Think Twice Before Buying a New Luxury Car - You want a luxury car but your wife wants a bigger home and never the twain shall meet. One way of looking at this is -if everything else is equal- would it make more sense to put an extra $500 a month towards a mortgage or a car payment and why?
A luxury car, on the other hand, loses value as soon as you drive it out of the dealership lot. Again, the rate at which it depreciates depends on the make, the mileage and the condition, but you can hardly ever make money on a luxury car.
Additionally, many luxury car manufacturers recommend that you only use the highest grade of fuel for fill-ups and that in itself can make a dent in your pocketbook especially with gas prices skyrocketing in the United States, and world, recently.
The answers will always gravitate towards the house because of the following reasons:
Appreciation
In the majority of cases, real estate appreciates steadily -that is it continues to increase in value over a period of time. The rate at which it does so depends on a variety of factors like location, size of the house, school district and the like.A luxury car, on the other hand, loses value as soon as you drive it out of the dealership lot. Again, the rate at which it depreciates depends on the make, the mileage and the condition, but you can hardly ever make money on a luxury car.
Maintenance
Even if you struck a great deal on buying or leasing your luxury car, you will be making up for that when you go in for scheduled and unscheduled visits to the repair shop. Not only are regular tune-ups more expensive than mid-size cars, just replacing the wiper blades for a luxury car like a Mercedes S 430 costs over $80!Fuel
A luxury car may offer you style and comfort, but in most cases scores lower on fuel efficiency. Economy cars like a Camry or a Civic can boast better mileage per gallon on the highway and in the city as compared to a luxury car like a BMW or a luxury sports utility vehicle like the Hummer.Additionally, many luxury car manufacturers recommend that you only use the highest grade of fuel for fill-ups and that in itself can make a dent in your pocketbook especially with gas prices skyrocketing in the United States, and world, recently.
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