A car is one of the biggest purchases you’ll ever buy. A car will also likely be one of the most foolish financial decisions you’ll ever make as well. Everybody knows that cars depreciate in value and cost way more than just the monthly payments or sunk cash. You’ve got car insurance, maintenance, parking fees, tickets, and potential accidents to deal with that really start adding up.
Despite all the expenses, there’s a love affair with cars. Perhaps we like the status a car gives? Or maybe we just like the freedom to drive anywhere we want, whenever we want. Freedom, after all, is priceless.
I’ve gone through 8 cars myself during my car addiction phase right out of school. I just loved the idea of driving something new every year and negotiating a transaction. I think I enjoyed the thrill of bargaining as much as getting a new/used car itself!
At some point I realized I no longer wanted to spend time haggling over Craigslist and going to DMV hell for a couple hours to get each vehicle registered. I had better things to do with my life. Going cold turkey was difficult at first, but I’m proud to say that after 5 years, I’ve driven the same car!
RESISTING THE URGE TO SPLURGE
There are really only two things you need to do to eradicate your desire to buy a new car, or any other material item that you don’t need for that matter.
1) Name your car. Anthropomorphism is a powerful, powerful thing. As soon as you name your car, you give it a personality and a soul. With a personality and a soul, you can no longer just abuse it like a ragged doll. My truck’s name is Moose. I love Moose. He’s handsome, reliable, and very loyal. Given he’s part of the family now, I’ve decided to keep him for as long as it makes sense. At some point, I’ll realize I should sell or donate Moose since he is turning 12 years old. However, at this point, I’m happy to buy him new brakes, rotors, batteries and change his fluids.
2) Go to the dealer and intoxicate yourself. Moose’s private party retail value is about $3,600 from $8,500 five years ago. When you go to a dealer, you start appreciating what you have. Just the other day, I stopped by the Mercedes Benz dealer for fun on the way home from golf. I test drove a well-equipped $47,000 out the door 2012 C250 coupe. I loved the new car smell and the drive was exhilarating. This wasn’t even the highest end version as the C350 coupe had 100 more horsepower and cost $5,000 more. When it was time to negotiate, the salesman insulted Moose by giving him a trade in value of only $1,114! There was no way this C250 coupe was worth 45X more than my beloved Moose! I declined his pitch and left smiling.
If you aren’t convinced how silly it is buying a new car when a used car can do perfectly fine, take a look at this picture carefully. Analyze it and soak all the data in. Look at the monthly payments after a $4,000 down payment. Observe the Trade Allowance of $1,114 for Moose and the Net Sales Price of $46,497.98 after taxes. Ridiculous!
3) Visit a garage sale or throw your own. One of the most humbling experiences is de-cluttering and minimizing your things through a garage sale. That golf club you spent $120 on might only get $10 now. That purse you were dying to have for $350 now is worth only $20 bucks. The list goes on and on of things you spent way more than you should. Once you start going to garage sales or to Goodwill, you will find so many bargains that you will seldom ever spend full or sale price ever again!
CONTROL YOURSELF
If you have a spending problem, you may want to challenge yourself to some income earning games to keep your spending in check. If you are addicted to cars, shoes, handbags, watches and anything that’s not necessary, take my above two tips to heart. It’s understandable to have wants, but some of us go overboard. The tips have saved me tens of thousands of dollars and hours at the DMV.
In fact, you can take the tipss and apply them to any material addiction/weakness you have. I promise you that after a while, you’ll be able to slowly reduce your frivolous spending habits and start saving and building a massive nest egg for your future.
Important: For a FREE no obligation competitive auto insurance quote that searches the best insurance rates by StateFarm, Nationwide, eSurance, and AllState click here or the banner. It is very important that everyone gets at least basic liability car insurance. You can total your car and be fine. But if you total someone else’s car and inure them, they can go after you for ALL your assets and wipe you out! Protect yourself!
Regards,
Sam
{ 40 comments… read them below or add one }
Wow I can’t believe you bought 8 cars! Glad to hear you broke your addiction as that’s a really expensive one to have. Fortunately I don’t get excited at all when I think about new cars. I just want to be safe and not have to worry about breaking down and getting stranded.
