Why Australians love luxury cars

[GasoLane]

Originally Posted by tempted

http://www.manheim.com.au/passenger-...hiseID=MANHEIM

I find it very interesting that this particular vehicle was repossessed with only 1459km on the odometer.
Why would somebody commit to such a large debt only to find they are unable to make the repayments? They barely drove the thing around the block!?!?
I'd love to know what goes through some people's minds.

Are these repo's, end of lease or ex company cars. How can you tell ?

[blueoval]

I reckon ppl get these cars give off the 'appearance' of them doing well in their business and lifestyle. Fair enough if you can actually afford the repayments to get a prestige car. But I know of some who are so focused and insecure on how they look to their peers that they will hike themselves to the hill in debt to get these cars. It's actually quite sad.

But like the auction example, people are dumb and for the brief glint of limelight they were chasing, it all ends up in a heap because their ambition outweighs their talent to run a business.

[Express]

Interesting - only wealthy people live beyond their means.

[malazn mafia]

Originally Posted by Express

Interesting - only wealthy people live beyond their means.

Perhaps luxury cars are for fools. The wealthiest people I know drive low profile cars: corollas, hiluxes, etc. financially , a motor vehicle is the worst financial decision to make , apart from perhaps marriage...

[Wretched]

May be Australia should become a communist state, where we all have to drive the same car, where the same clothes, live in same caravans (that will be towed by the cars we buy).
That may stop some people getting up in arms about other people's purchases.

[Express]

Originally Posted by malazn mafia

Perhaps luxury cars are for fools. The wealthiest people I know drive low profile cars: corollas, hiluxes, etc. financially , a motor vehicle is the worst financial decision to make , apart from perhaps marriage...

There are many ways to waste money.

For example I don’t smoke or gamble as I see those as a bad financial decision and would rather waste my money on cars.

It beats leaving it in the bank for the kids to one day waste.



.

[blakef6]

Is a G6e a luxury car lol?

[blueoval]

Originally Posted by Express

There are many ways to waste money.

For example I don’t smoke or gamble as I see those as a bad financial decision and would rather waste my money on cars.

It beats leaving it in the bank for the kids to one day waste.



.

Or for the banks to take at the next GFC

[Spammy]

People who are genuinely wealthy lease modest and expensive cars they can aford to buy but use the lease for the tax treatment and capital effectiveness and don't default.

Poor people lease expensive cars they can't afford and default.

[Qwerty321]

Is a Fairlane luxury? Cause if so I got my BAII for 1.5k and I don't count that as a bad financial decision.

[cheap]

I wrote this years ago on AFF, still relevant.

There are basically 5 classes of wealth:

1. The Independently Wealthy (Not just paper rich but have a large amount of tangible wealth.)

2. The Dependently Wealthy (Rich on paper only. More debt than they can ever pay off. If the paper wealth goes south they have no tangible wealth to cover the debts and they lose everything.)

3. The Independently Poor (No debt and not living Pay check to Pay check.)

4. The Dependently Poor (In Debt to their ***, owe money on everything, house(s), car(s), credit cards maxed out. 90 days or less without a pay check and they lose everything. Mission in life is trying to keep up with The Dependently Wealthy.)

5. The Filthy Rich


As you can see there is no difference between The Dependently Wealthy and The Dependently Poor. They have one thing in common, they're both broke but they just don't know it.

The Independently Wealthy and Independently Poor have a lot in common too. They’re not broke and they know it.

[Qwerty321]

Originally Posted by tempted

This thread relates to the sales of new luxury vehicles, not 12 year old ones with 400,000km.

shhhhhhhhhhhhhh, don't say that so loud. Your cars only as old as it feels

[Sprintey]

Originally Posted by Express

It beats leaving it in the bank for the kids to one day waste.
.

Express, I respect your posts, but this is surely tongue in cheek? Were they taught asset management? I've met many older generation SKINs, and the thought is horrific, a poverty of the mind, so to speak.

