You do not need to make $500k or $1M to afford an S Class lol, and the average income of an owner is well less than that, in the $300k range.

So...let me get this straight. You save and invest and live a frugal life, denying yourself things you want (your Porsche you've talked about, etc)...and yet you don't want to retire?!?

Good lord...whats the point then?!

I have a buddy that is like you (not quite as much so, but he's pretty frugal for his income) but his goal is to be retired when he's 50.

 

No, I have the same goal as your buddy. My fear? Is being forced out before that happens if I need to work through say 57 (many plans just don't work out, 50 is a great age to be retired, imho it's near the point where time is more valuable than money).

Right now, things are ok. I had 9 projects prior to leaving for vacation in Toronto, and when I got back, there were 11. lol I think they are setting me up for failure but I keep chugging along...hey wth haven't been to Chicago since the Dead shows in 2015, look forward to returning.

I would honestly have to say that even though I don't participate on their forums, I likely have a lot in common with the Bogleheads.

 

Buying a new S-class is a terrible idea when low mileage 3 year old examples can be had for half the price.

 

 

Especially CPO models. The best deal for many, not all, with most cars for personal use.

I just used this as a teachable moment for my son. He just got his permit, and my wife and I decided to buy him a RX350. He is a big kid and wanted an SUV for comfort and the RX has a lot of the safety features we wanted for him, so the RX350 was a good fit. We showed him new RX350s and low-mileage 2017 CPO. We worked deals on both and showed him the numbers. The difference was almost $14K. I told him he could have the new one and pay for his own gas with the money he has saved over the years from gifts and small misc jobs, or he could get the CPO one and I'd give him half of the $14K for gas. His choice. He didn't even hesitate picking the CPO and $7K. I was very happy. Win/Win.

 

 

Yeah, some probably think it is excessive, but he appreciates it and knows how lucky he is. He works hard and stays out of trouble. I honestly didn't want to purchase something that expensive for his first car, but my wife put the safety guilt trip on me, and I wasn't winning that one. It will also provide some utility for our family also. I was very glad I didn't have to explain it to him. He said he couldn't tell the difference between the two anyway. The CPO still smells new and the vehicle has no visible wear. CPO plus $7K was a no-brainer for him.

I'm actually surprised by how much I like the RX350. Checks off a lot of boxes for a lot of people. I see why it sells so well. Offers a lot of different things to a lot of different people and a reasonably good value. Like with the LC500, Lexus got that one right.

 

Lots of cars you could have bought that have the same safety and utility, without the prestige of the luxury brand. That to me is the issue with doing that, its not the expense itself, its giving something with prestige that has an aspirational value to your child that concerns me. People work really hard to get to where they can "buy a Lexus", and here he is at 16 and thats handed to him. It takes earning that achievement himself away from him. On top of that my concern would be the lifestyle that comes along with that sort of vehicle. Is he going to be happy driving that car and living a lifestyle in college and after college that he can afford to provide for himself? What happens when it comes time that vehicle needs to be replaced? Is he going to feel pressure to replace it with something of like or better quality that he's accustomed to that he cant afford, is he going to stretch himself financially to do that and keep himself from doing other things more appropriate for his age?

A luxury once experienced becomes a necessity, thats what concerns me about giving teenagers lifestyle things.

For instance, I would have chosen a high trim Explorer or something like that over the RX for that reason. Even if it was no cheaper.

 

Every car is used as soon as you drive it off the lot.

 

Could not resist and searched cars dot bomb for used, cpo and not. Found a beautiful 2015 cpo (i think fine print says it could be covered 2 ways, depending if cpo was added while still under warranty). Asking was high 50's and mileage in 20's. That is worth the money imho.

the other was a w221 2013, also sweet and about 25k less, not cpo. Either car imho is worth the money and I would rather get either over a new lexus. Again, if ready to buy, I would join the forum and start identifying what realistically to expect, what is diy, what is not, etc.

 

agreed, or i would have got a loaded brand new CRV instead. they're very nice, very safe too.

true, but not relevant. some of us like knowing our vehicles haven't been driven for thousands of miles in unknown circumstances in unknown ways with unknown hidden gremlins.

 

Change of plans for my dad.

Earlier in the thread I mentioned how he felt it would be a waste of money, but he is hooked after a couple trips to the dealer. Growing up in a poor 3rd world country, the only luxury car was Mercedes and I suppose it is a life-long dream of his to own one. And not just any Merc, the Merc that defines the brand. He has been a long-time BMW guy but the 7-series, for as nice as it is, just doesn't bring the same level of "occasion" as the S-class. With the Merc you know you are looking at and sitting inside something very special.

He went and test drove the S560 yesterday and is in love. Will probably look into a CPO as they generally go in the $55k - 65k range.

On a side note, I have only seen 1 new LS on the road. The car seems like a gigantic flop. They absolutely bombed the styling as it does not look at all like a flagship executive saloon. And dealers are stocked with cars priced higher than all 3 German rivals. Lexus seems to have taken a massive L with the launch of this car.

 

I agree. 2015 CPO S-Class > New LS. Wouldn't go to 2013 non-CPO though.

 

 

True...but its used by me. I know the history, I'm caring for it from day one. Not knocking anybody who prefers to buy used, its a smart financial move for sure...but cars are important to me and I want new cars, so there it is.

Plus, I lease for business and leases on used cars don't make sense generally.

I'd rather have a new S Class than a new LS, but I'd rather have a new LS than a CPO S Class. All the times I drove the ES and the GS and wanted an LS, I could have bought a CPO LS every time, and I considered it every time but just couldn't bring myself to do it. I just prefer new cars,