When I worked for Volvo 25 years ago a customer with a Maori named trust bought a V70R and it is/was an assume car. I saw it for it's first service, 10,000km it had been treated like crap, interior was filthy. It needed Brakes front and rear and all 4 tyres. The brakes were going to cost $6000 and each tyre was $1000 and with a few other things that needed replacement a quote of $12000+gst was given after many angry phone calls I was authorized to carry out repairs and then to drop it to the grooming department, then I saw the car on the second hand car yard for sale on behalf. So I guess that was a quick way to loose $12K+gst in servicing and $40K in devaluation in 6 months and I would say $5K-$10K in sales fees so a little less than half it's value. Cars are not an investment they are a liability, My net worth is about 1.5M (Yes assets) and I drive a 2012 Ford Ranger and live in a shed, but being single I don't want to pay $750 a week in rent
What a great insight, I deal with people in distressed financial situations and you will be surprised at how many people have very little knowledge of what goes in and out of their bank accounts.
I am enjoying all your content for the last few weeks, solid work and I am nodding along with a lot of what your saying. You got me thinking about investing into metals now.
There is always hidden costs. We'd like to get a cheap campervan that might get used 6 to 8 times a year so looking at the hidden and additional costs for that atm. Whatever happens, it will cost us additional $$$.
Watch out when showing backgrounds, I noticed it a while ago in your videos. You're easily geolocated and talking about finance, aka, an easy target for extortion. Being very serious, be smarter. There is a reason overseas TH-camrs don't show the backgrounds of their residences. It's not common here in NZ like it is overseas, but it will be in the future & this is the world we live in these dsys unfortunately. Take your security very seriously, you're life and assests depend on it. I'm an amatuer on the internet & I can still geolocate you easily. You haven't worked this hard building your wealth & knowledge just to have some little thug with a 🔫 take it away because of something so small as your HOME being able to be found. Hope you see this
As someone with 45yrs in the motor industry I would like to say what you drive has the most downstream costs. They have a 28% higher crash rate therefore insurance is only going up. They have by far the highest depreciation rate in the market. In fact they are extremely hard to get rid of second hand. NZ is unique in that Landcruisers have the lowest depreciation rate. This also doesn’t account for the sheer lunacy in carbon footprint creating electric cars takes. Or the the incoming issue that is looming with disposal. I appreciate that your clients should be aware of the true cost of owning a vehicle, but the truth is NZ has more luxury and Supercars per capita than any other country in the world and unfortunately for the planet more Teslas as well 😅
This is great. I bought a $18k hybrid vehicle on the spur of the moment in 2021, on finance because petrol was getting expensive. I could afford the repayments. I justified it on the fuel savings 🤦♂️. Few days later, buyers remorse, ended up working 7 days a week to pay it off faster (done in 2022). I do love the car but it's a constant reminder of a dumb purchase. I'm sure the cost plus interest was more than what I would have spent on petrol in my old corolla.
@mra4955 the repayments were only just affordable during a time of job uncertainty (covid) and being in debt was dumb when my other car was perfectly good. The debt hindered my availability of funds for investing into non depreciating assets.
@mra4955 the hidden cost is the opportunity cost of not having the spare funds available for investing into better assets than a car that is no longer worth the $18k+ interest that I paid for it, 4 years down the track.
New Zealand is so expensive to live a happy and enjoyable life. I find it so hard for anything to do also anything you do find its bad quality and well overpriced.
On top of that, it is heavy. So the tyers are expense are unreal but dont go the milage. They are veru sensative and thats why most rental company stay away from it. As repare is expensive.
For many people it is best to stick with basic economy vehicles. I see many young people with BMWs and other flashy SUV's due to big EGO's and keeping up with the Jonses. When these vehicles require R&M big $$.
It is forecast that my Lambo will cost approx $10k a year in service costs. Tyres are over $1k each. Fuel? Well haha - Want a Warranty for protection against major issues? $6k a year.
