Retire from 8 to 5 

In Feb 2017, I had a colleague who wanted to upgrade his Honda CRV SUV. I assumed he would buy a new Honda CRV, but instead bought a (very nice) Audi Q3 SUV. He found a “good” deal in a Audi dealership about 200mi away, and made the day trip to close the deal. When he pulled up in the employee parking lot, a few of us gathered around to ooh and aah at it, and he offered us test drives, which we promptly accepted. A few months later, when it was time for an oil change, he realized the oil change was $175 vs. $40 for his previous car. That is when he also realized, the closest Audi authorized car dealership to change the oil, was 60mi away, vs. 4mi away for his previous car. One day and $175 later, he still didn’t question if he had made the right choice, and that I believe is the real-worth representation of the American way of “living large”.

I simply do not get why anyone (excluding any unique circumstances read mine here), would buy a high-end shiny new car, irrespective of luxury car or not. The financials are simply not a good idea. Here is a sample financial break down-

Typical hidden costs, after the monthly payment

And in every type of car (sedans, hatchbacks, SUVs, minivans, etc.) there are the sensible and luxury options. If you are reading this blog, then you should know better than to be a luxury car owner. Luxury is in one’s mind – its a luxury to save enough from a full-time job, and this the objective.

Do not fall for the oversized living, and trying to keep up with the Jones’ with a high-end car. Instead show the Jones’ they still need to go to work until they are 60, while you can go part-time at 45 and spend your afternoons gardening, volunteering or watching TV!