Is it stupid to have three cars?

[TD]

I'm considering not selling the convertible even after we buy our wagon. Technically we can afford to keep all three, but that means a lot of money being tied up in depreciating assets.

Is this stupid?

[dredmo]

Yes, it is extremely stupid. :mad:

Unless your third car is like a p-car/z4/Audi rodster/ something worth having as a weekend only car.

[clyde]

I'm considering not selling the convertible even after we buy our wagon. Technically we can afford to keep all three, but that means a lot of money being tied up in depreciating assets.

Is this stupid?

Depends on your financial goals and whether you can still achieve them while holding onto the third car. It sounds more like you're at the crossroads of a mental barrier, though. If that's the case, you may want to think about holding onto the convertible through the winter and reevaluating in the spring. If you decide to sell it at that point, the additional loss (depreciation, plus lost compounding earning power, plus costs) shouldn't be life altering. Is it stupid? Although it's probably not hte most fiscally prudent thing to do, it's probably not stupid.

[Nick M3]

Get her the E30 M3 I just posted. ;)

[dan]

no, of course not :smile:

[The HACK]

What are you trying to say man? :mad:

LEASE the wagon, or if you're still making payments on one of the car, turn that one into a lease. Both of the Ci's are paid off, and since I own a home business the Z4 payment is 100% write-off. :twisted:

[TD]

What are you trying to say man? :mad:

LEASE the wagon, or if you're still making payments on one of the car, turn that one into a lease. Both of the Ci's are paid off, and since I own a home business the Z4 payment is 100% write-off. :twisted:

The E36s are paid for. I get no tax benefit from a lease, so I'd be buying the Saab.

Like I said, it's a lot of money to have tied up in depreciating assets.

[Nick M3]

So how often would this wagon actually get used?

If you're keeping three cars, maybe something like a 740 Turbo would make more sense for the occasional trip?

[The HACK]

What are you trying to say man? :mad:

LEASE the wagon, or if you're still making payments on one of the car, turn that one into a lease. Both of the Ci's are paid off, and since I own a home business the Z4 payment is 100% write-off. :twisted:

The E36s are paid for. I get no tax benefit from a lease, so I'd be buying the Saab.

Like I said, it's a lot of money to have tied up in depreciating assets.

Hm...I thought you still contract out? If so you SHOULD be able to write off the lease. Perhaps it differs in each state. :dunno:

Is it going to be a used car or new? The only reason we have three cars, is that the deal was just simply too good to pass up and we have very little debt/tax write off, besides the mortgage.

Also, if it's going to be your wife's primary vehicle, I'd say let her decide if she wants to keep the 'vert. Personally I think if you have the M3, the 'vert, and the wagon you have three cars that compliment each other, despite the fact that they're all depreciating like crazy right now due to the low interest rate and rebates and zero percent financing.

[TD]

So how often would this wagon actually get used?

If you're keeping three cars, maybe something like a 740 Turbo would make more sense for the occasional trip?

Nick-

We have two children. The wagon would get used regularly.

It's already a PITA to use the M3/4 for all four of us. It's do-able, but a PITA nevertheless. Using the 'vert with both kids is a royal PITA.

It's the 'vert that wouldn't get used much. But because it's been babied since it was new (and has only 28K miles on it - has never been parked outside overnight - had oil changes ever 4K miles - etc), my wife hates the idea of parting with it.

[Nick M3]

The wagon's value is plummeting, and the 323iC isn't exactly doing great.

M cars hold their value VERY well, though. The M3/4 is the car NOT to sell if depreciation is at all a concern. And if it is, that Saab is way too new.

[TD]

The wagon's value is plummeting, and the 323iC isn't exactly doing great.

M cars hold their value VERY well, though. The M3/4 is the car NOT to sell if depreciation is at all a concern. And if it is, that Saab is way too new.

The 323iC has held ~71% of it's original value and it's a '99.

The M3 has held ~53% of it's original value and it's a '98

The Saab (assuming a specific sale price) will have held ~54% of it's original value and it's a '00.

How you compare those depreciation levels considering they are all different models years, I do not know. But saying the 323iC's depreciation is bad isn't true.

And I know the really fast part of the Saab's derpeciation curve is already past.

