Why does an S class intimidate so many people?
07-22-18, 03:43 PM
#121
Lexus Fanatic
Again, I think of status as something else. They said I did a good job in Toronto in Feb., do I like the Sixers or Flyers better? So I took in a Flyers game in the co. suite, which is shared with 2 other cos. There is zero chance I can ever get my own suite and provide all that food and alcohol to guests and cover their tix. So to me, the owners of the suite have status. They can give you something you cannot get yourself. A round of golf at Merion. A ride on the Lear 75. They have status and don't need a leased car nor a credit card, they have it goin' on!
07-22-18, 05:29 PM
#123
also, people I know who delivered in the past tell me the wealthy tip poorly.
back to cars and status, to me land rovers and g wagons scream status. Butt ugly but insanely expensive for no reason
07-22-18, 05:35 PM
#124
Lexus Fanatic
I’ve handled one and it is real nice. Made me want one but I wouldn’t use the perks enough to justify it right now. I don’t think it’s quickee service for better tips, I think it’s to get rid of the ones that might be most annoying quickest. You plop something down on the counter then to me you’re presenting yourself as more import than others and demanding attention. I view it as the same as throwing cash on the counter instead of politely handing it to someone.
I don't plop it down on the counter lol. I put my credit card in my hand and lean on the bar as a way of showing the bartender that I want to order a drink. Thats how I've stood at a bar when I'm trying to order a drink since I've been ordering drinks, and I've done it with many different types of credit cards, including the older non-metal platinum card. For whatever reason, the metal platinum card gets bartenders attention and it gets me service more quickly.
07-22-18, 08:22 PM
#125
Lexus Test Driver
Its funny reading comments in this thread and how some people can use credit system to their advantage and others just prefer to pay cash. Ideally this should be taught in HS and College. Financial literacy is a big issue for why people are not able to accumulate wealth.
There is a HUGE opportunity cost to paying cash on a car or house. Not to mention inflation.
Hell if you can get 7 year loan at 1.9% you would be hurting yourself financially not to take it.
People who are wealthy never pay cash unless its dirty money as they know how to maximize their finances. Or if you’re rich businessman from China/Russia or you are doing a 1031 exchange. In all other circumstances its foolish. Hell if i won MegaMillion jackpot tomorrow I would not by a mansion in cash.
Most people prefer to lease because of convenience of having a new car, not dealing with maintenance, repairs and then trading / selling car 5 or 10years later. If you know how leasing works then you will only pay depreciation cost which would be same if you bought the car in cash.
There is a HUGE opportunity cost to paying cash on a car or house. Not to mention inflation.
Hell if you can get 7 year loan at 1.9% you would be hurting yourself financially not to take it.
People who are wealthy never pay cash unless its dirty money as they know how to maximize their finances. Or if you’re rich businessman from China/Russia or you are doing a 1031 exchange. In all other circumstances its foolish. Hell if i won MegaMillion jackpot tomorrow I would not by a mansion in cash.
Most people prefer to lease because of convenience of having a new car, not dealing with maintenance, repairs and then trading / selling car 5 or 10years later. If you know how leasing works then you will only pay depreciation cost which would be same if you bought the car in cash.
07-22-18, 11:52 PM
#126
Racer
As somebody who has driven new expensive cars for a long time I can tell you thats not true lol. There is absolutely status still in a car and in other outward appearances of wealth. Its interesting when you have two cars, one of which is an expensive Lexus and the other of which is a minivan, the differences in the way people treat you on the road, when you pull up to a hotel for instance, or a nice restaurant. Theres a distinct difference.
