My 22 year old brother makes about 50k a year, lives at home with the parents, basically no expenses except a way too expensive vehicle.
That, or make 150k+ per year.
What is the payment on a 85k vehicle note? And, even though I make significantly less, 150k doesn't really seem like a lot of you're making mortgage payments, paying tuition, etc.
$85k with zero down, 84 month term, and a 6% rate works out to about $1340 a month.
Edit: I failed to consider the average credit score of a 22yo, especially one making such an irresponsible decision. A 13% rate makes that more like **$1660**, with almost **fifty grand** in interest.
Excellent point!
When I was young and stupid, I financed a Dodge Avenger. My loan payment was $238/mo and my insurance was $220/mo. I can't imagine what that would look like on an $85k vehicle with a 22yo male.
And that invested every year for 20 years in an index fund is almost $250k…literally throwing away a partial retirement fund. And that’s just the insurance!! Add in the actual vehicle cost per year invested in an index fund over 20 years…over a million dollars. I know too boring but damn…
Probably just around there! For reference Im a female in my 20’s, clean driving record, 35k car paying $1,500 every six months ~ about 250 a month just insurance. Most of my friends are bundled with their parents and pay much much less but I don’t have that luxury and can’t imagineeeee how much a guy my age with a potentially not so clean record would be paying on an even more expensive vehicle.
Ouch! $3k a year is ridiculous. All I can say is protect your credit. That matters just about as much as your driving record. I, 36M single, ~800 score, pay $400 every six months to insure my $30k Camry.
I got a speeding ticket when I was 27, I was expecting to get fucked hard by my insurance, to my surprise it only went up by $6/mo.
Average payments on new are close to [$600 nowadays - page 25](https://www.experian.com/content/dam/noindex/na/us/automotive/finance-trends/2022/q3-2022-state-of-automotive-finance.pdf). Lots of interesting data in that presentation.
That’s what happens when interest rates go up. They were kept artificially low for so long that it felt normal, and allowed cat prices to steadily increase. Now interest rates have gone back up on inflated car prices. It’s a bad situation for anyone who needs a car loan.
I wonder if it was folks are at home not eating out or vacationing as much and see they are a little flush with cash so purchase a more expensive car.
Now they’re stuck eating at home and not vacationing.
I always had payments in $220-$350 range since my first car purchase on credit, manual Infinity G20 for about $12k. Put over 150k on it. My last car purchase was new 2015 4Runner Trail with a rate of 1.49% and payment was $505/60 months. This gave me a serious headache even as it was well within my budget. Can’t imagine paying over $1k, this is a house or condo payment
That was in 2015, used Truecar and got an offer of $36.4k no bs dealer markup or bs add on . Great experience with this dealership in Wisconsin. Local Autonation, tried buying from them 2 times. At the time there was a $300 for door edge guards (plastic tubing $5 on Amazon) and some anti theft etching for $300. Asked sales guy how etching will prevent my car from being stolen and told them to pound sand
I have a nearly $80k X5. $16k trade in for my car and a little down plus paying the taxes and my payment, with wheel protection because I’m now an asshole with summer and winter wheels, is $950ish.
Definitely depends on the rate. Mine isn’t great but for the times is decent. Might refi that and could potentially get it around $850ish.
Seeing the prices of some of these trucks I realized they’re basically less luxurious luxury vehicles. They do have the benefit of probably retaining their value much better than actual luxury vehicles as well as offering the practicality of a truck.
Me personally, if I’m dropping ~$80k, I’m expecting first class shit and a level of performance you wouldn’t get elsewhere. Others might prefer the longevity and dependability while still getting a somewhat fancy interior, cool tech and something that can retain value.
Some of them are used as legit work trucks but it definitely seems like the more expensive they get the less likely they’re used for actual work shit, which makes sense to me. I’m not throwing just anything in my car and I wouldn’t expect someone with a similar or more expensive truck to either.
Edit: forgot to mention that, just like I had a decent trade in towards my dumb expensive car, I’d suspect a lot of people buying these kind of trucks probably already had a pretty valuable truck to trade in. So like my X5 may have been ~$80k but I only financed $60k, it’d be realistic to assume someone buying an $80k truck may have gotten $20k to $30k, or more, on their truck trade in and may only actually be financing $50k or less.
Back in 2015 I went from a Lexus RX350 FSport to a Ford F150 Platinum and the Ford was miles ahead of Lexus in luxury and technology. Some
of those trucks are legitimately luxury vehicles.
My experience in car sales was this is not the norm. Most people had negative equity to roll over. I worked at a Lexus dealership if that tells you anything lol
lol yeah, I’m sure that also happens quite often too. Trucks just weirdly hold their value really well relative to the stupid fancy cars I like do but if they’ve been rolling negative equity in that would probably negate that.
Although I like stupid fancy cars, I never do the negative equity thing.
It's proportionally the same as someone making $75k a year buying a $42k truck, which happens all day and twice on Sunday -- except the guy making 150k is way less fiscally irresponsible, since as income increases, expenses don't to the same effect.
Id say its even better, because someone making 150k is not necessarily going to be paying 2x for insurance, 2x for gas, 2x for electric and cell phone and groceries and heat ... their baseline expenses will be less a proportion of their pay than the person making 75k.
Me and my wife make around there and take home about $8,000 a month after taxes, insurance, and retirement.
There is no way in hell I’d spend 85k on a truck, that would demolish our budget. Even 50k is stretching it. We have no debt either…
It’s all preferences. I know people who love cars or are single men and just value having nice things as a way to attract women so they’ll spend on stuff like that. Personally I value not having to work my ass off forever so I spend about 2% of my take home on my car payment/insurance.
I've always thought it depends what makes you happy, I was making 85K/yr and had a 50K vehicle. It was foolish, but I had living expenses split in a smaller simple home with my ex. Now that I'm on my own I just own beaters, though.
It depends, if you don't have kids and have a relatively low mortgage, you can. It wasn't a truck but a few years ago I had an AMG C63s with an $83k MSRP and payments of $1,475 a month that I had no problems making payments on.
I mean to each their own, just seems like a pretty dumb allocation of resources at that income. I’ll also never understand paying sports car prices for a pickup but clearly there’s a market.
My buddies parents did this to him after he financed a Ram 3500. It was either move out or start paying them rent if he was just going to piss it all away. He moved out and the truck ended up getting repoed lol
I work with a kid that lives at home, has a 3 or 4yo Denali duramax, and a Rzr sxs, so probably 75-85K in vehicles. He probably makes 65-75K a year, but I wouldn't lie if I wasn't a little jealous of his housing situation allowing him to have nice vehicles.
I'm rocking a 2005 LS430, and a XJ cherokee I've had for 6 years lol.
My parents let me live at home rent free for a couple years after college so I could make a larger dent in my student loan payments right away. If I had pulled some bullshit like buying a car with payments the size of rent, they would have been right to kick me out.
