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Offline Steve355F1


  • Joined: Oct 2013

  • Drives: 355F1 GTS
  • Location: Adelaide
What an odd thing to say.

It's people who do that who have made people like Rob lots of money (note: NOT a crack at Rob).
Would it be better if they didn't do it?

The only people who wouldn't be totally fucked if they lost their job are usually living off daddy's money, or they got VERY lucky, or - the smallest group of all - they genuinely made lots of money by being smart.
It's only the last group who could perhaps look down on the rest. But in my experience, they almost never do.
It's usually those in the first two groups who like to big-note themselves.



Steve - You miss the point totally.
I think Rob gets it.

If you are 30 -40 years of age, are making $120,000 a year and you think you have "made it" and can afford to lease a new Audi because it is deductible or you get a car allowance (which you have to spend - oh yeah?) then you have your hand in your pants.

Do the maths. After tax this dude is not collecting that much. The Audi will be worth 38% of the purchase price in 3 years. Leasing costs, insurance and various other costs will keep him poorer.

I hear them all say "but it's tax deductible!!!!

Dickweed tax deductible does not mean is furkin FREE.

First rule of getting wealthy - understand the tax system.

Build you wealth first, then buy your cars/boats/planes/whores.

Don't be "The Patsy" for some slick car salesman in a flashy showroom feeding your fragile ego.


 :scratchchin:

Actually, Tezza, I get it perfectly fine.

In the last five years I have seen many people (some very close to me) who worked hard their whole life, making all the "smart" and "sensible" decisions during their prime years so that they could have some luxury in the later stages, suddenly drop off the twig very quickly indeed.
I've seen cancer, stroke, brain haemorrhage, heart attack and so on claim otherwise healthy people who were heading into the "reward" stage of their life after decades of "sensible" choices, before they could actually claim any rewards!
They went to their graves having enjoyed very few of the pleasures they could have had if they'd only loosened up a bit, accepted a little debt, taken a bit of a risk, and stopped thinking about everything like an accountant would. ie. like you do.

This taught me that life is about living, because the proverbial bus really is just around the corner, and it can have anyone's name on it, no matter how sensible or clever you think you are.

I don't intend to be lying on my deathbed thinking "gee, I wish I'd bought that Ferrari" instead of that fifth investment property (yawn).
Nor do I want to be 65 and finally own one but then complain about how it hurts my back every time I get in it.

FWIW I have no finance on my Ferrari, but I have used finance many times to get things I wanted, and it was a win-win for both me and the finance provider. The trick is to only go in as deep as you can genuinely afford.
You don't have to be a normal working pleb on $120k to make mistakes with finance.
Plenty of high fliers have fucked it up too. The principle is the same.








Offline TEZZA

  • Those Frenchies seek him everywhere

  • Joined: Oct 2011

  • Drives: No matter what it is I am still lusting after something better.
  • Location: In a sunny place


You know I wondered for years what is worse.


1. Dying early without spending your money.

or

2. Growing old with little dosh because you spent it all.


And the answer is simple. One you never find out about, and the other you get to experience first hand. And I would not like to be old and poor and thinking about that great Ferrari and/or Lamborghini (insert name here) I wasted my critical cash on.

And no I am not against finance on cars, just the right people doing it and not the Hoi Polloi. But I do believe that high end extravagances like expensive boats and cars should only be purchased once you "own" all your major assets and mostly using cash.

I am all for wasting money on things like flash, expensive, stupid, ridiculous cars (and women) but only once you can really afford it.

And yes, I do think like an accountant!!!!!



 :goodvibes:








Offline Steve355F1


  • Joined: Oct 2013

  • Drives: 355F1 GTS
  • Location: Adelaide

You know I wondered for years what is worse.


1. Dying early without spending your money.

or

2. Growing old with little dosh because you spent it all.


And the answer is simple. One you never find out about, and the other you get to experience first hand. And I would not like to be old and poor and thinking about that great Ferrari and/or Lamborghini (insert name here) I wasted my critical cash on.

And no I am not against finance on cars, just the right people doing it and not the Hoi Polloi. But I do believe that high end extravagances like expensive boats and cars should only be purchased once you "own" all your major assets and mostly using cash.

I am all for wasting money on things like flash, expensive, stupid, ridiculous cars (and women) but only once you can really afford it.

And yes, I do think like an accountant!!!!!



 :goodvibes:

Haha! That is a perfectly reasonable position. Just not one I personally subscribe to. There is no right or wrong, really.

For me, I don't see the point of having a Ferrari in the garage when I'm too old and tired to enjoy it.
Once I get to that point - and we all will if something horrible doesn't happen earlier - I'll be happy if I've got a comfortable chair, a nice scotch in the cupboard, and a decent telly with cricket on 24/7. A nice woman to pour my scotch will be a bonus...
If I can sit in that chair and remember the days when I did have that car and all the fun I had, that will be more than enough.
No matter how much an accountant / real estate agent / insurance salesman tries to spin it, that is more exciting than anything else you can do in your 30s, 40s, and 50s...
And for anyone other than the very lucky, some level of finance will be required to do that.

However, I do agree with you that a lot of people fuck that maths up.
But they do that at all levels of the $ scale. Stupidity exists regardless of income.



