More than 80% of Americans can't afford a new car

[ATex7239]

Problem is, other people's choices have a nasty tendency to impact us. When it doesn't, we don't care (might have an opinion, but content to not state it). But when it does... Someone on the other coast wants to burn car tires to heat their home in winter, no impact to me. My neighbor starts to do that, and suddenly my opinion is much different.

As a larger percentage live outside their means, a larger percentage will start to vote for those who might make promises that others may not care to fund. Not sure I state beyond that.

Anyhow. Discussion forum. We discuss things. Not much to discuss when we're all in agreement. When there's a disagreement, now a great deal of electrons are bound to get displaced, much how, if we were to be in the room, a great deal of hot air may get generated. It's just what people do, discuss things.

I going to stay away from the politically charged comments…

That said, there seems to be a “freedom and choice for me and none thee..” mindset on some of these financial and new vehicle discussions. A new vehicle purchase seems to get harsh criticism. Yet if I were to post that trucks and SUV are financially wasteful and negatively impact our environment and resources, I would be virtually tongue lashed and told it is none of my business.

We seem to be very open to some discussion but closed minded towards others based on our own views and bias. I’m just calling it like I see it.

 

[Pew]

At age 70 or so neither of us is in the going thru the romance/relationship thing again. She has never divorced her previous husband who is in prison. If I told you about her life, BITOG would run out of bandwidth. Karen and I have lots of things we like to do together. We get together a couple times of week and go on DDA's. Stands for Dan's Driving Adventures. Which can be anything from Mini Golf to a Chinese Buffet that actually had hot food and hot plates yesterday. Yes I found one.

Offtopic but you're the third Dan Hermann I know.

 

[Hermann]

Offtopic but you're the third Dan Hermann I know.

My last name is not Hermann, but it's better than my real name.

 

[JeffKeryk]

Real Estate is one of the few ways an "ordinary man" can create wealth. FYI.

The way I look at it is, you either pay your mortgage or someone else's. I bought the worst house in a good neighborhood. Perhaps you know what houses cost around here. Sometimes you get lucky it seems.

 

[loneryder]

Or so the headline in the linked article asserts. I'm not looking for a new car and have no idea what the costs are other than to believe that new cars are very spendy and interest rates for financing are fairly high.

https://jalopnik.com/more-than-80-percent-of-americans-can-t-afford-new-cars-1850906956?

Thanks to rising interest rates, dealer markups, and a messed up supply chain, the cost of buying a car is through the roof. But have you ever considered what you might need to earn before signing up for a mammoth loan to finance a new car? Well, according to a new report, it’s actually more than the majority of Americans make right now.

I believe it!

 

[supton]

The way I look at it is, you either pay your mortgage or someone else's. I bought the worst house in a good neighborhood. Perhaps you know what houses cost around here. Sometimes you get lucky it seems.

Was joking with a coworker about how rent is just paying someone else's mortgage. He paused, then said, no, he probably paid off the mortgage. Over 3 years, he's paid over $90k in rent. If the landlord bought during the downturn... meanwhile, that's just what rent is like down there in MA. And of course it's pretty hard to get a decent down payment when one is paying that much in rent.

5% down mortgages caused demand to go up without increasing supply, so it's a curse, right? value shot through the roof, and now it seemingly is back to where it was, hard to get in the door to buying. But for those who were able to get into ownership and move from renting to the path of owning, was it a blessing? Probably would have been better off if nothing had changed, kept it at a moderate apr and 20% down, and housing prices would probably (just my guess) be much cheaper today.

 

[CKN]

The way I look at it is, you either pay your mortgage or someone else's. I bought the worst house in a good neighborhood. Perhaps you know what houses cost around here. Sometimes you get lucky it seems.

I do know.

 

[Astro14]

Debt scares the you-know-what outta me.

Well, tenants scare the you-know-what outta me.

So, for guys like us, no, real estate leverage isn’t an appropriate way to build wealth.

We saved, invested, in some cases bought well, and grew it that way. Real estate isn’t the only way for “regular” folks to build wealth.

But both discipline and time are required no matter which route you choose.

 

[The Critic]

Well, tenants scare the you-know-what outta me.

So, for guys like us, no, real estate leverage isn’t an appropriate way to build wealth.