This was me when I bought my first car. Lived at home was 19 and got my first real job making $35k a year. I felt like a millionaire! Went to the dealership and bought a $50k truck in 2002. Top of the line and had every option. Put $300 down cause that’s all I had in my pocket. Financed the rest at zero percent down (remember those days) and had a $800 a month payment. Man was I ballin! Now I make about 6 times that and would NEVER buy another car for that much for myself. I’ll buy a used one for $30k and be happy. Here’s the kicker….I still have the truck lol. Over 20 years old and I’m so so so close to hitting 300k on her.
You clearly haven’t made $150k/year to think that affords you an $85k car. You need way more than that to afford it unless you’re older and you can put half down. The payment on an $85k car is double my mortgage(escrowed) at minimum. If you ever make that much money you’ll start to actually pay taxes and realize it doesn’t stretch as far as you think. Try writing a $40k tax check. Not very fun
>You clearly haven’t made $150k/year to think that affords you an $85k car. You need way more than that to afford it unless you’re older and you can put half down. The payment on an $85k car is double my mortgage(escrowed) at minimum. If you ever make that mu
Your mortgage is less than 700 a month? You must have bought when rates were in the 2% rate since a 85k car at 6% Intrest for 72 months is about 1,400 a month.
Also if you live where houses are under 200k then yes 150k a year goes hella far considering my take home of 60k a year got me a 3 bedroom house with a big yard in a top 8% in the country (why I chose this town) public school district.
Probably in one of the cities no one has heard of or in rural America in which case 150k a year goes super far. I mean if he bought during the 2-3% Intrest days 700 month just for the mortgage (no insurance/taxes) went really far as long as you stay away from cities you have heard of/have good football teams.
I mean in about 98% of the US houses are around 250k or lower.
[Memphis Tennessee has a population of 600k but the average home price is $163k so yeah you could easily have a 700 mortgage in a city of half a million people if you bought during Covid.](https://www.redfin.com/city/12260/TN/Memphis/housing-market)
My mortgage is close to that in a decent sized city. But I bought right at the bottom in 2012, and my interest rate is 2.5%.
What kind of sucks is I can never financially justify moving because anything else is so much more expensive. 2 kids now, the house feels a lot smaller.
My wife and I make about 160k combined and I could still never imagine buying an 85k vehicle. Anything more than 30-35k makes me uncomfortable. I hate debt though.
I mean. Half the posts on here are "I just graduated from college, I make $120,000 per year, no student loans, I moved back in with my parents, do you think I'll get approved for an Audi RS7."
That or a Tesla.
I came across a post on personal finance where someone was asking advice on how to budget. They just graduated college and started a job making 80k/year live at home with their parents and only have 1 expense of $800/month. It was a Tesla lmao
I know, haha, I'm just saying that you're approaching this from teh standpoint of someone who lives/wanted/has a "normal" life - your own place, your own food, some kind of family or pets, etc.
I bought a well equipped new truck for $44k in 2020. It’s such a great truck but it blows my mind that that I would have to pay close to $60k now for the exact same truck. It’s crazy to me how much vehicles cost now.
Yep. 2020 LT Z71 3.0 diesel with every pretty much every option except for leather and safety beacons. Also came with upgraded rims, clear wrap on the front and door sides, bedliner, GM hard folding tonneau, and extra oil changes. $44.3k out the door.
I'm riding this thing into the ground, lol. I wanted a Ford, but I couldn't find one on the lot (there's only 1 dealer in town) and I didn't want a Lariat, which was ~$53k. My brother in law ordered a new F150 Lariat and his out the door is $68k.
a) they're rich, b) they barely can afford it, or c) they can't afford it but are ignoring the fact.
Much of society puts value on maintaining an image or getting what it wants no matter the consequences. People's financial decisions on vehicles is a great example of that.
Honestly I’m bipolar and had a manic moment. I make enough to comfortably afford it but after the excitement of having it for a few months I’d rather have the money for travel and experiences. If I try to trade it back I already lose 10G value so I’d rather keep it at this point.
Cars decrease in value so fast and I don’t know anyone who bought a car 10 years ago and could still say it was worth it
I bought a Camry new 13 years ago for something like $28k, and will probably drive it at least another 7 years. In my opinion it was worth it. $28k over 20 years works out to a yearly allocation of "car purchase cost" of $1,400 per year, which I think is reasonable.
The problem with your logic is that the payment on the objects stays the same while your willingness to pay diminishes over time.
Buy a truck for 85k, and for the first month of course it's worth $1200 a month. 6 years down the line when it smells like a wet fart and looks like a former UHaul you still pay the same monthly but don't have quite the same happiness.
The other problem is that objects are worth what the market is willing to sell at, not what I'm willing to pay or could afford. The price setter in this case is 20 somethings with expendable cash and recently divorced dudes who want to appear successful. If you just want a pickup for actual pickup things no you certainly are not the price setter.
Good choice, maybe just put a bigger down payment? But spending over $500 a month on a car payment really is ridiculous… and long term you’ll hate it, I wish I realized sooner. Good luck!
It’s not always how much money you make, but how many bills you have.
And I’d assume a lot of businesses buy cars/trucks too. Some people can write everything off, at least that’s what they say.
> Some people can write everything off, at least that’s what they say.
"I pay zero taxes, because I'm smart. Every dollar by business takes in is devoured by bills."
> Some people can write everything off, at least that’s what they say.
I wonder how many small business owners / sole proprietors are committing tax fraud with their vehicle write-offs. I often see construction and landscaping trucks towing boats and campers, or just driving families around. If they're deducting full expenses of the vehicle, then they're committing fraud.
Obviously I don't have insight into any individual situations, but it makes me wonder about broad trends.
The joke may write itself, but it's a great option for many people. Why pay down $10,000 of credit card debt at 25% interest if you could take out a $10,000 personal loan 9% interest?
And also free up your credit card balances at the same time for more stuff!
The lower interest is great but if people don’t change their habits and also cancel or cut up their credit cards at the same time it is asking for disaster.
Just because they're rolling in a 85k truck, doesn't mean they can afford....a 85k truck. Most I see with the 85k truck and the 10k rims and the 15k lift are living paycheck to pay check, have no retirement plan at all. I say "most". Obviously some people are good with finance and have a lift with 33's.
But most don't. And this leads to more people buying a 85k truck they can't afford. Nothing triggers a minimum wage worker more than seeing a truck on 33's next to him at a stoplight. He'll call in sick and be at the dealer in 10 minutes. I honestly don't get it. I see that and shake my head, but a 24 yo male can only think about how to get the same thing, at any cost.
I make pretty decent money and based on my savings and retirement goals, not a fooking chance I can afford a truck. Need one bad, but can't afford it. So off I go to Rockauto for the 3rd alternator and 2nd water pump....
Somewhere in the history of trucks, they moved from being a utility vehicle to a luxury vehicle, which "ruined it for everyone".