@@keepthechangenz Sorry I should have added more information. If you hire someone they may want an Kiwisaver contribution, say 3% which adds to the cost of an employee. (or is it tax deductable?).
Depends on how you value your safety... 50 year old car won't protect you as much as something 10 years old... Your car savings could be false economics if you put a price on your health/safety.
Isn't it odd that August 2019 blackrock report "unprecedented policy co ordination needed for the next economic downturn" stated bank rates were too low and 1/3 bond rates negative real terms needing an unprecedented event to achieve inflation and a vehicle for missed inflation targets last decade
When I worked for Volvo 25 years ago a customer with a Maori named trust bought a V70R and it is/was an assume car. I saw it for it's first service, 10,000km it had been treated like crap, interior was filthy. It needed Brakes front and rear and all 4 tyres. The brakes were going to cost $6000 and each tyre was $1000 and with a few other things that needed replacement a quote of $12000+gst was given after many angry phone calls I was authorized to carry out repairs and then to drop it to the grooming department, then I saw the car on the second hand car yard for sale on behalf. So I guess that was a quick way to loose $12K+gst in servicing and $40K in devaluation in 6 months and I would say $5K-$10K in sales fees so a little less than half it's value. Cars are not an investment they are a liability, My net worth is about 1.5M (Yes assets) and I drive a 2012 Ford Ranger and live in a shed, but being single I don't want to pay $750 a week in rent
I love your advice and insights. Great to hear real financial advice from a person actually living in nz. Thanks.
Glad it was helpful!
The one and only bit of advice my stepfather gave me. Any fool can by a flash car. Keeping it on the road and road legal is another story.
What a great insight, I deal with people in distressed financial situations and you will be surprised at how many people have very little knowledge of what goes in and out of their bank accounts.
Sad stuff really! Hopefully more people start learning.
I am enjoying all your content for the last few weeks, solid work and I am nodding along with a lot of what your saying. You got me thinking about investing into metals now.
Cheers. Welcome and happy NY!
The cost of tyres for luxury or even new Japanese cars is huge, and always needs to be factored in.
Yeah costly!
There is always hidden costs. We'd like to get a cheap campervan that might get used 6 to 8 times a year so looking at the hidden and additional costs for that atm. Whatever happens, it will cost us additional $$$.
For sure!
Watch out when showing backgrounds, I noticed it a while ago in your videos. You're easily geolocated and talking about finance, aka, an easy target for extortion. Being very serious, be smarter. There is a reason overseas TH-camrs don't show the backgrounds of their residences. It's not common here in NZ like it is overseas, but it will be in the future & this is the world we live in these dsys unfortunately. Take your security very seriously, you're life and assests depend on it. I'm an amatuer on the internet & I can still geolocate you easily. You haven't worked this hard building your wealth & knowledge just to have some little thug with a 🔫 take it away because of something so small as your HOME being able to be found. Hope you see this
This sounds crazy, but if you just watch rainbolt you can see how easily someone can be located.
Some things i brought the cheapest part is buying the item as the running costs can be higher then the intial cost
As someone with 45yrs in the motor industry I would like to say what you drive has the most downstream costs.
They have a 28% higher crash rate therefore insurance is only going up. They have by far the highest depreciation rate in the market. In fact they are extremely hard to get rid of second hand.
NZ is unique in that Landcruisers have the lowest depreciation rate.
This also doesn’t account for the sheer lunacy in carbon footprint creating electric cars takes. Or the the incoming issue that is looming with disposal.
I appreciate that your clients should be aware of the true cost of owning a vehicle, but the truth is NZ has more luxury and Supercars per capita than any other country in the world and unfortunately for the planet more Teslas as well 😅
Good insights, cheers!
Very insightful
Glad you enjoyed it
80 percent of Vehicles on Hp or loans that is insane especially when they are deprecating asset
Yeah don't quote me on the 80% but it is high and yeah all too common!
