No prison sentence for a car payment Brian. I created this post for fun and to get a pulse on the financial mentality of fellow RE investors. That you have been successful in the car care franchise and restaurant has blessed you with I imagine, significant amounts of cash to allow you to purchase a stable full of nice vehicles. Congrats and enjoy the fruits of your labor.

For me it's more economics - I really can't afford $500, $1000, $1500 monthly car payments and stay in the black. Would I like to own a fancy new car that can outrun anything around - absolutely. I'm just not there yet. So what motivates me? For me it's the ability to have the financial freedom to do whatever I want with my time (family, travel, volunteer for a worthy cause, etc.) and know that the passive income from RE is funding my lifestyle for the rest of my life.

You're the carpe diem guy - live for the day! Nothing wrong with that. I actually take pride in my modest choice of vehicles and think it sets a good example for my family (with 2 kids 11 and 13) to live within our means. Trying to keep up and get ahead of the Joneses - not my thing. Counting my Benjamins rolling in 24/7 - that's what motivates me.

Jeff, as you just stated, you're striving for "freedom to do whatever I want with my time".

TIME.  That is our most valuable commodity.

I think some in this thread forget that when they're driving around the 15 year old cars with 240,000 miles on them.  Used cars with such extensive mileage on them require maintenance, including inevitably some time in the shop (even if it is nothing out of the ordinary).  That isn't the best use of my time.

The argument for buying used and driving the car until it dies is purely a financial argument.  When you consider other factors, like appearance, comfort, safety, reliability, and TIME......well, the end result can change for some (obviously not all, and that is fine, if the financial savings are the primary concern). 

2013 ram 1500 tradesman

Bought w/ 20k miles this spring for 21k @ 1.9 fixed for 72 months, blue book on it was something around 30k... The auto trader listing had a bad phone number for the dealership, it was a trade in at a Nissan lot... I googled the correct number and got a deal with no competition.  Had to drive to okc for it though.  Has the pentastar v6 and the 8 speed automatic.  Rated at 25 hwy i average 22-23 combined 40% city according to the dash and it will fit any car seat out there!

The v6 isn't available w/ the dual exhaust bumper but I splurged and switched it out.  When I bought it the po had installed a nasty loud flowmaster w/ the dual pipes hanging under the standard bumper so it gave me an excuse to redo it w/ a factory muffler and factory dual bumper... worthwhile cosmetic upgrade and now its quiet too.

I love this thread!  Especially the posts of folks with older high mileage cars (can we say millionaire next door mindset?).   I had a 2000 Mazda Protege for 10 years that I paid $6300 cash for in 2004.  Just "upgraded" to a 2002 Lexus ES300, purchased $6500 cash.

Eventually I will make my "frivolous" purchase of a restored 72 Chevelle.....but many a property to be attained first!

I recently splurged on a 2002 ford f150 with 100k miles. I say splurged because I do have another car, a Hyundai Accent blue edition I bought new in 2010 for 9k. Yes 9k. new. People didn't believe me when I told them I bought a brand new car that didn't have an A/C and still had roll down windows. They still don't. And I only really paid 8k for it because  I got 1k for my trade in, a 2000 jeep cherokee with 220k miles. I bought that with 150k miles for 4k a few years before. I would rather have nicer and new cars, I just hate having a car payment. 

One day ill buy my porsche 911.

2005 Subaru Legacy GT Wagon 5 speed manual transmission... 

I have hauled cement, lumber, appliances, furniture, helped people move, all that in a "sleeper" 320hp 370 lbft torque wagon that hits 60 mph in 4.7 seconds.

Plan to keep driving it... 

I was with you for years.  And then, last year, my tenants made me an offer I couldn't refuse - they offered to make payment for me.  So - I went out and bought 2 nice cars; a minivan for the fam, and something a bit more fun...

There is a time and place where hard work has to be offset by a little fun.  The car payments, as my good friend @Serge S.  likes to say, "is a rounding error on my vacancy". OK, it's a little more than a rounding error for me than it is for him, but you get the point...

It's not something I'd have done 3 years ago.  But, when it's time, it's time...

2007 Honda Ridgeline.  Bought new and will probably be run it into the ground in 2025 or 2030.  It has basically become my dog truck, since the back seats go up and it provides a great space to transport my dogs.  