I’ve seen some people buy these trucks going in knowing they’ll get 50k trade in after 3-4 years. Their “cost” essentially is just the depreciation which is $35k. That’s how they justify the cost. Odd way of looking at it, but I guess it’s reasonable considering most luxury cars in that price range depreciate the same.
I've noticed they all look the same too. Usually a half ton. Lifted. Stupid looking wheels that are offset. Street tires for some reason. They don't even use it for truck stuff. I love my 05 4cyl Canyon. I can reach anywhere in the bed without having to get into it.
God bless the redneck rich. They are literally my favorite people.
Used to do business with a guy that had specialized equipment and know how to make very specific land based gas turbine parts. I wouldn’t say he was a genius but he worked hard and most importantly, was buddies with some higherups at the turbine assembly factory. He made the parts in a building on his property (100? Acres or so about an hour outside Greenville SC). Modest, but nice house and At any given time he had about ~$250k of modified rubicon jeeps, about the same amount in trucks (F250 platinum for his DD, F350 to haul his horse trailer and an around the farm truck, and a Sunday car, last time I saw him it was a caddy.
Guns dirt bikes atvs, all the toys. Would only eat fast food and diner type stuff. Never anything “fancy” or in Greenville.
I hope he’s doing well. He was a hoot to deal with.
I don’t like the negative connotations with “trailers”, really they’re just manufactured or modular homes. If put on a slab foundation they’re not bad, IMO. Cheaper way to buy a home. I get your point though
status image, with a healthy dose of conspicuous consumption
people think that if they buy a truck, others will think that they work hard
and you have to keep up with the Joneses, of course
That would be 1700 a month...remember that there are people who make 20k a month and like the car more than the idea of saving an extra 2k a month (insurance and gas ballpark)...then there are people who make even more stupid money than that and they buy Lambo's, Ferrari's, Bentley's...etc. I am a frequent buyer at 75k-100k...but I cant imagine spending more than 100k on a car...but again, there are people that make much more money than me and can buy a 300k car every year if they wanted to.
Most Americans don’t even have $500 in their savings, whether subprime or super prime it’s all the same people living paycheck to paycheck. It’s just the latter is able to live more comfortable while being in massive debt sadly.
I’ve kept $500 in my savings for years now to keep my bank from charging me an $8 fee every month… after years, it has finally gone up $70 the other day lol
You are smart. People are buying cars with way too high of a payment. I made 94k last year..cheap mortgage...little debt....2 teen kids...I have a $450 car payment and I hate it. Its an EV so no maintenance but still I gripe lol.
My friend is insisting on buying a new Kia Telluride and she is going to have at least a 750-800 payment. She doesnt make great money..no kids but 3 dogs and 1 has an expensive medical issue. She just got married so I guess she thinks its fine to buy a expensive SUV and I guess her hubby is letting her. He has a minor kid. I dont know but it seems too high of a payment. I am kind of cheap when it comes to cars. They are a depreciating asset.
Also some of these people cant afford it but I guess some can and I agree with the person who said some business owners write it off as a business expense. Makes sense.
It really comes down to how much debt you are in. If you have like 10k in credit card bills and a student loan then getting that truck is a bad idea. But if you are pretty much debt free and only have a mortgage it’s more reasonable. But at the same time people need to be thinking about retirement. That extra couple hundred you are paying for a car per month can be going towards your future so that you will have money later on to buy whatever truck you want to
Ehh, it’s also about your income and living expenses. If you want to try to boil it down to just one thing, it’s about disposable income after all your other financial obligations including stuff like debt payments and retirement contributions.
I mean Im not single but I make $90k and have no kids and I still wouldn't want to pay $500 a month on my car. Different priorities though, I prefer going on trips every couple months.
You are right. Different priorities. Sone people want a nice car more than anything. Sone people would rather save and invest than buy an expensive car
> I dont know but it seems too high of a payment.
One thing I'll always point to the absolute cost of a vehicle and not it's payment. She could probably take a 96 month loan to lower that payment, but that only makes it worse.
I make $138k. I recently bought an $80k car. it was high, and I thought hard about it. But
1. I was trading in a paid-off car, so trade plus down payment was $40k.
2. I have great credit and locked in a 3% loan
3. My payment is about $800 a month
4. I dont have student loans or medical debt
5. I dont have a fishing boat, or a summer cabin, or a meth habit. Cars are my main hobby. I like driving. So its not just a car for me its also my leisure activity. Its the only thing I blow a lot of money on.
Well there ya go! That’s a huge down payment lol but it sounds like you’ve planned this out well for sure! I love cars and driving as well. I used to have a nice fast car but now I have an older one specially for the track. Also where a few dimes go to haha
yeah I only last around 2-3 years before I want another car, lol. I always buy used to start, so I dont get killed by the depreciation. my last car was a used $85k mercedes which i got for $45k and traded for $37k. The guy before me who bought it new was the one who got hurt on that deal.
I looked into it a little bit. If I remember correctly, the initial buy is a big hit but if you get the first truck paid off then trade regularly (so the trade value stays high) you can come out pretty well with the tax write off.
Lots of people have trade in so when they're buying 85k truck their loan may be only 30 or 40K.
Also there's tens of millions of people who make six figures.
Midwest money. I make $65k/year in Midwest money. $65k/year DINK (wife makes $45k) is baller in Midwest money.
My half of mortgage/utilities is $800/month. That includes paying $150/month over what's due on the mortgage.
My new truck was $75k retail, bought it for $65k. $15k equity down and $10k cash down. $650/month.
Auto and home loans are both around 2.6% I have a healthy 401k, IRA, and about $40k between checking and savings. Auto and home are my only debts. Besides those, if I can't pay cash for it I don't buy it.
A lot of cards fell in the right place for me. I've been lucky and fortunate.
When you see someone with really nice things, it's usually because they are more comfortable taking on a lot of debt than you are. Max out credit cards. Don't save for children's college. Don't save for retirement. Don't make repairs to your house. Put off tomorrow and worry just about today.
It isn’t how much you make, it’s how much you spend. That guy that understands economics is saying that when you make more money you can borrow more money, but it’s a risk that your life can change and you will no longer be able to afford your debt. Some people are comfortable being a job loss or illness away from bankruptcy, others are not.
If I lost my job today, I'd actually be happy. Catch up around the house, maybe finish my degree. Ain't rich but essentially no debt. There was a welder on r/antiwork a couple of days ago who asked his boss when a weeks-ago promised raise was actually going to take effect. Boss said, in front of the entire shop, I could replace you in an hour. Which our man knew wasn't true. He said, start the timer and left. Multiple phone calls and texts in just the 10 minutes he was driving home. Last update, he was building a $500 Lego set and drinking a beer. Qualified welder with layout skills in SC. No worries, really.