Originally Posted by tempted

It looks like Australians' love affair with luxury cars is coming back to bite them. Have a look at the sheer number of finance repossessions in this list.

http://www.manheim.com.au/passenger-...hiseID=MANHEIM

Fantastic link tempted, I am always looking for little 'macro' indicators to construct, this one could be a more diabolical counterpoint to the ANZ job ads... Anything to give forewarning of stress in the mortgage complex... me like

[78xcgxl]

Originally Posted by Express

It beats leaving it in the bank for the kids to one day waste.



.

A little bit off topic ;This something i believe that is wrong with the common Aussie family in my eyes and from what i have experienced. In which i don't personally understand, why one would want to do such a thing to their children. However fortunately i come from an European background and this is not the case for me.

In a typical European family the parents work hard and try to set up their children for their future by giving them the best opportunity and making the sacrifice. Instead of leaving their children when they die, with a house and a mortgage still left to pay. (Yes i know this is a generalisation but you get the point)

My parents started with nothing and have made a lot of sacrifices to reach the financial point they are now. In order to leave my bother and I with a opportunity for a better future. I will also do the same for when i have children and make sacrifices to leave my children with the ability to be able to reach even greater opportunities.

Leaving your children with peanuts is completely morally wrong in my eyes and spending everything is downright greedy. Well i guess that's the way i have been brought up.
Anyways apologies for the rant, just my 2cents.

[SensationFG8]

Ok so I get what your saying there.

But, I want my parents to spend their last cent the day they die and to leave me nothing. I want them to enjoy the last year's of their life, they owe me nothing, they gave me everything already when they sacrificed part of their life to raise me.

[Sprintey]

Originally Posted by 78xcgxl

A little bit off topic ;This something i believe that is wrong with the common Aussie family in my eyes and from what i have experienced. In which i don't personally understand, why one would want to do such a thing to their children. However fortunately i come from an European background and this is not the case for me.

In a typical European family the parents work hard and try to set up their children for their future by giving them the best opportunity and making the sacrifice. Instead of leaving their children when they die, with a house and a mortgage still left to pay. (Yes i know this is a generalisation but you get the point)

My parents started with nothing and have made a lot of sacrifices to reach the financial point they are now. In order to leave my bother and I with a opportunity for a better future. I will also do the same for when i have children and make sacrifices to leave my children with the ability to be able to reach even greater opportunities.

Leaving your children with peanuts is completely morally wrong in my eyes and spending everything is downright greedy. Well i guess that's the way i have been brought up.
Anyways apologies for the rant, just my 2cents.

Agree, was raised similarly. If you can achieve a great deal in one lifetime, imagine what can be built in 4... or 6... etc...
And from the old Book, 'to whom much is given, from them much is required', or words to that effect

anyway back on topic, the luxury cars built by Europe's leading industrialist, multi generational, family conglomerates, haha

[Beastie]

Originally Posted by 78xcgxl

A little bit off topic ;This something i believe that is wrong with the common Aussie family in my eyes and from what i have experienced. In which i don't personally understand, why one would want to do such a thing to their children. However fortunately i come from an European background and this is not the case for me.

In a typical European family the parents work hard and try to set up their children for their future by giving them the best opportunity and making the sacrifice. Instead of leaving their children when they die, with a house and a mortgage still left to pay. (Yes i know this is a generalisation but you get the point)

My parents started with nothing and have made a lot of sacrifices to reach the financial point they are now. In order to leave my bother and I with a opportunity for a better future. I will also do the same for when i have children and make sacrifices to leave my children with the ability to be able to reach even greater opportunities.

Leaving your children with peanuts is completely morally wrong in my eyes and spending everything is downright greedy. Well i guess that's the way i have been brought up.
Anyways apologies for the rant, just my 2cents.

\

Same - My parents are Hungarian by birth and raised my sister and I in the traditional European way. We expect nothing, and have lived our lives that way, but I'm sure that they will leave us something, which we don't really need, but will be nice to pass onto our kids!!

[Brazen]

Settle down, Australia's biggest selling cars are the Toyota Corolla and Mazda3.

Most Australians are hardly living a soft, decadent, self indulgent life like the ancient Romans (or modern Europe for that matter).