I have been lusting after a new Ford 150 particularly when I was going back to NW Arkansas to work on flips.  A friend of mine there has one and I would occasionally get one as a rental car.  Weird I know but it was a great deal on hotwire.  

Originally posted by @Steve Olafson :

I drive a 2014 tundra.  Paid cash.  I absolutely love the truck.  I can fit 6 passengers comfortably and still have a truck bed.

 Hows the gas mileage on the the tundra? I want this truck but my properties are like 30 miles apart so I suspect getting this kinda truck to drive between properties will kill me in the end.

Unfortunately I cannot fit drywall in my tiny altima coupe.

Simple tittle, great response! I drive a 2008 Honda Element (paid off). I flip houses and most of the materials i.e. Sinks, light fixtures, microwaves, etc. fits in my lil' truck. I don't have to worry about gas b/c it doesn't take as much as a F-150 and it has a great cargo are (if you remove the rear seats). Anyways, cool title.

2001 Toyota Corolla with 211,000 miles. She been road hard and put away wet. Its paid for and I also pull my kayaks with a boat trailer…yup used and abused.

1998 Ford Mustang with over 140,000 miles on it.  I bought it brand new back in 1998 and it's been extremely reliable for lugging around my rental property stuff, while still being "cool."  And I agree with the other posters above.  I don't want to be driving around in a flashy, expensive status symbol that will upset my tenants.

I drive a Mitsubishi Montero Sport which has broken down and went back to dealer.

Originally posted by @Brian Albelli :

I don't get the whole "buying new cars is like burning cash" and the "cars depreciate" mentality. Some posters have openly said they are embarrassed to show up in the vehicles. People, you don't have to live like this!!! Everything you buy…furniture, clothes, televisions, jewelry, stereos, cellphones, computers….everything depreciates so where does it end? Even Real Estate can depreciate. Just in my little area, there are Toll Brother built homes here bought in 05 for 900k, selling for 250k…..not to mention every house value literally cut in half since the housing crash. You think everyone is feeling good about penny pinching and being embarrassed by their cheap cars so they could "invest" in those "appreciating assets"???? Wheres it end? Do you also live in a mobile home so you can put the rest of your income into appreciating assets? Its fine to live like that, but don't put down people for enjoying the finer things in life. Life sentence because I have a car payment???? Thats silly. 

Not all older cars are a maintenance headache. I drive a 96 Camry with 313k, I inherited it from my wife after I got rid of my 96 Explorer with 315k (that had been rolled/totaled and still put another 90k on it). We also have an 03 Acura (wife's car) and a now an 02 Tahoe. We drive a lot, have a great mechanic, and we take good care of our cars. Over the last 10 yrs since doing this, we have never been stranded and having a 3rd vehicle makes it easy if something needs to get fixed. For the most part we just do oil, brakes, and tires. If they were a headache we'd just buy newer stuff. Someday when my RE income grows, I'll be like Steve and drive a nice big new truck

Originally posted by @Steve Olafson:

I drive a 2014 tundra. Paid cash. I absolutely love the truck. I can fit 6 passengers comfortably and still have a truck bed.

1992 Acura Vigor inline 5 cyl. recently bestowed the title of "antique." No matter how successful I become I will always be driving that sexy thang around.

Originally posted by @Rumen Mladenov :

2003 corolla. Roof is bent from the roof rack when I hauled 10 16 ft 2x8s for a deck on top of it. I also hauled doors, a range, a dryer etc. on top of it - most of my properties are within a mile from the Home Depot. The employees who work there already recognize me - I guess the story about the Corolla that hauled all that lumber was repeated more than once among them!

Not that I planned it that way - it only happened because they did not have a rental truck available that day, and I did not want to delay my project.

Ouch! Rumen, I drive a 2007 Corolla, which got 42 mpg on a road trip last year. Your choice of vehicle is a good one, but for landlord work you need what I keep for that: a 1989 Ford Ranger with a slider window for that long lumber. It's great. So the roof or door leaks a little in the rain. There's no AC, and I keep track of the mileage because the gas gauge doesn't work. I don't drive it much, but it once made it from California to Texas, back to California and back to Texas. It has one of those old odometers that top out at 99,999, so I'm not sure how far it has gone.

