Almost everybody wants a piece of the high life, even if we all have different ideas of what exactly that means. For some, that provides the motivation to work a little harder, save a little more and make tough choices. Other people, though, find it much harder to resist the impulses and get themselves into financial trouble by living a little too high on the hog. (The Oracle of Omaha has a net worth in the billions, but his lifestyle is not as rich as you may think. Check out Warren Buffett's Frugal, So Why Aren't You?)
For those looking to enjoy a bit more of the good life without overextending themselves, here are a few ideas to consider.
Buy Used
Even the greatest luxury cars share a common problem with their mass-market cousins - when you buy new, you incur major depreciation costs in the first couple of years. Buy a BMW M5 or Mercedes CLS and the depreciation in the first three years will be approximately 45% of the purchase price. That's pretty pricey hit to take just to have that new car smell. Buy a used CLS, though (say one from 2007), and the purchase price may drop by as much as half. The car will still run well, and may well be covered by a "certified used" warranty. Moreover, take a look around the world and you will see a lot of used Mercedes, BMWs, and the like still on the road, so it is not as though you are buying a car with only a few good years left.
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