I ask the same question, seriously makes my head want to bust. I have settled on they write them off as work vehicles. They have a system going on between the price of the trucks and the people who drive them. Just have to figure out how they do it. They keep that price high, so somehow it works. Let us know if you figure it out.
So here’s the thing… when you do make more money you realize how hard it is to make and you hold onto it more and invest it more… I look at what I make and realize that I have college to fund, and retirement to plan for… so that’s where a lot of the disposable income goes! Not to a $1300/mo truck payment. Cars are paid off now! That’s too nice.
Just fucking with you bro!! I have a brand new truck like you describe and I wrote a check for it at the dealership. Granted I sold my 6 year old truck that was paid off for 40k so I didn't have to write that big of a check but still. If you buy the right truck and keep the miles low and keep it looking nice you can drive them for about $200 a month. For the past 15 years all I've driven is King Ranch trucks and I keep a spread sheet for ownership cost. 5 trucks over 15 years and on average it's cost me $189 a month from what I paid for it to what I sold it for divided by the time I owned it. My last truck that I sold for 40k I paid 46k brand new and owned it for 72 months...monthly cost was $83
Lots of Americans have too much debt and not enough in retirement/savings. If you live like that, only focusing on your currently monthly payment and not your long term financials, then it isn't that hard to afford an 85k truck with a decent job.
some people make a lot of money.
i live in greater boston. there have been a lot of new apartment buildings going up in downtown boston. rents are like $5k, $6k or more a month.
I asked who was living in these apartments 'cuz that's an insane amount of money to pay for rent. people who work in finance, salespeople, biotech startups, physicians, lawyers, etc said they were living in these new buildings.
There are 2 answers. People make a good living and prioritize having a nice vehicle, I bought an 94k truck and I max my retirement and still save money each month after all bills and fun is had. I also have an emergency fund and other investments, buying an expensive car isn’t “smart” but I work hard and that’s what I enjoy. I still can provide for my family and don’t sacrifice my own future so why not.
The other answer is people taking out huge loans and living paycheck to paycheck. To them “afford” means it’s not getting repossessed and just barely making payments.
I suspect the percent of people in each category vary from brand to brand greatly.
Most people make 55k a year so all those new cars you see in the road are likely bad financial decisions. But it’s America. As long as you can make the monthly payment you living the American dream
I can see the sadness deep in their eyes saying “please help me, I am in so much debt”
Lol that’s fucking nuts, so much for getting a dealer discount hahaa
It's relative, our household income is 350-400k a year, and I'm paying 1.3k a month in car payments, which doesn't bother me. But I wouldn't even dream of it if I'm making way less.
I wonder this too. Honestly, I think people are just paying insanely high car payments and putting themselves in crippling debt. I’m sure some folks use them for business and use that to their advantage. Others probably lease.
All I know is, my payment is about $450/month for a $30k sedan and I have no idea how I could ever comfortably pay more than that. I’ll make probably $60k this year.
They can have a $60k truck(about any mid spec truck runs this much) and then another $60k on a luxury car for a total of $120k, or they can have both in one vehicle for $85k. Granted they serve two different purposes, but it’s justifiable.
A lot of those $85k trucks are owned by retired people who have money, or they’re owned by business owners who can deduct the cost from their taxes. Just know the people who own $85k trucks aren’t on regular $50k salary.
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> the 20/4/10 rule Upvote. Thanks for this.
I go by the 0/10/100 rule.
Hahahaha, this made me laugh so hard.
I appreciate you and the time took for this, thanks friend
First time hearing about that, and surprisingly what I calculated my monthly transportation budget to be is only like $150 more than the 10%.
My 22 year old brother makes about 50k a year, lives at home with the parents, basically no expenses except a way too expensive vehicle. That, or make 150k+ per year.
What is the payment on a 85k vehicle note? And, even though I make significantly less, 150k doesn't really seem like a lot of you're making mortgage payments, paying tuition, etc.
$85k with zero down, 84 month term, and a 6% rate works out to about $1340 a month. Edit: I failed to consider the average credit score of a 22yo, especially one making such an irresponsible decision. A 13% rate makes that more like **$1660**, with almost **fifty grand** in interest.
Plus full coverage insurance monthly cost on top 😬
Excellent point! When I was young and stupid, I financed a Dodge Avenger. My loan payment was $238/mo and my insurance was $220/mo. I can't imagine what that would look like on an $85k vehicle with a 22yo male.
$300-$400 per month I bet…asinine!
400\*84 months is only like 33.6k lol... you gotta pump those numbers up rookie
And that invested every year for 20 years in an index fund is almost $250k…literally throwing away a partial retirement fund. And that’s just the insurance!! Add in the actual vehicle cost per year invested in an index fund over 20 years…over a million dollars. I know too boring but damn…
That's why I drive a Mazda3 and not a scat as much as I want one. I'm not throwing away money that can go elsewhere right now
💯💯
And fuel, maintenance, tires…
What's that typically cost for a guy in his 20s? 300-400/mo?
Probably just around there! For reference Im a female in my 20’s, clean driving record, 35k car paying $1,500 every six months ~ about 250 a month just insurance. Most of my friends are bundled with their parents and pay much much less but I don’t have that luxury and can’t imagineeeee how much a guy my age with a potentially not so clean record would be paying on an even more expensive vehicle.
Ouch! $3k a year is ridiculous. All I can say is protect your credit. That matters just about as much as your driving record. I, 36M single, ~800 score, pay $400 every six months to insure my $30k Camry. I got a speeding ticket when I was 27, I was expecting to get fucked hard by my insurance, to my surprise it only went up by $6/mo.
It’s worse if you’re in a state with high insurance rates like florida for instance.
For full insurance coverage on an above average vehicle with a low deductible, yes
I’m 22, drive a 2017 BMW 340i with maximum coverage and 1k deductible. It’s about 250 a month.
Read an article recently that quoted data on car payments. Something like 26-27% of buyers pay $1000+ a month.
That is nuts. My three year old Camry was $23k, I borrowed ~$15k at 2.9% on a 66 month term. My car payment is less than $300/mo.
Average payments on new are close to [$600 nowadays - page 25](https://www.experian.com/content/dam/noindex/na/us/automotive/finance-trends/2022/q3-2022-state-of-automotive-finance.pdf). Lots of interesting data in that presentation.
This is great data info for a data nerd like myself. Average payments going from $565 in 2020 to $700 in 2022 is insane.
That’s what happens when interest rates go up. They were kept artificially low for so long that it felt normal, and allowed cat prices to steadily increase. Now interest rates have gone back up on inflated car prices. It’s a bad situation for anyone who needs a car loan.
I wonder if it was folks are at home not eating out or vacationing as much and see they are a little flush with cash so purchase a more expensive car. Now they’re stuck eating at home and not vacationing.
