I was thinking about this yesterday. It is a known fact that cars are not an investment. And I was reading Suzy Ormond yesterday who was pretty much recommending that you shouldn't drive a car more expensive than what you can pay for in cash, or at least pay off in three years. But, look around the highway, and I can tell you there are a lot of cars that people are driving that they haven't paid for in cash. I don't know the stats but I think most cars are paid for on a loan system and most of them are five year loans though I am reading that eight year loans are becoming more common.

So why do you think that people are investing so much of their money on these things?

We have two cars. Both run and while our Subaru (which we have a loan for) is decent our Honda (paid in cash ) is kind of ugly ... though it runs great and has decent gas mileage. But I have to admit -- sometimes I'm a little embarrassed to be driving it. Which is stupid, I know, because I think that car tends to be more reliable than our Subaru -- though our Subaru is much more safer during the winter months.

I don't know ... I just don't know why we, as a society, put so much value on our cars. Any ideas?

I think we put to much value in material things, period. It all goes back to grade school, when we use to play the "my daddy's better than your daddy game".

And as far as a car goes, that is what most people see us in. You would be suprise at the people who knows what make and model of their friends or relatives car is.

I do good, keeping up with the make and model of our cars, must less anyone elses.

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We definitely don't buy status symbols. My Suburban is for towing, dog transportation and family usage. I originally planned to do daycare and wanted a 3rd seat. Our Jetta was bought strictly for commuting and gets almost 50mpg. We have an '88 beater truck that could be embarrassing to drive because it has little paint left on the hood and the roof. I rarely drive it because it is not child friendly. I could care less though (about the embarrassment factor).

I definitely went through a phase in life when I bought cars like underwear. I did not understand that although it is costing me the same amount per month, I'm never investing or owning anything. I could care less if I get a new vehicle these days. We did have trouble with the Suburban on our trip but that was the first time it ever broke down.

Our friends show us their new trucks/cars and we try to seem interested. That is cool but whatever. It gets me to & from. I guess I'm an old lady now.

We have friends moving to our area and they have three cars (2 drivers) and this weekend they drove their sports car up here and are leaving it at our house while they complete their move. Today, my husband, in their car, drove them to the airport and he has the entire day in their fancy little car. I just talked to him a few minutes ago and asked how he liked driving it (it is fancy) and he was like, "Well, it is fast, and I thought it was going to be a lot of fun driving it but really, once I got into it, it wasn't that big of a deal."

That is good -- since we can't afford such a thing!

ITA - we have probably the lowest end cars in our neighborhood and I see that as a plus, not a minus. A minivan for the family, and a cheap commuter car for DH what else do you need? I agree that there are so many people hung up about what car they are in and are willing to spend more than what they can afford to just to have the "right" one.

I think to some people, a car says "Look at me and what I can afford" where as I see it as just a means to get from Point A to Point B - with as little gas as possible... JMHO!

Some people view their car as an extension of themselves. In their minds, it defines who they are, or at least helps to. IMO, it's a mode of transportation. Ours are comfortable, reliable, safe, and well-maintained. At this stage of my life, I would rather grow wealth by investing money in things that will appreciate, not depreciate.

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I Think about this Alot , Only I Think About how Now adays It Isen't too Big of a Deal to Have a BMW or Mercedes.
I think they used to Be More Of A Status Symbol.
Wealthy People Drove Mercedes and Really Wealthy People drove Jaguars.

Now even the Teens on our Street have
volvo
BMW
Mercedes
Cars
And Not A Day Goes By that I don't see a Darn Cadillac Escalade or Jaguar lol

And at least 100 Times a Day I See a BMW.

I like nice Cars too ,

But I Don't think Any of them are Too impressive anymore.
cause All Cars are Expensive.
We Were looking at a Toyota Sienna that was $45,000

Status symbols don't impress me in the least. Just give me a decent looking car that works well and I'm happy.

This is my thought as well. A lot of people see what type of car you drive. How many see your home?? Not near as many.

I am always amazed when I used to walk my neighborhood how nice (and expensive) some people's vehicles were when it was obvious that home was not ever maintained. I mean their home was falling apart, but their vehicle was beautiful. Your home is an appreciable asset (well, it was until lately), while your car depreciates as soon as it leaves the lot.

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SAHM to 4 rugrats

Do you consider a Volvo to be a luxury car? I think of them more for their safety features than as "luxury".

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