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Old 04-07-2004, 07:04 AM  
scoreman
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Join Date: Nov 2001
Location: Miami, Florida
Posts: 1,491
You really havent told us enough to make a good evaluation. Assuming he lives in the USA, some questions like these come to mind:
--What is his debt level?
--Does he currently own a home or rent?
--Does he have any investments?
--Does his job have a retirement acct like a 401k? If so is he fully funding it?
--How stable is his job?
--Did he fund his IRA this year?
--Does he have dependents?
--Is he married?
--What is his current cash reserve level?
--Is he buying the car new or used?
--Is he paying all cash or financing?
--What are the terms of the financing?
etc etc

In general, cars are not investments. They depreciate, they have a relatively short life expectancy and they are really expensive. If, however, your friend has many assets, stable employment and has funded high return opportunites like 401ks, IRAs etc, then why not spend some on a vehicle? Personal wealth is not just about net worth, it has alot to do with happiness.

If, however, your friend rents, carries credit card debt and has not put dollar one into retirement accounts, then blowing all that dough on a Benz would be an exceptionally poor decision.
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Last edited by scoreman; 04-07-2004 at 07:10 AM..
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