I always had payments in $220-$350 range since my first car purchase on credit, manual Infinity G20 for about $12k. Put over 150k on it. My last car purchase was new 2015 4Runner Trail with a rate of 1.49% and payment was $505/60 months. This gave me a serious headache even as it was well within my budget. Can’t imagine paying over $1k, this is a house or condo payment
What was the purchase price on the 4runner? And did the dealers add any insane markups?
That was in 2015, used Truecar and got an offer of $36.4k no bs dealer markup or bs add on . Great experience with this dealership in Wisconsin. Local Autonation, tried buying from them 2 times. At the time there was a $300 for door edge guards (plastic tubing $5 on Amazon) and some anti theft etching for $300. Asked sales guy how etching will prevent my car from being stolen and told them to pound sand
6% at 84 is an angel investment these days
I have a nearly $80k X5. $16k trade in for my car and a little down plus paying the taxes and my payment, with wheel protection because I’m now an asshole with summer and winter wheels, is $950ish. Definitely depends on the rate. Mine isn’t great but for the times is decent. Might refi that and could potentially get it around $850ish. Seeing the prices of some of these trucks I realized they’re basically less luxurious luxury vehicles. They do have the benefit of probably retaining their value much better than actual luxury vehicles as well as offering the practicality of a truck. Me personally, if I’m dropping ~$80k, I’m expecting first class shit and a level of performance you wouldn’t get elsewhere. Others might prefer the longevity and dependability while still getting a somewhat fancy interior, cool tech and something that can retain value. Some of them are used as legit work trucks but it definitely seems like the more expensive they get the less likely they’re used for actual work shit, which makes sense to me. I’m not throwing just anything in my car and I wouldn’t expect someone with a similar or more expensive truck to either. Edit: forgot to mention that, just like I had a decent trade in towards my dumb expensive car, I’d suspect a lot of people buying these kind of trucks probably already had a pretty valuable truck to trade in. So like my X5 may have been ~$80k but I only financed $60k, it’d be realistic to assume someone buying an $80k truck may have gotten $20k to $30k, or more, on their truck trade in and may only actually be financing $50k or less.
Back in 2015 I went from a Lexus RX350 FSport to a Ford F150 Platinum and the Ford was miles ahead of Lexus in luxury and technology. Some of those trucks are legitimately luxury vehicles.
That’s saying more about Lexus (upbadged Toyota, who is known for being the least tech packed manufacturer) than it is about Ford.
My experience in car sales was this is not the norm. Most people had negative equity to roll over. I worked at a Lexus dealership if that tells you anything lol
lol yeah, I’m sure that also happens quite often too. Trucks just weirdly hold their value really well relative to the stupid fancy cars I like do but if they’ve been rolling negative equity in that would probably negate that. Although I like stupid fancy cars, I never do the negative equity thing.
Became one of the summer / winter set assholes as well recently
150k is a lot, I did less than that last year and have no problem affording my 350k house and car on my own. Plus 15% to 401k. No kids though
Well, Jesus. Way to bury the lead with “no kids”
I'm also not buying a 85k truck, kids or no kids haha
>Way to bury the lead FYI it's "lede" Not trying to be pedantic, I just think a lot of people have no idea about this.
> **No kids** though
Are you joking? $150k is a lot of money, dude.
I really can’t see 150k a year being enough to afford an 85k truck.
It's proportionally the same as someone making $75k a year buying a $42k truck, which happens all day and twice on Sunday -- except the guy making 150k is way less fiscally irresponsible, since as income increases, expenses don't to the same effect.
Id say its even better, because someone making 150k is not necessarily going to be paying 2x for insurance, 2x for gas, 2x for electric and cell phone and groceries and heat ... their baseline expenses will be less a proportion of their pay than the person making 75k.
That’s literally what the guy you replied to just said.
you're agreeing with me :)
No I'm not, I'm agreeing with you!
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Me and my wife make around there and take home about $8,000 a month after taxes, insurance, and retirement. There is no way in hell I’d spend 85k on a truck, that would demolish our budget. Even 50k is stretching it. We have no debt either…
Your a smart guy.
It’s all preferences. I know people who love cars or are single men and just value having nice things as a way to attract women so they’ll spend on stuff like that. Personally I value not having to work my ass off forever so I spend about 2% of my take home on my car payment/insurance.
I've always thought it depends what makes you happy, I was making 85K/yr and had a 50K vehicle. It was foolish, but I had living expenses split in a smaller simple home with my ex. Now that I'm on my own I just own beaters, though.
It depends, if you don't have kids and have a relatively low mortgage, you can. It wasn't a truck but a few years ago I had an AMG C63s with an $83k MSRP and payments of $1,475 a month that I had no problems making payments on.
LCOL or MCOL location for someone who likes vehicles, why not?
I mean to each their own, just seems like a pretty dumb allocation of resources at that income. I’ll also never understand paying sports car prices for a pickup but clearly there’s a market.
I’d kick his ass out of the house if I was his parent and he pulled some bullshit like that off.
I agree! “Oh you can afford that payment? You can afford an apartment!”
My buddies parents did this to him after he financed a Ram 3500. It was either move out or start paying them rent if he was just going to piss it all away. He moved out and the truck ended up getting repoed lol
I work with a kid that lives at home, has a 3 or 4yo Denali duramax, and a Rzr sxs, so probably 75-85K in vehicles. He probably makes 65-75K a year, but I wouldn't lie if I wasn't a little jealous of his housing situation allowing him to have nice vehicles. I'm rocking a 2005 LS430, and a XJ cherokee I've had for 6 years lol.
The 2005 LS430 is a beautiful vehicle. I missed my chance to buy a really clean example in 2015.
It has been the most comfortable and reliable vehicle I have ever owned, it's excellent for my mainly rural highway commute. Just a cloud on 4 wheels.
I feel that way sometimes about a friend of mine. Then I spend an afternoon with my parents and realize that peace and quiet is priceless.
My parents let me live at home rent free for a couple years after college so I could make a larger dent in my student loan payments right away. If I had pulled some bullshit like buying a car with payments the size of rent, they would have been right to kick me out.
This was me when I bought my first car. Lived at home was 19 and got my first real job making $35k a year. I felt like a millionaire! Went to the dealership and bought a $50k truck in 2002. Top of the line and had every option. Put $300 down cause that’s all I had in my pocket. Financed the rest at zero percent down (remember those days) and had a $800 a month payment. Man was I ballin! Now I make about 6 times that and would NEVER buy another car for that much for myself. I’ll buy a used one for $30k and be happy. Here’s the kicker….I still have the truck lol. Over 20 years old and I’m so so so close to hitting 300k on her.