I do like going to the auto shows and looking at all the classic cars and the racing cars though. I have no urge to buy or drive one but I think they’re really neat to look at. There’s something about Formula One and Nascar that fascinates me!
Ah yes, the good ol days. Most guys I know what to go buy a car as soon as they graduate and get a job. It’s exhilarating! But, also financially foolish.
Fun times and I’m glad I cured the addiction.
No car buying addiction here. I’ve purchased precisely 1 car. I had it built to my specifications (perk of working in auto industry baby). I will drive it until the wheels fall off. I just need to stay out of sports equipment and book stores. I don’t even let myself walk in unless it’s for a specific purpose. I rarely bring money into a book store unless it’s the cash that I saved just for that purpose.
Oh wow, so that means you bought a new car? Did you follow my 1/10th rule of car buying by spending no more than 1/10th your gross income on a car?
Here’s how I got rid of my constant gadget upgrade addiction – I won’t upgrade till I manage to sell the one I have.
I like that simple rule!
Being from a very rural area, cars and trucks are the big thing in high school and beyond. It is often a way to measure someone’s worth.
Yes, you live in a $20,000 trailer and drive a $45,000 truck.
I think new cars are the best way to turn a slow walk to the poorhouse into a quick drive.
I can totally see how it’s a big thing in a rural area, b/c I don’t live in a rural area and I thought it was a big thing in my 20′s. I LOVE cars!
However, living in a $20,000 trailer and driving a $45,000 truck is financial suicide indeed.
I love cars, but broke my addiction years ago. I think it was when I made my last payment. (12 years ago). After 17 years, I “want” a newer car. I hope to drive another 15 years and I do not think my cars will last that long. I already almost reached my goal of running my car (Honda) into the ground. NOt literally, the value is almost zero. I am going to figure it out in the next couple months.
But what about that 1957 Ford Mustang with the rustic leather seats?? Only live once Larry!
No such thing as a 1957 Ford Mustang!
I don’t have an addiction to cars, but I do get a bit antsy for a new car when my car turns over 100,000 miles. I drove beaters in high school and was stranded more than a few times when my car died (and this was before cell phones!). Now, our car is 7 years old and has 106,000 miles. It feels less reliable to me, so I begin to worry about breakdowns. However, with our finances, we will be keeping it for at least three more years. (It has been paid off for 3 years now.)
Nah, 100,000 is just the mark auto mechanics try and make you afraid. It’s really an arbitrary number. Your car can go to 150,000 no problem. These days, cars are so much better built than in the 70′s and 80′s!
I don’t have a car buying addiction, and in fact drive my cars into the ground. I’ve had 3 cars in 17 years of driving! But we’re currently shopping for a minivan and your thoughts definitely help me regain perspective – the nice new shiny just isn’t worth the depreciation!
What’s the mini van for Denise?! Baby or two on the way perhaps??
I dont know if people have an addiction or just feel entitled. Every one thinks they deserve a nice car or that having one means you have made it/have money. I look at cars as a waste of money. When I am in my used 96 civic that is excellent on gas – I see cars pass and think $350, 500, or $700 month car payment, gas, and oh yeah maintenance. Not worth it to me.
I love cars don’t get me wrong but looking at them and setting them as my wall paper works just fine.
Cars really are a waste of money. However, it was always my dream to own a nice car or two once I had some money. I went a little nuts, but it was SO FUN to negotiate and trade cars every year! Some years I even made money. Many years, the car just cost about $500-$1,500 total after the sale, so it wasn’t too big of a deal.
I now treat Moose as family. Point a to point b!
I’ve never been one to be very big into cars. For me, it’s my transportation from A to B. That’s it. Bought by first car in high school for $125 – Ford Taurus, sold it for $75 before leaving for college.. still ran fine after almost a year. 2nd car $700 – Old Mitsubishi Eclipse, died after about 9 months.. sold for a couple hundred bucks. Now on my 3rd, $1600 – Honda Civic, hoping it lasts a while! I’ve seen some friends who bought new cars right out of high school wishing they never would have done it.. still making payments!
