$1,300+ monthly payment????!!!!!!
- Thread starter BigJohn
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Too slow? What is its MPG?
In many cases it's an ego thing to have the biggest, baddest truck around. I understand the need for a business truck or a personal "working truck" but one that never carries a load is ridiculous.
If someone cannot pay off a vehicle within four years, they cannot afford it and shouldn't buy it.
If someone cannot pay off a vehicle within four years, they cannot afford it and shouldn't buy it.
They're NOT thinking. This is all going to end with the biggest bang you've ever seen. And everything you've just described has become the financial norm for many people. People are carrying around unheard of debt today.
Many of them are borrowing themselves into financial insolvency. And they're doing it by overpaying for depreciating assets. Who the hell actually needs these type of ridiculously overpriced USED vehicles?
The fact is they don't. They simply want them. (Why I have no idea). Salt this all over with an unstable housing market, that could easily collapse at any moment, and this whole mess is a ticking financial bomb with unmitigated consequences.
And remember, many people borrow against the equity in their homes for this kind of crap. Thereby turning appreciating assets into depreciating one's. (About the dumbest financial mistake a person can possibly make).
Common sense is GONE, when you have people who are more than willing to pay over $70K for a used pickup truck. When you can buy a new one for less.
This type of total brainlessness cannot continue much longer without an adverse reaction. Let alone continue in an unstable economy. With a government who is printing money, and dumping it into the Federal Reserve like there is no tomorrow.
Here's what I think. Prices will fall, salesman will be chasing customers into the parking lot trying to cut a deal, and cash will become king again. Just give it time. Final thoughts, if you can't afford something don't buy it!!
I have to admit that we, too, have taken out a loan to buy a completely unnecessary toy: an old BMW with close to 300.000km on the clock.
We also "overpaid" - but with cars, condition trumps everything, and try to find a rust-free e46 on which everything is working as intended. (Also, there should be no more significant depreciation. At least,e46 convertible prices have slightly risen over the last decade.)
What a frivolous thing to do!
But then, our monthy payment is 200€ and not 1300$. Also, interest rate is way below inflation. We could have bought cash, but we figured we keep the money invested, take on external capital and use inflation to our advantage. So indirectly... well, what we are really doing is basically buying stocks on margin. That sounds much more reasonable, doesn't it?
We also "overpaid" - but with cars, condition trumps everything, and try to find a rust-free e46 on which everything is working as intended. (Also, there should be no more significant depreciation. At least,e46 convertible prices have slightly risen over the last decade.)
What a frivolous thing to do!
But then, our monthy payment is 200€ and not 1300$. Also, interest rate is way below inflation. We could have bought cash, but we figured we keep the money invested, take on external capital and use inflation to our advantage. So indirectly... well, what we are really doing is basically buying stocks on margin. That sounds much more reasonable, doesn't it?
Dang, whereabouts are you? In Northern Virginia it just cost my wife and in $90K to buy one acre of adjacent land.
Tell him to wait another 6-9 months minimum before buying any car/truck. The auto market is in a free fall correcting the BS pricing of the last 3 years.
My 07 Ram Laramie is still going strong with 223K on it. Pulls our smal 5th wheel and anything else that I have hooked it to. Cost a whole $7500 when I bought it used at 182K. Its a keeper for me.
With those prices, you don't own the truck it owns you. Guess these people need meds to be able to sleep at night.
I’ll continue to drive my old car as long as possible. Put your monthly car payment into your 401k or sock in the bank and you’d be surprised how much you can save. No vehicle is worth me having to work another decade of my life just to afford the payments to drive a nice vehicle for work. I know folks who can’t retire because they don’t have enough in their 401k, but they always leased nice new vehicles all during their working life.
Little secret - most people don’t care what you drive, and if they do why would you want to be their friend.
Little secret - most people don’t care what you drive, and if they do why would you want to be their friend.
My last "new" vehicle was 20 years ago, and at that time my payment and fees was probably 2/3 my monthly mortgage. The vehicle sticker was probably around $30k, after all the fees, taxes, licensing, loan costs, it seems it was probably closer to $40k. Payment was around $600/mo. Mortgage was around $1000/mo.
Adjusted for inflation it's probably not too far off from what current vehicles and mortgages cost, $70k and $2k/mo. respectively. But it is foolish, absent a specific cost/benefit need like a work truck that will pay for itself in short time. Unfortunately as others point out, cars and especially trucks are often in the luxury category of totally excess. I routinely see behemoths 3x larger than my regular pickup truck, racing 90mph down the interstate. Half of them with empty beds and nothing towed. In fairness, about 1/2 are loaded or towing. I was sitting in the parking lot recently next to a lifted GMC. It was 1.5x longer than my car and I could almost see the underbody it was so huge. My eyes were about even with the center of the wheels.
In my case, my new purchase 20 years ago was really stupid and financially crippling, and I paid off my loan early. I learned then that financing a car, especially a new one, was foolishly stupid. It probably set me back a couple years, financially. Since then, I've only paid cash and only for excellent condition yet greatly depreciated vehicles. It's the only sensible financial thing to do for most people.
Heading into a depression and bloated car market, I would expect to see 10-30%, maybe 50% discounts across the board, depending on markets and models, in under 18 months. Of course, that will largely just be a correction to normalcy pre-crazy times and the grossly inflated vehicle prices. I see so much absurdity around here. There's a nice but very old F150 4wd nearby with 310,000 miles on the odometer, for $13,000. Folks are trying to sell old unworking rusty hulks for several thousand dollars. It's wild.