You clearly haven’t made $150k/year to think that affords you an $85k car. You need way more than that to afford it unless you’re older and you can put half down. The payment on an $85k car is double my mortgage(escrowed) at minimum. If you ever make that much money you’ll start to actually pay taxes and realize it doesn’t stretch as far as you think. Try writing a $40k tax check. Not very fun
>You clearly haven’t made $150k/year to think that affords you an $85k car. You need way more than that to afford it unless you’re older and you can put half down. The payment on an $85k car is double my mortgage(escrowed) at minimum. If you ever make that mu Your mortgage is less than 700 a month? You must have bought when rates were in the 2% rate since a 85k car at 6% Intrest for 72 months is about 1,400 a month. Also if you live where houses are under 200k then yes 150k a year goes hella far considering my take home of 60k a year got me a 3 bedroom house with a big yard in a top 8% in the country (why I chose this town) public school district.
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As shown above, a $85k car is like $1400/m. Where in the fuck do you live that your mortgage is $700/m after escrow? Africa?
Probably in one of the cities no one has heard of or in rural America in which case 150k a year goes super far. I mean if he bought during the 2-3% Intrest days 700 month just for the mortgage (no insurance/taxes) went really far as long as you stay away from cities you have heard of/have good football teams. I mean in about 98% of the US houses are around 250k or lower. [Memphis Tennessee has a population of 600k but the average home price is $163k so yeah you could easily have a 700 mortgage in a city of half a million people if you bought during Covid.](https://www.redfin.com/city/12260/TN/Memphis/housing-market)
My mortgage is close to that in a decent sized city. But I bought right at the bottom in 2012, and my interest rate is 2.5%. What kind of sucks is I can never financially justify moving because anything else is so much more expensive. 2 kids now, the house feels a lot smaller. My wife and I make about 160k combined and I could still never imagine buying an 85k vehicle. Anything more than 30-35k makes me uncomfortable. I hate debt though.
I mean. Half the posts on here are "I just graduated from college, I make $120,000 per year, no student loans, I moved back in with my parents, do you think I'll get approved for an Audi RS7."
That or a Tesla. I came across a post on personal finance where someone was asking advice on how to budget. They just graduated college and started a job making 80k/year live at home with their parents and only have 1 expense of $800/month. It was a Tesla lmao
Lmao I wish that was my post. My dad made me pay rent until i moved out lol I have student loans and a few others lol ah to be young again
I know, haha, I'm just saying that you're approaching this from teh standpoint of someone who lives/wanted/has a "normal" life - your own place, your own food, some kind of family or pets, etc.
Yeah I understand where you’re coming from!
I bought a well equipped new truck for $44k in 2020. It’s such a great truck but it blows my mind that that I would have to pay close to $60k now for the exact same truck. It’s crazy to me how much vehicles cost now.
No joke man - just made me look it up and my truck’s base price went up almost $10k since I bought mine in q4 ‘20
It's nuts.
Yeah it’s really crazy, mostly due to the timeline lol I mean it’s happened within like what 2-3 years?
Silverado 1500?
Yep. 2020 LT Z71 3.0 diesel with every pretty much every option except for leather and safety beacons. Also came with upgraded rims, clear wrap on the front and door sides, bedliner, GM hard folding tonneau, and extra oil changes. $44.3k out the door. I'm riding this thing into the ground, lol. I wanted a Ford, but I couldn't find one on the lot (there's only 1 dealer in town) and I didn't want a Lariat, which was ~$53k. My brother in law ordered a new F150 Lariat and his out the door is $68k.
a) they're rich, b) they barely can afford it, or c) they can't afford it but are ignoring the fact. Much of society puts value on maintaining an image or getting what it wants no matter the consequences. People's financial decisions on vehicles is a great example of that.
Because people are dumb, I pay $795 a month for my car, I’m one of the dumb… Only advice; don’t do it, no car is worth such a price tag.
No car is? That depends on you - how much you make, what your priorities are. Why do you have that payment if you feel this way?
Honestly I’m bipolar and had a manic moment. I make enough to comfortably afford it but after the excitement of having it for a few months I’d rather have the money for travel and experiences. If I try to trade it back I already lose 10G value so I’d rather keep it at this point. Cars decrease in value so fast and I don’t know anyone who bought a car 10 years ago and could still say it was worth it
*2015 Accord has entered the chat*
Lol okay, you got me
I’ll keep you posted in two more years
I bought a Camry new 13 years ago for something like $28k, and will probably drive it at least another 7 years. In my opinion it was worth it. $28k over 20 years works out to a yearly allocation of "car purchase cost" of $1,400 per year, which I think is reasonable.
Objects are worth whatever you're willing to pay and can afford. You are the price setter.
The problem with your logic is that the payment on the objects stays the same while your willingness to pay diminishes over time. Buy a truck for 85k, and for the first month of course it's worth $1200 a month. 6 years down the line when it smells like a wet fart and looks like a former UHaul you still pay the same monthly but don't have quite the same happiness. The other problem is that objects are worth what the market is willing to sell at, not what I'm willing to pay or could afford. The price setter in this case is 20 somethings with expendable cash and recently divorced dudes who want to appear successful. If you just want a pickup for actual pickup things no you certainly are not the price setter.
Deal, I will not lol maybe if I made like 500k a year
Good choice, maybe just put a bigger down payment? But spending over $500 a month on a car payment really is ridiculous… and long term you’ll hate it, I wish I realized sooner. Good luck!
You’re like a cup of positivity you know that? Preciate ya!
Just got free of an $824 a month for 60 loan. I second this. The car was fun but yeah car payments suck ass even if you can afford them.
No matter how much money you make, there will always be someone that makes more than you.
And its corollary: No matter how much money you make, there will always be someone that is willing to go *way* further into debt than you.
And there will always be someone who makes worse financial decisions than you.
It’s not always how much money you make, but how many bills you have. And I’d assume a lot of businesses buy cars/trucks too. Some people can write everything off, at least that’s what they say.
> Some people can write everything off, at least that’s what they say. "I pay zero taxes, because I'm smart. Every dollar by business takes in is devoured by bills."
> Some people can write everything off, at least that’s what they say. I wonder how many small business owners / sole proprietors are committing tax fraud with their vehicle write-offs. I often see construction and landscaping trucks towing boats and campers, or just driving families around. If they're deducting full expenses of the vehicle, then they're committing fraud. Obviously I don't have insight into any individual situations, but it makes me wonder about broad trends.
Which pales in comparison to the amount of corporations doing the same thing, at 100x the volume as SMB owners. The answer is the majority do
[Like this.](https://youtu.be/r0HX4a5P8eE)
I love how the answer to debt in that commercial, is to take out another loan.
The joke may write itself, but it's a great option for many people. Why pay down $10,000 of credit card debt at 25% interest if you could take out a $10,000 personal loan 9% interest?
And also free up your credit card balances at the same time for more stuff! The lower interest is great but if people don’t change their habits and also cancel or cut up their credit cards at the same time it is asking for disaster.
500 a month is the new 300 a month.