You are lucky you do not have the addiction Tyler! $125 car? WOW! I need to start lowering my expectations of what someone should spend on a car. Fits well into my 1/10th rule for car buying though!
Anthropomorphism is a powerful, powerful thing. As soon as you name your car, you give it a personality and a soul.
____________
Jose
I am very guilty of having this car buying addiction. /; It’s like I get a certain kind of high when I look at cars or test drive them. I have bought/sold/traded about 10 cars in the past 6 years. It’s gotten out of control. I always make sure that each car is within my means and I can afford them, but I always buy a car and am left with an unsatisfied feeling when I drive it for a couple months and get over it. I think with each car I look at its good features, but focus on the bad stuff, like gas mileage, overall gas mileage, longevity, and features. Its so interesting because I took a philosophy class and (this is something I’ve always known) we basically learned that you can’t buy happiness. Life is filled with temporary highs, but when you truly look inside yourself and face your problems with true conscious awareness, you can decipher what the true core issue is. For me, i’ve been dealt with it with buying new cars.. just because I could, but now I am trying to get better and NOT buying a new car. It really is all about self control. Hopefully with this car I have now I can not pull into temptation and find a reason to buy a new one. Sorry for getting all technical and deep. Maybe I should try giving my car a name, ha.
Albert (and Sam)-I’m totally with you. Same here. 14 cars in past 9 yrs. WHILE I found this link I was researching for another car. Buddhism explains the ‘suffering of change’-that is-the suffering we endure when our feelings change about something-such as a car. We LOVED it-HAD to have it, then it wanes, and we’re left where we were before. I can rationalize and spin it a million ways in my mind-like the features you mentioned Albert. FORTUNATELY, the car I JUST test drove had problems-and I was strong enough to walk away from a bad deal. It feels literally like one-day-at-a-time. I’ve been seeing a psychologist for 8 yrs and I have yet to discover why I have this need. So—for us-or anyone in the grip of an addiction…let’s try to stay strong. I love the Simpson’s…I think I’m going to name my Acura ‘Marge’
Hope it works! Good luck! -JB
Good luck w/ Marge! Now that you’ve named her, I don’t think you’ll ever have the audacity to sell her!
Albert, I agree, there is more to it then the buying or “wheeling and Dealing”. Best of luck.
Wow, I am glad I am not the only one with this problem. I have felt the desire and highs and lows as described here in the comments. In 32 years of driving I have just purchased my 62 nd car. I have lost total control and wasted thousands of dollars over the years. Lookjing for help and coping mechanism. I have had a love affair with cars most of my life!. I hve close friends into cars and they tend to owm many or another friend who seems to have the midas touch and always finds the exotic car parts and deals.
JFP-You’re certainly NOT the only one w/this problem! And I’m with you-’looking for help and coping mechanism(s)’. I’ve noticed also-my car addiction has gotten more pervasive as my salary increased over the years. The cars have always been ‘affordable’-but they’ve gotten more expensive and more frequent as I started making more money. Out of curiosity-what do you guys see in ‘relationship status’? Specifically-I’m single-and this began to REALLY kick in after my divorce. Dating a woman now w/3 children (10 yrs after my divorce and a zillion cars later)-I often have to ask myself if the money for a trade-in would be better spent toward a potential future of us together. So, I’d be curious to see the demographics on this-issue. I’m sure vastly male, 18-50+, and again-I’m suspecting more single guys. Thoughts? I’m not saying we should all get into a relationship to solve our problem! But for me-it’s been helping curb some of my impulsiveness lately. The OTHER option I’m thinking-especially for folks w/o pensions-at 40-I could pump even MORE money into my 401k-money I never see-and will certainly use in the future. Maybe working w/a tighter budget will also help…? I struggle though too guys-so any and all suggestions are welcome. Good luck amigos. -Jason
I am not single and have children and realize I am squandering some of their future with these car purchases over the years. I think it is all part of a larger pattern or problem. My latest thing is handguns, buy trade, etc. Other things I could care less about, not into stereo systems, TVs, gaming, golf etc. I do enjoy cars and the sport of it, but use it somehow to curb other issues or disappointments in life. If you ever decide to be serious with this person you are dating and the 3 kids she has, you have to get this in control. I sometimes can’t believe how powerful this care buying impulse/pattern/rationalizing has become for me. Thank god it is not illegal to buy cars, else I woudl really be in trouble. Good luck Jason.
