More than 80% of Americans can't afford a new car
- Thread starter Shel_B
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Exactly, and when people agree to pay over sticker or market adjusted inflated prices for late model used cars dealers will continue to keep prices high. When people wake up and walk away from dealers doing this the insanity will eventually stop. Until then expect to pay jacked up prices for new and used vehicles.
Yep. I was looking on Carmax at 2017-2018 Mazda3 for grandson and they are asking window sticker for a 6-7 year old car with 50K miles.
Crazy.
My car is 12.5% of what I make in a year, and my wife and I are still struggling to save any money! The cost of housing is nuts in Florida. I spend 50% of my take home pay on a tiny apartment.
And in my apartment parking lot, there are vast swaths of expensive cars. And my area has had 3 police calls in the last 6 months. It’s not a nice area, but people are still buying fancy cars!
Or take care of the car you have and buy dips in the market with your cash.
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Sure, depending on where you are in life. And then buy a new car in cash with some of your gains.
ls1mike
$50 Site Donor 2024
Until recently all my stuff was paid for The newest of that group being a 2015 so 9 model years old. Getting the brand new truck while a bit more than the used stuff I was looking at turned out to be the better deal for me. Barring any weird mechanical stuff or accidents I hope this is my last truck.
I know plenty of folks who can afford new cars, but they are retired military drawing a pension plus GS-11 , 12, or 13 pay. So plenty of disposable income. I like something newer every so often, but I really do like my current stuff, so it stays.
I know plenty of folks who can afford new cars, but they are retired military drawing a pension plus GS-11 , 12, or 13 pay. So plenty of disposable income. I like something newer every so often, but I really do like my current stuff, so it stays.
I know people who have what must be close to their annual family income tied up in cars. They don't go anywhere because gas is too expensive and their idea of a vacation is something like Gatlinburg in November.
Works for them and apparently satisfies their needs and desires.
That I may have different ideas on what to buy and drive as well as what constitutes a vacation in no way invalidates their choices.
We all have different priorities in spending and saving our incomes.
Economic theory tells us that we are all utility maximizers and what this constitutes is an individual decision.
It isn't a matter of whether people can or can't afford a new ride, rather it's a matter of where they choose to put their resources.
Works for them and apparently satisfies their needs and desires.
That I may have different ideas on what to buy and drive as well as what constitutes a vacation in no way invalidates their choices.
We all have different priorities in spending and saving our incomes.
Economic theory tells us that we are all utility maximizers and what this constitutes is an individual decision.
It isn't a matter of whether people can or can't afford a new ride, rather it's a matter of where they choose to put their resources.
I have noticed, when travelling in the US and reading posts from US members on this site, that many vehicles are the high end trim levels of whatever model. The cost of all those "necessary" features has a tendency to drive the price up. This is in stark difference to a lot of vehicles I see at home, which are base or lower trim value models. For example, an XLT level F150 (reasonably equipped, lower middle trim level) is around $50-60k Canadian dollarettes right now. A limited or platinum version of the same truck is well over $100k. Double or almost double the price. These high end versions of the same model are far more abundant in the US than Canada. Even the rental expedition we had in Florida was a Limited. Seems like a way to get people into higher loans and a lot more padding into the price for the manufacturer and dealer.
The three vehicles we own are a
-Sienna CE (lower trim with some included "Canadian" features)
-CX-5 Sport (lowest trim level purchased for the manual transmission - only available on the lowest trim)
-F150 XLT (lower middle level trim - somewhat a value leader along with the STX)
The three vehicles we own are a
-Sienna CE (lower trim with some included "Canadian" features)
-CX-5 Sport (lowest trim level purchased for the manual transmission - only available on the lowest trim)
-F150 XLT (lower middle level trim - somewhat a value leader along with the STX)
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I was highly leveraged with RENTAL REAL ESTATE.-with multiple mortgages. The rents always made the payments. That real estate is now paid for and provides retirement income.IF I would have listened to him-I would have to save up to pay cash for those properties-while at the same time watching them appreciate far more than I would have been able to save the cash.
So yea.
When I bought my Corolla new 6 years ago, out the door for about $15,800. Used with under 50k miles were only about $2k less.
If I were to buy today it'd probably be a Prius Prime PHEV. Haven't searched, because I'm not looking, but my hunch is it wouldn't be much different. When wandering car lots during oil changes I've been shocked that my Corolla hasn't lost much value. Weird times.
Let me do the math on my wife’s salary and the value of her 295,000 mile 2002 Volvo…
There are a lot of these threads, yes, but I still think it is a relevant topic that applies to much of our society. As an example, I'm 33 years old with zero debt, my own side business, established in my career, etc. I believe new cars are too expensive and not a good value, but if I wanted a new car I could go out and buy it. In the dating market, many of the women my age or younger that I have gone on dates with are buried and I mean BURIED in debt. Six figure student loans, car payments, credit card debt, paying rent, etc, which is how a majority of America lives. Being debt free and not living week to week isn't the norm.
Thank you! This is the most coherent post that I have ever read on "new car threads" where there is more assumption (people are stupid for buying new cars) than there are actual thoughts about motivation as to why those who wish to drive newer cars that beaters.
There are rarely consequences for poor financial decisions any more. Or, at least, consequences people fear. No shame. So max it out, go bankrupt. Who cares?
I'm surprised that just over one-third of households earn > $100K. Lots of single worker houses out there.
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