'Unless you are driving a Ferrari, a car is not an investment. A car is basically a huge waste of money.' -- dailydirtnap
I was unhappily scrolling through Facebook the other day and saw that one of my smart friends had posted a dumb article about the excellent Toronto Raptors basketball player who, despite making nearly a hundred million dollars, still drives a 20-year-old beater SUV.The second part of that statement is crucial. There is nothing better than a paid-off car. There is no monthly payment, and most of the depreciation has already occurred. You are driving for free.
I had a friend of a friend who played college hoops and made it to the NBA. He said that the players would buy a new suit for every day they were on the road. Forty-one road games, 41 suits. Most people would rather drive a piece-of-crap car than give up the morning coffee. Tell people to give up coffee and you will alienate the people you are trying to help.
Funny thing about cars — people’s egos are really tied up in the brand of the car. People like to say they drive a “Benz” or a “Beamer.” Puke. I drive a Toyota TM, -0.77% They never break down, and they last forever. They’re a great car to own that is paid for. I also spend a lot of time in Miami Beach, a town where having a Porsche is like having a Honda HMC, -0.46% I get the sense that a lot of people who own those cars literally have no other possessions. It is all about priorities.
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