I’ve bought over 30 some cars and I’m only 27. Some were free but most were sub 500 dollar cars. I’ve made some money on a few, and lost out big time on some too. Lately though my car buying spree has been slowing down. A combination of increasing used car prices, a lack of the type of cars I like (RWD), and an income that is half of what I used to make has forced me to hold on to cars for a longer period of time. Now instead of getting rid of a car simply because I’m tired of it I get rid of them when they break down. Since the cars are so cheap to begin with I don’t lose much.
Wow, I thought I was an addict!
The only reason I don’t still have my 1991 Camry, which I bought 4th-hand in 2003: I completely destroyed it in a minor accident. I had planned on taking that car to 300,000 miles, which I figured I was about 3 years from.
I’m on my 4th car in 14 years of driving, although I only got my current one last year and only had my first one for 10 months before I discovered that 30 year old Beatles don’t stand up so well against telephone polls at 50mph!
My car names have been rather unimaginative. The Camry was “Red Rover” The silver Corolla had a name not quite fit for print, but it was an alliteration that started with the color and had a tagline of “everyone gets a ride!”
I’ve just been calling the Geo either “the Geo” or “the POS” because the entire thing is basically held together with duct tape, but I can’t complain for $500
Haha, nice.
The POS sounds like a better nickname for the Geo! Much more endearing!
This is just the thread I needed to find. I’ve recently been fighting the urge to buy my 16th vehicle. I never thought I had a “problem”, I just figured I was a car guy. I’m turning 30 next week and it’s had me taking a look at myself a little deeper. Now I’m thinking WOW, I do have a problem. But even as I read this I know I still have the urge to buy a new car. Well I’m still I’m my 20′s for another week, I guess there’s enough time to make one more poor decision and blame it on being young….right?
Don’t start your 30′s on the wrong foot, especially if you’re already recognizing that you have a car buying problem. Save your money and put it towards getting your finances in shape first!
Mike-I KNOW it’s tempting-VERY, VERY tempting…but 20′s to 30′s goes to 40′s before you know it. At 40 now myself-I was JUST telling my friend last night-if I had KEPT the 350z or the ’05 Mustang GT or the Honda S2000, or-ANY of the others…they would have been paid off by now…and now-at 40-while I still have savings-and while my job security is very tenuous right now…I can’t HELP but think I just blew thousands-and thousands-on these trade ins over the years. You’re in good company here…TRY (and I have to remind myself too!) to think of ‘mode of transportation’…it’s hard-hang in there man. -JB
Yes, I have wasted thousands of dollars. Get control, or it will get worse. I have a family and younger kids, I could have at least have saved a substantial amount towards college for one of my kids. I have been driving over 30 yrears, so I am in my late 40′s.
The one thing I remember though in 2009 is thinking… at least I didn’t dump my car spending into the stock market!
Eh… 16th vehicle, yikes! Doesn’t the DMV hell get old after a while?
It did for me, that’s why I stopped at 8.
Yeah, DMV, insurance company, and county registration, friends, family, neighbors, and CAR DEALER STAFF – very embarrassing!
I have a big of a problem myself. I currently own 3 cars, as I’ve been buying 1 a year over the last 3 years. I suppose I do have an addiction of sorts – I love reading about new vehicles, test driving new vehicles, and I always want to have the latest.
The worst part is I purchased all three vehicles brand new and paid between 30k-75k. The 75k vehicle is now worth approximately 45-50k, so that’s money I’ll never get back. I only need one car and really want to downsize to one vehicle and just accept the loss + stop paying so much for insurance. I think I will have to just sell them privately and try to get the best money I can out of each one.
I know this kind of sneaks up on us Andrew. And I’ve always been the same-wanting the newest-the latest and greatest. I think selling off 2 of the 3-especially privately-to get the most money back-is a great idea. And like you said-the insurance will drop then too. I think this forum is VERY helpful-b/c we’re all kind of in the same boat. Let us know how you make out. Good luck man! -Jason
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