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The Compound and Friends

Don't Let Your New SUV Blow a Hole In Your Budget (Ben with Tadas)

The Compound and Friends

Josh Brown

Business News, News, Investing, Business

4.72.2K Ratings

🗓️ 2 July 2019

⏱️ 10 minutes

🧾️ Download transcript

Summary

“As with most things in life you are in charge of your own stuff. If you want to drive a new luxury vehicle, more power to you. Just realize that there are financial (and environmental) trade-offs involved. But don’t be under the illusion that anyone really cares what car you are driving.”  Ben Carlson recently got Tadas Viskanta, Director of Investor Education at Ritholtz Wealth Management, on the phone Skype to talk about a recent post of his entitled “Why Your Luxury Car is Unlikely to Materially Boost Your Happiness” where he writes about the high financial costs of driving a new, luxury vehicle.  You can read more at Tadas' blog: https://abnormalreturns.com/2019/06/25/luxury-car-unlikely-happiness-boost/ 1-click play or subscribe on your favorite podcast app   Subscribe to the mini podcast on iTunes or Spotify   Enable our Alexa skill here - "Alexa, play the Compound show!"   Talk to us about your portfolio or financial plan here: https://ritholtzwealth.com/   Obviously nothing on this channel should be considered as personalized financial advice just for you or a solicitation to buy or sell any securities. Please see this 3,000 word terms & conditions disclaimer: https://thereformedbroker.com/terms-and-conditions/ Hosted on Acast. See acast.com/privacy for more information. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

So today I'm going to talk to Tadas, this ganta about his post on why buying a luxury car is

0:07.3

unlikely to materially boost your happiness.

0:09.6

And Tadas, this is a topic that's near and dear to my heart because I've written on it.

0:13.6

He actually put a little piece of mind in here.

0:15.6

So what was the impetus for writing this one?

0:18.3

You know, it just happened to be the case that for whatever reason I saw a bunch of posts,

0:27.6

kind of all on the same related topic so whenever I see that I always

0:36.1

Take that as an opportunity to write my own post so it's I've seen some crazy stats lately and I think I first worked off of anecdotes on this because I kept feeling I was seeing SUVs everywhere and it

0:39.7

kind of makes sense both of us are in the Midwest and it would make sense we see SUVs for

0:43.7

being, you know, having the snow and getting through all that stuff.

0:46.2

But the Wall Street Journal put out a piece last year and they said, less than five years

0:50.5

ago, new vehicle sales were split between cars and trucks and

0:54.0

SUVs and today the share of cars has slipped below a third and so it's close to

0:59.7

like two-thirds or 70 percent of all new car sales are either SUVs or trucks and I don't know about you

1:06.0

but I've looked recently because we had to get a new car in the last year and SUVs and

1:11.1

trucks are expensive. And so it's crazy to me when I see them

1:16.8

driving around the road and I look and I think like this person is driving this

1:20.5

expensive SUV I don't want to be a spend shamer, but I wonder how much they're

1:26.4

spending versus what they're saving on these things.

1:28.6

Yeah, well, I think it's there's a very good reason why Ford essentially got out of the car business to focus on

1:35.6

SUVs. I mean I think you know all the indications are these are higher margin products for the auto

1:42.0

manufacturers and you know I think there are higher margin products for the auto manufacturers.

...

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