2006-06-20 09:47:28 · 10 answers · asked by Anonymous in Business & Finance ➔ Investing
Cars are not investments.
I suggest you to invest in the Stock Market with the help of a Portfolio Manager like myself or at least a Financial Advisor.
If you get a 25% return on your investment you will have $125,000.00 at the end of the first year.
You reinvest all your profits and if you get a 20% return on your investment you will have $150,000.00 at the end of the second year.
You reinvest all your profits and if you get a 15% return on your investment you will have $172,500.00 at the end of the third year.
You reinvest all your profits and if you get a 10% return on your investment you will have $189,750.00 at the end of the fourth year.
After that you take your money and you buy a $100,000.00 car and you still have $89,750.00 in the account making enough each year to pay for the insurance, tires, oil, gasoline and so on.
In other words, you just bought a $100,000.00 car for $10,250.00
If you wait five years or if you invest more than $100,000.00 initially the car will be FREE.
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2006-06-20 12:46:59 · answer #1 · answered by Anonymous · 1⤊ 3⤋
Unless you plan to keep your car more than 25 years when it becomes a Classic, it isn't an "investment" at all, but a depreciating asset. Neither do I consider assets that cost me money as "investments."
An "investment" is something you manage and make money from, not something you ride or drive or live in. For example, a house is not an investment, in my opinion, but a dead asset that ties up all of your "investing" capital.
Clever? That's subjective. You might have been considered clever if you had bought a 1967 supercharged Corvette, and still had it almost 40 yrs later. They only made a few hundred of them. But just a Corvette? They're a dime a dozen.
Would it be considered "clever" to live in a shack in order to afford the car you want? No, that's actually pretty silly, in contradiction to the views of some black people.
You had better define your terms better before you consider "investing" at all.
2006-06-20 10:27:47 · answer #2 · answered by dredude52 6 · 0⤊ 0⤋
First, a car is not an investment it is a mean of transportation tool. Just like a refrigerator is a food storage appliance. You would not call a refrigerator an investment.
Second, with a pretax income of $70,000 it is definitely foolish to even consider buying a $100,000 car.
Third, $100,000 cars are a complete waste of money. For the most part, there are not as reliable as $20,000 cars.
I recommend you don't buy a $100,000 car. Instead, buy yourself a nice preowned car for $15,000 or less. If you have extra money, don't waste it on a car. Instead, maximize your funding in your company 401K.
2006-06-20 11:46:31 · answer #3 · answered by Gaetan 3 · 0⤊ 0⤋
Except in a few cases with older cars that are collector items, cars are a very bad investment. They loose 20% of the value the minute you drive it off the lot.
2006-06-20 09:52:02 · answer #4 · answered by davidmi711 7 · 0⤊ 0⤋
Generally, if you buy a $100,000 car and use it, it is not an investment. If you put it up on blocks, park it in an enclosure, it can very well turn into a good investment (or not).
2006-06-20 10:01:08 · answer #5 · answered by Puzzleman 5 · 0⤊ 0⤋
Cars are a very bad investment. They are only tools to get you to your job. While it is possible to buy a $100K car with your income depending on other debt wouldn't you much rather have a house?
2006-06-20 09:54:42 · answer #6 · answered by Jenn 2 · 0⤊ 0⤋
I doubt in case you may purchase a automobile, in operating condition, for $one hundred fifty. in case you may, then you absolutely nevertheless could be in a position to stay a classic existence with (just about) any income. Fifty years in the past i purchased a 1935 Pontiac, re-stressed out it, offered a sparkling battery, and altered all the belts and rubber hoses. when I were given it operating, I lived a better-than-everyday existence. Like, - i replaced into King of The Hill !!
2016-10-14 08:33:58 · answer #7 · answered by Erika 4 · 0⤊ 0⤋
look at the other answers
but keep in mind you might be better off if you put money in saving account
get lower cost car with highest mileage possible
research customer report on cars
and decide on which one works for you best.
some people I know given up on car and take bus to work one of my professor at college just does that.
2006-06-20 10:01:42 · answer #8 · answered by n K 4 · 0⤊ 0⤋
CAR and INVESTMENT is an OXYMORON - They don't go togeather, unless the CAR is a vintage & rare car.
2006-06-20 15:20:44 · answer #9 · answered by DCentGuy 2 · 0⤊ 0⤋
no, because cars tend to depreciate in value, rather than go up in value.
2006-06-20 09:51:23 · answer #10 · answered by cookies_n_cream0218 5 · 0⤊ 0⤋