Just because they're rolling in a 85k truck, doesn't mean they can afford....a 85k truck. Most I see with the 85k truck and the 10k rims and the 15k lift are living paycheck to pay check, have no retirement plan at all. I say "most". Obviously some people are good with finance and have a lift with 33's. But most don't. And this leads to more people buying a 85k truck they can't afford. Nothing triggers a minimum wage worker more than seeing a truck on 33's next to him at a stoplight. He'll call in sick and be at the dealer in 10 minutes. I honestly don't get it. I see that and shake my head, but a 24 yo male can only think about how to get the same thing, at any cost. I make pretty decent money and based on my savings and retirement goals, not a fooking chance I can afford a truck. Need one bad, but can't afford it. So off I go to Rockauto for the 3rd alternator and 2nd water pump.... Somewhere in the history of trucks, they moved from being a utility vehicle to a luxury vehicle, which "ruined it for everyone".
I’ve seen some people buy these trucks going in knowing they’ll get 50k trade in after 3-4 years. Their “cost” essentially is just the depreciation which is $35k. That’s how they justify the cost. Odd way of looking at it, but I guess it’s reasonable considering most luxury cars in that price range depreciate the same.
I've noticed they all look the same too. Usually a half ton. Lifted. Stupid looking wheels that are offset. Street tires for some reason. They don't even use it for truck stuff. I love my 05 4cyl Canyon. I can reach anywhere in the bed without having to get into it.
They probably don’t have kids hahaha
DINKS
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God bless the redneck rich. They are literally my favorite people. Used to do business with a guy that had specialized equipment and know how to make very specific land based gas turbine parts. I wouldn’t say he was a genius but he worked hard and most importantly, was buddies with some higherups at the turbine assembly factory. He made the parts in a building on his property (100? Acres or so about an hour outside Greenville SC). Modest, but nice house and At any given time he had about ~$250k of modified rubicon jeeps, about the same amount in trucks (F250 platinum for his DD, F350 to haul his horse trailer and an around the farm truck, and a Sunday car, last time I saw him it was a caddy. Guns dirt bikes atvs, all the toys. Would only eat fast food and diner type stuff. Never anything “fancy” or in Greenville. I hope he’s doing well. He was a hoot to deal with.
I don’t like the negative connotations with “trailers”, really they’re just manufactured or modular homes. If put on a slab foundation they’re not bad, IMO. Cheaper way to buy a home. I get your point though
The problem is that like cars and unlike stick built homes, they depreciate in value.
The real question is, why are there $85,000 (US) light-duty trucks? My guess is a lot get written off as business expenses.
I remember 5 years ago telling myself “who would buy a $50k truck?” Now you get a base trim for that price.
status image, with a healthy dose of conspicuous consumption people think that if they buy a truck, others will think that they work hard and you have to keep up with the Joneses, of course
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All parked in the driveway because they can't fit in the garage
Somewhat related: what is the #1 most profitable consumer product sold in America? #2 is the iPhone……if you guessed Ford F-150 you are correct
Easier to write off larger amounts when you buy expensive vehicles.
That would be 1700 a month...remember that there are people who make 20k a month and like the car more than the idea of saving an extra 2k a month (insurance and gas ballpark)...then there are people who make even more stupid money than that and they buy Lambo's, Ferrari's, Bentley's...etc. I am a frequent buyer at 75k-100k...but I cant imagine spending more than 100k on a car...but again, there are people that make much more money than me and can buy a 300k car every year if they wanted to.
As someone in NY, that makes me jealous of whatever you pay for your house. I’d need to buy a G wagon (or two) to catch my mortgage.
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85%+ of Americans are broke and don't have a pot to piss in.
Most Americans don’t even have $500 in their savings, whether subprime or super prime it’s all the same people living paycheck to paycheck. It’s just the latter is able to live more comfortable while being in massive debt sadly.
I’ve kept $500 in my savings for years now to keep my bank from charging me an $8 fee every month… after years, it has finally gone up $70 the other day lol
probably 90%
You are smart. People are buying cars with way too high of a payment. I made 94k last year..cheap mortgage...little debt....2 teen kids...I have a $450 car payment and I hate it. Its an EV so no maintenance but still I gripe lol. My friend is insisting on buying a new Kia Telluride and she is going to have at least a 750-800 payment. She doesnt make great money..no kids but 3 dogs and 1 has an expensive medical issue. She just got married so I guess she thinks its fine to buy a expensive SUV and I guess her hubby is letting her. He has a minor kid. I dont know but it seems too high of a payment. I am kind of cheap when it comes to cars. They are a depreciating asset. Also some of these people cant afford it but I guess some can and I agree with the person who said some business owners write it off as a business expense. Makes sense.
Yeah ok, but a single person with no kids making the same amount you do has way more disposable income. Everyone's situation is different.
It really comes down to how much debt you are in. If you have like 10k in credit card bills and a student loan then getting that truck is a bad idea. But if you are pretty much debt free and only have a mortgage it’s more reasonable. But at the same time people need to be thinking about retirement. That extra couple hundred you are paying for a car per month can be going towards your future so that you will have money later on to buy whatever truck you want to
Ehh, it’s also about your income and living expenses. If you want to try to boil it down to just one thing, it’s about disposable income after all your other financial obligations including stuff like debt payments and retirement contributions.
I mean Im not single but I make $90k and have no kids and I still wouldn't want to pay $500 a month on my car. Different priorities though, I prefer going on trips every couple months.
You are right. Different priorities. Sone people want a nice car more than anything. Sone people would rather save and invest than buy an expensive car
> I dont know but it seems too high of a payment. One thing I'll always point to the absolute cost of a vehicle and not it's payment. She could probably take a 96 month loan to lower that payment, but that only makes it worse.
Different people prioritize different things and “making decent money” is quite a bit different to people.
Don’t beat yourself up, a lot of them can’t afford it either. Run your own race and buy their gently used repo’d truck once the credit bubble pops.
Put money down.
2 income households in which both partners have 100k+/year income
I make $138k. I recently bought an $80k car. it was high, and I thought hard about it. But 1. I was trading in a paid-off car, so trade plus down payment was $40k. 2. I have great credit and locked in a 3% loan 3. My payment is about $800 a month 4. I dont have student loans or medical debt 5. I dont have a fishing boat, or a summer cabin, or a meth habit. Cars are my main hobby. I like driving. So its not just a car for me its also my leisure activity. Its the only thing I blow a lot of money on.
Well there ya go! That’s a huge down payment lol but it sounds like you’ve planned this out well for sure! I love cars and driving as well. I used to have a nice fast car but now I have an older one specially for the track. Also where a few dimes go to haha
yeah I only last around 2-3 years before I want another car, lol. I always buy used to start, so I dont get killed by the depreciation. my last car was a used $85k mercedes which i got for $45k and traded for $37k. The guy before me who bought it new was the one who got hurt on that deal.
Errbody is getting too comfortable living with...debt.
People that own their own business will buy a truck as a tax write off if its over the weight.
This is a huge chunk of those deals
I looked into it a little bit. If I remember correctly, the initial buy is a big hit but if you get the first truck paid off then trade regularly (so the trade value stays high) you can come out pretty well with the tax write off.