[goo33]

For those who have a high income, tax breaks (and there are a lot of them) encourage people to buy expensive cars which we don't necessarily need.
These tax deductions for buying cars were set up at a political level to drive consumption. If you want to start the immature Aussie blame game, then blame parliament.
If your accountant told you to buy a new car or pay more tax, you might just double check the numbers and buy a car. Doesn't mean to say you that have to drive it though.

[Deo]

Originally Posted by goo33

Doesn't mean to say you that have to drive it though.

Yes you can just put it up on blocks, right?


Sent from my GTi-9305 using bloody Tapatalk

[Sabantien]

Originally Posted by goo33

If your accountant told you to buy a new car or pay more tax, you might just double check the numbers and buy a car. Doesn't mean to say you that have to drive it though.

Pretty sure the car my gf was advised to salary sacrifice for HAS to be driven a minimum number of kms.

Not sure if there's any tax breaks for buying a car outright, but reducing your taxable income to buy a car (and end up effectively paying less for the car, fuel, etc) is probably what they'd be advising.

[SensationFG8]

Nup that's old laws, it's a flat tax rate now no matter the km travelled. Previously the more you drove the lower the tax.

[Express]

Originally Posted by Sprintey

Express, I respect your posts, but this is surely tongue in cheek? Were they taught asset management? I've met many older generation SKINs, and the thought is horrific, a poverty of the mind, so to speak.

Originally Posted by 78xcgxl

A little bit off topic ;This something i believe that is wrong with the common Aussie family in my eyes and from what i have experienced. In which i don't personally understand, why one would want to do such a thing to their children. However fortunately i come from an European background and this is not the case for me.

In a typical European family the parents work hard and try to set up their children for their future by giving them the best opportunity and making the sacrifice. Instead of leaving their children when they die, with a house and a mortgage still left to pay. (Yes i know this is a generalisation but you get the point)

My parents started with nothing and have made a lot of sacrifices to reach the financial point they are now. In order to leave my bother and I with a opportunity for a better future. I will also do the same for when i have children and make sacrifices to leave my children with the ability to be able to reach even greater opportunities.

Leaving your children with peanuts is completely morally wrong in my eyes and spending everything is downright greedy. Well i guess that's the way i have been brought up.
Anyways apologies for the rant, just my 2cents.

To answer Sprintey it was actually a tongue in cheek remark based on the fact that inherited financial gain for the majority does not set you up for life and is usually enough to provide family members with a new car, house extensions, an overseas holiday and so on, whether that is wasting the money or not is a matter of your point of view.

For some members they would obviously believe any money inherited from your parents should then be retained and passed on to your own children and they do the same and so on.

I didn’t want to get into this but as I personally I don’t agree I will have a say.

My eldest son lives in London with his family and his wealth already far exceeds mine.

My second son isn’t motivated by financial gain and after Uni he spent 3 years in Africa working for a charity organisation and today is in Melbourne making an average living but I can say he’s very satisfied with his life as he is doing wants he wants to do. Any money he inherits from me will be instantly passed on to charity.

My daughter is still at Uni and I can only speculate which way her path in life will go but I do know she has the opportunity to live with us while she studies but chooses to work part time and be independent and that is a credit to her.

If my children ever need financial help and I can afford to give it then I wouldn’t hesitate but my wife and I gave them something far better.

We gave them love, support and encouragement, we showed them how proud we were of their achievements and we laughed and cried with them when they failed.

We were there when they needed us and with that we gave them the building blocks to move ahead independent of us.

The other side of the coin for some is that money not earned is money not appreciated.

These days we live long into retirement, we have a high standard of health compared to previous generations, we have the means to travel and be involved in all manner of activities and hobbies and I certainly will never feel guilty for enjoying my retirement.

I’d be disappointed if my children were selfish enough to think we only existed for them.

But each to their own and if money is the means you use to make your children happy then so be it.

The only thing I'm planning at this stage to leave my children is the house we live in and the cars I own, whatever's left will be a bonus for them.