My Financial Kryptonite

This hood ornament only cost me $20,000!

This hood ornament only cost me $20,000!

There are so many ridiculous things people buy in this world which makes them less of a person.  There are people that buy cigarettes regularly every day.  These will burn a hole in your wallet as well as your lungs.  Then there are those who get endless subscriptions to magazines they never read, costing them money every month and destroying forests in the process.  There are also the people who sit in idling cars every day to get their daily fast food fix.  This wastes gas and makes you fat and lazy.

There are many more crazy things out there that people spend money on, but there is one object of people’s affection that is my biggest financial foe.  I call it my Financial Kryptonite.  Not because my finances are like Superman, far from it.  But because I want to stay as far away from this purchase as I can because I know the destruction it will cause, not just on my current finances but on my future as well.  And that bane of my existence is:  luxury cars.

When you spend thousands of dollars on something, you want that thing to be very useful and to (hopefully) appreciate in value.  A house, for example, is such a thing.  You and your family can live in it for years and years and have lots of lasting memories.  Many people in the world don’t have a roof over their head, so if you have one, count yourself among the fortunate.  Houses can also appreciate in value over time, hopefully turning you a profit when it comes time to sell.  This, generally, makes buying a house a good investment.

This is unfortunately not true with cars.  Cars certainly are useful.  They allow people to get to work and run errands to keep their house and lives in order.  They allow you to travel to friends houses and new locales to keep life exciting and fresh.  But what they don’t usually do is appreciate in value.  As soon as you sign the contract for a new car, it IMMEDIATELY loses value because now it’s a used car.  Every mile you drive it and each piece of wear and tear will lead to a further decrease in value.  While this doesn’t sound too appealing, cars are almost a necessity for people who don’t live in cities and don’t have access to reliable public transportation.

The luxury curse

Now, are you interested in wasting EVEN MORE of your money for something to get you from Point A to Point B?  Get a luxury car.  Luxury cars are simply slightly souped up models of your every day Toyota and Nissan, and usually only souped up on appearances.  I’m not exactly a car nut (and I’m glad because that’s an insanely expensive hobby), but from some conversations with car nuts I have found out that luxury models and their corresponding mainstream models are almost exactly the same under the hood.  What you’re paying for is strictly appearances, and boy will you pay.  Here are some ways you’ll end up paying more by going with a luxury brand over a mainstream one:

Higher sticker price.  An Internet search found that a 2014 Toyota Camry runs for about $22,000.  A 2014 Lexus RS, which is essentially the same car except shiner and more leathery, is about $36,000.  That means you’re paying $14,000 extra for shiny!

Higher gas prices.  Many luxury car makers say you need to use premium gasoline for their cars.  While this is debatable in some circles, a gallon of premium gas is around 40 cents higher than regular.  That comes to about $5 more per tank of gas for the privilege of driving luxury.

Higher maintenance and repairs.  While luxury cars are almost identical to their mainstream counterparts, many luxury cars use parts that will only work in luxury cars, and those parts are usually more expensive or bought through the dealer.  In any case, you will be paying more for 4 new tires on your Acura than on your Honda.  Even regular maintenance, such as an oil change, costs more with a luxury brand.  Again, paying more for the “privilege” of driving luxury.

Higher insurance.  Car insurance companies will factor in nearly everything to determine your premium, and that includes if you drive a luxury car or not.  Luxury cars are usually more pricier, so it stands to reason that you will pay more to have them insured.  Yet another sneaky increase in cost of ownership of a luxury car.


The higher sticker price should scare most people away from buying a luxury brands, but knowing how much more the cost of ownership is should send everybody running for the hills.  But it doesn’t.  And that’s because the luxury car makers are marketing geniuses.  Luxury car commercials throw around words like “elegance” and “refined” to describe their cars.  This makes people feel good and will get that dopamine flowing once you sit in one for a test drive.  They play to our emotions and desire to be pampered, which keeps people coming back.  As I’ve heard from many people who have bought luxury cars themselves, once you go luxury, you don’t go back.

Now I’m not one to find joy in shaming people’s financial decisions.  While it can be fun at times,  everybody makes mistakes and everybody has purchases that they regret, myself included.  But I will make an exception for luxury car consumers.  If you consistently buy luxury car brands, you’re in need of therapy.  Your money can be used for so much good for yourself, such as paying off debt or investing for your future.  The fact that you’re risking your family’s financial future for some pieces of leather and a temporary pang of superiority shows that you have went off the deep end.  Your Lexus is exactly the same as your neighbor’s Camry, but the difference is your neighbor can afford to drive himself and his family on vacation a few times a year while you can shuffle your car to and from work to make up the price difference.



  1. I don’t understand the logic behind cars that cost a million dollars. I know some have the money to afford that, but I’d personally be giving it to charity or something along those lines.

    • Syed says

      Spending a massive amount of your wealth on a car is a very poor use of your money I agree. Thanks for the comment.

  2. Kim says

    My parents have driven Cadillacs for a while now. I don’t get it at all, but my Mom grew up poor and I think that’s her way of feeling like she has arrived. I can arrive just fine in a Nissan.

    • Syed says

      I agree my mom once said her dream is owning a Mercedes. A lot of it has to do with luxury being a status symbol you’re right. All I know is, these luxury car marketers are damn smart. Thanks for the comment.

  3. There are a lot of people in our society who have gotten caught up in having a status symbol in the form of materialism. I currently can’t afford a luxury car but even if I could I wouldn’t purchase one. I know a couple of people that own luxury cars and they try to keep driving down to a minimum. They are fearful that the car will get scratched or damaged. It doesn’t make sense to me seeing as they spent a lot of money for the intent to drive it.

    • Syed says

      Yes I have heard the same thing from luxury car owners. Some even keep them covered in their garage until the weather gets nice! It’s really weird what people will do for a luxury status symbol. Thanks for the comment Jessica.

  4. My friend owned a BMW and I always thought it was pretty awesome until I talked to him about the maintenance. Oil changes were at least $75…for a car! Brakes were around $700. His back passenger window motor went out…$1,450. He said that the oil and brakes had to be changed less often, but still. I don’t plan to own one.

    • Syed says

      Yeah there are just too many extra costs associated with a luxury vehicle. For me it all comes down to the tangible benefits. And in the end there is no benefit to owning a luxury vehicle as compared to a regular one. Thanks for the comment!

  5. My spouse has a penchant for sports cars, too. Thankfully we don’t own one (yet)… but it is only a matter of time! In about 8 years, when our current car is about a decade old, it will be a toughie for self restraint.

    • Syed says

      Yeah some people really love nice cars. But make sure they know they’re giving up a LOT of money for that nice car! Thanks for the comment.

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