sorry about all-bold in other message, fixed here (archive)

Yes, well patience is one virtue of maturity--the ability to delay gratification for a greater reward. Put up with a little less for a few years and live with better cars for less money for the rest of your life.

I think it's silly to deny one's desires when it's not altogether necessary, and then label the self-sacrifice as virtuous.

Yes, your plan does provide for "better cars at less money." ...but 5 1/2 years later. In those 5 1/2 years, the plan stipulates that one devote one's time, mental energy, and money years to cars that he doesnt really want, that he is just making do with, always with the eye for the "better" car X number of paychecks away.

You suggest that enduring this state of mind for a few years is worth the reduced cost of a newer version of the car that he wanted 5 1/2 years ago....to me, this is too high of a price to pay.

Life is short. Yes, money is important but in the end, it's only money. I'd rather enjoy the car as I'm paying for it, rather than grumble & moan about these "loaner" cars that I am borrowing until I get enough money for the car I actually want.

I do agree with the general tenets of living below one's means (if you do not already, I'd recommend reading Fool.com's LBYM board). I max out my 401k plan with 15% of pretax salary, $2k per year, 15% of salary to employee stock purchase plan, etc.

BUT it is a spectrum, and as a 22 year old who decided to lease a 330ci, my place on the LBYM spectrum happens to be more liberal than your's.

To each his own. I do agree with some aspects of your idea.

What do you think of this alternative:
Person has 40k cash available (not his entire portfolio; a small enough amount relative to his entire portfolio that such a withdrawal would not be disruptive)

Person wants 40k car (after taxes and all fees)

Two options:
Person can pay cash for car.
Person can finance car at 8%, keep money invested so that it can enjoy continued exposure to the stock market's long-term average return of 11%. (Though admittedly 11% after-taxes would be akin to earning 8% tax-free...approximately)

Based on your plan, I'd say you'd go for option A....since at each iteration in your cycle, the next car is purchased with cash. ....but by doing so, you are locking up that amount of cash for the life of would-have-been-car-loan and denying the exposure to future gains(/losses).

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