Scott's Thinking

There are many things to buy and many reasons to buy those things.

Let’s use a car for an example. When people want to buy a car, it is usually so they can get from A to B. It is a mode of transportation. In which case, any working car will do.

Then there are the considerations. If it’s new, it will cost more and depreciate fast but it is likely to be very reliable and come with a warranty so the time in the garage or costs of repairs will be minimal.

A 10 year old car will be much, much cheaper and will have depreciated quite a bit. On the other hand, it might require more time in the garage and cost hundreds or thousands more for repairs.

Another factor might be what you’ll pay for more luxury items. You decide you need heated seats, a sunroof, and air conditioning. You also prefer leather seats.

These are all fine options, if they are within your budget.

Finally, sometimes people want more than transport and more than their own personal luxury preferences, they want a flex.

Sometimes people want a car that lets people know something they think is important. It can be a demonstration of wealth, class, refined taste or cool.

Be careful with this last criteria. It often backfires. What you think other people will be impressed by, can sometimes turn their potential admiration into something far less pleasant (like envy or distance).

Buy the item you want in life, for your total enjoyment, not what it signals to other people.