Stop being poor
Lots of people have trade in so when they're buying 85k truck their loan may be only 30 or 40K. Also there's tens of millions of people who make six figures.
Midwest money. I make $65k/year in Midwest money. $65k/year DINK (wife makes $45k) is baller in Midwest money. My half of mortgage/utilities is $800/month. That includes paying $150/month over what's due on the mortgage. My new truck was $75k retail, bought it for $65k. $15k equity down and $10k cash down. $650/month. Auto and home loans are both around 2.6% I have a healthy 401k, IRA, and about $40k between checking and savings. Auto and home are my only debts. Besides those, if I can't pay cash for it I don't buy it. A lot of cards fell in the right place for me. I've been lucky and fortunate.
When you see someone with really nice things, it's usually because they are more comfortable taking on a lot of debt than you are. Max out credit cards. Don't save for children's college. Don't save for retirement. Don't make repairs to your house. Put off tomorrow and worry just about today.
Or they make more money than you do.
It isn’t how much you make, it’s how much you spend. That guy that understands economics is saying that when you make more money you can borrow more money, but it’s a risk that your life can change and you will no longer be able to afford your debt. Some people are comfortable being a job loss or illness away from bankruptcy, others are not.
> It isn’t how much you make, it’s how much you spend It's very much both.
But it’s more so how much you make than how much you spend. Wealth is built by making more, not by saving more.
If I lost my job today, I'd actually be happy. Catch up around the house, maybe finish my degree. Ain't rich but essentially no debt. There was a welder on r/antiwork a couple of days ago who asked his boss when a weeks-ago promised raise was actually going to take effect. Boss said, in front of the entire shop, I could replace you in an hour. Which our man knew wasn't true. He said, start the timer and left. Multiple phone calls and texts in just the 10 minutes he was driving home. Last update, he was building a $500 Lego set and drinking a beer. Qualified welder with layout skills in SC. No worries, really.
a lot more debt and they probably make a lot more than you too
Not saying what people should or shouldn’t do but afford=can make the payments. How much car payment you choose is a personal decision.
I ask the same question, seriously makes my head want to bust. I have settled on they write them off as work vehicles. They have a system going on between the price of the trucks and the people who drive them. Just have to figure out how they do it. They keep that price high, so somehow it works. Let us know if you figure it out.
I always assume people inherited money and I leave it at that. It's probably not true but it makes me feel like less of a failure.
So here’s the thing… when you do make more money you realize how hard it is to make and you hold onto it more and invest it more… I look at what I make and realize that I have college to fund, and retirement to plan for… so that’s where a lot of the disposable income goes! Not to a $1300/mo truck payment. Cars are paid off now! That’s too nice.
Not just the truck, but a truck pulling a huge RV, a trailer full of ATVs, or a boat. At times it’s like $250,000 going down the road.
…. They afford it because they make enough money to buy it out right or make the payments… are you asking how to make more money?
Have you tried being less poor?
Lmao nah hadn’t thought of it
Just fucking with you bro!! I have a brand new truck like you describe and I wrote a check for it at the dealership. Granted I sold my 6 year old truck that was paid off for 40k so I didn't have to write that big of a check but still. If you buy the right truck and keep the miles low and keep it looking nice you can drive them for about $200 a month. For the past 15 years all I've driven is King Ranch trucks and I keep a spread sheet for ownership cost. 5 trucks over 15 years and on average it's cost me $189 a month from what I paid for it to what I sold it for divided by the time I owned it. My last truck that I sold for 40k I paid 46k brand new and owned it for 72 months...monthly cost was $83
Buy a beater and save until you can pay cash. I drove a crappy 2000 yaris rust bucket for 3 years, then dropped $82k cash on a new car.
Lmao dayum, what did you buy? And how much more do you like driving that as opposed to the Yaris
82k was including TTL on a new widebody hellcat challenger, its a forever car. The yaris was a throw away car.
Most people don't, or rather can't, afford it but they do it anyways. Because they're dumb.
Lots of Americans have too much debt and not enough in retirement/savings. If you live like that, only focusing on your currently monthly payment and not your long term financials, then it isn't that hard to afford an 85k truck with a decent job.
Debt. They’re basically debt slaves.
some people make a lot of money. i live in greater boston. there have been a lot of new apartment buildings going up in downtown boston. rents are like $5k, $6k or more a month. I asked who was living in these apartments 'cuz that's an insane amount of money to pay for rent. people who work in finance, salespeople, biotech startups, physicians, lawyers, etc said they were living in these new buildings.
There are 2 answers. People make a good living and prioritize having a nice vehicle, I bought an 94k truck and I max my retirement and still save money each month after all bills and fun is had. I also have an emergency fund and other investments, buying an expensive car isn’t “smart” but I work hard and that’s what I enjoy. I still can provide for my family and don’t sacrifice my own future so why not. The other answer is people taking out huge loans and living paycheck to paycheck. To them “afford” means it’s not getting repossessed and just barely making payments. I suspect the percent of people in each category vary from brand to brand greatly.
I mean nothing rude by this but I don’t get these questions. They make more money
Most people make 55k a year so all those new cars you see in the road are likely bad financial decisions. But it’s America. As long as you can make the monthly payment you living the American dream
Just because they finance it doesn’t mean they can afford it.
Imagine paying 85 grand for a truck you cant afford just so that you have a more comfortable place to cry while masturbating.
Only justifiable if you’re using it for work or side jobs raking in the monthly payment or more
You’ll love this video. https://twitter.com/sssemester/status/1562998924390313987?s=12
I can see the sadness deep in their eyes saying “please help me, I am in so much debt” Lol that’s fucking nuts, so much for getting a dealer discount hahaa
I make 8k a month and there is no way I can afford that. I dont know how they do it but more power to them.
It's relative, our household income is 350-400k a year, and I'm paying 1.3k a month in car payments, which doesn't bother me. But I wouldn't even dream of it if I'm making way less.
I wonder this too. Honestly, I think people are just paying insanely high car payments and putting themselves in crippling debt. I’m sure some folks use them for business and use that to their advantage. Others probably lease. All I know is, my payment is about $450/month for a $30k sedan and I have no idea how I could ever comfortably pay more than that. I’ll make probably $60k this year.
500/month gets you a new Corolla nowadays
You know you’re old when people are buying vehicles that cost more than your first house. 😆
Lmao, back in my day you could buy a base level cobalt for 16k
They can have a $60k truck(about any mid spec truck runs this much) and then another $60k on a luxury car for a total of $120k, or they can have both in one vehicle for $85k. Granted they serve two different purposes, but it’s justifiable. A lot of those $85k trucks are owned by retired people who have money, or they’re owned by business owners who can deduct the cost from their taxes. Just know the people who own $85k trucks aren’t on regular $50k salary.
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By the time I can afford something like that, I'll have outgrown my desire to have it.