This is great. I bought a $18k hybrid vehicle on the spur of the moment in 2021, on finance because petrol was getting expensive. I could afford the repayments. I justified it on the fuel savings 🤦♂️. Few days later, buyers remorse, ended up working 7 days a week to pay it off faster (done in 2022). I do love the car but it's a constant reminder of a dumb purchase. I'm sure the cost plus interest was more than what I would have spent on petrol in my old corolla.
You didn't explain why it was a dumb purchase
@mra4955 the repayments were only just affordable during a time of job uncertainty (covid) and being in debt was dumb when my other car was perfectly good. The debt hindered my availability of funds for investing into non depreciating assets.
@smw9899 gotcha. Maybe not so much a hidden cost then haha
@mra4955 the hidden cost is the opportunity cost of not having the spare funds available for investing into better assets than a car that is no longer worth the $18k+ interest that I paid for it, 4 years down the track.
I brought 2 cars over 20+ years ago and still have them. Cost nothing when they don't go half the time haha
New Zealand is so expensive to live a happy and enjoyable life. I find it so hard for anything to do also anything you do find its bad quality and well overpriced.
Yes it is an expensive country. You must learn to increase your income in NZ
Are you show you live in NZ,just enjoy a happy enjoyable life in NZ & have done for a very long time
Lost opportunity cost is real. I agree.
Many people ignore opportunity cost
Lol Tesla are horrendous for our environment.
How so…
On top of that, it is heavy. So the tyers are expense are unreal but dont go the milage. They are veru sensative and thats why most rental company stay away from it. As repare is expensive.
@@Freeman2222 “they are very sensitive” i take it your trying to say?
@Freeman2222 the possibility of reducing price if sodium batteries can be used.
I found your channel I don't know how but shore is fuck glad I did keep up the good vids bro
Welcome. Plenty of content and podcasts too
For many people it is best to stick with basic economy vehicles. I see many young people with BMWs and other flashy SUV's due to big EGO's and keeping up with the Jonses. When these vehicles require R&M big $$.
Yup I own 2 classic Jags, I get what you are saying...
Popular cars!
It is forecast that my Lambo will cost approx $10k a year in service costs. Tyres are over $1k each. Fuel? Well haha - Want a Warranty for protection against major issues? $6k a year.
And speeding fines sir?
@@keepthechangenz yet to be determined 🤣
good advice
Glad you think so!
You forgot to mention Kiwisaver contributions.
As an ongoing investment to be better off at retirement?
@@keepthechangenz Sorry I should have added more information. If you hire someone they may want an Kiwisaver contribution, say 3% which adds to the cost of an employee. (or is it tax deductable?).
Aka what’s it going to cost me to have that thing …got myself messed up buying a car cash but it had run flat tyres that cost 800 per tyre. Sold it 😂
Yeah know how costly they can be haha!
Cost Of Ownership
Good way to think about it!
How do I deal with the down stream costs of being alive. Every week I gota eat and cloth myself. 🤣 oh no I didn’t realise I might need clean water.
Tesla tyres cost atleast the same as your Merc example. Weird flex, but okay Bro 😂
The brakes and the fuel don't though haha!
Down stream cost is why a drive s car that's 50years old; Need a new head gaskets? Here's a pice of paper and a file.
Depends on how you value your safety... 50 year old car won't protect you as much as something 10 years old... Your car savings could be false economics if you put a price on your health/safety.
The best discount is not spending
Haha that helps!
Isn't it odd that August 2019 blackrock report "unprecedented policy co ordination needed for the next economic downturn" stated bank rates were too low and 1/3 bond rates negative real terms needing an unprecedented event to achieve inflation and a vehicle for missed inflation targets last decade
No mention of a wife 😁
Best investment you'll make :)
Get yourself a Mercedes G wagon
Plenty of down stream costs in a G haha
Vayginz