Another thing that really is interesting, I had a Platinum AMEX for years and when the kids were born I downgraded it to a Gold one since we weren't using any of the travel perks, etc. Well...about 6 months ago I took a bonus point offer and upgraded it back. The new platinum cards are metal, and thick. they have a bright shiny look to them and they are very heavy, they plunk down on a bar or a hotel counter with authority. They catch the light too and get peoples attention. Here's what they look like for those who are unfamiliar:
Using that card is really fascinating. If you go up to a crowded bar, and pull it out of your wallet and plunk it on the bar, the bartender comes right to you. Its amazing. What use to take 5 minutes to get a drink or more is instant. I checked into a hotel and got a free upgrade. Never happened to me before. I was in WV and took my family out to dinner, the waitress actually came back and said "This is the most amazing credit card I have ever seen, we were all passing it around in the kitchen". When I paid the bill for the service on the Pacifica, the service rep actually said "Wow, this card is so heavy, it must have some money behind it!" He actually said that. I'm not exaggerating either...it actually makes me a little uncomfortable lol
When the Platinum card was just plastic and I had it for 10 years nobody ever said a word.
So status from things absolutely still exists.
And thats with it even being 10 years old, you still get those looks.
Another thing that really is interesting, I had a Platinum AMEX for years and when the kids were born I downgraded it to a Gold one since we weren't using any of the travel perks, etc. Well...about 6 months ago I took a bonus point offer and upgraded it back. The new platinum cards are metal, and thick. they have a bright shiny look to them and they are very heavy, they plunk down on a bar or a hotel counter with authority. They catch the light too and get peoples attention. Here's what they look like for those who are unfamiliar:
Using that card is really fascinating. If you go up to a crowded bar, and pull it out of your wallet and plunk it on the bar, the bartender comes right to you. Its amazing. What use to take 5 minutes to get a drink or more is instant. I checked into a hotel and got a free upgrade. Never happened to me before. I was in WV and took my family out to dinner, the waitress actually came back and said "This is the most amazing credit card I have ever seen, we were all passing it around in the kitchen". When I paid the bill for the service on the Pacifica, the service rep actually said "Wow, this card is so heavy, it must have some money behind it!" He actually said that. I'm not exaggerating either...it actually makes me a little uncomfortable lol
When the Platinum card was just plastic and I had it for 10 years nobody ever said a word.
So status from things absolutely still exists.
And thats with it even being 10 years old, you still get those looks.
07-23-18, 03:04 AM
#127
Lexus Fanatic
Its funny reading comments in this thread and how some people can use credit system to their advantage and others just prefer to pay cash. Ideally this should be taught in HS and College. Financial literacy is a big issue for why people are not able to accumulate wealth.
There is a HUGE opportunity cost to paying cash on a car or house. Not to mention inflation.
Hell if you can get 7 year loan at 1.9% you would be hurting yourself financially not to take it.
People who are wealthy never pay cash unless its dirty money as they know how to maximize their finances. Or if you’re rich businessman from China/Russia or you are doing a 1031 exchange. In all other circumstances its foolish. Hell if i won MegaMillion jackpot tomorrow I would not by a mansion in cash.
Most people prefer to lease because of convenience of having a new car, not dealing with maintenance, repairs and then trading / selling car 5 or 10years later. If you know how leasing works then you will only pay depreciation cost which would be same if you bought the car in cash.
There is a HUGE opportunity cost to paying cash on a car or house. Not to mention inflation.
Hell if you can get 7 year loan at 1.9% you would be hurting yourself financially not to take it.
People who are wealthy never pay cash unless its dirty money as they know how to maximize their finances. Or if you’re rich businessman from China/Russia or you are doing a 1031 exchange. In all other circumstances its foolish. Hell if i won MegaMillion jackpot tomorrow I would not by a mansion in cash.
Most people prefer to lease because of convenience of having a new car, not dealing with maintenance, repairs and then trading / selling car 5 or 10years later. If you know how leasing works then you will only pay depreciation cost which would be same if you bought the car in cash.
then you have the other extreme, ramsey and suzi.
no, leverage should not be encouraged in hs.
thought if you leased you do not own, pay taxes upon, and maintain? And supposedly according to Ramsey you do pay for the cost of borrowing, and are fleeced.
07-23-18, 04:24 AM
#128
Your statement on people policing that you use cash up front is false, they prefer you finance so they can make more in that interest. Sure they prefer people pay cash on small amounts to not lose money on transaction fees but that’s why they have minimum charge requirements.
