$50,080 for the average cost

[ATex7239]

last year, I lived in a literal ghetto apartment complex in inner city Pompano Beach FL. Awful rating on google.

The lot was filled with expensive, newer vehicles. Reality is, a lot of poverty is perpetuated by choice, not by circumstance.

If you can’t afford a home, you shouldn’t be burning your money on a superfluous vanity token to impress people with the attention spans of goldfish.

I have some friends who live in a very affluent upper class gated community near by and there are some nice vehicles there. Mercedes. Audi. BMW. Porsche. Makes sense. And there is the occasional Toyota or Honda too.

Drive to my middle class neighborhood and there are no high end Euros at all. But plenty of trucks, SUVs, and mid range cars of all types. Not many luxury brands though. Maybe a Lexus or Infiniti here or there. But it’s rare.

Then drive down to the lower income side of town by the shady WM and the luxury brands and Euros are all over the place again.

It’s an interesting phenomenon if you think about it really.

 

[ARCOgraphite]

Playas gotta play

 

[thastinger]

I have some friends who live in a very affluent upper class gated community near by and there are some nice vehicles there. Mercedes. Audi. BMW. Porsche. Makes sense. And there is the occasional Toyota or Honda too.

Drive to my middle class neighborhood and there are no high end Euros at all. But plenty of trucks, SUVs, and mid range cars of all types. Not many luxury brands though. Maybe a Lexus or Infiniti here or there. But it’s rare.

Then drive down to the lower income side of town by the shady WM and the luxury brands and Euros are all over the place again.

It’s an interesting phenomenon if you think about it really.

Same around here but the luxury ones in the hood are 25 years old.

 

[Kurtatron]

Playas gotta play

 

[PandaBear]

People out there, majority, don’t understand the power their wallet holds.

On the flip side, people don't understand the power others hold if they don't have a wallet of their own.

When you are desperate and distressed people who are willing to take a chance on you, giving you a loan, can give you a term that is so harsh most good credit people will flat out refuse. If you don't want to be a prey in such a loan you got to stay in good credit.

My guess is a lot of those bad loans are from people who couldn't compromise on an emotional purchase and a good financial standing. Say if someone spending to impress other people and having to keep up the image, hoping that bad loan would just be a good investment that turn their situations around. This can be to impress clients or a believer of "happy wife happy life" or "it is cheaper than a divorce".

 

[dogememe]

last year, I lived in a literal ghetto apartment complex in inner city Pompano Beach FL. Awful rating on google.

The lot was filled with expensive, newer vehicles. Reality is, a lot of poverty is perpetuated by choice, not by circumstance.

If you can’t afford a home, you shouldn’t be burning your money on a superfluous vanity token to impress people with the attention spans of goldfish.

But if you work a low paying job and can barely survive, you obviously aren't buying a house... so why not have a nice car? That's my personal approach. Plus a leased Tesla means I know exactly how much I'm spending on a car every month... vs driving an older used car that might need maintenance or repairs.

 

[IndyIan]

But if you work a low paying job and can barely survive, you obviously aren't buying a house... so why not have a nice car? That's my personal approach. Plus a leased Tesla means I know exactly how much I'm spending on a car every month... vs driving an older used car that might need maintenance or repairs.

Makes sense to me, as many places its pretty expensive to have your own place where you can work on a car yourself. Just do the math on the "nice" leased car, and make sure you aren't throwing away a house down payment every decade...
In the 2000's I think you could lease something like a Civic for 4 years, buy it out at the end, and resell it privately and get half the money you spent on the lease back.

I think having a house and some property is the ultimate backstop against the government allowing the financial system to be run by, and for the super rich... Letting the foxes manage the hen house?

 

[tcp71]

the fancy euro vehicles in the hood are the drug dealers.

 

[dogememe]

Makes sense to me, as many places its pretty expensive to have your own place where you can work on a car yourself. Just do the math on the "nice" leased car, and make sure you aren't throwing away a house down payment every decade...
In the 2000's I think you could lease something like a Civic for 4 years, buy it out at the end, and resell it privately and get half the money you spent on the lease back.

I think having a house and some property is the ultimate backstop against the government allowing the financial system to be run by, and for the super rich... Letting the foxes manage the hen house?

Well I make like $25/hr and the house I rent a room in would sell for about $720K according to Zillow, so I don't think the few hundred bucks a month I spend on my car matter very much.

 

[Kurtatron]

Well I make like $25/hr and the house I rent a room in would sell for about $720K according to Zillow, so I don't think the few hundred bucks a month I spend on my car matter very much.

I’m not adamant about people driving beaters or hunks of junk. But I think people should find a fair balance if they’re spending more on cars. I won’t dictate that balance, but still, people should strive to save more money, because it’s ultimately better for their long-term financial health.

 

[Mr.GTRSpecV]

Makes sense to me, as many places its pretty expensive to have your own place where you can work on a car yourself. Just do the math on the "nice" leased car, and make sure you aren't throwing away a house down payment every decade...
In the 2000's I think you could lease something like a Civic for 4 years, buy it out at the end, and resell it privately and get half the money you spent on the lease back.

I think having a house and some property is the ultimate backstop against the government allowing the financial system to be run by, and for the super rich... Letting the foxes manage the hen house?

Even if you "own" your house, there is much due diligence. Property taxes and land transfer taxes are the largest, and if push comes to charge the municipality can increase them on a whim, as can the federal government. With the case of government dynamics today, nothing is guaranteed, then again, nothing ever was. I have a saying that "freedom" is that little voice that the government allows to speak to give you assurance over your life. But this is another discussion.