We saved, invested, in some cases bought well, and grew it that way. Real estate isn’t the only way for “regular” folks to build wealth.

But both discipline and time are required no matter which route you choose.

Agreed. Habitability claims scare me.

 

[andrew_j]

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.

It’s risky where many lose and some win. Glad you won at it. I had 5 friends who played that game and 2 is so wealthy from it but picked 2008 crash to start. The other 3 declared bankruptcy however went onto other successful things.

 

[bullwinkle]

And Pa friends who were just here visiting texted they bought gas in Ohio for $3.079/gal.

So how many Americans couldn't afford a new car 5, 10, or 20 years ago? BTW that's individual persons not households in the article.

I saw SUB $3 at a no-name station in the west Dayton ‘hood yesterday!

 

[odie]

My last name is not Hermann, but it's better than my real name.

This one ?

 

[odie]

No hurry to deal with dealers .

 

[Exhaustgases]

I am laughing my ____ off, when I see some posting here saying they are debt free. The only way you can be debt free is to live on the streets or be a mountain man or woman. Because if you live on any sort of land (other than like the Kilchers yeah Jewel's family, on a homestead) you are in debt. Every year your property tax bill arrives. Then all the other bills arrive monthly, they are called utilities. It is all debt because it is hanging over your head, its a pay or else deal.

Back to cars new and used. What gets me is someone taking out a loan for a 12 year old car or truck that has no warranty.
I guess they don't understand that even the high rated brand names that they THINK will be trouble free can and will have problems, and in some cases very expensive problems. Most are buying those cars for main transportation and need it. Its just too bad there are no choices like in the early to late 90's for a very affordable cheap brand new puddle jumper car, with a warranty.
Its just too bad some are spending top dollar for a vehicle that could possibly not too far down the road need 4 or 5k worth of work on top of what they just took a loan out for. I see this alot of some of the auto forums.

I would say don't take a loan out for a used car that is 10 or more years old no matter what the brand is.

 

[350Rocket]

I'm Canadian but close enough...I am 40 years old and don't believe I'll ever be able to afford a new vehicle.

 

[supton]

I am laughing my ____ off, when I see some posting here saying they are debt free. The only way you can be debt free is to live on the streets or be a mountain man or woman. Because if you live on any sort of land (other than like the Kilchers yeah Jewel's family, on a homestead) you are in debt. Every year your property tax bill arrives. Then all the other bills arrive monthly, they are called utilities. It is all debt because it is hanging over your head, its a pay or else deal.

That is a seemingly odd way to define debt. Valid to question true ownership, sure, if you have to property taxes is that not a form of renting? but to call it a "debt", I'm not so sure.

I guess you could say you are running up a tab, with an amount due at the end of the month, when it comes to utilities. Or property tax. Thing is, not many would call that a debt until it goes past due. Then it's a debt. But before then?

 

[Hermann]

This one ?

View attachment 182294

No, although I do respect Fred Gwynne

 

[BMWTurboDzl]

10% of 100k is $10,000 x 6 years = $60,000. There's lots of new cars under that. Shorten that to 3/4/5 years and still lots of new cars fill that bill.

I mean I was told to never buy a car more expensive than my yearly salary and so far that's working out but what the article points out is still good advice imo.

Back out interest?

 

[Enthusiast]

And yet the affordable cars like the Mirage, Rio, and Altima are being discontinued.

 

[JeffKeryk]

Well, tenants scare the you-know-what outta me.

So, for guys like us, no, real estate leverage isn’t an appropriate way to build wealth.

We saved, invested, in some cases bought well, and grew it that way. Real estate isn’t the only way for “regular” folks to build wealth.

But both discipline and time are required no matter which route you choose.

Ah discipline.... My wife just might be the most disciplined person I have ever met. Not to mention accomplished... I, on the other hand, don't know the meaning of the word. I expect life is easier for disciplined people.

I would be the worst landlord on the planet. Couldn't do it.
Time, as you so perfectly say, along with investing in yourself with lifelong education, is key. Education taught me to at least entertain thoughts completely foreign to my own most deeply held thoughts. There was a time when everything I knew was wrong. My best efforts got me into AA. Not to mention locked up... Everything had to change. But luckily, to your point, it did not have to happen overnight. That's what they told me and, over time, taught me.