If you dont see me as wealthy then cool, I don’t want you to but people see you dropping that much cash then someone may lose that money cause others see you as an easy target and rob you. Chances are if you paid cash for the s class then you’re a walking bank and that car may be a bank tool and that trunk is sure as hell easier to get into than the safe is at a real bank. That is the concern some people have and why they don’t want that car because they’re afraid of vandalism.
07-23-18, 05:02 AM
#129
Lexus Fanatic
pretty sure credit is a big part of how people can “afford” but choose not to. If dropping 60k in cash makes you feel better good for you. You do you. I hate cash and I’ll never do that if I can’t finance as long as interest is less than 2% cause I lose out on that opportunity cost of making 2% on the dollar from my bank in addition to the cash back/rewards my credit cards give and whatever else I have my 60k invested in so that I can just pay off the car with the interest that money makes in investments. Also poor credit means you don’t have the money to pay bills and you’ve defaulted so it is a measure of status. A dealership will check your credit and make sure you can afford the payments.
Your statement on people policing that you use cash up front is false, they prefer you finance so they can make more in that interest. Sure they prefer people pay cash on small amounts to not lose money on transaction fees but that’s why they have minimum charge requirements.
If you dont see me as wealthy then cool, I don’t want you to but people see you dropping that much cash then someone may lose that money cause others see you as an easy target and rob you. Chances are if you paid cash for the s class then you’re a walking bank and that car may be a bank tool and that trunk is sure as hell easier to get into than the safe is at a real bank. That is the concern some people have and why they don’t want that car because they’re afraid of vandalism.
The policy is a farce, but the concept of forced savings is not.
My cousin (happens to be the son of the aunt who likes to borrow when rates are low), does not believe in 401k plans. He said that's for the common people who don't know how to invest. HUH??! lol He will say the 0.0007 fee that I am paying is me getting duped like the the rest of the people who don't know how to invest. If you have an indexed mutual fund, you are one of the dumbest common folk there is. hahahahahaha
Instead, he prefers more "sophisticated" and leveraged positions, and options trading. Does he go to casinos regularly? You bet. He also does not believe in vaccinations, and insulted another cousin by telling him he is not a real doctor! hahaha (he's a chiropractor and I get that they do not go to medical school, nor do podiatrists, nor do optometrists, but why do you have to say it out loud to him?)
Anyway, to oversimplify, I don't believe that if you get 1.7% online in a savings account, and you can buy a car with 0%, that the 0% is a no-brainer. Usually it's captive financing and you paid a higher price for said vehicle.
What I do find strange, is that it seems people believe that when a car is leased, it's the same as paying for the depreciation, and that's it? Can't we at least agree, that the car business makes more margin selling used cars, and leasing cars, than they do selling new cars? If we don't agree with that, we're stuck at square one.
Also leverage, is a form of "betting the farm." If you did it with apple, google, facebook, Brooklyn real estate, you won big. But there are far more bets too where you would have lost big.
07-23-18, 05:08 AM
#130
Pole Position
Interesting thread.
Me, I have a comfortable life and we have been fortunate to have a pretty decent nest egg. We live in a very upscale neighborhood, with lots of German steel driving around. But up until the time it died 18 months ago, I loved driving my '97 Mercury Mountaineer. I could haul stuff, the dogs could have the back seat to themselves, a reasonably good-looking vehicle with a very good 302 V8 engine.
I think what motivates me inside is an obsessive desire to be "practical," of getting a great bang for the buck. I look at a brand-new car and my very first thought is "Geez, that guy is paying a fortune in depreciation." I guess that's a bit weird.
We own some income properties. In one very nice condo lives a guy who pays his rent but is by no means wealthy. Last year I happened upon him downtown, driving a gorgeous brand-new silver Mercedes (not an S). Did I respect him more? Actually I afterwards thought, "the guy is leasing that thing, and three years from now he will be out of that car with nothing to show for all the expense." But of course it's his right to spend his money as he sees fit and if he gets a lot of satisfaction out of a flawless finish and admiring glances, fine. But to me success is money in the bank, and that doesn't show up until you get to know someone.
