you leased or financed a Yaris or something), but these are people who walk in wearing Coach and Prada, who drive Bimmers and Benzes.

The money had to come from somewhere, eventually.

[tpl]

He who dies in debt, dies ahead.

[vdk]

I used to work doing income taxes at H&R Block (don't judge... seasonal job). My manager just got transferred there after doing debt consolidation work for a couple years... she said you wouldn't believe the number of people who pay their car/house payments with a credit card, which they pay with another credit card, which is paid by another credit card, which is paid with a line-of-credit. I can understand if you absolutely need the car and you don't have the means otherwise (so you leased or financed a Yaris or something), but these are people who walk in wearing Coach and Prada, who drive Bimmers and Benzes.

The money had to come from somewhere, eventually.

On the other hand 20% of Torontonians make $100k+. If you don't have a mortgage or kids, that's a lot of coin. Some can actually afford it too.

[dr_spock]

He who dies in debt, dies ahead.

Just have to time one's death before the repo man comes visiting.   

[quadzilla]

I think there are also some young people (under 30) that still live at home, don't pay for anything (or very little) and have a good job making 60-70K/yr which frees up a lot of money for a nice new car.

Personally I'd drive a lesser car and live on my own but to each their own.

[tpl]

And don't forget those DINK couples. Both with jobs paying upwards of $60-70K  who have a reasonable mortgage or rent.   Income split like that makes a big difference tax wise.   I worked with several people who with their spouses were in that position or even more so ( like 2* >$100k including bonuses) and no kids yet. 
As the parents of us Boomers dies off there is a tremendous amount of inheritance money slopping around... pays off mortgages leaving money for BMWs and so on.

Point is that in the big cities there are many many people with lots of spare cash, just as there are many many people who are ( through no fault of their own perhaps)  permanently broke.

[ovr50]

He who dies in debt, dies ahead.

Just have to time one's death before the repo man comes visiting.   

Right, the trick is to have your first ever bounced cheque being the one for your funeral....

[Ontariodriver]

I've know many people in the UK who will live in a bedsit or room. Just so they can drive a BMW...or some such expensive models.....

[tpl]

He who dies in debt, dies ahead.

Just have to time one's death before the repo man comes visiting.   

Right, the trick is to have your first ever bounced cheque being the one for your funeral....

That's called creative accountancy is it not ?   

[sparky]

why OWN a piede a terre...costing $100's of K's when ya can rent one for those special moments..........................or even splurge on a 5 star hotel fer a few days................I remeber having the cottage bug 10 years after coming to Canada...and i shoulda /coulda bought a decent small Muskoka BIG LAKE property for around $20K........having missed that we rented many a Summer in various cottage areas...........lots of variety and freebies...some with speedboats thrown in fer free.......and visited numerous "resorts"...most of the local cottagers were be_moaning the Taxes,,,Upkeep etc......$200,000 buys a lot of "FUN" places and no responsibilities........enjoy the variety and then walk away at the end of the week/weekend................IMHO

The folks I don't understand are the owners of those giant deluxe motor homes. They pay half a million bucks for the privilege of driving a freakin' bus, paying a further fortune for fuel, and being unable to access any decent (i.e. remote) campsites. That money would finance a lifetime of great trips, guided and catered adventures and/or resort vacations.
Owning your own cottage is different. You can go whenever you want, stay as long or as short as you like, and keep your toys there. We have a very cheap little place (cost less than a loaded Maxima) that's so close to town that we're out there all the time. Downside: With the camp on the books, I can't afford that loaded Maxima.