Offline ferrarista2


  • Joined: Mar 2010

  • Drives: Slowly
  • Location: Sydney

i can see why people buy them ie for me be ideal,convertable/hardtop,single person and makes the right noise....I'm a convert to the modern Ferrari.
Are there any photos or details of the update for late 2014?
No no no,, get it out of you head....they are rubbish and lookalike barbies car
Everything looks better in carbon fibre



Offline 360c

  • 300kph+ club
  • Drug Dealer

  • Joined: Apr 2006

  • Drives: Purple People Eater

You know I wondered for years what is worse.


1. Dying early without spending your money.

or

2. Growing old with little dosh because you spent it all.


And the answer is simple. One you never find out about, and the other you get to experience first hand. And I would not like to be old and poor and thinking about that great Ferrari and/or Lamborghini (insert name here) I wasted my critical cash on.

And no I am not against finance on cars, just the right people doing it and not the Hoi Polloi. But I do believe that high end extravagances like expensive boats and cars should only be purchased once you "own" all your major assets and mostly using cash.
I am all for wasting money on things like flash, expensive, stupid, ridiculous cars (and women) but only once you can really afford it.
And yes, I do think like an accountant!!!!!

 :goodvibes:

If you think like an accountant, think about this scenario then.
If you can borrow money at 6% to finance your toy, and your business has a return on equity of 17%, why would you pull capital from your business rather than borrow at 6% ?




Offline Fil-Ski


  • Joined: Feb 2009

  • Drives: 993TT
  • Location: Adelaide
If you think like an accountant, think about this scenario then.
If you can borrow money at 6% to finance your toy, and your business has a return on equity of 17%, why would you pull capital from your business rather than borrow at 6% ?
This +1



Offline robertb

  • Poll Dancer

  • Joined: Apr 2006

  • Location:
  • Drives:
If you think like an accountant, think about this scenario then.
If you can borrow money at 6% to finance your toy, and your business has a return on equity of 17%, why would you pull capital from your business rather than borrow at 6% ?
what you say is correct,but in the real world and with over 3 decades of experience in finance,most finance because they don't have the cash to purchase outright and there is nothing wrong with that ,if thats your GO.

I still think its an expensive way to impress people one might not even know ,but as they say your a long time dead and if thats your enjoyment ,go for it..

So in summary,if its your enjoyment ...do it if its to impress others forget it....no one cares.


As many will remember ,there were great ways of doing the CHP/Lease for tax reasons ie many payments in advance ...in the good days it was 23 pmts ?

or one lump some in advance was ok as well ie

borrow    $100,000

1st pmt   $ 30,000

and then normal payments

with a 0 final pmt.



The finance i don't get is the clowns around my area that finance Mummy into a European 4x4 and she drives around thinking its special..WTF honey no one cares and there like anal...a pain in the arse to park and drive around.
I don't get the 4x4x for mummy...its so American,if they were smart they would buy a quality smaller car...FFS 4x4 for school pickups....idiots and there monthly pmts.







Offline 360c

  • 300kph+ club
  • Drug Dealer

  • Joined: Apr 2006

  • Drives: Purple People Eater
what you say is correct,but in the real world and with over 3 decades of experience in finance,most finance because they don't have the cash to purchase outright and there is nothing wrong with that ,if thats your GO.

I still think its an expensive way to impress people one might not even know ,but as they say your a long time dead and if thats your enjoyment ,go for it..

So in summary,if its your enjoyment ...do it if its to impress others forget it....no one cares.


As many will remember ,there were great ways of doing the CHP/Lease for tax reasons ie many payments in advance ...in the good days it was 23 pmts ?

or one lump some in advance was ok as well ie

borrow    $100,000

1st pmt   $ 30,000

and then normal payments

with a 0 final pmt.



The finance i don't get is the clowns around my area that finance Mummy into a European 4x4 and she drives around thinking its special..WTF honey no one cares and there like anal...a pain in the arse to park and drive around.
I don't get the 4x4x for mummy...its so American,if they were smart they would buy a quality smaller car...FFS 4x4 for school pickups....idiots and there monthly pmts.

If you haven't got the capital earning better returns elsewhere when you shouldn't be entertaining the idea of buying a car in the first place. You can't afford it pure and simple.
You either pay cash or take advantage of the low interest rates and keep your capital earning better returns elsewhere.
Anyone buying any material possession to impress somebody else has issues.



Offline goober

  • AE's Tame Race Driver
  • I did not lie. I was strategically misinforming u

  • Joined: Feb 2006

  • Drives: no friend of the left
  • Location: Thredbo Village
  • Name: Buddy Miles
If you think like an accountant, think about this scenario then.
If you can borrow money at 6% to finance your toy, and your business has a return on equity of 17%, why would you pull capital from your business rather than borrow at 6% ?

100% correct
Race cars have the 50% per annum depreciation thus a taxable advantage so long as you have a motor sport company that can take advantage of the benefits
Meeting women on the Internet? Remember, the more similarities u “magically” have, & the more she agrees with u, the fucking crazier she is.



Offline mhh

  • Chief Test Pilot

  • Joined: Feb 2006

  • Location: Adelaide
I used leasing or CHP in the old days but now buy my cars. However, I wouldn't judge anyone using whatever means they like to get anything they damn well choose. If someone wants to over-commit themselves on a new, fast depreciating asset, good for them. Everyone's motivation is different, depending on their upbringing, life-experience and preferences. I wouldn't judge someone on this basis - I'm sure they could find something wrong in the way I live too.



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