The absolute value of something is irrelevant. Its the cost of something compared to how much you make.
In macro economic terms, its Price to earnings, or cost to median income.
The average car loan today is $48,000
- Thread starter odie
- Start date
In macro economic terms, its Price to earnings, or cost to median income.
Bought a 24 F-150 powerboost 1.9%/60 had about 10K worth of trade in’s. 1K in trade in allowance 63K sticker minus my D-plan for being an employee bought the 6/100K comprehensive Zurich warranty. $844 payment starts feb 13th and says balance of 48K on the ford credit app.
In the neighborhood where my parents' live, a lot containing a house destroyed by fire sold for 3x more than the lot with the unburned house sold for in 1995. Just land with ashes.
Perfect! I need more people like that to increase supply in the used market.
So $58k, and the 1.9% interest rate is nice.
I guess it depends on your lifestyle, age, other financial commitments, but spending more than 20% of our gross yearly pay on a vehicle seems crazy, given we have two kids doing some sports and plan to go to post secondary school, and we want to retire early.
Pre- covid inflation we were looking pretty good, new decent cars were cheap enough, and used cars were a great buy, sports were cheap, travel, food, was all pretty good. Now its a bit tighter and the kids are getting nearer to university!
Masquerade parties……….
The Carter years!
I bought a new V8 4x4 truck for $27k in 2017. I sure hope it lasts because I sincerely doubt I’ll ever be buying one again.
I hate loans, in fact they scare me. Payments drive me crazy. "I owe my soul to the company store." No thank you.
I purchased our first home when Carter was president. Bank rates were around 18%.
My wife and I were both raised in houses that were probably 800 - 900 sq ft. Both were made from 2 shacks pulled together and fixed up to be pretty nice (if small) houses. No-one else's house was any nicer.
When we built our first house, I was the general contractor. That house was 1150 sq ft and quite well appointed (very high quality carpet, oak cabinets, tiled entry, etc). One of my family's friends from my home town came to visit us and said, "This is your house." It was probably the nicest house she had ever seen. The mortgage rate was around 11%. We paid off the mortgage in 5 years.
Today's ideas of what a house needs are totally out of touch with what is actually necessary. If you can afford a large, luxurious house, that's fine. But then don't complain about your monthly payments.
the norm . Doesn't include insurance , gasoline cost and maintenance .
Some folks can easily afford a new car in the $48,000 price range.
Lots can NOT afford a new car and still finance them for 84 months with zero down.
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“Experts say to watch the numbers.”
Wow! What a gem! Pay attention to numbers when doing math. Why didn’t I think of that? Thanks experts!
Wow! What a gem! Pay attention to numbers when doing math. Why didn’t I think of that? Thanks experts!
Nobody is forcing people to sign on the dotted line.
Funny how literally everyone on this board bought there first (house, car, whatever) at 18% interest rates. Prime rate - what banks charge there best customers, was only above 12% from late 1979 to late 1982 - so about 36 months.
Even if you bought a house at the worlds worst timing point you would have re-financed out of it 2 years later.
Even if you bought a house at the worlds worst timing point you would have re-financed out of it 2 years later.
Gotta have that brand new lifted Tahoe with over sized off road tires to haul her 5 year old around the suburbs.
It’s her dream car y’all - nothing less will do.
Back to that personal finance class in high school. Do the math people!