A 20 year-old minivan.  That squeaks.  @Brian Albelli  I don't drive this because I have to.  I am content and don't feel the need to fix what ain't broke.  I didn't see people on here putting people with nice cars or payments that limit your options down.  We make our choices.  The life sentence probably pertains to the folks that roll their negative equity into their new payment over and over.  I am investing the value of a nice car on the purchase of another house tomorrow.  I'll drive my 20-yr old squeaky minivan to the closing and be smiling all the way! 

Since it's just for fun...

My daily car is a 2008 Prius.  I get laughed at by all the other guys at my job.  But it's very reliable, only has 90,000 miles on it and has been paid off for years.  Will likely be driving it for many years to come.

As an anniversary/baby gift for my wife we bought a 2011 Acura RDX Turbo w/tech package a couple of years ago.   Good for the MN snow and good for driving kids around.  Paid cash, bought from a dealer who buys at auctions.  Got the car several K under market.

     My friend and I, ran out of money in 1987 on the French Riviera, so we lived in my car that looked exactly like the one bellow: 

(1964 Skoda Octavia) 1.1 liter engine.

    We spent about 10 days in that car. We had hardly any food either, lost a lot of our weight, but I still have great memories of this car as it was my first, and I wouldn't mind to own it again one day :)

I drive a Camry Toyota 2000 with 78,000 mile my other has 135,000 not planning on buying another car. Would like a Tahoe if I do get one it gonna be all cash use car, I think use car is better than the new one ^_^  

I LOVE seeing so many like-minded people here!...   A car is an expense, not an asset. 

My car is a 2010 Subaru Impreza (best ski car in the world!) that I paid cash for last year.  Actually I did better than cash as I was able to negotiate putting $10K on my Credit Card at no charge which equaled approximately 45% of a free airline ticket anywhere in the states!

Paid the card off the next day and visited my brothers family in Laramie, WY a few months later.

I have been of driving age for almost 30 years and have only owned 2 cars.  My latest ride is a 1997 Honda CRV that just hit 199,000 miles.  It is very no frills and the luxury I care most about is air conditioning--when that goes the car goes:)  My husband's 2008 luxury vehicle has been in the shop more than it's been in the driveway.  I have only spent a total of $3000 in car repairs in 17.5 years.  In fact, I recently had part of the exhaust system replaced and the mechanic was dumbfounded when he realized it was original to the car.  Gotta love Honda!

Originally posted by @Tamara R.:

I have been of driving age for almost 30 years and have only owned 2 cars.  My latest ride is a 1997 Honda CRV that just hit 199,000 miles.  It is very no frills and the luxury I care most about is air conditioning--when that goes the car goes:)  My husband's 2008 luxury vehicle has been in the shop more than it's been in the driveway.  I have only spent a total of $3000 in car repairs in 17.5 years.  In fact, I recently had part of the exhaust system replaced and the mechanic was dumbfounded when he realized it was original to the car.  Gotta love Honda!

Another bonus is that the car tax is only around $50 now.  Believe it or not I have had 2 unsolicited offers to buy the car.

Originally posted by @Zach Mitchell :

Originally posted by @Mark Esposito:

Originally posted by @Zach Mitchell:

Can someone tell me how it makes more sense to pay cash ($20k+) for a car when you can get loans at 2.5% for 60 months? If you have $30k for a car and are able to put down $3k and finance the remaing $27k at 2.5%, that leaves you with $27,000 cash to go out and make a return well above 2.5%. You make even 3.5% ANNUALLY on that money and you have essentially borrowed free money and made an additional 1% on it. I will never understand why people are against borrowing free money. 

 Buying a new car is just burning cash...if one has it to burn great.  Cars are depreciable assets.  Don't get me wrong...its FUN to just BURN cash.

But I'm too frugal to do that.  I'd give more to HELP those less fortunate than me to HELP themselves - learn how to earn $$$...not just feed them. 

Mark, I agree with some of your points; however, the question wasn't answered one bit. Also, just to clarify, I wasn't necessarily talking about a new car. Applies to used as well. 

 Zach,

It doesn't make sense...financially anyway. Its all about image.

GF daughter took a little highway trip in her 2013, bought new, maybe 10,000 miles, VW Suv, and it just died on the freeway. New isn't always safe. 

She was lucky there was a shoulder to pull off of. A friend's daughter broke down on a freeway w/o a shoulder and got rear ended; has serious brain damage; in a home forever.