Well I make like $25/hr and the house I rent a room in would sell for about $720K according to Zillow, so I don't think the few hundred bucks a month I spend on my car matter very much.

To each there own. I respect anyone who works, whether it's a job they like or not. If you're spending say $600 on a new lease, that's $7,200 a year. Where I am, a bungalow goes for $1mil, which means a 20% minimum down payment which means it would take 28 years to save for the down payment (If you were to save the $7,200 per year). Situation is COOKED for my gene and those who are about to leave "adult day care" (School).

 

[JeffKeryk]

But if you work a low paying job and can barely survive, you obviously aren't buying a house... so why not have a nice car? That's my personal approach. Plus a leased Tesla means I know exactly how much I'm spending on a car every month... vs driving an older used car that might need maintenance or repairs.

Then drive something CHEAP and get some education, whatever. Cars are depreciating assets.
"When you find yourself in a hole, the 1st thing you should do is, stop digging."

 

[JeffKeryk]

If you have the money to buy new, don’t. Lease. You dodge the potential bullet of depreciation and are able to allocate those additional funds to a savings/ETF/MF route where the interest could off set your lease interest and even payments.

Please. You are gonna have a car payment for life.

 

[Mr.GTRSpecV]

Please. You are gonna have a car payment for life.

I see what you mean. But finance and accounting is what I do for a living so I have a different perspective of it.

I dodge the bullet of depreciation, that’s one thing right there, but let’s be real, we know 99% of cars will never fetch more than their FMV at the time of purchase.

Instead of throwing $50k + cash at a new car, I rather execute the lease option, allocate funds to a ETF and let it grow. You need to know your lifestyle and means and plan accordingly, that’s all.

At the end of the lease I’ll either buy it out or be done with it (4 year term). If I throw $800 a month for 4 years, that’s $38,400 vs the 50k I would’ve dished out then and there. You have to take into consideration the time value of money as well.

Again I rather have that extra $11k+ in my pocket for four years and pull the trigger at the end if I want the car or not. Plus there’s other write offs I can use to offset some expenses related to the car.

I’m the end, as I said, know your bank account and live in your means and you should be alright.

 

[JeffKeryk]

I see what you mean. But finance and accounting is what I do for a living so I have a different perspective of it.

I dodge the bullet of depreciation, that’s one thing right there, but let’s be real, we know 99% of cars will never fetch more than their FMV at the time of purchase.

Instead of throwing $50k + cash at a new car, I rather execute the lease option, allocate funds to a ETF and let it grow. You need to know your lifestyle and means and plan accordingly, that’s all.

At the end of the lease I’ll either buy it out or be done with it (4 year term). If I throw $800 a month for 4 years, that’s $38,400 vs the 50k I would’ve dished out then and there. You have to take into consideration the time value of money as well.

Again I rather have that extra $11k+ in my pocket for four years and pull the trigger at the end if I want the car or not. Plus there’s other write offs I can use to offset some expenses related to the car.

I’m the end, as I said, know your bank account and live in your means and you should be alright.

If I can't pay cash and not have it affect my life, I have no business buying that car.
If someone wants to make payments, start putting that payment in the bank for a year. Or more. Then go in with a big down or cash. Pay the interest to yourself.

I am not sure leasing is dodging anything. Leasing is paying the depreciation, not the asset; you gain zero equity. Sure it's nice to drive new all the time, but that is an expensive way to go.

 

[KrisZ]

I see what you mean. But finance and accounting is what I do for a living so I have a different perspective of it.

I dodge the bullet of depreciation, that’s one thing right there, but let’s be real, we know 99% of cars will never fetch more than their FMV at the time of purchase.

Instead of throwing $50k + cash at a new car, I rather execute the lease option, allocate funds to a ETF and let it grow. You need to know your lifestyle and means and plan accordingly, that’s all.

At the end of the lease I’ll either buy it out or be done with it (4 year term). If I throw $800 a month for 4 years, that’s $38,400 vs the 50k I would’ve dished out then and there. You have to take into consideration the time value of money as well.

Again I rather have that extra $11k+ in my pocket for four years and pull the trigger at the end if I want the car or not. Plus there’s other write offs I can use to offset some expenses related to the car.

I’m the end, as I said, know your bank account and live in your means and you should be alright.

The big picture is that if you purchased the car, after four years, you keep on driving it.
With a lease you’re getting into another payment plan that will last another four years. It’s a merry go round. So after eight years, you’re $26,800 ahead purchased vs another lease, using your numbers.

The his type of “accounting” approach only works for people that are already well off and have a sizable income. Better yet, you can write it off.

It’s an absolute trap for people starting up in their careers and making 40-60k a year. I see this income bracket struggle the most because they make good enough money to get into all sorts of debt.

 

[JeffKeryk]

Buy stocks, not stuff.

 

[KrisZ]

Buy stocks, not stuff.

Yeah, but haven’t you listened to some ticktok investors? If you haven’t doubled your money in a couple of weeks, you ain’t investing right.
Now, just point me to the next meme coin I should invest in…

 

[JeffKeryk]

Yeah, but haven’t you listened to some ticktok investors? If you haven’t doubled your money in a couple of weeks, you ain’t investing right.
Now, just point me to the next meme coin I should invest in…

Tech. AI for the win.