[lemming]

don't be silly.

there's nothing wrong with having three cars.

especially if you own the other two outright. and i would agree that the saab is past the steepest part of its depreciation curve. reducing the mileage on the convertible or the e36/4 would also tend to prop up their values long term, also.

i mean, from the convertible standpoint, someone ALWAYS wants a bmw convertible and not many can afford them new. with low miles on it, it'll be an even better thing to be able to sell in the future.

the biggest and most noticeable thing will be insurance, but could you raise the deductible on the "third" car to offset that?

p.s. i still have the saab aero-shaped load bars that fit right up with the factory roof rack rails.......(i'd just give 'em to ya).

[The HACK]

Maybe you need to ask yourself this TD...

Looks to me like you guys DO have some need for a third car. And given your propensity to "wander" around with the cars, do you want to BUY the Saab or do you want to just lease it, so in case you do find that prestine conditions, federalized E34 M5 Touring you can actually ACT on it? :smile:

[dan]

Maybe you need to ask yourself this TD...

Looks to me like you guys DO have some need for a third car. And given your propensity to "wander" around with the cars, do you want to BUY the Saab or do you want to just lease it, so in case you do find that prestine conditions, federalized E34 M5 Touring you can actually ACT on it? :smile:

I think TD is opposed to leases on religious grounds :smile:

[TD]

Maybe you need to ask yourself this TD...

Looks to me like you guys DO have some need for a third car. And given your propensity to "wander" around with the cars, do you want to BUY the Saab or do you want to just lease it, so in case you do find that prestine conditions, federalized E34 M5 Touring you can actually ACT on it? :smile:

In real life, buying an E34 M5 Touring is dumb. I may talk about it, but it's not gonna happen.

[Roadstergal]

Personally I think if you have the M3, the 'vert, and the wagon you have three cars that compliment each other

:devcool:

[kognito]

of course not!!! if you have a safe place for all three, GO FOR IT!!

Someone is building a new house on my street, the house has a three car garage in front (facing the street) and another three car garage on the side of the house (lower level)

I don't know who my new neighbors are, but I'm already very jealous!!

[blee]

We have three cars. One of them sees zero use, but that's only because I can't even push it out of the garage right now.

There's a good chance, though, that the wife and I will be in a very different financial position in less than a year. I'm afraid that at least one car will have to go, and I'm supremely worried that it'll be the "broken" one. :cry: I certainly hope not.

Anyway, to answer the original question, there's nothign wrong with having three cars. The convertible is clearly the least practical of the three, but if there's room in the budget to keep it, I don't see why not.

[GregE_325]

Nothing wrong with having 3 cars. From a financial perspective, the worst depreciation has already happened. The values of the BMWs should have leveled off for the most part, with only slight adjustments for mileage. And you happen to have 2 very desirable models of BMWs, which should help as well.
Congrats on having different cars that meet different needs. That's a good position to be in. If only I had the room to put it, I'd like to have a wagon in the fleet too.

[Emission]

I've got three cars:

'03 X5
'02 Passat
'86 911 Turbo

The Porsche sits covered (in the three-car garage) most of the time, but I drive it at least twice a week just to put that silly-ass-grin back on my face. It is paid-off, and it most likely won't depreciate much anymore. To me, it is therapy, and an asset.

[Masskrug]

I think it is stupid to HAVE cars, period.

Having said that, they are a necessary evil in my family. If you want three cars, then at least make sure each one has its unique purpose.

As for depreciating assets, at least owning a BMW is still better than stock in WorldCom, Enron, Nortel and the rest of the crooked crew.

[GSR13]

I do not think there is a thing wrong with it. Many people have daily drivers and a weekend car. In your case, you would have the Convertible which makes a great weekend car and the kids can still ride.

At some point, the depreciation becomes very small anyway, so you should really try to measure how long you want to keep all three. If it is something you will only do for 6 months or so, then you might as well sale the car now. But if you plan on keeping all three for some time, then I say go for it.

[lip277]

Is this stupid?

No...
I'm about to get #5... for two drivers. :angel: :thumbup:

Of course, three of the 5 would be on 'classic' insurance (like Hagerty) so that doesn't add up toooooo bad on a yearly basis. $110 sure beats $600 for each.