Me, I have a comfortable life and we have been fortunate to have a pretty decent nest egg. We live in a very upscale neighborhood, with lots of German steel driving around. But up until the time it died 18 months ago, I loved driving my '97 Mercury Mountaineer. I could haul stuff, the dogs could have the back seat to themselves, a reasonably good-looking vehicle with a very good 302 V8 engine.
I think what motivates me inside is an obsessive desire to be "practical," of getting a great bang for the buck. I look at a brand-new car and my very first thought is "Geez, that guy is paying a fortune in depreciation." I guess that's a bit weird.
We own some income properties. In one very nice condo lives a guy who pays his rent but is by no means wealthy. Last year I happened upon him downtown, driving a gorgeous brand-new silver Mercedes (not an S). Did I respect him more? Actually I afterwards thought, "the guy is leasing that thing, and three years from now he will be out of that car with nothing to show for all the expense." But of course it's his right to spend his money as he sees fit and if he gets a lot of satisfaction out of a flawless finish and admiring glances, fine. But to me success is money in the bank, and that doesn't show up until you get to know someone.
07-23-18, 05:18 AM
#131
Lexus Fanatic
Very well said. Kind of reminds me of Thomas Stanley and William Danko, the authors of "The millionaire Next Door", a fantastic book. They're famous for quoting "Big Hat, No Cattle", meaning, people spend too much money with little to show for it. They're spending tomorrows money, today. The S Class is not as intimidating as one might think, knowing that most (greater than 50%) of owners simply are not well off financially. Sure, they may have great income to afford such a car, but the reality is, they probably struggle staying on top of their bills and simply want to look rich. In some areas of the country, it's much worse, like where I live, in south Florida. Almost every S Class driver is a poser. Nearly everyone I know that drives a new German luxury car is flat broke. I'm with you, success is not income, it's what you do with that income.
Again that tidbit a few weeks ago that 40% of Americans cannot sustain a $400 unexpected expenditure without borrowing or selling something, due to a lack of savings, is something that we need to improve upon. Besides not having the oil, why can't we be more like Norwegians?
07-23-18, 09:26 AM
#132
Lexus Fanatic
This is interesting. My wife and I carry Chase Sapphire cards due to the rewards system and flexible hotel/flight points. The card is also fully metal and cannot be cut nor shredded like a regular credit card. It has to be mailed back to Chase or brought into a bank branch for secure disposal. I wonder how it compares to the Platinum AMEX, in terms of construction. No one has described our Sapphire cards in the same way as your AMEX, but I do frequently receive comments about how "heavy" the Sapphire card is and how nice it feels. I do like the weight and durability of the full metal card but feel people overreact to the card since it isn't difficult to get approved for one, the Chase Sapphire that is.
07-23-18, 02:22 PM
#133
pretty sure credit is a big part of how people can “afford” but choose not to. If dropping 60k in cash makes you feel better good for you. You do you. I hate cash and I’ll never do that if I can’t finance as long as interest is less than 2% cause I lose out on that opportunity cost of making 2% on the dollar from my bank in addition to the cash back/rewards my credit cards give and whatever else I have my 60k invested in so that I can just pay off the car with the interest that money makes in investments. Also poor credit means you don’t have the money to pay bills and you’ve defaulted so it is a measure of status. A dealership will check your credit and make sure you can afford the payments.
07-23-18, 05:04 PM
#134
Lexus Fanatic
iTrader: (20)
as i get older, i choose to do more things as i want to do them and not wait, and maybe it will keep me working longer but that's ok, i enjoy it and it keeps my brain active.
07-23-18, 05:12 PM
#135
Lexus Fanatic
Eh, I've watched people react to other people's expensive cars and the comments they make...
Except you might get sick and die during the 15yrs or at any time and then what was the point in saving for 'retirement'?
as i get older, i choose to do more things as i want to do them and not wait, and maybe it will keep me working longer but that's ok, i enjoy it and it keeps my brain active.
as i get older, i choose to do more things as i want to do them and not wait, and maybe it will keep me working longer but that's ok, i enjoy it and it keeps my brain active.
Your life can end at any moment. Thats not to say you should just throw it all up in the air and go for broke every day, but there has to be a happy medium.