Adjusted for inflation it's probably not too far off from what current vehicles and mortgages cost, $70k and $2k/mo. respectively. But it is foolish, absent a specific cost/benefit need like a work truck that will pay for itself in short time. Unfortunately as others point out, cars and especially trucks are often in the luxury category of totally excess. I routinely see behemoths 3x larger than my regular pickup truck, racing 90mph down the interstate. Half of them with empty beds and nothing towed. In fairness, about 1/2 are loaded or towing. I was sitting in the parking lot recently next to a lifted GMC. It was 1.5x longer than my car and I could almost see the underbody it was so huge. My eyes were about even with the center of the wheels.
In my case, my new purchase 20 years ago was really stupid and financially crippling, and I paid off my loan early. I learned then that financing a car, especially a new one, was foolishly stupid. It probably set me back a couple years, financially. Since then, I've only paid cash and only for excellent condition yet greatly depreciated vehicles. It's the only sensible financial thing to do for most people.
Heading into a depression and bloated car market, I would expect to see 10-30%, maybe 50% discounts across the board, depending on markets and models, in under 18 months. Of course, that will largely just be a correction to normalcy pre-crazy times and the grossly inflated vehicle prices. I see so much absurdity around here. There's a nice but very old F150 4wd nearby with 310,000 miles on the odometer, for $13,000. Folks are trying to sell old unworking rusty hulks for several thousand dollars. It's wild.
Country folk buy vehicles for status/acceptance just like city folk.
Height and size convey status across most societies. Both physically and in terms of materials. It conveys a message to females that one has resources to raise offspring as well as having status within the community (aka tribe). Men are like peacocks. "Look at my feathers !!!"
On an aside, a friend of mine who used to work for the Federal Reserve conducted a study on auto loan delinquencies. The data showed that the auto loan was on par or in some cases a higher priority than a housing (rent/mortgage) payment. Banks wouldn't lend on the terms that they do if they didn't think people would pay that long.
Height and size convey status across most societies. Both physically and in terms of materials. It conveys a message to females that one has resources to raise offspring as well as having status within the community (aka tribe). Men are like peacocks. "Look at my feathers !!!"
On an aside, a friend of mine who used to work for the Federal Reserve conducted a study on auto loan delinquencies. The data showed that the auto loan was on par or in some cases a higher priority than a housing (rent/mortgage) payment. Banks wouldn't lend on the terms that they do if they didn't think people would pay that long.
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I think Chris is referring to his '87 F250, which is likely a 6.9 IDI International diesel (guessing 12-15 MPG?). At one time, I actually considered transplanting a P-pump Cummins 12V 5.9 in place of the 7.3 in my '89 F-450, but when diesel prices went insanely high I just pretty much stopped driving the 9-10 MPG $5+ gallon beast & wedged what I needed for side jobs, etc. in the Express instead!
Good news is I'm 6'4", not really looking to replace my wife of 34 years (best move I ever made was marrying her), don't want any more kids! I'll be short in the Corolla, looking for 40+ MPG...Country folk buy vehicles for status/acceptance just like city folk.
Height and size convey status across most societies. Both physically and in terms of materials. It conveys a message to females that one has resources to raise offspring as well as having status within the community (aka tribe). Men are like peacocks. "Look at my feathers !!!"
My wife and I work professional government jobs and have done so for years. We have never had a car payment over $200 per month, and never had one that exceeded 24 months.
My house note is $1300 with escrow.
My house note is $1300 with escrow.
Lots of people are living in the one dimensional universe of 'here and now'. Straight line. No past, No future.
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If you look any published on data on retirement accounts, saving accounts, and various forms debt in the US this isn't too far off from the norm. One home loan, two car payments, two student loans, three credit cards, five hundred dollars in savings, less than one year salary in retirement, six Amazon packages dropped off daily, and partridge in a pear tree. This really isn’t surprising anymore.
I actually have a use for a truck towing Jeeps around or whatever project vehicles myself or friends have picked up. I'd like a nice 3/4 or 1 ton truck just for the durability but even a Ford Ranger would do what I need.
I'm in a few different facebook groups for trucks. It baffles me what people "need". There's people daily driving a F450 diesel pickup who neither own or rent a trailer. Why do they need a F450 diesel? I think at this point a pickup has turned into a status symbol or something.
The other weird thing is, none of these people buy a work truck. No way would they consider a Dodge Tradesman or a Ford XL. Has to be the Laramie / King Ranch Platinum and they look down upon those who want the work truck model. I don't get it!
Luckily in my group of friends we all try to out s---box each other. The more your vehicle is a pile of junk, the more respect you get
For a few years there was someone around the corner from me renting a shack. Probably 600 square feet.
They had a brand new aluminum SuperDuty, lifted on 37s. It was literally taller than their shack. Priorities!
I'm in a few different facebook groups for trucks. It baffles me what people "need". There's people daily driving a F450 diesel pickup who neither own or rent a trailer. Why do they need a F450 diesel? I think at this point a pickup has turned into a status symbol or something.
The other weird thing is, none of these people buy a work truck. No way would they consider a Dodge Tradesman or a Ford XL. Has to be the Laramie / King Ranch Platinum and they look down upon those who want the work truck model. I don't get it!
Luckily in my group of friends we all try to out s---box each other. The more your vehicle is a pile of junk, the more respect you get
For a few years there was someone around the corner from me renting a shack. Probably 600 square feet.
They had a brand new aluminum SuperDuty, lifted on 37s. It was literally taller than their shack. Priorities!
I need a new truck so ... waiting for it to pop.
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